Renewable energy developer makes unsolicited offer to lease offshore wind farm in Gulf of Mexico

In 2020, the first wind turbines installed in U.S. federal waters, 27 miles off the coast of Virginia Beach, Virginia, were completed. (U.S. Office of Ocean Energy Management)

Federal energy regulators announced Friday they have received an unsolicited application from a renewable energy company seeking a lease for an offshore wind farm in a part of the Gulf of Mexico that is seen as key to the country’s transition to renewable energy and the Biden administration’s climate goals.

The request came from Hecate Energy, an American company specializing in generating electricity from solar and wind and storing renewable energy in multiple locations across the country.

Hecate has reportedly filed for a lease on two potential tracts off the Texas coast, about 30 miles southeast of Matagorda Beach. Press Release from the U.S. Bureau of Ocean Energy Management (BOEM).

Hecate proposes to build 133 offshore wind turbines that will generate 2 gigawatts of electricity, enough to power about 750,000 homes.

The two areas in question cover a combined 223 square miles on the Outer Continental Shelf and are in a sector that has some of the highest wind speeds in the Gulf, according to the National Renewable Energy Laboratory. Studies conducted under the Trump administration have shown that offshore wind development in the Gulf of Mexico has the potential to generate double the energy is currently used in all five Gulf states.

But the development has so far taken a few wobbly steps that some fear could scare off investors. BOEM had to cancel a previous lease sale in March because of a lack of competing interest.

In his applicationHecate noted investor reluctance to pursue Gulf Wind projects, saying its proposal could galvanize the industry. After having achieved a lot of success developing onshore wind farms in Texas, the company said it was uniquely positioned and had a high level of confidence to pursue offshore wind in the Gulf.

Because Hecate’s request was unsolicited, federal regulations require BOEM to issue a public notice seeking comments from other industry competitors who might be interested in the lease. If other companies express a legitimate interest in acquiring the lease and are eligible to actually purchase it, BOEM could decide to put it up for competitive auction. If the agency receives no other interest, it will likely move forward with the sale of Hecate.

Since the start of the Biden-Harris administration, the Interior Department has approved nine of the nation’s first commercial offshore wind projects, totaling more than 13 gigawatts of clean energy—enough to power nearly 5 million homes.

Since January 2021, the department has held four offshore wind lease auctions—including a record sale off New York State’s Long Island and the first-ever sale off the Pacific coast and in the Gulf of Mexico. The Interior Department also recently announced a schedule of 12 additional wind lease sales by 2028.