MARTHA’S VINEYARD – A provisional lease has been awarded a lease to two companies hoping to build offshore wind farms off Martha’s Vineyard.
The Bureau of Ocean Energy Management has leased over 350,000 acres about 12 nautical miles south of the Vineyard to RES America Developments and Offshore MW.
The bids came in just under $450,000.
If built, the bureau says the windfarms could provide enough power for 700,000 homes.
The Bureau of Ocean Energy Management, which is a federal office under the Interior Department, held the auction for the leases on January 29.
It was the nation’s fourth competitive lease sale for renewable energy in federal waters offshore of Massachusetts for potential wind energy development.
Developing offshore wind energy is part of President Obama’s comprehensive Climate Action Plan to create American jobs, develop domestic clean energy resources and cut carbon pollution.
The auction consisted of two rounds before determining RES America Developments, Inc. and Offshore MW LLC as the provisional winners of the lease areas of 187,523 acres and 166,886 acres, respectively.
Winning bids totaled $448,171 in high bids. The total acreage of these two areas nearly doubles the amount of acreage leased for wind energy through competitive sales. Two areas of 248,015 acres and 140,554 acres did not receive bids.
“Offshore wind along the Atlantic holds great potential to help power our nation with renewable energy while adding jobs to the economy,” said Secretary of the Interior Sally Jewell. “We look forward to working with Governor Baker and his administration during this important time for offshore wind development.”
Bureau of Ocean Energy Management officials said they were pleased with the interest in the leased areas.
“We are pleased to see continued commercial interest in the offshore wind industry, as demonstrated by [Thursday’s] lease sale, particularly given the water depth of the wind energy area offshore Massachusetts. With provisional winners who are well established and have experience in developing wind energy facilities, we are optimistic about a strong renewable energy future offshore Massachusetts,” said Bureau of Ocean Energy Management Director Abigail Ross Hopper.
Prior to this lease sale, the Bureau has awarded five competitive wind energy leases off the Atlantic coast: two offshore Massachusetts-Rhode Island, two offshore Maryland and another offshore Virginia.
Including this auction, competitive lease sales have generated more than $14.5 million in high bids for more than 700,000 acres in federal waters. The Bureau expects to hold another competitive lease sale offshore New Jersey later this year.
The two leased areas today are found within the Massachusetts Wind Energy Area, which starts about 12 nautical miles offshore Massachusetts.
Each lease will have a preliminary term of one year, during which the lessee will submit a Site Assessment Plan to the Bureau of Ocean Energy Management for approval. A Site Assessment Plan describes the activities (installation of meteorological towers and buoys) a lessee plans to perform for the assessment of the wind resources and ocean conditions of its commercial lease area.
If a Site Assessment Plan is approved, the lessee will then have up to five years in which to submit a Construction and Operations Plan to the Bureau for approval.
After the Bureau receives a Construction and Operations Plan from a lessee, the Bureau will conduct an environmental review of that proposed project. Public input will be an important part of the review process, according to the Bureau. If the Construction and Operations Plan is approved, the lessee will have an operations term of 25 years.
