US Opens Bidding for Offshore Wind Acreage off Texas

The U.S. Bureau of Ocean Energy Management said on Friday it is seeking competitive bids for offshore wind leases off the coast of Texas after renewable energy developer Hecate Energy Gulf Wind LLC made an unsolicited bid.

The administration of President Joe Biden sees offshore wind power as a vital part of a broader strategy to decarbonize the U.S. power sector to fight climate change, but the nascent industry faces strong local opposition in some areas over concerns about ocean views and damage to sea life.

Leases are typically sold at scheduled auctions and BOEM billed the unsolicited bid from Hecate as evidence of the commercial potential of wind power in the Gulf of Mexico.

"The Gulf region benefits from great offshore wind resources and existing energy infrastructure," said BOEM's Gulf of Mexico regional director James Kendall in a press release.

A lease auction in the region last year drew paltry interest.

BOEM said Hecate was seeking acreage off the coast of southeast Texas within a roughly 142,000-acre region that had been set aside for offshore wind leasing in 2021. It did not provide details of Hecate's bid.

A Hecate representative was not immediately available to comment.

BOEM said if it receives at least one additional bid on the area, it will consider scheduling a lease sale. Otherwise it may issue the noncompetitive lease to Hecate.

(Reuters - Reporting by Richard Valdmanis; Editing by Rod Nickel)