Scotland raises sails for offshore wind-powered oil & gas leasing in net zero mission

Leasing for sub-100MW projects, expected to major on floating arrays, to open to bids 'early in 2022', says Crown Estate Scotland

CGI of Odfjell Oceanwind's MOWU floating wind units at an offshore oil & gas field
CGI of Odfjell Oceanwind's MOWU floating wind units at an offshore oil & gas fieldFoto: Odfjell Oceanwind

Scotland is shaping up plans to launch a new, standalone offshore leasing round targeting smaller-scale floating wind farms linked to North Sea oil & gas fields, as part of accelerating plans to decarbonise hydrocarbon production in its waters.

The Crown Estate Scotland (CES) – which last week announced it would begin consultation with the energy industry on special purpose sub-100MW projects as part of it so-called Innovation and Targeted Oil & Gas Decarbonisation (INTOGD) – said the round would be opened “in early 2022”.

“This is an exciting development for the offshore wind sector which can play an important role in supporting the decarbonisation of Scotland’s oil & gas sector as we work towards net zero,” said Colin Palmer, director of marine at CES.

Oil & Gas Authority director of operations Scott Robertson said: “This is a big opportunity for industry to lower its carbon footprint while investing in offshore infrastructure to support the faster growth of wind power in Scottish waters, all contributing to UK net zero.

“Power generation accounts for around two thirds of oil and gas production emissions. The electrification of oil & gas installations is vital if industry is going to meet its 2027 and 2030 decarbonisation targets agreed in the North Sea Transition Deal [the UK’s package of support measures designed to underpin the regional oil & gas sector’s transition to clean power production].”

CES sees the leasing programme as key to developing Scotland “as a destination for increased innovation and supply chain opportunities linked to offshore renewable energy”, as well as helping define the role that offshore wind could play in shrinking the carbon footprint of North Sea hydrocarbon production, which currently accounts for 4% of the UK emissions.

This round will held separately from ScotWind, the high-profile 10GW auction currently under way for commercial-scale offshore wind projects across Scotland, CES specified, with winning companies “granted exclusivity over relevant areas of seabed, with final option agreements put in place following the adoption of the INTOGD Offshore Wind Sectoral Marine Plan by the Scottish government.

CES said a further announcement would be made “outlining additional information” on the leasing process in November.

Several pioneering projects that aim to use floating wind to decarbonise oil & gas operations off Europe have already been launched, including the industry-leading 88MW Hywind Tampen, now under development, which will use an array of 11 spar-based turbines to cut emissions from Equinor’s Snorre-Gullfaks complex off Norway.
Developer Cerulean Wind – started-up by a pair of former petroleum executives – is advancing a scheme to use 3GW of floating wind off Scotland to decarbonise more than half the emissions being produced by oil & gas operations in the central and northern UK North Sea.
And oil & gas drilling contractor Odfjell recently spun-out a unit named Odfjell Oceanwind that aims to use floating wind unit ranging in size from 1MW-11MW to decarbonise offshore hydrocarbons production.

The head of renewable industry body Scottish Renewables, Claire Mack, welcomed “new systems [that would] allow Scotland to capitalise on its renewable energy resource", she urged the government “to continue to focus as a country on our net-zero mission, and on the economic and social benefits which meeting that target with renewable energy will bring”.

“Both CES and Marine Scotland already play vital roles in the development of our industry and it is important that they are supported as the demands on them increase, particularly at a time when ScotWind leasing – the process through which the majority of our offshore wind power will be developed – remains a live process.”

She spotlighted that the “equivalent of almost all Scotland’s electricity consumption is now provided by renewable technologies”, including wind, saying it was “imperative” that legislation and regulations focused on decarbonisation using renewable energy were “optimised to that end”.

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Published 1 September 2021, 09:57Updated 1 September 2021, 17:18
oilNorth SeaScotlandUKFloating wind