The U.S. Department of the Interior (DOI) has issued five exploratory leases for renewable wind energy production on Outer Continental Shelf offshore New Jersey and Delaware. The leases are issued to Bluewater Wind New Jersey Energy, LLC, Fishermen’s Energy of New Jersey, LLC, Deepwater Wind, LLC; and Bluewater Wind Delaware, LLC. The leases allow construction of meteorological towers on Outer Continental Shelf from six to 18 miles offshore.

The construction of meteorological towers is for collecting site-specific data on wind speed, intensity, and direction.

“We are entering a new day for energy production in the US, a time of clean energy from renewable domestic sources on our Outer Continental Shelf,” Secretary of the Interior Ken Salazar said. “Other nations have been using offshore wind energy for more than a decade. We made the development of offshore wind energy a top priority for Interior. The technology is proven, effective and available and can create new jobs for Americans while reducing our expensive and dangerous dependence on foreign oil.”

“This is tremendous news for New Jersey and I thank Secretary Salazar and the Obama Administration for issuing these leases which are so critical to getting the development of our offshore wind turbine projects underway,” said New Jersey Governor Jon S. Corzine. “New Jersey’s Outer Continental Shelf is a resource that holds a great promise for our energy independence and should be considered a haven for the clean, renewable and environmentally friendly energy that wind power provides. This is a major step for the State in meeting its goal of 1000 megawatts by 2013 and 3000 megawatts by 2020.”

“The development of clean energy will be a major part of our economic recovery and will help lay the foundation for long-term economic security for our families, our state and our nation,” said US Senator Robert Menendez (D-NJ). “We should be proud that New Jersey has led the way in the effort to harness the tremendous potential that offshore wind in the Atlantic has to generate clean electricity. This lease is a step toward lowering energy costs for families, creating innovative 21st Century industry jobs and reducing our reliance on dirty energy.”

The leases were developed under an Interim Policy. The leases exemplify the renewable energy initiatives Secretary Salazar has made a top priority and worked to increase. Under his efforts, the final regulatory framework for Outer Continental Shelf renewable energy development was completed in the first 100 days of President Obama’s administration. The framework, which regularizes the process and brings certainty to this nascent industry in terms of how applications for OCS wind, solar and hydrokinetic resources would be addressed, had been long delayed in the previous administration. Interior negotiated a breakthrough agreement with the Federal Energy Regulatory Commission on April 9, 2009 that clarified the jurisdictional responsibilities for leasing and licensing renewable energy projects.

The President and the Secretary announced the final comprehensive framework on Earth Day, April 22, 2009, and it becomes effective on June 29, 2009. It provides the “rules of the road” for states and companies with renewable energy initiatives to pursue development of those projects on federal submerged lands as well as methods for sharing 27.5% of the revenues generated from these projects with adjacent coastal States. The Secretary then launched a series of 12 Minerals Management Service workshops nationwide to discuss and explain the new program for renewable energy on the Outer Continental Shelf.

The data collected under these leases will be shared with Interior’s Minerals Management Service and used to inform and support future commercial renewable energy projects, such as wind turbine farms, to help coastal States meet mandated renewable energy portfolio standards.

New Jersey is actively pursing the development of offshore wind energy through various state initiatives (e.g., grant solicitations, reimbursement programs, and renewable energy portfolio standards). In October 2008, the New Jersey Board of Public Utilities established a meteorological tower reimbursement program, which provides $4 million per company to help expedite the development of offshore wind.

In Delaware, Delmarva Power signed a power purchase agreement with Bluewater Wind for up to 200MW in June 2008, and the pact was ratified by the state in July 2008. Delaware’s average offshore winds have the potential to produce 5,286 MW, which would power between 1.2 to 1.5 million average homes.

The following companies are receiving the exploratory leases for meteorological towers:

Bluewater Wind New Jersey Energy, LLC– distance offshore of 15 to 18 miles;

Fishermen’s Energy of New Jersey, LLC– distance offshore of 6 to 9 miles;

Deepwater Wind, LLC– distance offshore of 15 to 18 miles;

Deepwater Wind, LLC– distance offshore of 12 to 15 miles;

Bluewater Wind Delaware, LLC– distance offshore of 14 miles.