Plans to build an offshore wind farm in South Texas have been called off by the developer because it didn’t make financial sense.
Babcock & Brown Ltd., an Australian wind farm developer and investment bank, has notified the state that it would give up its 30-year lease on 40,000 acres in the Gulf of Mexico.
Noting that the project would cost billions, the project off the coast of nature preserve Padre Island, called for 170 turbines, for a tota of 500 MW.
A company spokesperson said that offshore wind farms on the East Coast make more sense because of land constraints and higher energy prices in the region. An offshore wind farm could cost double that of an onshore farm.
Babcock is moving forward with an onshore wind project in South Texas, which would place 157 turbines across 1000 acres of land.
Texas Land Commissioner Jerry Patterson said another developer would be found. Even with the higher costs, he called the location “ideal” and pointed to the ease of doing business with only one landowner – the state of Texas.
The state has leased 11,355 acres off the coast of Galveston, where a 50-turbine wind farm is under construction. It could be operating in the next few years.
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