"The Biden administration has bet big on offshore wind. But the first-ever auction in the Gulf of Mexico attracted just two bidders."
"The first auction of leases for wind farms in the Gulf of Mexico, which the Biden administration had heralded as part of its effort to expand clean energy, ended on Tuesday with just one of three available tracts sold.
The lackluster bidding underscored a number of problems facing the offshore wind industry as companies struggle with soaring costs spurred by inflation, rising interest rates and permitting delays, energy experts said. The challenges pose a threat to President Biden’s climate agenda, which calls for building offshore wind farms to power 10 million homes by the end of this decade.
The Bureau of Ocean Energy Management held auctions on one lease area off the coast of Lake Charles, La., and two off the coast of Galveston, Texas. Together, they have the potential to produce electricity to power almost 1.3 million homes, the agency said.
Two companies bid for the tract off Lake Charles. The winning bid of $5.6 million came from RWE, an energy company based in Germany. There were no bids for the tracts off Galveston."
Lisa Friedman reports for the New York Times August 29, 2023.
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