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California’s first offshore wind lease auction is set for Tuesday, and an offshore wind industry report says it could usher in a new era of economic prosperity for communities along the coast, as long as development goes right.
On Friday, the trade group Offshore Wind California released a report saying coastal communities like Humboldt County could benefit from rapid improvements in floating offshore wind technology, but it’s critical to upgrade transmission infrastructure, ensure there’s a clear permitting process and invest in equipping state ports with the infrastructure needed for the production, assembly and maintenance of turbines and other components.
“Responsible offshore wind development that includes local protections, community benefit agreements and lease credits can spur California jobs, workforce development, supply chain growth and investment, and state revenues that will result in and support a strong green economy.” “, the report states. . “Offshore wind will also help California meet its climate goals by reducing greenhouse gas emissions and improving environmental justice and health conditions for local communities by reducing the state’s reliance on fossil fuel power plants.”
The Paris Agreement, signed by nearly 200 parties at the 2015 UN Climate Change Conference, commits to limiting global warming to 2 degrees Celsius and preferably 1.5 degrees above pre-industrial levels, which requires a rapid transition from fossil fuels to use of renewable energy such as solar energy and wind energy.
McKinsey & Company’s report on the offshore wind industry predicts that the Asia-Pacific region has the greatest growth potential for offshore wind, with China leading the way, but expects that “by the end of this decade, thousands of turbines are likely to turn up along the coasts of Asia, Europe, North America and other regions.”
“Excess offshore wind capacity can now serve as an alternative fuel source for hydrogen electrolysis, a versatile energy storage, transmission and fuel technology that can be used to decarbonize many hard-to-scale industries and applications,” the McKinsey report said. “Because electrolysis is so capital-intensive to build, companies are eager to maximize utilization, a goal that offshore wind also supports because of its high capacity.”
California is working to be 90% clean energy by 2035 and set ambitious planning goals of 2 to 5 gigawatts of offshore wind capacity by 2030 and 25 GW by 2045 earlier this year. In September, the Biden-Harris administration set a goal of deploying 15 GW of floating offshore wind by 2035 to complement its goal of deploying 30 GW of offshore wind by 2030, which is expected to be achieved mostly through fixed-line technology. bottom that is applied in the shallower waters of the Atlantic Ocean.
The fact that both the US and the state have committed to “go big” with their offshore wind energy goals is good news for the industry, along with a commitment to research and development specifically for floating offshore wind.
“As floating technologies move from demonstration and pilot to full-scale projects by mid-decade, research and technology will be critical to unlocking cost savings and economies of scale,” the Offshore Wind California report said. “Advances in technology will unlock not only overall GV from projects, but also efficiencies from component development, including turbine sizes, floating substructures and dynamic cables.
Floating offshore wind technology is expected to be deployed in federal waters about 20 miles off the coast of Humboldt Bay by the end of this decade. On Tuesday, the Bureau of Ocean Energy Management is scheduled to auction two leases — one for 63,338 acres and the other for 69,031 acres — in the Humboldt Wind Energy Area and three leases of about 80,000 acres each in the Morro Bay Wind Energy Area.
After the auction ends, it could take up to five to six years to obtain all permits from all federal, state and local regulatory agencies, making a clear permitting roadmap essential, the Offshore Wind California report said. The California Public Utilities Commission and the California Energy Commission, along with their partners, are expected to present a roadmap for permits before the end of the year, pursuant to Assembly Bill 525.
It will also be necessary to make significant upgrades to the state’s port infrastructure, some of which are already starting to happen. The McKinsey report also pointed to a shortage of “some wind turbine construction equipment and vessels” needed to install larger turbines; currently there are only about 10 vessels in the world that can accommodate a 10 MW turbine.
“While initial work is underway at Humboldt Bay Harbor on the North Shore,” the report said. “California currently does not have the port capacity necessary to support the construction of more commercial offshore wind farms, particularly on the Central Coast, where there is available offshore space and the transmission necessary to build as much as 5 GW of offshore wind at the Morrow Bay VEA by 2030. The state must move expeditiously moving forward with planning to address issues of port improvements as well as marine space, environmental permits, transmission, supply chain and workforce training.”
Sonia Varaich can be reached at 707-441-0504.
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