Hecate Energy Seeking to Acquire Wind Energy Lease in Gulf

NEW ORLEANS — Chicago-based Hecate Energy, a major player in solar power and energy storage across the United States, is now seeking to acquire two substantial commercial wind energy leases in the Gulf of Mexico.

According to the Bureau of Ocean Energy Management, the areas, totaling 142,352 acres, are located off the coast of southeast Texas and have been set aside for offshore wind leasing since 2021.

By law, the agency is required to issue a request for competitive interest whenever it receives an unsolicited bid for a lease. It said notice of that request will be published in the Federal Register on Monday, July 29.

It also said if it received at least one additional bid on the areas, it will consider scheduling a competitive lease sale. If not, it said it may move forward with selling Hecate Energy the leases on a noncompetitive basis.

In March, BOEM canceled a planned lease sale due to a lack of interest from developers.

Hecate Energy has yet to publicly announce its proposed wind farm, and a representative of the company did not respond to an emailed request for comment.

What is known from agency filings is that earlier this year, the company informed the agency of its desire to develop a 2 GW offshore wind farm with interconnection points in both Texas and Louisiana.

The wind farm itself, known now as Gulf Wind Offshore Wind Project 2, would include 133 fixed-bottom wind turbines, with a capacity of 15-23 MW each.

Hecate Energy also told regulators there are multiple potential uses for renewable energy the site would produce, including interconnection to the electric grid, sale in power purchase agreements to private offtakers, or use for Wind-to-X technologies through which offshore wind energy is used to produce another energy resource. 

The first lease sale in the Gulf of Mexico was held in August of 2023 and one lease was awarded to RWE Offshore US Gulf LLC.

“The Gulf region benefits from great offshore wind resources and existing energy infrastructure,” said Gulf of Mexico Regional Director Dr. James Kendall. 

“The interest from industry leaders such as Hecate and RWE demonstrates the commercial potential in the region,” he continued. “As we continue to explore these opportunities, we will ensure that any potential development is done in a way that avoids, reduces, or mitigates potential impacts to ocean users and the environment.”

In a statement provided to The Well News, Amy Krebs, vice president for offshore wind at Hecate Energy said the company “is excited to see BOEM advance our request for an unsolicited lease in the Gulf of Mexico.

“Hecate has a long history of developing energy in the Gulf Region and sees the long-term potential for offshore wind in the Gulf of Mexico,” Krebs continued. “This initiative, while still in the early stages, represents a significant step forward in our journey towards a sustainable energy future and demonstrates our commitment to driving economic development in the region.”

Since the start of the Biden-Harris administration, the Interior Department has approved the nation’s first nine commercial scale offshore wind projects with a combined capacity of more than 13 GW of clean energy — enough, roughly, to power nearly 5 million homes. 

Since January 2021, the department has also held four offshore wind lease auctions — including a record-breaking sale offshore New York and the first-ever sales offshore the Pacific Coast and in the Gulf of Mexico.

To comment on the latest request for competitive interest, go to www.regulations.gov and search for BOEM-2024-0039. 

Dan can be reached at [email protected] and at https://twitter.com/DanMcCue