Flotation Energy and Vargronn have inked exclusive agreements for two substantial floating offshore wind farms with a combined capacity of 1900MW. These projects fall under Crown Estate Scotland's Innovation and Targeted Oil and Gas (INTOG) leasing round and are poised to transform the energy landscape, emphasizing Scotland's leadership in the field of floating wind technology.
Upon completion, these offshore wind farms will serve as a vital source of renewable electricity for oil and gas platforms, marking a crucial step towards reducing carbon emissions associated with the energy supply to these assets. Currently reliant on gas and diesel turbines for power, the participating oil and gas platforms will undergo a transition to cleaner, renewable energy sources.
These two projects, named “Green Volt” and “Cenos,” will not only supply electricity to the UK grid but will also make a substantial impact on the energy transition. Flotation Energy's Chief Executive, Nicol Stephen, underscores the importance of these projects in hastening the transition to sustainable energy sources and bolstering Scotland's prominence as a global leader in floating wind technology.
Moreover, the wind farms are projected to contribute up to 7TWh of power to the UK grid annually, further fortifying the nation's renewable energy capacity. Vargronn's Chief Executive, Olav Hetland, emphasized that these pioneering initiatives are at the forefront of the energy transition and are set to significantly advance the offshore wind industry by scaling floating wind technology to unprecedented levels.
These projects are already well-advanced in terms of their development and necessary environmental assessments, positioning them as frontrunners in the industry. By doing so, they are poised to facilitate the establishment of a new supply chain for floating offshore wind in the North Sea region.
Laurie Heyworth, Senior Policy Analyst on Emerging Technologies at RenewableUK, highlights the broader significance of floating wind technology. Their analysis suggests that by 2050, floating wind is expected to account for more than half of the UK's offshore wind generation, with substantial economic value and job creation potential. The industry is projected to bring in over £43 billion in economic value and generate more than 29,000 jobs, playing a pivotal role in revitalizing coastal communities and transforming ports into industrial hubs for the mass deployment of floating wind projects. An estimated £4 billion of public and private investment will be required to support this transformation by the end of the decade.
Collectively, the Green Volt and Cenos projects are forecasted to generate over 8000 jobs during their construction phase and provide several hundred jobs during their operational phase, contributing approximately £6 billion of gross value added to the economy.