The Gulf of Mexico opens up to hydrogen

The second offshore wind lease auction in the Gulf of Mexico will include hydrogen production, marking a promising first.

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The Bureau of Ocean Energy Management (BOEM) launched a 60-day public comment period following publication of the notice of proposed sale. This period ends on May 20, after which a final notice of sale could be published, providing for sales as early as the end of June and officially introducing hydrogen into offshore wind projects in the Gulf of Mexico.

Regional capabilities and objectives

According to a BOEM spokesperson, federal waters off Texas and Louisiana present the greatest technical capacity for offshore wind in the Gulf of Mexico states. This is in line with the Biden administration’s goal of developing 30 GW of offshore wind capacity by 2030. Louisiana is aiming for 5 GW by 2035.

Rental zone details

The notice of sale proposes four areas off Texas and Louisiana, totaling 410,040 acres with a production potential of around 1,308 GW, enough to power around 1.2 million homes. Zones I-1 and I-2 had already been offered at the first auction.

Community involvement and incentives

BOEM envisages stipulations to ensure that communities, particularly those historically underserved, are considered and involved early in the offshore wind energy development process. Proposed auction credits include fisheries offsets, a U.S.-based supply chain, and workforce development.

Retrospective and screenings

The first auction in August 2023 saw RWE Offshore US Gulf win the Lake Charles lease with a bid of $5.6 million for a potential 1.24 GW. BOEM has since identified four new wind energy zones capable of supporting projects for over 3 million households.

The incorporation of hydrogen into offshore wind development in the Gulf of Mexico is opening up new prospects for renewable energy. It could put the region at the forefront of the US energy transition.

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