Two more offshore wind leases in the US relinquished by developers

The latest deal, which follows a highly controversial deal with TotalEnergies, the legality of which has been questioned, sees Bluepoint Wind, developed by Ocean Winds and Global Infrastructure Partners, and Golden State Wind, a joint venture of Ocean Winds and Reventus Power, managed by Ocean Winds, agreeing to end their offshore wind leases, with the affiliate companies agreeing to make financial investments in conventional energy projects.

However, the statement from the Department of the Interior confirming the agreements did not reference another Ocean Winds project in the US, SouthCoast Wind, the status of which remains unclear.

Responding to the announcement, Associate Attorney General Stanley Woodward Jr said the Department of Justice is working with parties to reach agreements that he claimed “are in the best interests of the American people.” He said, “Protracted litigation benefits neither.”

Ocean Winds North America chief executive Michael Brown, Ocean Winds North America being a 50% owner of Bluepoint Wind and Golden State Wind, said, “We welcome the opportunity to engage constructively with the administration on this agreement and acknowledge the clarity they have provided with this decision and deal. 

“Our priority remains disciplined capital allocation and delivering reliable energy solutions that create long-term value for ratepayers, partners, and shareholders.”

BlackRock chairman of midstream and LNG, Salim Samaha, whose company owns 50% of Bluepoint Wind, said, “We appreciate the very constructive engagement with Secretary Burgum and the Department of the Interior and are pleased to have reached a practical resolution based on our shared commitment to pragmatic outcomes. 

“We look forward to continuing to deploy capital into conventional and other energy sources in furtherance of the twin goals of increasing US energy independence and affordable energy.”

Global Infrastructure Partners, part of BlackRock, has committed to invest up to US$765M, the original bid amount for the Bluepoint Wind offshore wind project (Lease No OCS-A 0537), into a US-based LNG facility. Following this accelerated investment, Interior will cancel the lease and reimburse the company’s bid payment in the amount invested in the LNG project. The Department of the Interior said Bluepoint Wind has decided not to pursue any new offshore wind developments in the US.

Golden State Wind has committed to end its offshore wind lease in the Morro Bay Wind Energy Area, California (Lease OCS-P 0564). Under the terms of the agreement, Golden State Wind will be eligible to recover approximately US$120M in lease fees after an investment has been made of an equal amount in the development of US oil and gas assets, energy infrastructure, and/or LNG projects along the Gulf Coast. Golden State Wind has also decided not to pursue any new offshore wind projects in the US.