[ad_1]
Regulators in Louisiana have approved operating agreements allowing Vestas Wind Systems A/S (CPH:VWS) of Denmark and Japan’s Mitsubishi Corp (TYO:8058) to develop offshore wind projects in the US state’s waters.
State Governor John Bel Edwards announced the approval by the State Mineral and Energy Board on Wednesday. The decision greenlights a property agreement with Mitsubishi’s subsidiary Diamond Offshore Wind (DOW Wind) for a 6,162-acre (2,494-ha) site off the coast of Terrebonne and Lafourche parishes, as well as an agreement with Vestas’ Cajun Wind LLC concerning a 59,653-acre area off the coast of Cameron Parish.
According to the statement, the two agreements have different payment structures. DOW Wind’s proposal covers a smaller area but will pay more in upfront costs and rental fees per acre, whereas the Cajun Wind plan has a lower per-acre fee for upfront and rental payments but a higher energy royalty over the length of the deal.
“One agreement offers more on the front end, while the other pays more over time. These being the first wind energy operating agreements for the state, we were breaking new trails in negotiating [..],” said Tom Harris, Louisiana Department of Natural Resources (DNR) secretary.
Cajun Wind will be a nearshore wind farm to be built by Steelhead Americas, Vestas’ North American development arm. The project is still at an early stage. The operating agreement will enable development to commence with wind measurement campaigns, environmental studies and public engagement, the developer said separately.
[ad_2]
Source link
