Shell seeks exit from giant Scottish floating wind projects with Iberdrola: report
Oil giant said to be mulling latest move away from offshore wind
Shell could sell its share in projects aiming to develop up to 5GW of floating wind off Scotland, according to reports.
If the split went ahead it would mark the latest throttling back by Shell of its ambitions in offshore wind and renewables more generally under CEO Wael Sawan, who has refocused the supermajor around its core operations.
Shell and Iberdrola’s ScottishPower unit signed the leases in April 2022 to kick start development of the 3GW Marray, located 75km off the coast in waters of some 100 metres, and the 2GW Campion, 100km out in depths of 77 metres.
The partners at that stage hailed the plans as a new global milestone for floating wind, but the sector has since been battered by the inflation and supply chain challenges that have afflicted the wider offshore wind industry.
Floating technology has been more exposed than fixed-bottom projects to the cost increases due to its far earlier stage of maturity, with analysts also pointing to big cost challenges to get the required poret infrastructure in place.
Since winning the ScotWind leases Shell has emphasised the need for offshore wind projects to meet strict profitability targets and fit into a wider integrated energy strategy.