ACCESS NUMBER: M17PG00000

STUDY TITLE: Offshore Renewable Energy Feasibility Study Across Technology Types for the U.S. Gulf 

of Mexico

REPORT TITLE: Offshore wind in the US Gulf of Mexico: regional economic modeling and site-specific 

analyses

CONTRACT NUMBER: M17PG00012

SPONSORING OCS REGION: Gulf of Mexico

APPLICABLE PLANNING AREA(S): Western, Central, and Eastern Planning Areas

FISCAL YEAR(S) OF PROJECT FUNDING: 2017 to 2020

COMPLETION DATE OF REPORT: February 2020

COSTS: $344,188

PROJECT MANAGER(S): Tessa Greco

AFFILIATION of Project manager: National Renewable Energy Laboratory (NREL)

ADDRESS: 15013 Denver West Parkway, Golden, Colorado 80401

PRINCIPAL INVESTIGATOR(S)*

: Walter Musial, Philipp Beiter, Jeremy Stefek, George Scott, Donna 

Heimiller, Tyler Stehly, Suzanne Tegen, Owen Roberts, Tessa Greco, and David Keyser

KEY WORDS: Gulf of Mexico, offshore renewable energy, offshore wind, resource potential, technology 

readiness, levelized cost of energy (LCOE), Levelized avoided cost of energy (LACE), economics, jobs, 

jobs and economic development impact (JEDI) modeling, 

BRIEF ABSTRACT: Based on the findings from the first phase, which evaluated all renewable energy 

sources in the GOM*

, NREL determined that offshore wind has the highest potential to deliver utility scale 

electricity from ocean-based renewable energy in the Gulf of Mexico (GOM). This conclusion is based the 

quantification and relative scoring based on three factors: resource adequacy, technology readiness, and 

cost competitiveness. If current cost trends observed in Europe and the northeast United States (U.S.) 

continue, the economics of offshore wind in the GOM over the next decade will approach positive net 

values in some regions, particularly in Texas and Louisiana. 

The offshore wind resources were assessed for each of the GOM states. These wind resources are 

generally lower than northern Atlantic and Pacific coastal states, but the quantity of resource capacity in 

the GOM is large, especially in shallow water less than 60 meters (m) (197 feet [ft]) depth. When 

considering all U.S. states and considering only sites with average wind speeds of greater than 7 meters 

per second (m/s) (15.7 miles per hour [mph]) and water depths less than 1,000 m (3,280 ft), three of the 

top four states with the highest offshore wind resource capacity are within the GOM (Louisiana, Texas, 

and Florida). 

An analysis of jobs, earnings, regional gross domestic product (GDP), and regional economic output to 

support the construction and operation of a 600-MW offshore wind project in the GOM was analyzed 

using a selected reference site. The regional analysis assessed the construction and operation to support 

jobs and economic growth in the GOM region. The results indicate that a single 600-MW offshore wind 

project could support approximately 4,470 jobs and $445 million in GDP during construction and an 

* Survey and Assessment of the Ocean Renewable Energy Resources in the U.S. Gulf of Mexico, OCS Study BOEM 20xx-xxx.
ACCESS NUMBER: M17PG00000

ongoing 150 jobs and $14 million annually from O&M labor, materials, and services. Results are based 

on a project with a commercial operations date of 2030. 

BACKGROUND: During Phase 1 of the study of renewable energy technologies in the GOM* were 

evaluated to determine which renewable energy technology was most feasible for the GOM utilizing 

resource adequacy, technology readiness, and cost competitiveness as the defining criteria. The 

renewable energy sources that were evaluated included offshore wind, solar PV, tidal current, ocean 

thermal energy, wave energy, and ocean current. The technical resource potential for offshore wind in the 

GOM is 638 GW, the largest of any of the renewable technologies examined in Phase I. 

This second phase of the study went into detail to describe site-specific and regional benefits and 

challenges of deploying offshore wind in the GOM and discuss the current research to mitigate 

challenges. The study reviewed and quantified the wind resource capacity and energy potential in the 

GOM region for each GOM state including state and Federal waters. Perform geospatial regional 

economic assessments of levelized cost of energy (LCOE), levelized avoided cost of energy (LACE), and 

net value for the GOM. The study evaluated in detail three representative sites and performed a highlevel assessment of local supporting infrastructure availability, including existing services (e.g., fabrication 

facilities, vessels, ports) and possible grid connection options. The final aspect included a jobs and 

economic development impact (JEDI) modeling to assess the regional economic impacts of a 600-MW 

offshore wind plant installed at a representative site in the GOM.

