BP Goes Big on UK Offshore Wind Farm Lease
Posted on 02/09/2021
RWE, BP plc (formerly known as British Petroleum) and Total SA were some winners in the U.K.’s first major auction of offshore wind farm leases in more than a decade. The U.K. dreams to have a third of its electricity from offshore wind by 2030. According to the Crown Estate, a total of six projects, representing just under 8 gigawatts (GW) of capacity, were successful in the auction.
In a hotly contested bidding war, BP made its first move into the U.K. offshore wind market, winning two sites representing a total of 3 GW jointly with German regional utility EnBW, paying more than bidders for other areas. Royal Dutch Shell’s offer was nowhere near BP’s bid. BP and EnBW will each pay around £1 billion in fees for the project before the FID, in four annual payments of £231 million for each of the two leases.
The projects and bidders that will progress to the next stage of Offshore Wind Leasing Round 4 are:
|Project identifier||Bidding Area||Region/ location||Successful bidder||Proposed project capacity (MW)||Number of homes proposed size could power (approx.)||CO2 emissions reduction potential p.a. (tonnes)||Option fee deposit paid (exc. VAT)|
|1||Bidding Area 1 – (Dogger Bank)||Off the Yorkshire Coast, North East of Scarborough||RWE Renewables||1500||1394000||2344176||£114,304,500|
|2||Bidding Area 1 – (Dogger Bank)||Off the Yorkshire Coast, North East of Scarborough||RWE Renewables||1500||1394000||2344176||£133,350,000|
|3||Bidding Area 2 – (Southern North Sea region, the eastern parts of the Wash and the East Anglia region)||Off the Lincolnshire Coast, East of the Humber Estuary||Green Investment Group – Total||1500||1394000||2344176||£124,573,500|
|4||Bidding Area 4 – (North Wales region, the Irish Sea region, and the northern part of the Anglesey region)||Off the Northern Welsh Coast, North East of Anglesey||Consortium of EnBW and BP||1500||1394000||2344176||£231,000,000|
|5||Bidding Area 4 – (North Wales region, the Irish Sea region, and the northern part of the Anglesey region)||Off the Lancashire Coast, West of Blackpool and South West of Morecambe Bay||Offshore Wind Limited, a Joint Venture between Cobra Instalaciones y Servicios, S.A. and Flotation Energy plc||480||446000||750136||£44,751,840|
|6||Bidding Area 4 – (North Wales region, the Irish Sea region, and the northern part of the Anglesey region)||Off the coast of Barrow-In-Furness, West of Morecambe Bay||Consortium of EnBW and BP||1500||1394000||2344176||£231,000,000|
Source: Crown Estate
BP seeks to increase its renewable power generation to 50 GW by 2030 from 3.3 GW now at returns of 8% to 10%, while gutting oil output.