13 Offshore Wind Projects Selected In World’s First Innovation And Targeted Oil & Gas Leasing Round
The title of this post, is the same as that of this article on offshoreWIND.biz.
This is the sub-heading.
Crown Estate Scotland has selected 13 out of a total of 19 applications with a combined capacity of around 5.5 GW in the world’s first leasing round designed to enable offshore wind energy to directly supply offshore oil and gas platforms.
This paragraph outlines INTOG (Innovation and Targeted Oil & Gas) and its objectives.
INTOG, which has been designed in response to demand from government and industry to help achieve the targets of the North Sea Transition Sector Deal through decarbonising North Sea oil and gas operations, is also expected to further stimulate innovation in Scotland’s offshore wind sector, create additional supply chain opportunity, assist companies to enter the renewable energy market, and support net-zero ambitions.
This is undoubtedly the most important news of the day.
- When complete it will generate 5416 MW of electricity.
- 4068 MW will be used primarily to decarbonise oil and gas platforms with surplus electricity going to the grid.
- The amount of carbon dioxide released by oil and gas platforms in the North Sea will be reduced.
- The gas saved by decarbonising oil and gas platforms, will be transported to the shore and used in the UK gas grid.
- 449 MW will be generated in innovative ways in small wind farms, with a capacity of less than 100 MW.
One of the benefits of INTOG is that the UK will be able to reduce gas imports, which must increase energy security.
This map from this document from the Crown Estate Scotland, shows the INTOG wind farms.
This is a list of the farms.
- 1 – Bluefloat Energy/Renantis Partnership – Innovation – Commercial – 99.45 MW
- 2 – Bluefloat Energy/Renantis Partnership – Innovation – Supply Chain – 99.45 MW
- 3 – Simply Blue Energy (Scotland) – Innovation – Supply Chain – 100 MW
- 4 – BP Alternative Energy Investments – Innovation – New Markets – 50 MW
- 5 – ESB Asset Development – Innovation – Cost Reduction – 100 MW
- 6 – Floatation Energy – Targeted Oil & Gas – 560 MW
- 7 – Cerulean Winds – Targeted Oil & Gas – 1008 MW
- 8 – Harbour Energy – Targeted Oil & Gas – 15 MW
- 9 – Cerulean Winds – Targeted Oil & Gas – 1008 MW
- 10 – Cerulean Winds – Targeted Oil & Gas – 1008 MW
- 11 – Floatation Energy – Targeted Oil & Gas – 1350 MW
- 12 – TotalEnergies – Targeted Oil & Gas – 3 MW
- 13 – Harbour Energy – Targeted Oil & Gas – 15 MW
Note.
- The five Innovation sites seem to be as close to the coast as is possible.
- I thought some Innovation sites would be closer, so supply difficult to reach communities, but they aren’t.
- Floatation Energy and Cerulean Winds seemed to have bagged the lion’s share of the Targeted Oil & Gas.
- Sites 6 and 7 sit either side of a square area, where Targeted Oil & Gas will be considered. Is that area, the cluster of oil and gas facilities around Forties Unity, shown on the map in this page on the BP web site?
- Harbour Energy have secured two 15 MW sites for Targeted Oil & Gas.
These are my thoughts on the various companies.
Bluefloat Energy
Bluefloat Energy has posted this press release on their web site, which is entitled Bluefloat Energy | Renantis Partnership Bid Success For Two 99mw Innovation Projects In Crown Estate Scotland’s INTOG Process.
The press release starts with these three bullet points.
- BlueFloat Energy | Renantis Partnership offered exclusivity rights to develop its Sinclair and Scaraben floating wind projects north of Fraserburgh – leveraging synergies via its 900MW Broadshore project.
- The projects seek to trial innovative floating wind technology solutions, kick-starting supply chain growth and job creation in Scotland and providing a ‘stepping-stone’ to the partnership’s ScotWind projects.
- Bid proposals include the intention to develop a scalable community benefit model – creating a potential blueprint for floating offshore wind in Scotland.
