Statoil has been announced the provisional winner of the United States government’s wind lease sale of 79,350 acres Offshore New york city.

Statoil will now have the chance to explore the prospective development of an overseas wind farm to supply New York City and Long Island with a substantial, long-term source of renewable energy.

Statoil sent a respectable quote of $42,469,725 during the online offshore wind auction which was concluded today by the United States Department of the Interior’s Bureau of Ocean Energy Management (BOEM).

“We are excited to have submitted the most competitive bid in a highly attractive project, Statoil’s first offshore wind lease in the United States. We now look forward to working with New York’s state agencies and contribute to New York meeting its future energy needs by applying our offshore experience and engineering expertise,”

Said Irene Rummelhoff, Statoil’s executive VP for New Energy Solutions.

The lease makes up an area that could potentially accommodate more than 1 GW of offshore wind, with a phased advancement expected to start with upto 400-600 MW. The New York Wind Energy Area is situated 14-30 miles (30-60 km) offshore, spans 79,350 acres (321 km2), and covers water depths between 65 and 131 feet (20-40 meters).

Statoil will next start conducting research studies to much better understand the seabed conditions, the grid connection choices and wind resources involved in the lease website.

“We will work closely with the New York State Energy Research and Development Authority (NYSERDA) on these studies and throughout the permitting process, and in connection with power off take options,” says Rummelhoff.

The State of New York proects that offshore wind will be a considerable part of the renewable resource generation needed to satisfy its Clean Energy Standard in 2030.

Rummelhoff says:

”The US is a key emerging market for offshore wind– both bottom-fixed and floating– with significant potential along both the east and west coasts. As today’s announcement shows, Statoil is well positioned to take part in what could be a significant build out of off shore wind in New York and other states over the next decade. This effort is in line with the company’s strategy to gradually complement our oil and gas portfolio with viable renewable energy and other low-carbon solutions,”

In Europe, Statoil is establishing an overseas wind portfolio with the capacity of offering well over 1 million homes with renewables resource. Statoil presently holds a 40% share in the Sheringham Shoal wind farm in the UK, where production began in 2012. The Dudgeon offshore wind farm, located offshore in Norfolk in the UK– and the world’s first floating offshore wind farm in Hywind Scotland, will begin production in 2017. Earlier this year, Statoil obtained 50% of the Arkona offshore wind farm in Germany, which will be available in production in 2019.

Statoil is an incorporated, technology-based international energy business mainly focused on upstream oil and gas operations. From a day-to-day production of approximately 1.8 million barrels of oil equivalent (BOE), more than 270,000 BOE come from the company’s onshore and overseas oil and gas fields in the US.

Statoil’s Energy Ventures Fund, launched in February 2016, is among the world’s biggest clean technology equity capital funds, devoted to the effective development of feasible renewable energy tasks.