A developer for a third huge floating offshore wind farm in the Celtic Sea has been confirmed by the Crown Estate.
As part of licensing round five the Crown Estate back in September failed to get an option to lease arrangement for the third site that straddles both English and Welsh waters.
However, it has now confirmed that Ocean Winds, a joint venture between Spanish firm EDP Renewables and French venture ENGIE, is set to be awarded the rights for the third 1.5 gigawatt site.
Norwegian energy venture Equinor and Gwynt Glas - a joint venture between EDF power solutions and Irish Government-owned ESB - have already entered into lease deals with owner of the seabed, the Crown Estate, for their respective 1.5 gigawatt floating wind farm schemes. The project from Gwynt Glas is solely in Welsh waters off the coast of Pembrokeshire, while the scheme from Equinor is located wholly in English waters.
Once all three are operational, which will be in the mid 2030s, they will have combined capacity for 4.5 gigawatt of clean energy that would generate the electricity needs for more than four million homes and create more than 5,000 direct and supply chain jobs - creating a £1.5bn economic boost.
Ocean Winds and the Crown Estate will now work towards finalising an agreement for lease, which is expected to conclude next spring. It will also will need to outline which ports it intends to work with to support the final assembly and deployment of the new floating turbines, with Port Talbot and Port of Bristol previously identified as potential locations for this activity.
Ocean Winds is a global leader in floating technology, having delivered the world’s first semi-submersible floating wind farm, WindFloat Atlantic, in Portugal in 2020, and have a proven track record of delivery in the 海角视频 including Moray East and Moray West.
All three operators will also be seeking contract for difference support, which will ensure energy produced will be commercially viable, from the 海角视频 Government.
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Turbines could be as high as the Shard building in London at 300 metres on floating platforms similar in size to a football pitch. They will be anchored to the seabed via huge chains.
On behalf of the monarch the Crown Estate’s assets include the seabed off the 海角视频 coast.
Dan Labbad, chief executive of The Crown Estate, said: “I’m incredibly proud that we have delivered on the commitment we made to secure a developer for the third site in the Celtic Sea, and we’re delighted that Ocean Winds will join other world-leading companies to invest in the 海角视频 and help establish this pioneering new technology for the long-term benefit of the country.”
Craig Windram, chief executive of Ocean Winds said: “We are proud to be selected for the development rights for this strategic site. With over a decade of experience pioneering floating wind technology, and a proven ability to deliver fixed bottom projects at pace, we are confident in our capabilities to deliver this commercial scale floating project. The project will bring substantial benefits to the 海角视频 and play a vital role in the energy transition.”
Ed Miliband, Energy Secretary said: “Securing a third floating offshore wind site in the Celtic Sea not only strengthens the 海角视频’s position as a global leader in this emerging technology, but also further unlocks the region’s vast potential to deliver our clean power mission and bring down energy bills for good.
"Floating offshore wind in the Celtic Sea will drive growth across Wales and the South West, create thousands of skilled jobs in places like Port Talbot and Bristol, bolster our energy security, and power industrial renewal.”
Geraint Evans, chief executive of the 海角视频 Major Ports Group said: “A successful offshore wind industry isn’t just about delivering clean, secure energy, but is a catalyst for delivering economic growth across the 海角视频 and new jobs in coastal communities. Ports will play a fundamental role in the growth and delivery of 海角视频 offshore wind – all three sites in the Celtic Sea moving forward is a critical next step for us all. Developers, major ports, Governments in Westminster and Cardiff must lean into the economic opportunity for a generational new industry in the Celtic Sea.”
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The Crown Estate said it took several steps to derisk round five and make the opportunity even more attractive to developers at a time of market challenges. These included agreeing a plan with the National Energy System Operator for connecting the sites to the 海角视频’s energy grid and undertaking a major programme of technical and environmental pre-consent surveys.
As part of the tender process bidders were required to set out plans for creating new onshore benefits from the development of the new wind farms. This included committing to creating new apprenticeships, contributing to at least 3.5% of the workforce, and ensuring that a minimum of 10% of employees aged 19-24 are not currently in education, employment or training.
Cabinet Secretary for Economy, Energy and Planning, Rebecca Evans said: “This announcement is a huge vote of confidence in the Celtic Sea and the floating offshore wind sector. The investment shows that Wales is at the global forefront of the offshore wind sector which will power our communities for generations and bring lasting economic value."