The first three paragraphs expand the bullet points.
The BlueFloat Energy and Renantis Partnership has been offered seabed exclusivity rights to develop two 99MW projects under the innovation arm of Crown Estate Scotland’s INTOG (Innovation and Targeted Oil & Gas) auction process. The auction saw ten projects bid to bring forward the development of small-scale innovation projects.
The Sinclair and Scaraben projects, located north of Fraserburgh and adjacent to the Partnership’s 900MW Broadshore project, seek to trial innovative foundation technologies, associated fabrication works and mooring systems with a view to maximising opportunities for the Scottish supply chain, driving local investment and job creation.
A key element of the bid proposals is the opportunity to test and adapt a community benefit model, governed independently, and directed by the communities in which the schemes will operate, through collaboration with our supply chain and project partners. The model could create a blueprint, shaping the future of community benefit from floating offshore wind throughout the whole of Scotland. This builds on Renantis’ successful track record of deploying similar schemes via its onshore wind farms in Scotland.
Note.
- Companies called Sinclair Offshore Wind Farm and Scaraben Offshore Wind Farm were registered a few months ago in Inverness.
- I couldn’t find the websites, so I suspect they’re still being created.
- These two projects appear to be pathfinders for the 900 MW Broadshore project, with regards to the supply chain and community involvement.
It certainly looks like the partnership are going about the development of these two projects in a professional manner.
BP Alternative Energy Investments
There has been no press release from BP as I write this, so I will have to deduce what BP are planning.
This map from this document from the Crown Estate Scotland, shows the Southern INTOG wind farms.
Note.
- Site 4 is the site of BP Alternative Energy Investments’s proposed wind farm.
- Sites 6 and 7 could be either side of the cluster of platforms around Forties Unity.
Consider.
- In the wider picture of wind in the North Sea, BP’s proposed 50 MW wind farm is a miniscule one. SSE’s Dogger Bank wind farm is over a hundred times as large.
- A cable to the shore and substation for just one 50 MW wind farm would surely be expensive.
- BP Alternative Energy Investments are also developing a 2.9 GW wind farm some sixty miles to the South.
For these are other reasons, I believe that there is no reason to believe that the proposed 50 MW wind farm is a traditional wind farm.
But if I’m right about sites 6 and 7 indicating the location the position of Forties Unity, it might open up other possibilities.
This document from INEOS, who own the Forties Pipeline System, explains how the pipeline works.
The Forties Pipeline System (FPS) is an integrated oil and gas transportation and processing system. It is owned and operated by INEOS and utilises more than 500 miles of pipeline to smoothly transport crude oil and gas from more than 80 offshore fields for processing at the Kinneil Terminal. At Kinneil the oil and gas are separated, with the oil returned as Forties Blend to customers at Hound Point or pumped to the Petroineos refinery at Grangemouth.
At the same time the gas goes to our LPG export facilities or is supplied to the INEOS petrochemical plant. FPS transports around 40% of the UK’s oil production supply and brings over 400,000 barrels ashore every day.
In Can The UK Have A Capacity To Create Five GW Of Green Hydrogen?, I said the following.
Ryze Hydrogen are building the Herne Bay electrolyser.
- It will consume 23 MW of solar and wind power.
- It will produce ten tonnes of hydrogen per day.
The electrolyser will consume 552 MWh to produce ten tonnes of hydrogen, so creating one tonne of hydrogen needs 55.2 MWh of electricity.
If BP were to pair the wind farm with a 50 MW electrolyser it will produce 21.7 tonnes of hydrogen per day.
Could it be brought to the shore, by linking it by a pipeline to Forties Unity and then using the Forties Pipeline System?
As the category on site 4, is New Markets, are BP and INEOS investigating new markets for hydrogen and hydrogen blends?
- Some of the latest electrolysers don’t need pure water and can use sea water. This makes them more affordable.
- Do BP and/or INEOS have the capability to extract the hydrogen as it passes through the Cruden Bay terminal, to provide the hydrogen for Aberdeen’s buses and other users?
