Feds award leases for offshore wind farms in S. Jersey

RES America Developments Inc., a subsidiary of Broomfield-based Renewable Energy Systems Americas Inc., has won a bid to lease an area off the coast of New Jersey, where it plans to build a wind farm.

US Wind Inc. bid just over $1 million for the rights to the northern lease area of about 183,000 acres. Fishermen’s Energy LLC also participated in the lease sale. Fishermen’s Energy failed to secure a lease.

The federal auction is part of President Obama’s comprehensive Climate Action Plan to create American jobs, develop domestic clean energy resources and cut carbon pollution.

Despite losing out on the large land leases, a November 9 press release from FE’s COO, Paul Gallagher, stated that the New Jersey Assembly Telecommunications and Utilities Committee approved an amendment to the Offshore Wind Economic Development Act that requires the New Jersey BPU to open a “window” to solicit new proposals for a small wind project off Atlantic City.

“US Wind doesn’t come with experience other than with winning a prior lease sale”, Firestone said. “Today’s auction is the best news for off-shore wind in New Jersey since then”. The state Board of Public Utilities was supposed to adopt regulations to do so almost five years ago, but never has. “I am so pleased to see New Jersey leading the way in building a more sustainable energy industry right here at home”. In New Jersey, Viking Village in Barnegat Light, Atlantic Cape Fisheries and Cold Spring Fish and Supply Co. are a few of the partners. For each unit of electricity an offshore wind facility produces, it could cash in an OREC, receiving in exchange a predetermined amount from the buyer of the energy.

“With provisional winners for both lease areas, we are optimistic about the promise of a strong renewable energy future offshore New Jersey, as well as for the entire nation”.

Prior to today’s lease sale, BOEM had awarded nine commercial offshore wind leases, including seven through the competitive lease sale process (two in an area offshore Rhode Island-Massachusetts, another two offshore Massachusetts, two offshore Maryland and one offshore Virginia). The two sides fought several rounds in state court, but in October the company agreed to rework its project to address the BPU’s concerns.