Cape Wind developer decides to skip first auction of offshore wind farm lease
Boston Business Journal|Jon Chesto |August 2, 2013
Mark Rodgers, a spokesman for EMI, tells me the firm didn't bid on the offshore leases because its team is completely focused on securing financing for Cape Wind by the end of 2013. The company has made some progress this year in that regard, but it still has a ways to go for a project that will likely exceed $2 billion in cost. Rodgers says EMI will strongly consider other offshore wind areas that could be the subject of future lease auctions.
Mark Rodgers, a spokesman for EMI, tells me the firm didn't bid on the offshore leases because its team is completely focused on securing financing for Cape Wind by the end of 2013. The company has made some progress this year in that regard, but it still has a ways to go for a project that will likely exceed $2 billion in cost. Rodgers says EMI will strongly consider other offshore wind areas that could be the subject of future lease auctions.
When the U.S. Department of Interior unveiled its plans to hold the first competitive auction for an offshore wind farm lease, it wasn't surprising that Energy Management Inc. was among those expressing an interest in bidding.
After all, the Boston firm led by Jim Gordon was an early pioneer in offshore wind with its pursuit of the 130-turbine Cape Wind project planned for Nantucket Sound. And the 165,000-acre area that Interior was putting up for bid wasn't that far away, in waters between Block Island and Martha's Vineyard.
But in the end, EMI didn't step up to bid on July 31. Providence-based Deepwater Wind won the auction this week, beating out two other companies for the leases (the area is actually divided up into two leases), …
... more [truncated due to possible copyright]When the U.S. Department of Interior unveiled its plans to hold the first competitive auction for an offshore wind farm lease, it wasn't surprising that Energy Management Inc. was among those expressing an interest in bidding.
After all, the Boston firm led by Jim Gordon was an early pioneer in offshore wind with its pursuit of the 130-turbine Cape Wind project planned for Nantucket Sound. And the 165,000-acre area that Interior was putting up for bid wasn't that far away, in waters between Block Island and Martha's Vineyard.
But in the end, EMI didn't step up to bid on July 31. Providence-based Deepwater Wind won the auction this week, beating out two other companies for the leases (the area is actually divided up into two leases), The winning bid totaled $3.74 million for the 97,500-acre northern section, the more valuable area closer to the mainland, and $94,000 for the area further south. Deepwater will pay the government annual lease payments of at least $500,000, and then a royalty fee instead once a wind farm is operational. The company would like to build up to 200 wind turbines in the offshore area, with a collective generation capacity of up to 1,000 megawatts.
Mark Rodgers, a spokesman for EMI, tells me the firm didn't bid on the offshore leases because its team is completely focused on securing financing for Cape Wind by the end of 2013. The company has made some progress this year in that regard, but it still has a ways to go for a project that will likely exceed $2 billion in cost. Rodgers says EMI will strongly consider other offshore wind areas that could be the subject of future lease auctions.