Duke Energy secures offshore wind lease for Carolina Long Bay

Rhea-AI Summary

Duke Energy Renewables Wind, LLC has secured a provisional lease for OCS-A 0546 in the Carolina Long Bay offshore wind auction, allowing for up to 1.6 gigawatts of offshore wind energy by 2032, enough to power nearly 375,000 homes. This lease supports Duke's goals of 70% carbon reduction by 2030 and net-zero emissions by 2050. The company will file its carbon plan on May 16, and site assessments could begin in 2023 pending regulatory approval, aligning with a potential project timeline of 2030-2032.

Positive

• Secured a provisional lease for OCS-A 0546, enabling potential offshore wind capacity of 1.6 gigawatts.
• Lease supports Duke Energy's sustainability goals of 70% carbon reduction by 2030 and net-zero emissions by 2050.
• Projected to power nearly 375,000 homes, enhancing Duke's renewable energy portfolio.

Negative

• Regulatory approval is required before site assessments and further development can commence.

• Lease area could support up to 1.6 gigawatts of potential offshore wind energy by 2032.

CHARLOTTE, N.C., May 11, 2022 /PRNewswire/ -- Duke Energy Renewables Wind, LLC, a nonregulated subsidiary of Duke Energy (NYSE: DUK), has been named a provisional winner of OCS-A 0546 lease area in the Carolina Long Bay offshore wind auction.

The lease was one of two awarded as part of an Atlantic Outer Continental Shelf renewable energy auction held by the Bureau of Ocean Energy Management (BOEM).

"Securing this lease creates optionality for future offshore wind if the North Carolina Utilities Commission determines it's part of the least cost path to achieve 70% carbon reduction by 2030 and net-zero by 2050," said Stephen De May, Duke Energy's North Carolina president. "As we continue to assess the area and project potential, we look forward to listening and learning from diverse stakeholders and community members in the region to ensure we are being thoughtful about all aspects of the potential project."

The company will file its proposed carbon plan with the North Carolina Utilities Commission on May 16, which includes multiple scenarios for the Commission to consider as it finalizes its carbon plan by the end of 2022. Wind energy is one of a number of carbon-free technologies Duke Energy is evaluating to reduce carbon emissions on its system.

Lease area OCS-A 0546, which is east of Wilmington, could support up to 1.6 gigawatts of potential offshore wind energy, enough to power nearly 375,000 homes.  

Subject to regulatory approval, the company could begin site assessment and characterization activities in the OCS-A 0546 lease area in 2023, which would keep the company on target for a potential in-service project in the 2030-2032 time frame.

Over the next year, the team will develop a Site Assessment Plan for BOEM's approval, which outlines a detailed proposal for studying the project area to better understand the wind energy resource and potential impacts. This is just the first of many stages in the approximately 10-year development process. Ultimately, construction could begin once BOEM approves a Construction and Operations Plan and all appropriate federal and state regulatory approvals are obtained.

Duke Energy

Duke Energy (NYSE: DUK), a Fortune 150 company headquartered in Charlotte, N.C., is one of America's largest energy holding companies. Its electric utilities serve 8.2 million customers in North Carolina, South Carolina, Florida, Indiana, Ohio, and Kentucky, and collectively own 50,000 megawatts of energy capacity. Its natural gas unit serves 1.6 million customers in North Carolina, South Carolina, Tennessee, Ohio, and Kentucky. The company employs 28,000 people.

Duke Energy is executing an aggressive clean energy transition to achieve its goals of net-zero methane emissions from its natural gas business and at least a 50% carbon reduction from electric generation by 2030 and net-zero carbon emissions by 2050. The 2050 net-zero goals also include Scope 2 and certain Scope 3 emissions. In addition, the company is investing in major electric grid enhancements and energy storage, and exploring zero-emission power generation technologies such as hydrogen and advanced nuclear.

Duke Energy was named to Fortune's 2022 "World's Most Admired Companies" list and Forbes' "America's Best Employers" list. More information is available at duke-energy.com. The Duke Energy News Center contains news releases, fact sheets, photos, and videos. Duke Energy's illumination features stories about people, innovations, community topics and environmental issues. Follow Duke Energy on Twitter, LinkedIn, Instagram and Facebook

Media contact: Jennifer Garber
800.559.3853

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SOURCE Duke Energy

FAQ

What is the significance of Duke Energy securing the offshore wind lease OCS-A 0546?

The lease allows Duke Energy to potentially develop up to 1.6 gigawatts of offshore wind energy by 2032, supporting their carbon reduction goals.

When will Duke Energy file its carbon plan?

Duke Energy plans to file its carbon plan with the North Carolina Utilities Commission on May 16, 2022.

How many homes could be powered by the OCS-A 0546 lease area?

The lease area could support enough offshore wind energy to power nearly 375,000 homes.

What is the timeline for potential development of the offshore wind project by Duke Energy?

If approved, site assessments could begin in 2023, with potential service commencement between 2030 and 2032.

What are Duke Energy's long-term goals regarding carbon emissions?

Duke Energy aims for a 70% carbon reduction by 2030 and net-zero emissions by 2050.