Equinor successful in Massachusetts' offshore wind lease sale

Norwegian oil and gas major Equinor ASA (NYSE:EQNR) is one of the provisional winners in the auction for offshore wind leases off Massachusetts that was concluded on Friday.

The competitive bidding process was held by the Bureau of Ocean Energy Management (BOEM) and ended up with proposals having a combined value of USD 405.1 million (EUR 358.3m). The three lease zones south of Nantucket and Martha's Vineyard cover an area of about 390,000 acres (157,800 ha) that could accommodate about 4.1 GW of capacity to supply nearly 1.5 million homes, if fully developed.

Equinor said on Friday that it has secured a wind lease area totalling 128,811 acres with a bid of USD 135 million, beating its own record-smashing proposal of USD 42.5 million at end-2016 for the right to build a wind farm off New York. The Norwegian group will now explore the potential for installing offshore wind power capacity within the OCS-A 0520 lease area, while continuing work on wind projects off New York and New Jersey.

“This acquisition complements our existing position on the US East Coast and gives us a foothold to engage in the Massachusetts and wider New England market, a region notable for its strong commitment to offshore wind,” said Christer af Geijerstam, president of Equinor Wind US.

As BOEM announced on Friday, the final bids for the other two leases stood at USD 135.1 million and USD 135 million. The successful bidders are Vineyard Wind and Mayflower Wind Energy, a joint venture between Royal Dutch Shell (AMS:RDSA) and EDP Renewables.

(USD 1.0 = EUR 0.884)

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