RWE strengthens U.S. offshore wind portfolio

RWE Renewables, a leading player in offshore wind globally, has been successful in the California offshore wind lease auction in the United States, securing Lease Area OCS-P 0561 with a winning bid of $157.7 million. The auction consisted of five lease areas, all of which will require the use of floating technology deployed at commercial-scale due to water depths.

RWE’s awarded site is 45 kilometers offshore in the Humboldt Bay off the north coast of California and has water depths of 723 meters. The lease area has the potential to host up to 1.6 gigawatts (GW) of capacity, enough to power 640,000 U.S. homes with clean energy. The project is expected to be in operation by the mid-2030s contingent upon the permitting timeline.

The next step in project development for RWE is to perform offshore studies that will provide key information to determine project design and submit applications required for federal, state, and local permits. Committed to stakeholder outreach, RWE will continue to engage with local tribes, the fishing industry, and ocean users; engage with the domestic supply chain to create new local jobs and private investment; collaborate with labor on workforce training programs; and establish community benefits agreements with fisheries and local communities.

Offshore wind is a key technology for the U.S. to address climate change and security of energy supply. California, the world’s fourth-largest economy, is currently planning for the build-out of a long-term offshore wind industry, including a goal of bringing 25 GW of offshore wind online by 2045 and playing a major role in helping the state achieve 100 percent clean electricity and carbon neutrality. The industry has also seen federal support for the build-out of floating offshore wind with a national target of 15 GW of floating offshore wind by 2035.

Offshore wind is a key technology for the U.S. to address climate change and security of energy supply. California, the world’s fourth-largest economy, is currently planning for the build-out of a long-term offshore wind industry, including a goal of bringing 25 GW of offshore wind online by 2045 and playing a major role in helping the state achieve 100 percent clean electricity and carbon neutrality. The industry has also seen federal support for the build-out of floating offshore wind with a national target of 15 GW of floating offshore wind by 2035.

Earlier in 2022, RWE’s U.S. portfolio expanded into the rapidly growing offshore wind market with a successful bid into the New York Bight lease auction in which RWE was awarded a 3 GW Lease Area off the coast of New York and New Jersey through the joint venture ‘Community Offshore Wind’.

RWE is also well on track to become a leader in floating wind. In the addition to the success in the California auction, RWE is selected as qualified bidder for two commercial floating projects off the French coast, is preparing together with its partners to participate in the Utsira Nord floating wind tender in Norway, and is looking into floating wind opportunities in the APAC region. To gain experience early, RWE is participating in multiple floating demonstration projects in Norway, Spain and the U.S., each based on different foundation concepts. The most advanced project is the TetraSpar Demonstrator, which was commissioned off the Norwegian coast in 2021.

The success in California builds on RWE’s long established U.S. renewables business with 4.5 GW of onshore solar and wind. The company recently announced the agreement to acquire Con Edison Clean Energy Businesses, Inc. The transaction, expected to close in the first half of 2023, marks a milestone in RWE’s growth ambitions in the United States, increasing the company’s renewables portfolio in the U.S. to more than 7 GW of operating assets. Once completed, this will make RWE the number 4 renewable energy company in the U.S.