Louisiana pioneers offshore wind energy with historic approvals - Interesting Engineering
Louisiana ups offshore wind energy with historic approvals
Louisiana pioneers offshore wind energy with historic approvalsLouisiana marks a historic moment with approval for the state's inaugural offshore wind farms, Cajun Wind and Diamond Offshore Wind, paving the way for a sustainable future.Can EmirPublished: Dec 15, 2023 09:31 AM ESTinnovationCoastal wind turbines at the oceanic windmilljonathanfilskov-photography/iStock Get a daily digest of the latest news in tech, science, and technology, delivered right to your mailbox. Subscribe now.By subscribing, you agree to our Terms of Use and Policies You may unsubscribe at any time.Renowned for its historical leadership in energy production, Louisiana is set to make history again with the approval of the state's first-ever offshore wind operating agreements, the state announced. Governor John Bel Edwards and Louisiana Department of Natural Resources (DNR) Secretary Tom Harris jointly announced this groundbreaking development following the approval by the State Mineral and Energy Board during its December meeting.Cajun Wind and Diamond Offshore Wind take the leadThe State Mineral and Energy Board approved two significant projects, marking a historic moment for Louisiana. The first project, Cajun Wind, secured a 59,653-acre agreement off the coast of Cameron Parish. In contrast, the second, Diamond Offshore Wind, received approval for a 6,162-acre property agreement near Terrebonne and Lafourche parishes. See Also Related New York installs first offshore wind-turbine to power 70,000 homes Offshore wind farm to power oil and gas production in Norway Eiffel Tower-sized blades: China’s new offshore wind project Governor Edwards expressed his enthusiasm, stating, "For generations, the state of Louisiana has been a leader in energy production, and offshore wind energy is the next chapter in that great history as we expand our options for clean energy production and open new avenues for the development of our state economy."Secretary Harris emphasized the flexibility demonstrated in the negotiations of these pioneering agreements. DOW Wind, covering a smaller area, will contribute more to up-front costs and rental fees per acre. In contrast, with a larger agreement, Cajun Wind has a lower per-acre fee for up-front and rental payments but a higher energy royalty over the agreement's duration. Harris detailed the financial breakdown: "DOW Wind property agreement paid $308,101 up-front on its 6,100-acre agreement, while Cajun Wind paid $357,923 on its 59,000-acre agreement. However, DOW Wind is paying 1.5 percent of gross revenues in energy royalty over the life of the agreement, while Cajun Wind is paying 2.2 percent."Legislation passed in recent years played a crucial role in establishing a clear framework for leasing state offshore areas for wind energy projects. Secretary Harris acknowledged the importance of this legislation, stating, "It gave potential operators and developers a readily understandable set of rules to work by in planning these kinds of projects. That kind of predictability is very important when you are asking companies to commit the kind of investment we are going to be seeing off our shores."Louisiana's unique position in wind energyGovernor Edwards highlighted Louisiana's advantageous position in wind energy projects, leveraging existing infrastructure and a network of support industries with decades of experience in offshore operations. He emphasized, "Wind energy projects off Louisiana's coast will benefit from having transportation, fabrication, and engineering expertise that has long supported our traditional offshore industry already in place. And our existing ports and offshore support companies will benefit from new customers and new opportunities to work and grow jobs."Louisiana aims to install 5 GW of offshore wind by 2035, signaling a commitment to a sustainable energy future. As the first offshore wind projects in the state take shape, Louisiana stands at the forefront of a new era in clean energy production, embracing innovation while building on its rich history in energy leadership. HomeInnovationAdd Interesting Engineering to your Google News feed.Add Interesting Engineering to your Google News feed.SHOW COMMENT (1) For You Experts find 45-mile hidden fault, sparks tsunami risk in Canada, USHow artificial intelligence is shaping the college application processUS scientists discover 'ice pimples' in Arctic's warming seafloorHumans get lazy when they think robots are doing all the workNASA celebrates 120 years of human flight and its impactCapturing CO2 using light — and turning it into valuable productsUS Congress green lights the sale of nuke subs to AustraliaWhy scientists believe the Earth's oceans are losing their blue colorUS Space Command reaches full operational capability after four yearsCrucial personality traits of successful start-up founders Job Board
Related Knowledge Center: Offshore wind energy
Over the next decade, U.S. offshore wind power is expected to grow from a single 30-megawatt wind farm off Rhode Island to more than 2,000 MW of capacity along the Atlantic Seaboard. There are contracts for wind power off the coasts of Massachusetts, Connecticut, New York, Maryland, New Jersey, Rhode Island, and Virginia.
The National Renewable Energy Laboratory has estimated the United States has over 4,000 gigawatts (GW) of offshore wind potential, enough to power the country four times over.
The growth in part being spurred by state solicitations, including in New York, where then-Gov. Andrew Cuomo (D) set a commitment of 9,000 MW of offshore wind by 2035, and in Connecticut, where in June 2021, Gov. Ned Lamont (D) signed legislation authorizing the construction of 2,000 MW of offshore wind by 2030.
The offshore development is also being driven by an investment tax credit set to end in December 2019 and is equal to 12 percent of expenditures. U.S. Sens. Susan Collins (R-Maine) and Tom Carper (D-Del.) have introduced a bill to extend the tax credit for up to eight years.
The Interior Department has held eight competitive lease sales that resulted in 15 offshore wind leases over 1.7 million acres that has the potential for 21 GW of capacity. In February 2022, the Bureau of Ocean Energy Management completed a bidding process that realized $4.37 billion for 488,000 acres across six lease areas in federal waters off New York and New Jersey.
Projects have also been proposed off the Southeast coast, off California and Hawaii, and for the Great Lakes.