Louisiana Attracts Bids for Nearshore Wind Projects, Accelerating Offshore Wind Development

Energy companies aren’t waiting for the federal government to open the Gulf of Mexico's far offshore waters to wind development. Norwegian and Japanese wind farm developers have already offered bids for at least three projects in the nearshore waters managed by Louisiana, which offers a potentially quicker process for building the Gulf’s first wind turbines.

The Louisiana Governor, John Bel Edwards, revealed significant interest from companies in wind projects during his speech at the recent American Clean Power Conference in New Orleans. Although he couldn't disclose the companies' names due to ongoing negotiations with the state Department of Natural Resources, he indicated that two areas in Louisiana waters have caught their attention.

Negotiations for offshore wind lease agreements are underway between the state and Mitsubishi-owned Diamond Offshore Wind and Kontiki Winds, a Norwegian company operating in Louisiana under the name Pelican Winds. These companies have proposed three different wind farms, with discussions focusing on specific areas off Terrebonne, Lafourche, Cameron, and Vermilion parishes.

The wind farms' exact size and distance from the coast remain unclear. However, state leaders and wind developers anticipate minimal opposition, considering the limited residential presence on Louisiana's marshy coast and the Gulf's existing oil and gas infrastructure. Concerns have been raised about potential impacts on wildlife, particularly migratory birds.

While federally managed waters have more significant potential for large-scale projects, companies are increasingly willing to invest in smaller-scale projects in state-owned waters due to a more streamlined approval process. The U.S. Bureau of Ocean Energy Management has recently reduced the wind development areas in federal waters and slowed the leasing process. Consequently, energy companies are exploring opportunities in state waters to expedite wind turbine installations.

Louisiana aims to become a leader in offshore wind development as part of its efforts to combat climate change. Governor Edwards has set a goal for the state to achieve "net zero" carbon emissions by 2050 and aims to secure at least 5,000 megawatts of energy from offshore wind over the next 12 years. The wind projects could not only provide cleaner energy but also generate jobs in the construction, maintenance, and operation of wind farms.

The enthusiasm for offshore wind in Louisiana has attracted interest from major wind industry players like Orsted and RWE. European wind developers have highlighted Governor Edwards' support, urging the focus of federal permitting near Louisiana. The state's existing skills and resources, developed through the oil and gas industry, position it well for offshore wind projects.

As wind developers place bids for nearshore wind projects in Louisiana, the state is poised to become a hub for offshore wind development, providing economic opportunities and cleaner energy for the region.