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Title:Offshore wind leasing round set to raise £260m
Date:3/24/2023 2:32:18 PM

The Scottish government can expect a windfall of about £260m from a new phase of floating wind farm construction in the North Sea and around Shetland.

Thirteen projects have been given the green light to develop plans for more than five gigawatts of capacity.

That would be enough to supply power to more than three million homes.

But most of the new generation will be used to directly supply oil and gas platforms.

The fossil fuels used to extract hydrocarbons make the oil and gas industry among the UK's biggest polluting sectors, and the industry has committed to sharp reductions in that carbon footprint.

The successful bidders were announced by Crown Estate Scotland, which leases the seabed and hands all net revenues to the Scottish government for public spending.

Part of the latest round is aimed at innovation, including ways to develop the supply chain in Scotland for floating wind turbines.

The winners, from 19 bids lodged as part of the Innovation and Targeted Oil and Gas (Intog) leasing round, have said they will pay £262m for exclusive development rights.

However, the funds will not be finalised until next year, when the Scottish government's marine plan should be completed.

There will be further earnings for Crown Estate Scotland once the wind turbines are in operation.

It has faced criticism from some quarters for failing to maximise the value of a similar but larger bidding round known as ScotWind, which raised more than £750m.

It is to supply Britain's National Grid with fixed and floating wind power from large sea areas around the coast, including the west of Scotland.

Colin Palmer, marine director at Crown Estate Scotland, said the bidding round had been "extremely encouraging".

He added that it should "support innovation, reduce North Sea carbon emissions, and encourage technical and commercial innovation in the offshore renewables market".


Date Added:3/25/2023 6:38:22 AM