This Department of Energy’s (DOE) FOA is part of President Obama’s “All-out, All-of-the-Above” energy strategy. This is a six-year, $180 million initiative to help the United States achieve energy independence, with only $20 million of this that has been appropriated for 2012. The focus of this FOA is on the deployment of up to four offshore wind farm demonstration projects.
The projects will demonstrate innovative technologies that can achieve significant cost reductions over existing technologies.
The Program is divided into two topic areas.
Topic Area 1 (One expected award): Accelerating Pilot Deployment – funding one project with a credible timeline that will lead to commissioning by the end of the 2014 calendar year.
Topic Area 2 (Five expected awards): Innovating Commercial Viability – five budget periods with a down-select process.
Stated Program Goals.
The primary goals of the Advanced Technology Demonstration Projects are to:
1. Install innovative offshore wind systems in U.S. waters rapidly and responsibly.
2. Expedite the development and deployment of innovative offshore wind energy systems that have the potential for lowering the levelized cost of energy (LCOE) below 10 ¢/kWh, or the local “hurdle” price at which offshore wind technologies can compete with other regional generation sources, without subsidies.
The DOE aims to address challenges such as:
• Installation
• Connection
• Permitting/Approval
Desired results include:
• Accelerating the deployment of breakthrough wind power technologies
• Diversifying our nation’s energy portfolio
• Promoting economic development
• Launching a new and efficient industry in America
Funds Use: Energy Department funds may be used to cover up to 80 percent of a project’s design costs and 50 percent of hardware and installation costs. The FOA uses a cost-sharing structure in which participating companies must the match the remaining 50 percent from sources other than the federal government.
Eligibility: Foreign entities are not allowed to apply as prime applicants. However, foreign entities may become “team members” or participate on a domestic entity’s application. Federal funding for the work to be performed by foreign entities cannot exceed 50 percent of the total federal funding requested.
Applicants with foreign team members must explain how United States interests will be protected. It is anticipated that U.S. interests will be maintained by the selection of offshore demonstration site(s) in U.S. waters, by the use of domestically produced goods and services to the fullest extent that is practical, and by dissemination of the results learned through the project to domestic stakeholders in the offshore wind industry.
Applications are due May 31, 2012 (Letters of intent were due by March 30).
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Offshore WIND staff, May 10, 2012