An Oregon-based company is the provisional winner of a federal lease sale for wind development in the Atlantic Ocean off North Carolina, Kallanish Energy reports.
Avangrid Renewables won the lease for 122,405 acres off Kitty Hawk for $9.07 million. Three other companies submitted bids in what the seventh competitive lease sale for wind development in federal waters.
“Renewable energy, like offshore wind, is one tool in the all-of-the-above energy toolbox that will help power America with domestic energy, securing energy independence and bolstering the economy,” said Interior Secretary Ryan Zinke, in a statement.
Avangrid Renewables has developed or is developing 6,300 megawatts (MW) of renewable energy worth $10 billion in 20 states, said CEO James Torgenson, in a statement.
His company is a subsidiary of Avangrid and is the U.S. renewable energy division of Spanish parent company Iberdrola. Avangrid was formed in 2015 with the merger between Iberdrola and UIL Holdings. Iberdrola owns 81.5% of Avangrid.
The triangular-shaped North Carolina lease area begins about 24 nautical miles from shore.
The lease area has the potential of generating 1,486 MW, enough to power more than 500,000 homes, said the Bureau of Ocean Energy Management. The actual size of the wind energy project will be determined by developer.
The Department of Justice and the Federal Trade Commission must review the auction. Avangrid would have one year to submit detailed plans for federal review.
After a Site Assessment Plan is approved, the company would have 4.5 years to submit a Construction and Operations plan to the federal agency.
That will trigger environmental reviews and a look at alternatives. If the project gets approved, Avangrid would then have 25 years to build and operate the wind farm.