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Posts Tagged ‘wind leases’

North Sea shutout – no bids for Danish wind leases

Posted in energy policy, Offshore Energy - General, Offshore Wind, tagged , , , , on December 6, 2024| Leave a Comment »

No bids for the 3 large North Sea tracts (yellow) west of Denmark.

Danish Energy Agency: “The deadline for bidding on the first 3 GW of Denmark’s 6 GW offshore wind tendering procedure expired on Thursday. The Danish Energy Agency has not received bids for any of the three offshore wind farms in the North Sea put out to tender. The Minister for Climate, Energy, and Utilities has asked The Danish Energy Agency to engage in dialogue with the market to identify why no bids have been submitted.“

Even Orsted, which is 50.1% Danish govt owned, failed to submit a bid. Perhaps the economic realities of offshore wind, as reflected in Orsted’s share price (below) are sinking in.

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Tough day for US offshore wind

Posted in Gulf of Mexico, Offshore Wind, tagged , , , , , on August 30, 2023| Leave a Comment »

Yesterday was not a good day for US offshore wind. Not only was the Gulf of Mexico wind lease sale disappointing, but Orsted announced US impairments of $2.3 billion causing their share price to fall to the lowest level in more than 4 years.

Unsurprisingly, Orsted management assumes no responsibility for the company’s poor performance, blaming supply chain problems, high interest rates and “a lack of new tax credits.” Outsiders might suggest that there were other factors such as irrational exuberance in the acquisition of wind leases at inflated prices, and unrealistic expectations regarding a complementary power source that is dependent on government mandates and subsidies.

“The situation in U.S. offshore wind is severe,” Chief Executive Mads Nipper told reporters on a conference call.

Reuters

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Good work by BOEM in siting the Gulf of Mexico wind leases, but their analysis misidentifies 94 oil and gas leases

Posted in energy policy, Gulf of Mexico, Offshore Energy - General, Offshore Wind, tagged , , , on July 26, 2023| Leave a Comment »

BOEM’s Final Sale Notice for the upcoming Gulf of Mexico wind auction identifies 3 lease areas (see map below). Wind operations in these areas should not significantly conflict with other GoM activities, including oil and gas operations.

Those who followed Exxon’s recent lease acquisitions may be amused by the map below from BOEM’s siting analysis document. The 94 Exxon leases acquired at Oil and Gas Lease Sale 257 (yellow blocks) are misidentified as “Carbon Capture Lease Blocks.” As has been discussed at length on this blog (most recently here), Sales 257 and 259 were oil and gas lease sales. Although Exxon’s intentions are now well known, they may not conduct carbon sequestration operations on these leases unless they are competitively reissued or converted. (Is BOEM’s siting document implying that conversion of the Exxon leases is a fait accompli?) The regulations for such conversions, and for CCS operational activities, have yet to be promulgated. A draft of these regulations is expected later this year, and the comments should be spirited and diverse.

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