Biden-Harris Administration Announces RWE As Provisional Winner of Lake Charles Lease Area
For Immediate Release: August 29th, 2023
Media Contact: Jenny Netherton, jennyn@sewind.com
Raleigh, N.C. – The Department of the Interior today announced the results of the Bureau of Ocean Energy Management’s (BOEM) offshore wind auction off the coast of Louisiana in the Gulf of Mexico. RWE Offshore US Gulf, LLC is the provisional winner of the Lake Charles Lease Area, which has the potential to generate approximately 1.24 gigawatts of offshore wind energy capacity and power nearly 435,400 homes with clean, renewable energy. SEWC applauds BOEM and Louisiana Governor John Bel Edwards for their continued commitment to building renewable energy in the Gulf of Mexico.
RWE Offshore US Gulf, LLC’s winning bid for lease area OCS-G 37334 was $5.6 million dollars. That total includes bidding credits of $860,000 in investments for workforce training and a domestic supply chain, as well as more than $430,000 in fisheries compensatory mitigation. Two lease areas South of Galveston, TX did not receive bids.
With a long history of offshore oil and gas development, offshore wind presents Louisiana an opportunity to leverage this expertise as the transition to renewable energy gains momentum in the Southeast. The offshore wind industry offers a natural extension of the state’s experienced energy workforce, with numerous discussions and efforts already underway to ensure Louisiana can capitalize on the $109 billion economic investment opportunity
Louisiana Governor John Bel Edwards has expressed significant interest in securing the Pelican State’s role as a national leader in the offshore wind industry. Louisiana’s Climate Action Plan, released in 2022, sets an offshore wind power generation goal of 5 GW by 2035 and demonstrates clear support from the executive branch for offshore wind development.
“We are incredibly excited to work with RWE Offshore US Gulf, LLC to bring offshore wind development to Louisiana. The announcement of a provisional lease winner increases the opportunity for economic development to support the offshore wind industry in Louisiana and across the Gulf Coast,” said SEWC’s Katharine Kollins.
“The Gulf of Mexico does not have a clear path for offtake of power and additional incentives from states could help create market certainty to spur additional development. Transmission and procurement planning will allow offshore wind developers to make targeted investment decisions in the Gulf of Mexico and create a pipeline of projects,” added SEWC’s Jenny Netherton.
About SEWC
The Southeastern Wind Coalition is a 501(c)3 that works to advance the land-based and offshore wind industry in the Southeast. We focus on supply chain growth, economic development, job growth, and wind energy development in the region with solutions that are beneficial to industry, utilities, and result in net economic benefits to citizens and ratepayers. For more information about the Southeastern Wind Coalition visit http://www.sewind.org.