- INEOS and BP probably have some of the best oil and gas engineers in the world.
- How many other places in the world have an offshore oil or gas field set in a windy sea, where floating wind- turbine/electrolysers could generate hydrogen and send it ashore in an existing pipeline?
- Several of these offshore oil and gas fields and the pipelines could even be owned by BP or its associates.
- Remember that hydrogen is the lightest element, so I suspect it could be separated out by using this property.
This BP site, is to me, one of the most interesting of the successful bids.
- BP probably have a large collection of bonkers ideas, that have been suggested during their long involvement with offshore oil and gas.
- Some ideas could be even suggested by employees, whose fathers worked for BP fifty years ago. I’ve met a few BP employees, whose father also did.
- Will the wind farm, be a floating electrolyser at the centre of a cluster of a few large floating turbines?
- Will each turbine have its own electrolyser and the substation only handle hydrogen?
- Will the floating electrolyser have hydrogen storage?
- Have BP got a floating or semi-submersible platform, that could either go to the breakers or be repurposed as the floating electrolyser?
- Repurposing a previous platform, would make all the right noises.
So many possibilities and so far, no clues as to what will be built have been given.
Cerulean Winds
In What Is INTOG?, I said this about Cerulean Winds.
Cerulean sounds like it could be a sea monster, but it is a shade of blue.
This article on offshoreWind.biz is entitled Cerulean Reveals 6 GW Floating Offshore Wind Bid Under INTOG Leasing Round.
These are the two introductory paragraphs.
Green energy infrastructure developer Cerulean Winds has revealed it will bid for four seabed lease sites with a combined capacity of 6 GW of floating wind to decarbonise the UK’s oil and gas sector under Crown Estate Scotland’s Innovation and Targeted Oil and Gas (INTOG) leasing round.
This scale will remove more emissions quickly, keep costs lower for platform operators and provide the anchor for large-scale North-South offshore transmission, Cerulean Winds said.
Note.
-
- It is privately-funded project, that needs no government subsidy and will cost £30 billion.
- It looks like each site will be a hundred turbines.
- If they’re the same, they could be 1.5 GW each.
- Each site will need £7.5 billion of investment. So it looks like Cerulean have access to a similar magic money tree as Kwasi Kwarteng.
Effectively, they’re building four 1.5 GW power stations in the seas around us to power a large proportion of the oil and gas rigs.
For more on Cerulean Winds’s massive project see Cerulean Winds Is A Different Type Of Wind Energy Company.
So does it mean, that instead of 6 GW, they were only successful at three sites and the other or others were in the six unsuccessful applications?
There is a press release on the Cerulean Winds web site, which is entitled Cerulean Winds Wins Bid For Three INTOG Floating Wind Sites, where this is said.
Cerulean Winds and Frontier Power International have been awarded three lease options for the Central North Sea in the highly competitive INTOG leasing round, the results of which were announced by Crown Estate Scotland today.
The sites, in the Central North Sea, will enable the green infrastructure developer and its partners to develop large floating offshore windfarms to decarbonise oil and gas assets. The scale of the development will enable a UK wide offshore transmission system, that can offer green energy to offshore assets in any location and create a beneficial export opportunity.
Nothing about unsuccessful applications was said.
This map from this document from the Crown Estate Scotland, shows the Southern INTOG wind farms.
Note.
- Sites 7, 9 and 10 are Cerulean’s sites.
- Sites 6 and 11 are Floatation Energy’s sites.
- Site 4 is BP Alternative Energy Investments’s Innovation site.
- Sites 8, 12 and 13 are much smaller sites.
It looks like Cerulean and Floatation Energy are well-placed to power a sizeable proportion of the platforms in the area.
ESB Asset Development
ESB Asset Development appear to be a subsidiary of ESB Group.
The ESB Group is described like this in the first paragraph of their Wikipedia entry.
The Electricity Supply Board is a state owned (95%; the rest are owned by employees) electricity company operating in the Republic of Ireland. While historically a monopoly, the ESB now operates as a commercial semi-state concern in a “liberalised” and competitive market. It is a statutory corporation whose members are appointed by the Government of Ireland.
