Statoil is winning bidder in NY offshore wind lease sale

DECEMBER 19, 2016 – The Bureau of Ocean Energy Management (BOEM) reports that Statoil Wind US LLC, was the provisional winner of the December 16 competitive lease sale for renewable energy in federal waters that offered 79,350 acres offshore New York for potential wind energy development.

Statoil Wind US LLC, bid $42,469,725 for lease area OCS-A 0512.

Avangrid Renewables, LLC, DONG Energy Wind Power (U.S.) Inc., Innogy US Renewable Projects LLC, New York State Energy Research and Development Authority, and wpd offshore Alpha LLC also participated in the lease sale.

“”We are excited to have submitted the most competitive bid in a highly attractive project, Statoil’s first offshore wind lease in the United States,” said Irene Rummelhoff, Statoil´s executive vice president for New Energy Solutions. “We now look forward to working with New York’s state agencies and contribute to New York meeting its future energy needs by applying our offshore experience and engineering expertise.”

Statoil says the lease comprises an area that could potentially accommodate more than 1 GW of offshore wind, with a phased development expected to start with 400-600 MW. The New York Wind Energy Area is located 14-30 miles (30-60 km) offshore, spans 79,350 acres (321 sq.km), and covers water depths between 65 and 131 feet (20-40 meters).

Statoil will next conduct studies to better understand the seabed conditions, the grid connection options and wind resources involved in the lease site.

“We will work closely with the New York State Energy Research and Development Authority (NYSERDA) on these studies and throughout the permitting process, and in connection with power offtake options,” says Rummelhoff.

The State of New York projects that offshore wind will be a significant part of the renewable energy generation needed to meet its Clean Energy Standard in 2030.

“The U.S, is a key emerging market for offshore wind – both bottom-fixed and floating – with significant potential along both the east and west coasts. As today’s announcement shows, Statoil 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. This effort is in line with the company’s strategy to gradually complement our oil and gas portfolio with viable renewable energy and other low-carbon solutions,” says Rummelhoff.

In Europe, Statoil is developing an offshore wind portfolio with the capacity of providing over 1 million homes with renewable energy. Statoil currently holds a 40% share in the Sheringham Shoal wind farm in the U.K, which has been in production since 2012. The Dudgeon offshore wind farm, also located offshore Norfolk in the UK – and the world’s first floating offshore wind farm, Hywind Scotland – will come in production in 2017. Earlier this year, Statoil acquired 50% of the Arkona offshore wind farm in Germany, which will come in production in 2019.