OBJECTIVES: The goal of this study is to assess offshore wind energy resources in the GOM and to 

quantify its technical and economic potential in order to inform Federal and GOM state strategic energy 

planning over the next decade.

DESCRIPTION: This intent of this study is to describe site-specific and regional benefits and challenges 

of deploying offshore wind in the GOM and discuss the current research to mitigate challenges. Review 

and quantify the wind resource capacity and energy potential in the GOM region for each GOM state 

including state and federal waters, distance from shore, and water depth. Perform geospatial regional 

economic assessments of LCOE, LACE, and net value. Evaluate three representative hypothetical 

locations for site-specific analysis. Perform a high-level assessment of local supporting infrastructure 

availability, including existing services (e.g., fabrication facilities, vessels, ports) and possible grid 

connection option. And lastly, assess the regional economic impacts of a 600-MW offshore wind plant 

installed at a representative site in the GOM.

SIGNIFICANT CONCLUSIONS: The technical resource of offshore wind for the GOM is estimated at 638 

GW, the largest of any of the technologies examined. Its deployment and ability to serve a significant 

percentage of the load in the GOM is primarily dependent upon improving the economics over the next 

decade. Based on global trends, the economics of offshore wind are improving rapidly, making economic 

deployment of offshore wind turbines in the GOM likely by 2030 (DOE 2018) when costs may be 

approaching acceptable market levels. During this timeframe, new offshore wind technologies will be 

needed to optimize energy capture in the lower wind regimes of the GOM, to increase understanding of 

hurricane risk, and to design wind turbines suitable for hurricane-prone areas. 

The analysis and modeling predicts that if a 600-MW offshore wind farm is developed in the GOM, the 

economic benefits could support approximately 4,470 jobs and $445 million in GDP during construction 

and an ongoing 150 jobs and $14 million annually from O&M labor, materials, and services. Results are 

based on a project with a commercial operations date of 2030.

STUDY RESULTS: The offshore wind resources were assessed for each of the GOM states. These wind 

resources are generally lower than northern Atlantic and Pacific coastal states, but the quantity of 

resource capacity in the GOM is large, especially in shallow water less than 60 meters (m) (197 feet [ft]) 

depth. When considering all U.S. states and considering only sites with average wind speeds of greater 

* Survey and Assessment of the Ocean Renewable Energy Resources in the U.S. Gulf of Mexico, OCS Study BOEM 2020-017.
ACCESS NUMBER: M17PG00000

than 7 meters per second (m/s) (15.7 miles per hour [mph]) and water depths less than 1,000 m (3,280 

ft), three of the top four states with the highest offshore wind resource capacity are within the GOM 

(Louisiana, Texas, and Florida). 

The characteristics of the GOM region are very different from the North Sea, (Europe) where offshore 

wind development has been maturing rapidly (20-years’ experience), or in northeastern U.S. where 

regional utility scale development is now taking hold. As with all offshore development, the environment 

and location can provide both beneficial and technical challenges. The GOM beneficial characteristics to 

support offshore wind include better turbine access, shallow water siting, lower labor cost, and direct 

access to the existing industrial supply chains of the oil and gas industry. These benefits may lower 

capital costs, operation and maintenance costs, and the cost of fabrication and installation. The primary 

technical challenges for offshore wind turbines in the GOM are gaps around hurricane design, lower wind 

speeds, and lower soil strength. None of these challenges are insurmountable, but all will require some 

additional investment in research, development, and deployment to adapt the technology and gain the 

experience needed for commercial acceptance. 

An analysis of jobs, earnings, regional gross domestic product (GDP), and regional economic output to 

support the construction and operation of a 600-MW offshore wind project in the GOM was analyzed 

using a reference site near the Texas/Louisiana border. The regional analysis assessed the construction 

and operation to support jobs and economic growth in the GOM region. The results indicate that a single 

offshore wind project could support approximately 4,470 jobs and $445 million in GDP during construction 

and an ongoing 150 jobs and $14 million annually from O&M labor, materials, and services. Results are 

based on a project with a commercial operations date of 2030.

STUDY PRODUCT(S): Technical Report

Musial W, Beiter P, Stefek J, Scott G, Heimiller D, Stehly T, Tegen S, Roberts O, Greco T, Keyser D 

(National Renewable Energy Laboratory and the Alliance for Sustainable Energy, LLC, Golden, CO). 

2019. Offshore wind in the US Gulf of Mexico: regional economic modeling and site-specific analyses. 

New Orleans (LA): Bureau of Ocean Energy Management. 94 p. Contract No.: M17PG00012. Report 

No.: OCS Study BOEM 2020-018.

*

P.I.’s affiliation may be different than that listed for Project Manager(s).