Statoil wins offshore wind lease in New York

Statoil has been declared the provisional winner of the U.S. government’s wind lease sale of 79,350 acres offshore New York.

Statoil will now have the opportunity to explore the potential development of an offshore wind farm to provide New York City and Long Island with a significant, long-term source of renewable electricity. Statoil submitted a winning bid of US$42,469,725 during the online offshore wind auction by the U.S. Department of the Interior's Bureau of Ocean Energy Management (BOEM).

The lease comprises an area that could potentially accommodate more than 1 GW of offshore wind, with a phased development expected to start with 400-600 MW. The New York Wind Energy Area is located 30-60 km offshore, spans 321 km², and covers water depths between 20-40 meters. 

Statoil will next conduct studies to better understand the seabed conditions, the grid connection options and wind resources involved in the lease site. 

The State of New York projects that offshore wind will be a significant part of the renewable energy generation needed to meet its Clean Energy Standard in 2030. Irene Rummelhoff, Statoil´s executive vice president for New Energy Solutions said:

“We are excited to have submitted the most competitive bid in a highly attractive project, Statoil’s first offshore wind lease in the United States. We now look forward to working with New York’s state agencies and contribute to New York meeting its future energy needs by applying our offshore experience and engineering expertise.

We will work closely with the New York State Energy Research and Development Authority on these studies and throughout the permitting process, and in connection with power offtake options.

The US is a key emerging market for offshore wind – both bottom-fixed and floating – with significant potential along both the east and west coasts. As today’s announcement shows, Statoil is well positioned to take part in what could be a significant build out of offshore wind in New York and other states over the next decade. This effort is in line with the company’s strategy to gradually complement our oil and gas portfolio with viable renewable energy and other low-carbon solutions.” 

In Europe, Statoil is developing an offshore wind portfolio with the capacity of providing over 1 million homes with renewable energy. Statoil currently holds a 40% share in the Sheringham Shoal wind farm in the UK, which has been in production since 2012. The Dudgeon offshore wind farm, also located offshore Norfolk in the UK – and the world’s first floating offshore wind farm, Hywind Scotland – will come in production in 2017. Earlier this year, Statoil acquired 50% of the Arkona offshore wind farm in Germany, which will come in production in 2019. 

Statoil is an integrated, technology-based international energy company primarily focused on upstream oil and gas operations. From a daily production of approximately 1.8 million barrels of oil equivalent (BOE), more than 270,000 BOE stem from the company’s onshore and offshore oil and gas fields in the U.S. 

Statoil’s Energy Ventures Fund, launched in February 2016, is a clean technology venture capital fund, dedicated to the successful advancement of viable renewable energy projects.