First leases enabling offshore wind to supply oil platforms announced

The winners of what is said to be the world’s first round of leasing projects designed to enable offshore wind energy to directly supply oil and gas platforms have been announced by Crown Estate Scotland.

It said the 13 projects could generate around £262 million for the Scottish Government once the Sectoral Marine Plan has been finalised and option agreements signed.

BP Alternative Energy Investments is among the successful bidders, as are companies including TotalEnergies and Cerulean Winds.

The Innovation and Targeted Oil & Gas (INTOG) leasing project aims to attract investment in offshore wind projects in Scottish waters, as well as help decarbonise North Sea operations.

Developers were invited to apply for seabed rights in order to develop offshore wind projects that either reduce emissions from the North Sea oil and gas sector or consist of small-scale projects of 100 megawatts (MW) or less.

INTOG was designed following demands from Government and industry to help achieve the targets of the North Sea transition sector deal through decarbonising oil and gas operations.

The projects will also aim to further stimulate innovation in Scotland’s offshore wind sector, create additional supply chain opportunity, assist companies to enter the renewable energy market, and support net-zero ambitions.

Successful applicants have now been offered initial agreements that will enable them to start offshore wind development work while the Marine Scotland planning process for the INTOG Sectoral Marine Plan is completed.

Net Zero and Energy Secretary Michael Matheson said: “This milestone in the INTOG leasing round is the next step in realising another world-leading opportunity for Scotland’s energy transition: helping both decarbonise our existing oil and gas operations while helping our offshore wind sector to expand, innovate and deliver on our ambition to be a renewables powerhouse.

“The announcement from Crown Estate Scotland not only indicates that the INTOG initiative will provide a significant contribution to the public purse, but ensure the continuing growth and development of Scotland’s offshore expertise and wider supply chain, supporting a true just transition for our energy sector.”

Colin Palmer, director of marine at Crown Estate Scotland, said: “The results for this very distinctive and targeted leasing round are extremely encouraging.

“INTOG provides a range of practical ways to support innovation, reduce North Sea carbon emissions, and encourage technical and commercial innovation in the offshore renewables market.

“In addition to delivering economic and environmental benefits, INTOG will generate funds for the Scottish Government, from initial fees when option agreements are signed to ongoing rent payments when the projects are constructed and move to operation.

“There are still significant challenges that need to be addressed to ensure INTOG’s many opportunities are realised fully, but today marks a real step forward.”

Claire Mack, chief executive of Scottish Renewables, said: “Today’s announcement from Crown Estate Scotland is one step forward on the road to the industrial decarbonisation of Scotland.

“It is essential that INTOG is aligned with ScotWind (offshore wind leasing) and its commitments to the Scottish supply chain, which should enable strong collaboration between projects to invest and support Scottish suppliers with the delivery of these projects.

“ScotWind will be at the forefront of the drive to achieve Scotland’s net-zero ambitions and must remain the priority as we see an increase in demand for resources and connections to the electricity network.”

Stuart Payne, North Sea Transition Authority (NSTA) chief executive, said: “Electrification of offshore platforms is essential if industry is to halve production emissions by 2030.

“Today’s announcement from Crown Estate Scotland marks an important milestone on the way to getting projects up and running, supporting the faster growth of offshore wind power in Scottish waters.

“The NSTA will continue to push industry to deliver.”