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Courtesy of U.S. Department of the Interior

WASHINGTON — The Department of the Interior today announced its intent to assess potential opportunities to advance clean energy development on the Gulf of Mexico Outer Continental Shelf (OCS). This significant milestone is part of the Biden-Harris administration’s goal to create thousands of jobs through the deployment of 30 gigawatts (GW) of offshore wind by 2030.

“The Interior Department is committed to developing a robust and sustainable clean energy economy,” said Secretary Deb Haaland. “We know that offshore wind development has the potential to create tens of thousands of good-paying, union jobs across the nation. This is an important first step to see what role the Gulf may play in this exciting frontier.”

The Bureau of Ocean Energy Management (BOEM) will publish a Request for Interest (RFI) in the Federal Register on Friday, June 11, to assess interest in potential offshore wind development in the OCS. The RFI will be focused on the Western and Central Planning Areas of the Gulf of Mexico offshore the states of Louisiana, Texas, Mississippi, and Alabama. Although the primary focus of the RFI is on wind energy development, BOEM is also seeking information on other renewable energy technologies.

“The Biden-Harris administration has energized the offshore wind industry by announcing the first ever national offshore wind energy goal, creating a roadmap for the future of this innovative industry,” said BOEM Director Amanda Lefton. “I’m excited to see the Gulf be a potential part of this historic effort.”

“The Gulf of Mexico has decades of offshore energy development expertise. Today’s announcement represents the first step in harnessing that expertise and applying it to the renewable energy sector,” said Mike Celata, regional director of BOEM’s Gulf of Mexico office in New Orleans. “Working directly with our partners in the Gulf, we will make sure that offshore renewable energy development proceeds in an orderly, safe, and environmentally responsible manner.”

To date, BOEM has leased approximately 1.7 million acres in the OCS for offshore wind development and has 17 commercial leases on the Atlantic, from Cape Cod to Cape Hatteras.

Once published the RFI will open a 45-day public comment period to solicit indications of competitive interest and additional information on potential environmental consequences and other uses of the proposed area. BOEM will consider data received in response to this RFI to determine next steps in the renewable energy leasing process in the Gulf of Mexico.

As part of this process, BOEM will convene the Gulf of Mexico Intergovernmental Renewable Energy Task Force to help coordinate planning, solicit feedback, and exchange scientific and process information. BOEM will hold its first task force meeting on June 15. The task force comprises members representing federal, Tribal, state and local governments from Louisiana, Texas, Mississippi, and Alabama.

For more information, including a map depicting the RFI area, please see BOEM’s renewable energy page.


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Binance co-founder Zhao set to keep on growing his $33 billion fortune even as he heads to prison for four months

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Binance co-founder Zhao set to keep on growing his  billion fortune even as he heads to prison for four months

Cryptocurrency exchange Binance founder and CEO Changpeng Zhao speaks at a Binance fifth anniversary event in Paris, France, July 8, 2022. 

Staff | Reuters

Changpeng Zhao, the billionaire co-founder and former CEO of Binance, is expected to see his mammoth wealth remain intact and likely continue to climb even as he faces time behind bars after his sentencing in a Seattle court.

Zhao, who is commonly referred to as “CZ” in crypto circles, was sentenced to four months in prison on Tuesday, after pleading guilty to charges of enabling money laundering at his crypto exchange.

The sentence handed down to Zhao in Seattle federal court was significantly less than the three years that federal prosecutors had been seeking for him. The defense had asked for five months of probation. Sentencing guidelines called for a prison term of 12 to 18 months.

A Binance spokesperson said in a statement to CNBC the crypto exchange has made “considerable compliance enhancements,” including with regards to anti-money laundering detection and “hiring key compliance personnel.”

A lawyer for Zhao did not immediately respond to CNBC’s request for comment.

In November, Zhao struck a deal with the U.S. government to resolve a multiyear investigation into Binance. As part of Binance’s $4.3 billion settlement with the U.S. Department of Justice, Zhao stepped down as the company’s CEO, and the exchange agreed to form a board of directors with independent members, as well as compliance and audit committees.

Of the seven total directors recently named to the since-formed board of directors, three were designated as being “independent” — and five of them, including all of the board’s independent members, submitted letters to the judge in Zhao’s criminal case asking for leniency in sentencing.

Gabriel Abed, the board’s chairman and one of its independent members, told U.S. District Judge Richard Jones that Zhao was “distinguished by a stoic composure and genuine humility” and that “despite his significant achievements,” he maintained a lifestyle marked by simplicity including dressing in clothes bought on Amazon, driving a Toyota and wearing an Apple watch.

