The United States announces the first sale of offshore wind rights in the Gulf of Mexico

WASHINGTON (Reuters) – The United States on Thursday announced the first sale of offshore wind power development rights in the Gulf of Mexico, which President Joe Biden will discuss during a trip to highlight the administration’s efforts to boost renewable energy.

In February, the United States proposed expanding offshore wind energy development in the Gulf of Mexico, bringing the nascent clean energy industry into a major oil and gas production hub.

The Home Office said the sale would take place on August 29.

“By stimulating the Gulf of Mexico’s offshore wind energy potential, we can tackle the climate crisis, lower energy costs for households, and create good-paying jobs,” said Home Secretary Deb Haaland.

The White House said the sale would include 102,480 acres of lease space off the coast of Lake Charles, Louisiana, and two leasehold lots totaling nearly 200,000 acres off Galveston Beach, Texas. Companies will bid on the right to develop those acres.

The Ministry of Interior said the regions have the capacity to generate about 3.7 gigawatts of electricity, providing nearly 1.3 million homes with clean energy.

The Biden administration has held three offshore wind lease auctions, including the largest-ever U.S. sale last year of offshore New York and New Jersey, which attracted $1.5 billion in bids, and the first ever off California’s Pacific coast.

The White House said Biden travels to Philadelphia on Thursday to make the promise of a green economy to union workers, who remain skeptical that the solar, wind and electric car industries can deliver the same economic hit to organized labor as oil refineries and fossil-fuel power plants.

(Reporting by Jeff Mason and Timothy Gardner) Editing by Sonali Paul and David Holmes

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