In a first-of-its kind auction for the Gulf of Mexico, a company bid $5.6 million Tuesday to lease federal waters off the Louisiana coast for wind energy generation.development. Only one of three available tracts received bids. And only two companies bid. The winning bidder was RWE Offshore US.
Analysts cited a variety of factors behind the current, relatively low interest in the lease sale, including inflation and challenges specific to the area such as lower wind speeds and the need for designs that consider hurricane threats. Clearview's report also said wind energy is likely to play a key role in development of clean hydrogen production. The Biden administration has yet to implement a planned tax credit for hydrogen — another possible drag on immediate interest in Gulf wind leases, the report said.