Players in the nascent U.S. offshore wind industry are looking beyond the grid when the Biden administration holds the first-ever offshore wind auction in the Gulf of Mexico on Tuesday
The U.S. Gulf Coast region, the nation’s primary offshore source of oil and gas, has cheap electricity and lacks state mandates for renewable energy procurement, making it an unlikely place to expand one of the most expensive forms of clean energy.
“When we get to the Gulf, will start becoming much more disconnected from the grid,” said Cheryl Stahl, principal project manager at risk assessment firm DNV. “The Gulf gets to be sort of a breeding ground for innovative solutions.” Companies qualified to bid at Tuesday’s sale include units of companies already established in the U.S. offshore wind industry like Shell, Invenergy and TotalEnergies .
The American Clean Power Association, a trade group that represents offshore wind and other renewable energy developers, also said in its comments to BOEM that green hydrogen would “increase market viability of offshore wind.”
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