Leasing agreements for two huge floating wind farms in the Celtic Sea with the potential to power millions of homes with clean energy have been struck.
Norwegian energy venture Equinor and Gwynt Glas - a joint venture between EDF power solutions and Irish Government-owned ESB - have both entered into lease deals with owner of the seabed, the Crown Estate, for their respective 1.5 gigawatt (GW) 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.
However the bidding process in the Crown Estate's wind leasing round five, based on a best price auction for the option to develop, failed to get interest in a third floating wind farm straddling both Welsh and English waters.
The Crown Estate said it has been actively engaging the market with a view to securing a developer for the site and expects to provide a further update in the near future. However, it is not clear how this will be achieved after it failed to get the required market buy-in first time around. Three projects 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.
The port of Port Talbot, which benefits from being in a freeport, has been identified, along with Bristol, for the assembling and maintenance of the floating wind farms.
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.
Equinor and Gwynt Glas are now expected to focus on developing their project designs, delivering onshore and offshore site surveys, environmental impact assessments (EIA), public engagement and securing planning consents. Once these initial requirements have been completed, the developers can then apply to obtain a full lease from the Crown Estate to build and operate the new wind farms, which could be operational by the mid-2030’s.
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They will also be seeking contract for difference support, which will ensure energy produced will be commercially viable, from the 海角视频 Government.
Gus Jaspert, managing director marine at the Crown Estate, said: “As we edge closer to celebrating 25 years of 海角视频 offshore wind in December, the entry of Gwynt Glas and Equinor into agreements for lease in the Celtic Sea is testament to the world-leading industry we see before us today.
“That the 海角视频 is in a position to host large innovative floating offshore wind projects off our coasts is the result of many years of planning, investment and ambition, ensuring the 海角视频 can both facilitate the establishment of exciting new technology and remain attractive to international investors.
“These projects will be among the largest of their kind anywhere in the world, with the potential to provide millions of homes with clean energy and support thousands of new jobs. This vital contribution to the 海角视频’s energy security and economic growth should be celebrated and I congratulate both developers on this latest milestone.”
Energy Minister Michael Shanks said: “From its proud industrial heritage to its leadership in clean energy, Wales has always been a crucial driver of British innovation and economic growth.”
The agreements build upon this legacy through world leading floating offshore wind in the Celtic Sea, creating thousands of jobs, delivering industrial renewal in places like Port Talbot and across the south west, and protecting families from volatile fossil fuel markets with homegrown power that we control.”
Cabinet Secretary for Economy, Energy and Planning, Rebecca Evans, said: “Floating offshore wind in the Celtic Sea represents a once in a generation opportunity create thousands of jobs. I am determined to maximise the benefits for Wales, and I welcome the Crown Estate’s focus on local apprenticeships and the employment of young people across the region. It is good to see Equinor and the Gwynt Glas joint venture reaching this important milestone.”
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Special purpose vehicle Gwynt Glas is equally owned by EDF power solutions and ESB. The project is committed to ensuring that at least 3.5% of its workforce consists of apprenticeships and that 10% of employees aged 19-24 are not currently in education, employment, or training.
Mark Hazelton, Gwynt Glas project director said: “Signing the agreement for lease with the Crown Estate marks a major milestone for Gwynt Glas, bringing us one step closer to delivering up to 1.5GW of clean, renewable energy. This project showcases the 海角视频’s leadership in floating offshore wind technology and will create significant opportunities for skills development, apprenticeships, and employment.
"We are committed to ensuring that our workforce reflects diversity and inclusivity, providing opportunities for individuals from all backgrounds to contribute to building a sustainable future for generations to come.”