This press release, is entitled ESB Offered Exclusive Rights To Develop Innovative 100MW Floating Offshore Wind Project In The Malin Sea.
These two paragraphs outline the project.
ESB today welcomes the outcome of Crown Estate Scotland’s latest seabed leasing process which has resulted in the offer of exclusive development rights to ESB for a 100MW floating wind project in Scottish waters off the north coast of Northern Ireland. The successful project, Malin Sea Wind, is a collaborative bid between ESB and leading technology developers Dublin Offshore Technology and Belfast-based CATAGEN. The outcome underscores ESB’s growing capabilities and expanding presence in the offshore wind industry.
The Innovation and Targeted Oil and Gas (INTOG) seabed leasing process, run by Crown Estate Scotland, aims to drive cost reduction in the offshore wind sector by enabling the deployment of new and innovative technologies, and to harness wind energy to decarbonize the oil and gas sector. Malin Sea Wind aims to support the reduction of floating offshore wind costs by demonstrating Dublin Offshore’s patented load-reduction technology. Furthermore, the project will support decarbonisation of the aviation sector by powering sustainable aviation fuel (SAF) production technology currently under development by net-zero technology specialists, CATAGEN.
Note.
- I’ve just looked at the Technology page of the Dublin Offshore Technology web site.
- In the 1970s, I built large numbers of mathematical models of steel, concrete and water cylinders in my work with a Cambridge University spin-out called Balaena Structures.
- I believe, that an experienced mathematically modeller could simulate this clever system.
That would prove if it works or not!
This Google Map shows the Malin Sea.
Note.
- Malin Head is marked by the red arrows on the Northern Irish coast.
- The most Westerly Scottish island is Islay and the most Easterly is the Isle of Arran.
- Between the two islands is the Kintyre peninsula.
- Portrush can be picked out on the Northern Irish coast.
By overlaying the two maps, I suspect the centroid of the wind farm will be North of Portrush about a few miles North of the Southern end of Arran.
I suspect that if all goes well, there could be a lot of floating wind turbines in the area.
This Google Map shows the River Foyle estuary and Foyle Port to the North-East of Londonderry/Derry.
Note.
- Coolkeeragh ESB and Lisahally biomas power station on the South bank of the River Foyle.
- Lisahally biomas power station has a capacity of 16 MW.
- There appears to be a large substation at Coolkeeragh ESB.
- A tanker of some sort seems to be discharging.
Until told, I’ve guessed wrong, it looks to me like Coolkeeragh ESB could be the destination for the electricity generated by Malin Sea Wind. Given that this project’s aim is cost reduction, a 100 MW wind farm could make a difference.
In addition could Foyle Port be used to assemble and maintain the floating turbines?
Floatation Energy
Floatation Energy have posted this press release on their web site, which is entitled Flotation Energy and Vårgrønn Awarded Exclusivity To Develop Up To 1.9 GW Of Floating Offshore Wind In Scotland.
The first part of the press release, has a graphic.
It shows how their proposed system will work.
- A floating wind farm will be placed between the shore and oil and gas platforms to be decarbonised.
- The wind farm will be connected to the shore by means of a bi-directional cable, so that the wind farm can export electricity to the grid and when the wind isn’t blowing the grid can power the platforms.
- A cable between the wind farm and the platforms completes the system.
It is a simple system, where all elements have been built many times.
Floatation Energy must have been fairly confident that their bids would be successful as they have already named the farms and set up web sites.
- Site 6 – Green Volt – 560 MW
- Site 11 – Cenos – 1350 MW
The websites are very informative.
The Timeline for 2019-2021 on the Green Volt web site describes the describes the progress so far on the project.
2019 – As construction of the Kindardine offshore floating wind farm kicks off, Flotation Energy identifies the Buzzard oil facility (a relatively new oil and gas platform with a long field life and high electrical load) as the optimal starting point for a significant contribution to the North Sea Transition Deal – the process of replacing large scale, inefficient gas-fired power generation with renewable electricity from offshore wind.
