EDF, Equinor and Red Rock among big names with failed ScotWind leasing deals

EDF Renewables and Equinor, Mainstream Renewables and Siemens, and Red Rock Power are among 57 companies and consortia that have not been designated as offshore wind acreage in Scottish waters.

Crown Estate Scotland has announced the 17 winning bids – out of a total of 74 entries – in its first ScotWind round, meaning many energy suppliers and renewable tech specialists will now look elsewhere.

Red Rock Power expressed “disappointment” at not being selected during the process, in which it formed a joint venture with Italian oil giant Eni.

Chief executive Guy Madgwick has confirmed that the company will remain committed to Scotland’s offshore wind sector and plans to bid on future lease rounds for renewable energy development projects.

“We are understandably very disappointed with today’s results, but remain committed to Scotland’s offshore wind sector and support Scotland’s net zero transition – we wish the successful bidders every success as they progress their new developments.”

EDF, Siemens and Mainstream Renewable declined to comment.

A spokesperson for Equinor said: “We have no specific comment on the ScotWind result other than we would have liked to see a different result – we will await comments from The Crown Estate Scotland before making an assessment.

“We take a disciplined portfolio approach to growth.

“Going forward, we will continue to assess potential tenders and opportunities in the UK and internationally, in line with our strategy of accelerating the profitable growth of renewables.”

A spokesperson for Crown Estate Scotland said: “We assessed applications against published criteria set out at the start of the process, including project information such as concept, budget and deliverability, and information on developers such as capacity, experience and financial resources.

“The projects proposed in option agreements are those that have best demonstrated their ability to deliver the best projects for the sites in question. It was an extremely competitive process and it was a painstaking effort to select the 17 successful projects we named. »

As for the winners, the joint venture BP and Energie Baden-Wurttemburg (EnBW) won the largest area of ​​the round, at 859 km2. The project is expected to generate the largest source of electricity with 2,907 megawatts (MW).

It has pledged £10bn to make Aberdeen its ‘global center of offshore wind excellence’ and as part of the scheme it will pay £85.9m to the Scottish government.

BP’s five-year financial commitment includes the creation of entry-level energy transition positions, as well as the retraining of hundreds of oil and gas workers and technicians with capabilities in the renewable energy sector.

SSE Renewables, alongside Japanese conglomerate Marubeni and Danish fund manager Copenhagen Infrastructure Partners (CIP), won the second-largest area, which is expected to generate around 2,610 MW.

The company will also pay £85.9 million as part of the option fee.

It has pledged to invest £15bn in the Scottish economy, with a £100m fund to invest directly in Scottish companies across the supply chain supporting the development of the projects.

The Falck Renewables joint venture will pay around £67 million for its three winning projects. The consortium, made up of Quantum Energy Partners, Blue Float Energy and Ørsted, is expected to generate around 3,000 MW across its three developments.

Denmark’s biggest energy company has pledged to invest up to £12bn directly with Scottish companies in the development and construction of offshore wind farms over the next decade.

ScottishPower has secured seabed rights to develop three new offshore wind farms off the coast of Scotland, including two new floating wind farms being developed in conjunction with Shell.

The projects – with a total capacity of 7 GW – will more than triple ScottishPower’s existing offshore wind pipeline from 3.1 GW to 10.1 GW.

The partnership between ScottishPower and Shell will pay £154.4 million in option fees to the Scottish Government.

Meanwhile, Vattenfall and Fred Olsen Renewables have signed a memorandum of understanding with Green Marine and Leask Marine, alongside Orkney Port Authority, as part of its supply chain commitment to ScotWind l ‘last year. The group will pay £20m and will develop 798 MW over 200 km2.

A joint venture between Macquarie’s Green Investment Group (GIG), TotalEnergies and RIDG, has secured the rights to develop a 2,000 MW offshore wind farm project as part of the round.

The West of Orkney Windfarm will be located 30km off the west coast of Orkney in Scotland. The company has pledged to provide £140m to support local supply chain development, including improving ports and port infrastructure in Orkney and Caithness. The companies are expected to pay £65.7m.

Another consortium formed by marine energy group DEME will spend £38.7million on its two projects, building offshore wind turbines that will produce more than 2,000MW of electricity.

The latest multinational joint venture is Ocean Winds and Aker, which will pay £43.9 million in option fees. It has pledged £15billion of investment on its three proposed Moray Firth tenders. However, the band won only one of the three bids. It will build 1,000 MW of power over 429 km2.

The joint venture has committed a £235 million investment package to support the renewable energy supply chain in Scotland.

Canadian renewable energy company Northland Power has won its lease in north-west Scotland, building 1,500 MW of power. He will pay £3.9 million in option fees.

Norwegian offshore wind developer Magnora will pay £10.3million in option fees for its approved project, the construction of 500MW of wind turbines, which it says will generate 2.4 terrawatts per year. It hopes to get planning permission by 2026 with final investment decision by 2028 and start production by 2030.

Finally, BayWa re UK will pay £33 million in option costs to build 960 MW of power over 330 km2 with its joint venture.

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