In November, Louisiana voters approved an amendment that will dedicate any federal money the state receives from offshore alternative energy production to the Coastal Protection and Restoration Fund. One of the industries expected to take root offshore is wind energy.

To prepare for the industry, the Louisiana Department of Energy and Natural Resources (DENR) created the advisory committee in September to develop a comprehensive plan for integrating offshore wind energy in the state. According to an August DENR news release, the committee will spend two years collaborating and engaging with several stakeholders, civilians, and experts to develop a road map “engineered to address various aspects of offshore wind development.”

“Louisiana has a long and proud history as a provider of energy for this nation. In particular, we have generations of experience in the engineering and day-to-day work required to succeed in the challenging offshore environment,” stated Tyler Gray, DENR secretary, in the release. “Offshore wind is set to expand Louisiana’s ‘all- of-the-above’ energy portfolio with multiple resources at our disposal in the Gulf of Mexico. With diverse energy resources offshore, we’ll become more energy independent, and our state is set to grow as an offshore wind manufacturing hub for the world.”

The Louisiana Offshore Wind Road map Advisory Committee met for the second time at the beginning of December.

Louisiana’s potential

An April study report by Xodus — a global energy consultancy — found that Louisiana’s history with offshore oil and gas production has created a foundation for offshore wind development.

Offshore wind energy has prominent markets in Europe and Asia. With 52 gigawatts (GW) of proposed projects in development, the United States is staking claim in the industry.

The 2024 Offshore Wind Market Report released by the American Clean Power Association shows that the clean power industry is expected to invest $65 billion in offshore wind projects in the next five years, potentially creating 56,000 jobs.

The Xodus report said that Louisiana is “primed for offshore wind development” and has an “apparent appetite” to add offshore wind to the state’s economic profile.

Two wind agreements have been signed for offshore wind development, said Andrew Young, assistant secretary of the DENR, during the committee meeting. Both operating agreements were approved a little over a year ago. The Dow LA Gulf Wind development will take up 6,162 acres in the Terrebonne and Lafourche parish territory. Close to home, the Cajun Wind, LLC, development will be built on 59,693 acres in offshore Cameron Parish.

The total estimated revenue of Cajun Wind, LLC is $29,112,000, with $26.8 million estimated to be generated during the energy production period. The total lifetime revenue generated between the two projects is just under $40 million.

The projects “represent a very significant step towards the diversification of Louisiana’s energy portfolio and a significant economic driver for coastal communities and industries,” he said.

Both developments are at the very beginning stages of planning and development, Young said. The agreements require that construction begins within six years of approval. Energy production will begin within five years after construction begins, and the developments will operate for 30 years.

In the meantime, the advisory committee has the task of preparation. At the meeting, Camille Manning-Broome, president and CEO of the Center for Planning Excellence (CPEX), brought back industry expertise from Germany.

CPEX is a statewide planning and policy non-profit aiding DENR in roadmap development management. Recently, a group took a four-day tour through some of Germany’s offshore wind energy facilities to identify opportunities and gather information about the industry.

Louisiana has the opportunity to “reap significant benefits,” she said. One of the key takeaways from the shore was that the state is “doing the right thing” by developing the road map, which will protect the state from the “boom and bust” of new major investments.

“Germany’s success demonstrates a real transformative potential of offshore wind, as not just a reliable source for energy resilience but also a significant driver of economic growth and job creation,” she said. “It was loud and clear we need networking, a road map and a test field for moving offshore wind forward.”

RWE — an energy company in Germany — acquired a federal lease in the Gulf of Mexico, 44 miles south of Lake Charles. This project has the potential to create two GW of energy, said Alexandra St. Pé, project director of RWE. Construction is expected to begin in the early 2030s and operations in the mid-to-late 2030s.

Globally, RWE is one of the largest clean power companies and the second-largest global offshore energy leader. St. Pé said the company has over 20 years of offshore wind experience and 19 projects in operation.

RWE entered the U.S. offshore market two years ago with 3.2 GW in the New York Bight area and 1.6 GW on the California coast.

Road map update

To build out the road map, the advisory committee created four different stakeholder groups to receive technical input for the road map: energy markets; workforce and supply chain; fisheries; and environmental and spatial planning. Each group has about a dozen members, technical leads and a committee liaison. Michael Wilks, offshore wind lead, Jacobs Business Consulting and Services, said the “broad range of perspectives” encourages the “cross-pollination” of ideas.

Engagement from both the public and industry experts is “fundamental” to the road map’s success, he said.

The work with the energy market groups will map out the “lay of the land” to effectively institute offshore wind energy. It will determine the state’s current energy markets and how they operate, allowing the advisory committee to determine how offshore wind could fit into Louisiana’s portfolio.

“As we’ve seen in other parts of the country, having an energy market that supports offshore wind is crucial to its success,” Wilks explained.

Two energy market reports are nearly complete: “Overview of Louisiana Energy Environment” and “Overview of Energy Markets.” Wilks said these (and all future) reports will be published for the public to read.

A draft report titled “Supply Chain & Workforce Phase 1” by the supply chain and workforce group will be available soon as well. As the name implies, this group is working to identify offshore wind workforce and supply chain opportunities and strategies for the state.

The next advisory committee meeting will be in February 2025.

Public information and meeting recordings are available on louisianaoffshorewind.org.