Developers Revealed for Celtic Sea Floating Wind Projects
Delivering floating offshore wind off the coast of Pembrokeshire has taken a significant step forward, as the Crown Estate has named Equinor and a joint venture between EDF Renewables UK and ESB as preferred bidders, following the conclusion of its Round 5 leasing process.
Two developers have each secured rights to develop 1.5GW of floating offshore wind (FLOW) capacity in the Celtic Sea, with a third 1.5GW lease area yet to be awarded. As part of the Crown Estate's Round 5 leasing process, both successful bidders will pay an annual option fee of £350 per megawatt, amounting to £525,000 per year for their 1.5GW lease area.
Unlike traditional fixed-bottom turbines, FLOW technology allows wind farms to be installed in deeper waters, opening up vast new areas of seabed for renewable energy generation. This latest announcement represents a major milestone for the emerging Floating Offshore Wind industry in the Celtic Sea, with the Crown Estate forecasting the potential for a further 4GW to 10GW to be made available by 2030.
The news also follows the Crown Estate's recent commitment to invest £400 million in enhancing port and onshore infrastructure.
With two project development areas being located in different parts of the Celtic Sea coastline, strategic investment in ports and the grid will now be critical, as potential supply chain investors await further information from the leasing process regarding the developers' supply chain plans.
A major benefit of this announcement is that we now know the developers who will be progressing these projects, so communities and supply chains across South Wales and the South West can engage with the developers to co-create opportunities to maximise the benefit from these projects. What these stakeholders need from the developers now is an indication of project timelines and milestones to prepare and align themselves.
This announcement is a significant vote of confidence in the UK's world-leading offshore energy market at a time of global volatility and uncertainty for the sector.
Energy Secretary Ed Miliband said:
'Floating offshore wind will be transformative for economic growth in Wales and the South West, unlocking thousands of jobs in places like Port Talbot and Bristol, bolstering our energy security and delivering industrial renewal.
'The Celtic Sea has huge untapped potential to support our mission to become clean energy superpower, so we can get energy bills down for good through our Plan for Change.'
Secretary of State for Wales, Jo Stevens, said:
'This is a hugely significant moment for the clean energy industry in Wales and one which will have a positive impact for generations to come.
'Floating offshore wind will help deliver the transition to clean energy, bring down bills for households and help secure the UK's home-grown energy supply.
'Increased economic growth and thousands of new well-paid jobs will come from this huge vote of confidence in Wales' energy industry and its workforce.'
Cabinet Secretary for Economy, Energy and Planning, Rebecca Evans, said:
'The establishment of floating offshore wind in the Celtic Sea marks the start of a new industrial opportunity for Wales.
'Over the last six months, we have been working through our Task and Finish Group to ensure Wales is in the best possible position to reap the rewards from the energy transition.
'This is an exciting and important step in that journey, and we look forward to working with the industry, The Crown Estate and counterparts in Westminster to write the next chapter in this story.'
Matthieu Hue, CEO of EDF Renewables UK, said:
'I am absolutely delighted to announce that we, together with our project partner ESB, have secured preferred Bidder status with The Crown Estate for an Agreement for Lease as part of the Round 5 Leasing Process.
'We look forward to further developing the Gwynt Glas offshore wind farm, helping the UK maintain a market leading position in floating wind and recognising the important role that floating wind can play in the UK's ambition towards reaching net zero.'
Jim Dollard, Executive Director at ESB, said:
'ESB, in partnership with our colleagues in EDFR, is delighted to have been successful in The Crown Estate Round 5 seabed allocation in the Celtic Sea. The Celtic Sea is of strategic importance to ESB given its location adjacent to Ireland and the opportunities to develop a floating offshore project in what we believe to be an ideal area bodes well for our ambitions to develop a portfolio of floating offshore wind projects in Ireland and UK to contribute to the net zero plans for both countries as well as those of ESB.'
Trine Borum Bojsen, Senior Vice President for Renewables Europe of Equinor, said:
'We are delighted to be given this opportunity in the Celtic Sea. The UK is a core strategic market for Equinor and a market where we have more than a decade's experience in offshore wind. The seabed lease offers the scalability and timing flexibility we seek and is a long-term option for Equinor's renewables portfolio. We believe that the deeper waters in the Celtic Sea have good future potential for floating wind which will play an important role in unlocking the UK's journey towards net zero.'
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