Despite Zhao now facing time in prison, industry experts and lawyers who spoke with CNBC say his tremendous personal wealth will remain unaffected and, if anything, is likely to rise.

Los Angeles corporate law attorney Tre Lovell tells CNBC that the government is only entitled to any restitution or fines imposed and not to Zhao’s assets or wealth as a whole. Former federal prosecutor Neama Rahmani agrees, adding that Zhao’s personal wealth won’t be affected by his sentence.

“Because Zhao and the government came to an agreement, the government didn’t get a judgment or restitution order against Zhao and do discovery into his assets,” said Rahmani. “He’ll have significant wealth when he is released from prison.”

Changpeng Zhao, former CEO of Binance, arrives at federal court in Seattle, Washington, April 30, 2024.

David Ryder | Bloomberg | Getty Images

CZ’s wealth is unaffected

Zhao took Binance, the cryptocurrency exchange he co-founded in 2017, from a relatively obscure company to one of the most formidable players in the booming digital currency space.

Despite the fact that Zhao is being put behind bars, his controlling stake in Binance means that he will continue being one of the wealthiest people in crypto today.

Notably, because Zhao pleaded guilty to only one count of violation of the U.S. Bank Secrecy Act (BSA), he is regarded as a first-time offender, and thus reached a settlement with federal authorities to step down as CEO and not relinquish his interest in the company or have assets frozen.

“Typically, personal assets that are not directly linked to the criminal activity might remain unaffected,” said Braden Perry, a former senior trial lawyer for the Commodity Futures Trading Commission. “His assets could also be managed on his behalf while he is incarcerated.”

That’s a different siutation from Sam Bankman-Fried, the controversial ex-CEO and founder of crypto exchange FTX. Bankman-Fried, who’s commonly referred to as “SBF,” saw his wealth reduced to zero after his crypto empire collapsed into bankruptcy in 2022.

“In relation to CZ’s personal wealth … he would still be able to retain his share in Binance, as well as maintain his crypto holdings which also contribute an unknown, yet material, amount to his overall wealth and net worth,” Joshua de Vos, research lead at CCData, told CNBC via email.

“Since there is no misappropriation or bankruptcy proceedings, it is highly unlikely that CZ would see his wealth reduced to zero as was the case with SBF,” de Vos said.

What’s more, Zhao has gotten off much easier in sentencing than former crypto rival Bankman-Fried. Bankman-Fried received a 25-year prison term for crimes connected to the operation of his crypto exchange.

Unlike Zhao and the charges brought against Binance, Bankman-Fried’s bankrupt exchange faced allegations of fraud and misuse of customers’ funds.

Binance CEO says company has moved past cultural issues

Crypto rally offers Zhao a boost

Experts say that Zhao’s net worth is likely to continue rising as buoyant crypto prices, which tend to support trading activity on Binance, boost his own personal fortune.

“CZ will now be one of the wealthiest people in prison,” said Yesha Yadav, law professor and associate dean at Vanderbilt University.

That’s even after a litany of legal troubles, including the Department of Justice’s case against it, and several other high-profile lawsuits — including one from the Securities and Exchange Commission which remains ongoing.

The SEC has accused Binance of making multiple unregistered offers and sales of crypto asset securities. It is not yet clear when that case will reach a conclusion.

Zhao had an estimated personal net worth of $33 billion on March 8, 2024, up from $10.5 billion the same time last year, according to Forbes’ World’s Billionaires list, which ranks the richest peopole using stock prices and exchange rates.

Bloomberg’s Billionaires Index, a separate measure of the world’s wealthiest, pegs Zhao’s net worth at an even higher sum, $42.9 billion.

CNBC was unable to independently verify Zhao’s overall net worth.

But Zhao is widely reported to have an estimated 90% stake in Binance, and his fortune is largely derived from his equity ownership in the company.

Binance is by far the world’s largest cryptocurrency exchange by trading volume, processing $18.1 trillion worth of trading volume in 2023, according to data from crypto market data firm CCData.

Around 80% — or $14.4 trillion — of that came from derivatives products like futures contracts, while the remaining $3.7 trillion came from spot trading. Derivatives trading is a key part of Binance’s business.

And even though Binance has seen its market share drop to 41.6% since Zhao stepped down as CEO in November 2023, the company remains the dominant player overall — leagues ahead of South Korean exchange Upbit, Dubai-headquartered Bybit, and U.S. giant Coinbase.

Zhao has said previously he has personal investments in bitcoin and Binance’s own BNB token, however he’s not disclosed the value of those holdings. Binance Coin, or BNB, is up 83% so far this year to $576.

