Deals signed for offshore wind energy to power seven million homes
The Crown Estate has signed Agreements for Lease for six UK offshore wind projects – three off the Yorkshire coast – which could begin to create green electricity by the end of the decade.
They have the potential to generate around 8GW of renewable electricity, enough for more than seven million homes.
Projects include RWE Renewables’ Dogger Bank South (West) and Dogger Bank South (East) schemes, which are located to the north east of Scarborough and Outer Dowsing, which is East of the Humber Estuary and involves TotalEnergies and Corio Generation – a portfolio company of the Green Investment Group.
The agreements are the culmination of The Crown Estate’s Offshore Wind Leasing Round 4.
Developers can now further progress their plans, which have the potential to make a major contribution to delivering sustainable, renewable energy for the UK, as well as the Government’s target of 50GW of offshore wind capacity by 2030.
The Crown Estate is an independent commercial business, created by an Act of Parliament, with a portfolio of UK buildings, shoreline, seabed, forestry, agriculture and common land.
Dan Labbad, CEO of The Crown Estate, said: “This next generation of projects point to an even more exciting and dynamic future.
“They demonstrate the far-reaching value that our world-class offshore wind sector can deliver for the nation: home grown energy for all, jobs and investment for communities, revenue for the taxpayer, clean energy for the benefit of the environment and a considerate, sustainable approach which respects our rich biodiversity.”
Gus Jaspert, managing director, marine, at The Crown Estate, added: “Today marks a significant milestone for the UK on the road to net zero, unlocking green energy potential for more than seven million homes and demonstrating to the world that the UK offshore wind industry is growing at pace to help meet the climate challenge.”
Under the Agreements for Lease, The Crown Estate receives an annual option fee from each project developer, until they are ready to enter into a lease for the seabed site.
The option fee sum was determined by the project developers themselves through an open market process to ensure fair value for seabed rights was captured. Option fees will contribute toward The Crown Estate’s net revenue profit, all of which is paid to HM Treasury.
Sven Utermöhlen, CEO Offshore Wind of RWE Renewables, said: “The signing of Dogger Bank’s Agreements for Lease with The Crown Estate mark a significant step for both the project and RWE’s offshore wind growth ambitions.
“Through delivery of the Dogger Bank South projects and with one of the UK’s largest offshore wind pipelines, RWE is a major partner in helping the country achieve its net zero ambitions, generating clean, home-grown energy and securing domestic supply.”
Philippe de Cacqueray, managing director, Renewables UK, TotalEnergies, said: “We are pleased to see our Outer Dowsing project reach a major milestone on its development pathway, an important step towards the UK’s target of reaching 50GW of Offshore Wind capacity 2030.
“The project represents a significant financial investment, but also an investment in time and skills, which will ultimately contribute to the UK’s energy transition and net zero ambitions.”
Mark Giulianotti, head of Europe at Corio Generation, a Green Investment Group portfolio company, said: “We are incredibly proud to be developing Outer Dowsing, which will be one of the UK’s largest offshore windfarms.
“This landmark infrastructure project will help form the backbone of our net zero energy system and bring investment and jobs.”