The two biggest winners from the Crown Estate Scotland INTOG leasing round are Cerulean Winds and Flotation Energy.
From 19 bids, 13 leasing options totaling 5.5 GW were chosen, with developers pledging fees totaling £261.8 million.
Under the Targeted Oil & Gas (TOG) stream of the development rights transaction, Cerulean secured lease options for three 1GW sites by pledging options fees totaling more than £130 million.
Two sites, each under TOG for 1350MW and 560MW, were secured through flotation.
Two 15MW bids from Harbour Energy and a 3MW project from TotalEnergies completed the TOG winners.
The cooperation between Bluefloat and Renantis won two 99MW sites in the tender’s Innovation section.
While BP won a 50MW project, Irish developers Simply Blue and ESB each obtained 100MW sites.
Using renewable energy to power oil and gas infrastructure directly, the INTOG process allowed developers to apply for seabed rights to create offshore wind projects that either reduce emissions from the North Sea oil and gas sector or are 100MW or smaller, innovative small-scale projects.
The chosen candidates have now been provided with initial contracts, known as Exclusivity Agreements, which, if accepted and signed, would allow the applicants to begin offshore wind development work while Marine Scotland’s planning process for INTOG is ongoing.
Director of Marine at Crown Estate Scotland, Colin Palmer, said “Today’s 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.”
Net Zero & 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.”
The majority of INTOG contract awards were made through open auctions, and they were evaluated based on both price and quality.
In 2024, option agreements are anticipated to be made available. Developers must submit a Supply Chain Development Statement to get an option agreement (SCDS). The information included in these Statements will then be made public.
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