Dive Brief:
- Statoil has won the right to explore the possibility of constructing a wind farm offshore New York, laying claim to an area that could potentially host 1 GW of renewable power.
- The company's $42 million bid was declared the winner of a recent auction held by the U.S. Department of the Interior's Bureau of Ocean Energy Management.
- Greentech Media called the bid "aggressive," and said the final development could rival some of the largest offshore wind facilities in Europe. The United States' first commercial offshore wind facility just began operating this month.
Dive Insight:
Now that the U.S.' first offshore wind farm is up and running as of last week, more companies are gearing up to compete for leases to develop those facilities.
Offshore wind is still a nascent industry in the United States, but Statoil's interest in providing clean energy to New York City could move things forward quickly.
The first facility to begin operating domestically, the 30-MW Block Island wind farm, is tiny compared to what Statoil is considering. According to the company, an initial development phase would be sized 400 MW to 600 MW and located about 13 miles off Long Island.
Irene Rummelhoff, Statoil's executive vice president of New Energy Solutions, said in a statement that the company will work closely with the New York State Energy Research and Development Authority and views the United States as an growing opportunity.
“The US is a key emerging market for offshore wind – both bottom-fixed and floating – with significant potential along both the east and west coasts," Rummelhoff said, adding that the company is well-positioned to "take part in what could be a significant build out of offshore wind in New York and other states over the next decade."
By some estimates, the United States has over 4,000 GW of offshore wind potential, representing more than four times the country's total electricity demand. The site offshore New York was one of 10 Atlantic sites identified by BOEM for wind development.