Investment plan

Ørsted unveils £ 12 billion Scottish offshore wind investment plan

Ørsted has announced plans to invest up to £ 12bn directly with Scottish companies in the development and construction of offshore wind farms over the next ten years. He claims billions of additional dollars to be spent with companies in the Scottish supply chain once these wind farms are up and running.

These proposals are contained in bids submitted to Crown Estate Scotland as part of its ScotWind offshore wind energy lease cycle and would provide more than 8.5 GW of electricity if Ørsted’s bids are successful.

The company has submitted bids for a total of five projects, two floating wind bids only as part of its joint venture partnership with BlueFloat Energy and Falck Renewables and three more as Ørsted alone which include a mix of stationary wind technology and floating.

Martin Neubert, Chief Commercial Officer at Ørsted explains why Scotland is a key priority for the company: “We recently defined our aspiration to become the global leader in green energy by 2030. Orsted has the largest development pipeline in the offshore wind industry and our clear ambition is to remain the global market leader in offshore wind.

“We have embarked on these ambitious plans for the ScotWind rental cycle, not only because Scotland can play a key role in realizing our aspiration, but because we firmly believe that our scale and experience in offshore wind puts us in a unique position to help bring Scotland down. saving carbon as quickly as possible.

“By incorporating large-scale offshore wind generation alongside renewable hydrogen and green fuels to decarbonize hard-to-reduce sectors in heavy industry and transportation, we will create a truly integrated decarbonization solution delivering renewable energy to low cost. We believe our offerings represent a significant contribution to achieving Scotland’s ambitious climate change goals and will support the country’s renewable energy economy for generations.

In 2017, Ørsted completed a transformation, ceasing all investment in oil and gas and fully committing to renewables. Ørsted has built over 7 GW of offshore wind, including the world’s first offshore wind farm in 1991, and currently has 27 offshore wind farms in operation in Europe, the United States and Asia-Pacific. With a total of 12 complete offshore wind farms in the UK, Ørsted says its sites are capable of producing enough green electricity to power more than 4.2 million homes per year. This figure is expected to reach more than 5.5 million homes when its current construction projects go into operation.

Duncan Clark, UK Region Manager for Ørsted, highlighted the company’s commitment to working with Scottish ports and suppliers to develop infrastructure and a supply chain that will put Scotland on the map. as a leading player in the global offshore wind market:

Duncan Clark commented:“Scotland has without a doubt some of the best offshore wind resources in the world. The ScotWind leasing cycle is a pivotal moment for the development of Scotland’s offshore wind sector, capitalizing on its superb offshore wind potential and offshore engineering and contracting capabilities, unlocking investments that will create jobs and opportunities. opportunities for Scottish businesses for generations.

“Ørsted is the world leader in the development, construction and operation of offshore wind farms. On our way to becoming the global leader, we have gained extensive experience in the unique skills required for the approval and construction of offshore wind farms and have a proven track record of delivering on time and on budget. By building and equipping our teams in Scotland, we will use this experience to commission large-scale projects by 2030, in line with the Scottish Government’s target of 11 GW of offshore wind installed by that date.

“Indeed, we’ve already started development work to make sure we’re on the ground – engaging with supply chain companies and offshore wind clusters. We have been extremely encouraged by the conversations we have had so far and see a range of opportunities to build the Scottish supply chain for Scottish companies to benefit from the drastic change in offshore wind ambition that ScotWind will deliver and for ensuring that the Scottish offshore wind industry will continue to develop and prosper for decades to come. “

Ørsted plans to develop renewable hydrogen projects in Scotland using part of the electricity from the proposed offshore wind farms. Ørsted is already developing renewable hydrogen projects across Europe and the UK that will help replace fossil fuels in the maritime, aviation, heavy road transport, refineries and steel sectors. The company looks forward to helping Scotland take advantage of an industry which by 2045 could add up to £ 25bn a year to the Scottish economy.

Duncan Clark continues: “We have seen the positive and transformative impact of our offshore wind development in providing clean, cheap energy to homes and businesses around the world; create new jobs and skills that leave a lasting legacy in communities; and investing in local supply chains to help build their capacities and open access to opportunities on our projects around the world.

“For example, in Taiwan, our team has worked closely with Taiwanese companies and industry suppliers for a number of years to stimulate local supply chain development and help these companies compete successfully. in the offshore wind market. In 2018 Ørsted signed contracts with three new local suppliers Century Wind Power (CWP) and Formosa Heavy Industries Corporation (FHI) and China Shipbuilding Corporation (CSBC) to supply piles for our Greater Changhua 1 & 2a offshore wind farms.

“Each pile of pins is almost 4 meters in diameter, weighs about 400 tonnes and is about 80 to 90 meters long, the equivalent of the height of a 30-story building. Despite their size, the manufacturing tolerance is only a few millimeters, and therefore it can be quite a challenge for suppliers without any experience in the manufacture of offshore wind turbines to meet the technical requirements.

“We signed contracts with our local suppliers early enough to give them enough time to properly prepare to manufacture the pin stacks. Ørsted has also provided a set of support for these new market entrants, which has been designed to shorten their learning curve, help them increase their high level welding skills and adopt the international QHSE standards for wind power. offshore in order to lay a solid foundation for them to develop and be competitive. for other offshore wind projects in the future.

“In the United States, our 2.4 GW Mid Atlantic cluster was the catalyst for the construction of the country’s first offshore monopile wind manufacturing facility. Work began earlier this year on the 70-acre site in New Jersey, which will significantly boost the state’s economy in the long run, creating hundreds of jobs and positioning New Jersey as the hub of the supply chain of the US offshore wind industry.

“Through our existing UK projects, Ørsted has helped establish Grimsby and the Humber region as a global leader in offshore wind and this success can be replicated in Scotland. With the offshore wind industry poised for the development of floating offshore wind on a commercial scale, Scottish companies are strongly positioned to benefit and consolidate Scotland’s global leadership position in this exciting new technology.


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