By Meg Sullivan
PBN Staff Writer
The Bureau of Ocean Energy Management will hold the monetary phase of an auction for two federal lease areas off the coast of Rhode Island and Massachusetts on Wednesday, July 31 at 10:30 a.m., the Block Island Times reported.
WASHINGTON - The Bureau of Ocean Energy Management will hold the monetary phase of an auction for two federal lease areas off the coast of Rhode Island and Massachusetts on Wednesday, July 31 at 10:30 a.m., the Block Island Times reported.
Providence-based Deepwater Wind LLC is among the nine companies eligible to bid for the two leases of offshore wind energy projects. Deepwater Wind is currently developing a wind farm project off the coast of Block Island, which will begin construction next year according to the company’s website.
The lease areas are a total of 164,750 acres, located nine nautical miles South of Rhode Island, Providence Business News has previously reported. The south area is 67,252 acres and has a minimum bid of $1 per acre, or $67,252 total. The north area is 97,498 acres and has a higher minimum bid of $2, or $194,996 total, because it is more cost effective for commercial development.
The site is the first designated wind energy area in the federal government’s effort to develop wind energy and has the potential to power more than one million homes with electricity.
The lease for the project is “Deepwater’s ultimate goal in the region,” PBN has reported. Deepwater CEO Jeff Grybowski said he anticipates his company winning the auction.
During the auction, BOEM will consider both cash bids and non monetary credits, the latter if the bidder holds a power purchase agreement or a joint development agreement. Possession of a PPA or JDA qualifies bidders for a credit of up to 25 percent for one lease area.
The final sale notice for the auction stated that a “non-monetary factor” will be considered along with bidding for the leases.
The companies that are qualified to take part in the auction are:
Deepwater Wind; EDF Renewable Development, Inc.; Energy Management, Inc.; Fisherman’s Energy, LLC; Iberdrola Renewables, Inc.; Neptune Wind LLC; Sea Breeze Energy LLC; US Mainstream Renewable Power (Offshore) Inc.; and US Wind Inc.