Four new wind energy areas with a potential capacity of 9.27 GW of power generation have been designated in the Gulf of Mexico.

The Bureau of Ocean Energy Management said Oct. 27 that the sites total 763,000 acres and stand 47 to 82 miles off the Texas and Louisiana shorelines.

A notice of proposed sale will be issued next, with a 60-day public comment period to follow.

The move is part of the Biden administration’s continuing effort to expand offshore wind generation. BOEM conducted the Gulf of Mexico’s first offshore wind area auction in late August with disappointing results: Two of the three wind leases drew no bids, and the third attracted only two bidders, one of whom dropped out after the first round.

The final result: RWE Offshore US Gulf got rights to install up to 1,244 MW on 102,480 acres with a winning bid of $5.6 million. That is less than $55 an acre and compares with top bids of more than $10,000 an acre in a 2022 auction off the New York-New Jersey coast.

BOEM Director Elizabeth Klein alluded to the lackluster results of the August auction as she announced the new wind areas: “Creating an offshore wind industry in the Gulf of Mexico will take time and partnership. BOEM is pursuing another offshore wind lease sale in the Gulf of Mexico due to continued industry interest and feedback from our partners and key stakeholders.”

Multiple factors complicate offshore wind development in the Gulf, starting with the supply chain constraints and soaring costs plaguing the offshore wind industry elsewhere as it attempts to establish itself in the United States.

Also, the Gulf has weaker winds and a softer seabed than the areas being targeted for offshore wind development off the Atlantic and Pacific coasts, plus a greater threat of hurricanes.

Finally, the economics are less than ideal in the Gulf region, where electricity is relatively inexpensive.

On the positive side, there is potential interest in the Gulf region in using offshore wind to power clean hydrogen production. The fossil energy industry has a large offshore presence in the area, making wind turbines more palatable to the public. And Louisiana is encouraging offshore wind development closer to shore, in state waters.

The trade group Business Network for Offshore Wind welcomed BOEM’s announcement and noted that the Gulf region already is playing an important role in U.S. offshore wind development.

In a news release, BNOW Vice President John Begala said:

“With nearly a quarter of U.S. market contracts going to Gulf firms, the area is already the engine for U.S. offshore wind industry; building a robust pipeline of projects will further unlock the true potential of the region’s supply chain capacity. Gulf expertise in offshore construction is unparalleled, and innovative solutions developed there will continue to drive not just the U.S. but the global offshore wind industry forward.”