December 23, 2016
By Stephanie West
Long Island, NY – Texas-based Statoil Wind US LLC, a subsidiary of Norwegian mega-utility Statoil, placed a record $42 million bid to win the lease rights to build a wind farm consisting of 79,000-plus acres of ocean 11 miles off Long Island.
For its winning bid, Statoil Wind lands an opportunity to submit a site-assessment plan to the Bureau of Ocean Energy Management. Following approval, the company will have an additional 54 months to submit a construction and operations plan.
The auction covered 79,350 acres of ocean real estate – roughly 127 square miles – between the southern Long Island and northern New Jersey coasts.
With an approved construction plan, the company would have an additional 25 years to build and operate its wind farm, generating 1 gigawatt of power – enough to power three-quarter-of-a-million homes.
The $42 million-plus bid is a record for an offshore U.S. lease. The United States is considered an emerging market for offshore wind power. Energy companies worldwide view opportunities along the vast USA coastline.