2020 – Flotation Energy begins environmental surveys on the Ettrick/Blackbird oil field, a redundant site nearby Buzzard, which is in the process of decommissioning. The “brownfield” site is confirmed as an exceptional opportunity to create an offshore floating wind farm, with water depths of 90-100m and high quality wind resource.
2021 – Flotation Energy works with regulators to understand the potential for project “Green Volt” to decarbonise offshore power generation for Buzzard. Flotation Energy completes and submits an Environmental Scoping report to Marine Scotland, reaching the first major milestone in the Marine Consent process. Crown Estate Scotland announces a new leasing round for Innovation and Targeted Oil and Gas Decarbonisation (INTOG).
On a section on the Cenos web site, there is a section called Efficient Grid Connection, where this is said.
The power generated by the wind turbines will be Alternating Current (AC) and routed to a substation platform. AC power will be exported to the oil and gas platforms.
For efficient export to the UK grid, the substation platform will include a converter station to change the AC power to Direct Current (DC) before the power is transported to shore. This is due to transporting AC power over long distances leading to much of the power being lost.
Cenos is working in partnership with the consented NorthConnect interconnector project, to utilise their DC cable routing where possible. Cenos will also use the NorthConnect onshore converter station planned for Fourfields near Boddam, which then has an agreed link into the Peterhead Substation. This collaboration minimises the need to construct additional infrastructure for the Cenos project.
That all sounds very practical.
Note.
- Floatation Energy delivered the Kincardine offshore floating wind farm.
- Both wind farms appear to use the same shore substation.
- Buzzard oil field is being expanded, so it could be an even more excellent oil field to decarbonise.
- NorthConnect is a bit of an on-off project.
Floatation Energy seem to have made a very professional start to the delivery of their two wind farms.
Harbour Energy
The Wikipedia entry for Harbour Energy describes the company like this.
Harbour Energy plc is an independent oil and gas company based in Edinburgh, Scotland. It is the United Kingdom’s largest independent oil and gas business. It is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index.
But if you look at news items and the share price of the company, things could look better for Harbour Energy.
On their map of UK operations, I can count nearly twenty oil and gas fields.
As they have other oil and gas fields around the world, decarbonisation of their offshore operations could increase production by a few percent and substantially cut their carbon emissions.
That is a philosophy that could be good for profits and ultimately the share price.
So has the company gone for a very simple approach of two identical floating wind turbines?
They have been successful in obtaining leases for sites 8 and 13.
- Both have a capacity of 15 MW, so are the farms a single 15 MW wind turbine?
- I think this is likely, unless it is decided to opt for say a 16 MW turbine.
- Or even a smaller one, if the platform is in a bad place for wind.
- The wind turbine would be parked by the platform to be decarbonised and connected up, to a simple substation on the platform.
- I would recommend a battery on the platform, so that if the wind wasn’t blowing, power was still supplied to the platform.
- There would be no need for any cable between shore and wind farm and the only substation, would be a relatively simple one with a battery on the platform.
It could be a very efficient way of decarbonising a large number of platforms.
Once Harbour Energy have proved the concept, I could build a simple mathematical model in Excel, to work out any change in profitability and carbon emissions for a particular oil or gas platform.
Who Is Britannia Ltd?
In this document from the Crown Estate Scotland, there is a section that gives the partners in each project.
Listed for site 8 are Chrysaor (U.K.) and Britannia Limited and for site 13 is Chryasaor Petroleum Company UK Limited.
This page on the Harbour Energy web site gives the history of Chrysaor and Harbour Energy.
This is the heading.
Chrysaor was founded in 2007 with the purpose of applying development and commercial skills to oil and gas assets and to realise their value safely.
This is the history.
The Group grew rapidly over the years through a series of acquisitions. With backing from Harbour Energy – an investment vehicle formed by EIG Global Energy Partners – Chrysaor acquired significant asset packages in the UK North Sea from Shell (2017) and ConocoPhillips (2019) to become the UK’s largest producer of hydrocarbons.
