Investment plan

Offshore wind is part of Shell’s £25bn UK investment plan

Shell plans to invest up to £25bn (around €30bn) in Britain’s energy system over the next ten years, with offshore wind being one of the main areas where the oil giant and gas company has set its sights on the UK.

The company said via a social media post that it plans to invest more than 75% of total UK investment in low and zero carbon products and services, including offshore wind, hydrogen and electric mobility.

“These investments, subject to board approval, aim to propel the UK closer to net zero and help ensure security of supply while boosting economic growth and jobs”said Shell.

In November last year, Shell and RWE unveiled plans to explore the possibilities of establishing integrated projects for the production of green hydrogen thanks to offshore wind power gigawatt scale in industrial areas of North East England such as Teesside and/or Humberside.

Shell has already entered the UK offshore wind market, where it has secured seabed rights to develop three new offshore wind projects in Scotland with ScottishPower. The three projects, selected by Crown Estate Scotland in January, have a combined capacity of 7GW.

Earlier this month, the two partners announced that they would invest a total of £75 million (approximately €90 million) to help the supply chain and businesses support the growth of the wind industry. offshore in Scotland.

In 2020, Shell Energy Europe signed a 15-year power purchase agreement (PPA) with SSE Renewables and Equinor to take 20% electricity from the Dogger Bank A & B wind farm. In terms of installed generation capacity , this translates to 480 MW of the total 2.4 GW to be installed in the first two phases of the Dogger Bank wind farm.

Shell is also increasingly involved in offshore wind development outside the UK and has made headlines with its projects around the world over the past year.

In the United States, the company is behind the Mayflower Wind project in Massachusetts, with Ocean Winds. The first 804 MW of the project was purchased by the state in 2020, and in December last year Massachusetts selected an additional 400 MW from the Mayflower Wind project in its last tender.

In a joint venture with EDF Renewables, Shell has also secured an offshore wind lease in the New York Bight through the largest US offshore wind auction to date.

In Brazil, the company aims to install up to 17 GW of offshore wind capacity in six areas and recently applied for environmental survey licenses for the six projects from the National Institute for the Environment and Natural Resources (IBAMA). ).

The company’s floating wind project in South Korea, developed in partnership with CoensHexicon, is also progressing after recently being licensed for its total capacity of 1.3 GW.

As part of this project, Shell has also signed a Memorandum of Understanding (MoU) with power generation company Korea Southern Power Co., Ltd (KOSPO) to explore opportunities for collaboration which could include, among others, potential business opportunities in renewable energy. hydrogen energy.

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