Energy giants eye up green hydrogen possibilities in the Gulf despite wind skepticism

The sale will include 102,480 acres offshore Lake Charles, Louisiana, and two areas totaling nearly 200,000 acres offshore Galveston, Texas, according to Interior, which announced the sales last month.Combined, the areas being auctioned off have potential to generate 3.7 gigawatts of energy, or enough to supply roughly 1.3 million homes.

That’s because the Gulf has lower wind speeds and a six-month annual hurricane season that could delay or derail development of a traditional offshore wind farm. “The vulnerability of massive structures the size of the Chrysler Building to hurricanes, nor'easters, and superstorms has not been adequately investigated and vetted,” Rep. Chris Smith said at an offshore wind hearing earlier this year. “Imagine 1,000-foot poles falling like dominoes into the sea.”

In the interim, these factors make it “harder to justify an investment decision” in the Gulf, Alon Carmel, a partner at PA Consulting who advises offshore wind companies, told Reuters.What the Gulf lacks in favorable wind farm conditions, it makes up for in infrastructure, skilled workers, and a well-developed supply chain that has been decades in the making. BOEM and others see it as a natural spot to begin innovating in the green hydrogen space.

"All of a sudden, you could see the greening of what are rather carbon-intensive industrial facilities along the coast," Erik Milito, the head of the National Ocean Industries Association, which represents both offshore wind and oil and gas companies, told the Washington Examiner.

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