The administration of President Joe Biden will begin the sale of offshore development rights on Tuesday for eight areas near the northern New England coasts. This is a test for industry interest in new investment following a year of high profile setbacks.

Biden's last auction before he leaves office as a Democrat in January is the sale of almost 1 million acres (406,880 hectares). Donald Trump, Republican presidential candidate next week, has promised to halt offshore wind projects in the event that he wins the election against Democratic Vice President Kamala Harris.

Biden has made offshore winds a cornerstone in his plan to decarbonize electricity grids by 2035. Costs are on the rise, and there have been supply chain issues and construction accidents that have slowed down development. This has cast doubts on the administration's goal to install 30 gigawatts in offshore wind by this decade.

According to the U.S. Bureau of Ocean Energy Management, the areas that are available for lease in the Gulf of Maine, off the coasts of Massachusetts and New Hampshire, could produce enough offshore wind power to power over 4.5 million households.

Because many states have adopted laws requiring the procurement of offshore wind to meet climate goals, the U.S. Northeast offers a lucrative market for offshore developers. Maine, for example, has set a target of installing 3 GW offshore wind by the year 2040. Massachusetts, with its target of 5.6GW by 2027, is the leader in offshore winds.

Two offshore wind auctions in the Gulf of Mexico, and Oregon this year have been cancelled due to industry malaise. These regions do not require offshore wind.

The development of the Gulf of Maine will give a significant boost to the use of floatng wind turbines. This is a new technology that's required for the deep waters of the region. The U.S. hopes to have 15 GW floating wind turbines along its coasts by 2035 in places such as California, Oregon, and Maine.

Off the coast of Maine, a small project is being developed to demonstrate this technology.

According to the BOEM notice, Avangrid, Equinor, TotalEnergies, Repsol, and Invenergy divisions are among 14 developers who qualify to bid at the auction.

BOEM will provide updates on its website. The online auction will begin at 9:00 local time (1300 GMT). (Reporting and editing by David Gregorio; Nichola Groom)

(source: Reuters)