In 2021, Chrysaor merged with Premier Oil to become Harbour Energy plc.
So that explains the use of the Chrysaor name or Chryasaor as someone misspelt it on the Crown Estate Scotland document.
I asked myself, if Britannia Ltd. could be a technology company, so I checked them out. The only company, I could find was a former investment trust, that was dissolved over ten years ago.
But Britannia is an oil and gas field in the North Sea, which is partially owned by Harbour Energy. It has a page on Harbour Enerrgy’s web site, which is entitled Greater Britannia Area.
This is said about the Britannia field.
Britannia in Block 16/26 of the UK central North Sea sits approximately 210-kilometres north east of Aberdeen. The complex consists of a drilling, production and accommodation platform, a long-term compression module of mono-column design and a 90-metre bridge connected to a production and utilities platform. Britannia is one of the largest natural gas and condensate fields in the North Sea. Commercial production began in 1998. Condensate is delivered through the Forties Pipeline to the oil stabilisation and processing plant at Kerse of Kinneil near Grangemouth and natural gas is transported through a dedicated Britannia pipeline to the Scottish Area Gas Evacuation (SAGE) facility at St Fergus.
Looking at the maps on the Crown Estate Scotland, Harbour Energy and others, it looks like site 8 could be close to the
Greater Britannia Area or even the Britannia field itself.
Simply Blue Energy
Simply Blue Energy are developing the 100 MW Salamander wind farm.
I wrote about this project in The Salamander Project.
Did it get chosen, as it was a project, where the design was at an advanced stage?
TotalEnergies
I wouldn’t be surprised to find out that TotalEnergies have gone a very similar route to Harbour Energy, but they are trying it out with a 3 MW turbine.
Conclusion
They are an excellent group of good ideas and let’s hope that they make others think in better and move innovative ways.
Politics will never save the world, but engineering and science just might!
Flotation Energy, Vårgrønn Take First Permitting Step For Another Oil & Gas-Powering Floating Wind Farm
The title of this post, is the same as that of this article on offshoreWIND.biz.
This is the sub-heading.
Flotation Energy and Vårgrønn, who recently filed a Marine Licence application for their 500 MW Green Volt floating wind farm in Scotland, have now submitted a Scoping Report for the 1.4 GW Cenos floating offshore wind farm to Marine Scotland.
And this is the first paragraph.
The developers have submitted leasing applications for both Cenos and Green Volt as part of the Crown Estate Scotland’s Innovation and Targeted Oil and Gas (INTOG) leasing round, whose winners are expected to be announced in the second quarter of this year.
Both wind farms have web sites, where you can find more information.
It’s beginning to look like applications for the INTOG leasing round, are going to use quality floating technology and generate very large numbers of megawatts.
In Cerulean Winds Is A Different Type Of Wind Energy Company, I wrote about their plans for a 6 GW proposal for INTOG, spread around four sites in the North Sea.
It looks like we have several companies flexing their technologies to harness the dragons of the Celtic Sea and now it appears, the new giants of the wind are preparing to make a good fist of decarbonising oil and gas in the North Sea.
Offshore Wind Developers Answer Scotland’s Call For Innovation, Oil And Gas Decarbonisation
The title of this post, is the same as that of this article on offshoreWIND.biz.
This is the sub-heading.
Crown Estate Scotland has received a total of 19 applications for its Innovation and Targeted Oil and Gas (INTOG) offshore wind leasing process.
INTOG
Note that there are two sections to INTOG.
This document on the Crown Estate Scotland web site, is entitled INTOG – Public Summary and it defines the two sections.
Innovation:
- To enable projects which support cost reduction in support of commercial deployment of offshore wind including alternative outputs such as Hydrogen.
- To further develop Scotland as a destination for innovation and technical development which will lead to risk reductions and supply chain opportunity.
Applications in this section should be no more than 100 MW in capacity.
