Avangrid and Invenergy win historic but muted Maine lease sale

The sale, conducted by the Bureau of Ocean Energy Management (BOEM), resulted in two provisional winners of four lease areas and more than US$21.9M in winning bids. 

Avangrid Renewables LLC won Lease OCS-564 at US$4,928,250, which consists of 98,565 acres and Lease OCS-568 at US$6,244,850, which consists of 124,897 acres. 

Invenergy NE Offshore Wind LLC won Lease OCS-562 at US$4,892,700, which consists of 97,854 acres and Lease OCS-567 at US$5,889,000 which consists of 117,780 acres.

The lease areas are understood to be capable of supporting 6.8 GW of offshore generation.

Eight lease areas were available for bids, but four others failed to secure interest from developers, potentially due to the high cost of developing floating wind, its lack of technological maturity compared with bottom-fixed offshore wind, the effect of inflation on the industry as a whole and uncertainty in the market as the US election nears.

The lease sale resulted in more than US$5.4M in total bidding credits. The bidding credits represent binding commitments by companies to invest over US$2.7M in workforce training and domestic supply chain development, and an additional $2.7M fisheries compensatory mitigation.

In addition, lease stipulations require the lessees make every reasonable effort to enter into a project labour agreement covering the construction stage of any project for the lease areas; develop communication plans for engagement with Tribes, agencies and fisheries; and provide semi-annual reports on engagement activities with Tribes and communities.

Responding to the results of the lease sale, Oceantic Network chief executive Liz Burdock said, “Today’s auction demonstrates that offshore wind will continue to play a leading role in the northeast’s energy future. These lease areas will deliver jobs and drive significant investment in manufacturing facilities, ports and transmission development. Despite the general uncertainty around the upcoming presidential election, this is a vote of confidence for an American industry that has already received nearly US$3Bn of new supply chain investment in the first nine months of 2024.”

Offshore wind advocacy group Turn Forward described it as “a groundbreaking moment for the American offshore wind industry.”

Turn Forward executive director Hillary Bright said it was “a pivotal moment for floating offshore wind.” She said the lease sale “further demonstrates that offshore wind energy can be a critical part of the energy future in the US.

“This cutting-edge technology opens a new frontier for clean energy in the US, positioning New England as a global leader in offshore wind development,” she said. “Developing offshore wind energy in the Gulf of Maine is expected to bring numerous economic and environmental benefits to the region, including high-quality jobs and clean, reliable electricity.”

Today’s announcement follows the issuance of an offshore wind research lease to the state of Maine in August 2024. The lease enables the state, in collaboration with the fishing community, wildlife experts and industry leaders, to construct a 144-MW pilot project and conduct studies that will inform future floating offshore wind development in the region and beyond.