NRG Bluewater wants to build an offshore wind farm off the coast at Rehoboth Beach, Delaware

A rival bid has come forward for a lease to develop a major offshore wind project in Delaware waters, it was confirmed on Friday.

The state had been working toward a 450-megawatt proposal from NRG Bluewater Wind when the Department of the Interior issued a Request for Interest to see if any rivals might also be interested in an offshore wind lease.

The Department’s Bureau of Ocean Energy Management visited the state last week to discuss two proposals that came forward under the Request for Interest.

Along with the Bluewater Wind proposal, an organization called Occidental Development & Equities LLC, based in Bayonne, New Jersey, also threw its hat into the ring.

The move means the state could see a competitive process undertaken to grant a development lease, rather than a non-competitive lease award to Bluewater Wind, if Occidental’s proposals pass a review.

Occidental

Little is known about Occidental Development & Equities LLC, although the organization has been interested in offshore leases in other states along the East Coast, unsuccessfully submitting proposals for a project in New Jersey in March 2008.

In that process, Occidental’s proposals came fourth our of five according to New Jersey’s evaluating committee.

Documents from the committee suggest the company planned on leading a consortium of organizations to deliver a 160MW wind farm using 80 wind turbines supplied by Danish manufacturer, Vestas, each rated at 2MW output.

The Occidental proposal “lacked development, construction, operation and maintenance or
decommissioning cost details”, and as a result was rejected by the committee.

The company has an unusually vague website that suggests it is involved in commercial and residential developments as well as renewable energy projects, and has a “strategic relationship” with an Occidental Energy Partners LLC.

Bluewater

Bluewater Wind has a 25-year power purchase agreement in place to provide 200 megawatts of electricity to Demarva Power for an offshore wind farm proposed for a site off Rehoboth Beach.

Offshore wind represents an incredible opportunity for Delaware” - Collin O’Mara, Delaware Department of Natural Resources and Environmental Control

NRG Bluewater Wind is part of NRG Energy, the Fortune 300 power company based in Princeton, New Jersey.

NRG owns and operates a 24,000MW portfolio of power projects, and last year acquired Reliant Energy, the second largest retail energy business in Texas.

Bluewater is also proposing an offshore wind project in New Jersey, and is developing projects in Maryland, New York, the Great Lakes and Canada.

Permitting

Delaware’s Department of Natural Resources and Environmental Control said on Friday that the state would be working closely with federal agencies to ensure the permitting process will address potential concerns.

Secretary Collin O’Mara said: “Offshore wind represents an incredible opportunity for Delaware to improve the health of its environment and strengthen its economy.”

“The conversations this week have highlighted for us the need to work closely with federal agencies to proactively address potential marine shipping issues, marine mammal and fisheries impacts, and national security interests as we advance through the state and federal permitting processes.”