Aug 14 (Reuters) - Norway's Equinor ( EQNR ) and U.S.
power company Dominion were the winning bidders in a U.S.
government offshore wind auction of two areas off the coasts of
Delaware, Maryland and Virginia, the U.S. Interior Department
said on Wednesday.
The offshore wind lease sale generated less than $93 million
in winning bids, making it among the least lucrative of those
held by the Biden administration.
U.S. President Joe Biden has put the development of offshore
wind at the forefront of his climate change agenda, but the
industry has stumbled in the last year due to soaring costs and
supply chain disruptions.
Equinor ( EQNR ) bid $75 million for a 101,443-acre lease 26 miles
(42 km) from Delaware Bay. Dominion's Virginia Electric and
Power Co won a 176,505-acre lease 35 miles from Chesapeake Bay
for $17.65 million. Six companies participated in the auction,
the Interior Department said.
Both Equinor ( EQNR ) and Dominion are already developing offshore
wind projects in U.S. waters.
"Offshore wind is critical to our all-of-the-above
approach to meet the unprecedented growth of our customer
electric demand over the next decade," Dominion CEO Robert Blue
said in a statement. "Winning this lease area gives us another
low-cost option to meet that growing demand while providing our
customers with reliable, affordable and increasing clean
energy."
Equinor ( EQNR ) said its newest U.S. lease would not produce
power until after 2035.
"We will take a disciplined approach to minimize risk
and mature a robust project in our portfolio," Pal Eitrheim,
executive vice president of Equinor Renewables, said in a
statement.
Last month, the Interior Department's Bureau of Ocean Energy
Management canceled a planned sale of offshore wind leases in
the Gulf of Mexico due to a lack of industry interest. An
auction held there last year resulted in the sale of just one of
three offered leases for $5.6 million.
The Interior Department plans to hold offshore wind auctions
later this year for areas off the coast of Oregon and in the
Gulf of Maine.