Shell-led group pulls out of Norwegian floating wind tender
Fred. Olsen-led consortium also reportedly to drop out while industry warns government progress on Utsira North tender now crucial
A consortium of oil supermajor Shell and Norwegian power companies Lyse and Eviny has become the latest group to drop out of Norway’s upcoming floating wind tender.
The Engie-EDPR tie-up Ocean Winds and Aker-owned Mainstream Renewable Power has already quit a consortium with state-owned utility Statkraft to bid for the 1.5GW Utsira North (Nord) area in an auction that was delayed several times.
The risk for bidding in the tender was too great, Norske Shell director of government relations Jan Soppeland told Energiwatch on Wednesday, confirming his comment to Recharge sister publication Dagens Næringsliv (DN).
"It is very unfortunate that such strong players are withdrawing from Utsira Nord. Fortunately, there is still interest from strong partners in Utsira Nord, but the fact that a whole consortium is now pulling out should serve as a warning to the government that progress and predictable frameworks are now crucial,” said Arvid Nesse, CEO of industry group Norwegian Offshore Wind in a comment sent to Recharge.
“To ensure diversity in the supply chain, it is important that multiple developers are active in the market.
“Therefore, it is essential that the tender of Utsira Nord proceeds as planned as soon as possible after the New Year."
DN added that there will also be a stock exchange announcement that Fred. Olsen Seawind and Hafslund, who work together in a separate group, will not apply either.
After several delays, Norway’s government now plans to auction off the Utsira North site next year. It has proposed a maximum support of NKr35bn ($3.16bn), but only for one 500MW site within the Utsira North area.
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