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The U.S. Department of the Interior has announced the first offshore wind power auction in the Gulf of Mexico will take place on August 29th. This ambitious move is in line with President Joe Biden’s focus on clean energy and the fight against fossil-fuel-driven climate change.
The potential power that would be generated by the auctioned areas has the potential to supply approximately 1.3 million households with clean energy, and it’s no surprise that many companies have already expressed interest. Major energy corporations in Europe, such as Shell, TotalEnergies, Equinor, and RWE, along with domestic companies such as Hanwha, Hecate Energy, and Quantum Capital are all bidding for lease rights.
Perhaps a major hurdle in further developing the offshore wind industry in the region is the challenge of the Gulf’s lower wind speeds, soft soils, and hurricanes. Additionally, the Southeast region is characterized by its low power prices, which could make more expensive offshore wind energy a difficult choice.
On Thursday, President Biden traveled to Philadelphia to promote the promise of a green economy and assure union workers that alternative energy sources like solar, wind, and electric vehicles can deliver the same economic development as the oil and gas industries.
The U.S. government’s action of introducing this nascent clean energy industry into the Gulf can both create new jobs and help mitigate the effects of climate change. It will definitely be an industry milestone to watch in the upcoming months