The US-based offshore wind project developer Deepwater Wind is mulling developing a 1,000MW wind project in federal waters south of Rhode Island and Massachusetts.
The company expects to secure the lease during the federal lease auction scheduled by the Department of Interior’s Bureau of Ocean Energy Management (BOEM) on 31 July 2013.
In an interview with Reuters, Deepwater CEO Jeffrey Grybowski said the company is hopeful of winning the lease citing that it is the preferred developer for the project.
The developer had won a similar lease auction earlier in 2008 for an offshore project at Rhode Island.
BOEM is set to undertake an auction process to sell two leases comprising a 97,500-acre north lease and a 67,250-acre south lease.
The US National Renewable Energy Laboratory estimates that the north lease has a potential to produce 1,955MW, while the south lease can produce 1,440MW.
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By GlobalDataDeepwater has earmarked an investment of $5bn for proposed 1,000MW project that includes transmission links to New England and Long Island, New York.
Electricite de France, Energy Management, and Iberdrola are said to be other developers to participate in the auction process.
The federal lease for the north lease would be around $2 an acre or $195,000 totally, and $1 an acre for the south lease or about $67,250 on the whole, added Grybowski.
Deepwater, meanwhile, is working on its $250m, 30MW wind project at Rhode Island on the south side of Block Island.
The company aims to commence construction of the Block Island project with five Siemens 6MW turbines by end of 2013 after it secures all federal approvals expected by summer 2013.
Also, the developer has inked purchase agreement with Rhode Island subsidiary of National Grid for its Block Island project.