Lucas Kiely, chief investment officer of digital wealth platform Yield App, said that Zhao’s “significant stake in the world’s largest cryptocurrency exchange by volume positions him to potentially benefit from the overall growth of the crypto market.”

The recent approval of a spot bitcoin exchange-traded fund in the U.S. has led to renewed interest in the crypto market, and helped trigger a wave of fresh institutional investment, according to Kiely — and that’s sure to be a boon to Binance.

“Such developments could contribute to the growth of Binance and, by extension, CZ’s wealth,” he told CNBC.

Zhao has been hit with a partial knock to his overall fortune — he was forced to pay a $50 million fine, in addition to the $4.3 billion in fines and forfeiture Binance was ordered to pay for violating the U.S. Bank Secrecy Act and sanctions on Iran. Yadav noted that it’s also possible Zhao makes some contribution to the billions Binance owes to the government.

Yadav tells CNBC that even though CZ’s vast wealth is not directly under threat by virtue of his conviction and the sentencing today, there may still be some indirect effects.

“Negative long-term impact on Binance will diminish the value of CZ’s investment in the crypto exchange,” said Yadav. “Conversely, however, CZ may even benefit if Binance begins a path to recovery following today’s sentencing, the plea deal and monitorship arrangement, and regains its market share over time as a result.”

Don’t miss these exclusives from CNBC PRO

Sam Bankman-Fried's family on sentencing: We are heartbroken and will continue to fight for our son

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Daily Ev Recap: Record-breaking Tesla megapack

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Daily Ev Recap: Record-breaking Tesla megapack

Listen to a recap of the top stories of the day from Electrek. Quick Charge is now available on Apple PodcastsSpotifyTuneIn and our RSS feed for Overcast and other podcast players.

New episodes of Quick Charge are recorded Monday through Thursday and again on Saturday. Subscribe to our podcast in Apple Podcast or your favorite podcast player to guarantee new episodes are delivered as soon as they’re available.

Stories we discuss in this episode (with links)

Gogoro announces major partnership to help accelerate global expansion

Tesla conducting more layoffs, including entire Supercharger team

Tesla Megapack to power new massive record-breaking 1.3 GWh battery system

Nevada put big battery energy storage where a coal plant used to be

Ford just opened orders for its enhanced-range E-Transit

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US wind generation fell in 2023 for the first time since the 1990s

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US wind generation fell in 2023 for the first time since the 1990s

Annual US power generation from wind turbines declined in 2023 for the first time since the mid-1990s – here’s why.

The US saw the addition of 6.2 gigawatts (GW) of new wind capacity last year, but data from the US Energy Information Administration’s “Power Plant Operations Report” show that US wind generation in 2023 totaled 425,235 gigawatt-hours (GWh) – 2.1% less than the 434,297 GWh generated in 2022.

US wind capacity increased steadily over the last several years, more than tripling from 47 GW in 2010 to 147.5 GW at the end of 2023.

Electricity generation from wind turbines also grew steadily, at a similar rate to capacity, until 2023. Last year, the US wind turbine fleet’s average capacity factor – how much energy it’s generating versus what it can produce at continuous full power – fell to an eight-year low of 33.5%, compared with 35.9% in 2022, the all-time high.

The EIA asserts that 2023’s decline indicates that “wind as a generation source is maturing after decades of rapid growth.” It also attributed the drop to slower wind speeds than normal in 2023, especially during the first half of the year, when wind generation dropped by 14% compared with 1H 2022. The El Niño climate pattern, which weakens tradewinds, definitely had a hand in that.

Wind generation from August through December, however, was 2.4% higher than during the same period in 2022. Wind speeds were greater than normal during 2022.

The EIA breaks down regions by census divisions, and there are three census divisions that account for half of the installed wind capacity in the US.

Wind generation decreased the most in the upper Midwest. Wind generation in the East North Central states – Illinois, Indiana, Michigan, Ohio, and Wisconsin – declined by 6% compared with 2022. In the West North Central states – Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, and South Dakota – it dropped by 8%.

The Mountain Census states – Arizona, Colorado, Idaho, Montana, Nevada, New Mexico, Utah and Wyoming – reported a smaller reduction of 2%.

Three census areas saw growth: West South Central had 3% more wind generation in 2023, and the Pacific Coast had 1% more. Wind generation in Texas, with the US’s largest wind generation fleet at 40.7 GW, increased by 4.4% in 2023. Texas’s installed wind capacity account for 28% of the national total.

Read more: Nevada put big battery energy storage where a coal plant used to be


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