Targeted Oil and Gas:
- To maximise the role of offshore wind to reduce emissions from oil and gas production.
- To achieve target installed capacity in a way that delivers best value for Scotland, creating supply chain opportunity in alignment with Just Transition principles.
A rough estimate is that powering rigs by using offshore wind would increase gas production by around ten percent.
The Applications
The article says this about the applications.
Of the 19 applications, ten are for the Innovation part, while nine have been submitted for the TOG element.
It is expected that up to 500 MW will be awarded to innovation projects and around 4 GW for projects looking to decarbonise oil and gas assets.
The article also lists the known bidders.
Conclusion
I believe that there is going to be some outstanding applications for leases under the INTOG scheme.
I have already written about Cerulean Winds ambitious proposal in Cerulean Winds Is A Different Type Of Wind Energy Company, which could result in 6 GW of wind turbines installed amongst the oil and gas fields to provide electricity and decarbonise the platforms and rigs.
Rishi Sunak To Reimpose Fracking Ban
The title of this post, is the same as that of this article on The Telegraph.
This is the first paragraph.
The new PM made the commitment during his first session of PMQs on Wednesday, reversing Liz Truss’s controversial decision to overturn it.
I think it is the right call.
Here’s why!
Cerulean Winds Massive Decarbonisation Project
Consider.
- At present ten percent of our gas is used to power the oil and gas rigs in the seas around our coasts. The gas is fed into gas-turbines to generate electricity.
- One simple way to increase gas production by this ten percent, would be to decarbonise the rigs by powering them from nearby wind farms with green electricity and green hydrogen as the Norwegians are proposing to do.
- A British company; Cerulean Winds has proposed under the Crown Estate INTOG program to decarbonise a significant part of the oil and gas rigs, by building four 1.5 GW wind farms amongst the rigs.
- The majority of the energy will be sold to the rig owners and any spare electricity and hydrogen will be brought ashore for industrial and domestic users.
- This massive project will be a privately-funded £30 billion project.
- And when the oil and gas is no longer needed, the UK will get another 6 GW of offshore wind.
We need more of this type of engineering boldness.
This page on the Cerulean Winds web site gives more details.
INTOG
This document on the Crown Estate web site outlines INTOG.
Other Projects
Decarbonisation has also attracted the attention of other developers.
I can see Rishi Sunak being offered several projects, that will increase our oil and gas security, by some of the world’s best engineers and most successful oil companies.
Rishi Sunak’s ban on fracking will only increase the rate of project development.
We live in extremely interesting times.
Harbour Energy
This article in The Times in the Tempus column is entitled Oil And Gas Producer Harbour Energy Offers Safe Haven.
This is the first paragraph.
Booming commodity prices mean Harbour Energy is throwing off cash and yet the biggest oil and gas producer in the UK North Sea is still struggling to gain credibility in the eyes of investors.
Reading the column, it does seem a bit of a paradox, when the author says.
- London-listed oil and gas companies are cheap.
- Harbour Energy is in the bargain basement.
- The share price doesn’t reflect the P/E ratio.
- The company seems to have the money for acquisitions.
- It doesn’t seem to have taken advantage of the Ukraine situation.
- Revenues should transform its cash flow position.
The author finishes by recommending to buy the shares.
In Cerulean Winds Is A Different Type Of Wind Energy Company, I introduced Cerulean Winds and their £30 billion plan to decarbonise much of North Sea oil and gas production. This sensational plan is described in full on this page of their web site, which is entitled The Cerulean Winds Intog Scheme.
It strikes me that Harbour Energy could be the sort of energy company that could benefit from Cerulean Winds’s scheme.
- It could increase their gas production by ten percent.
- Harbour Energy probably have the money to decarbonise.
- Would decarbonising their North Sea operations improve the company’s profile?
I will certainly watch for any links between the two companies.
Cerulean Winds Is A Different Type Of Wind Energy Company
I introduced Cerulean Winds in a post called What Is INTOG?, but I have decided it is too important a concept to be buried in another post.
Cerulean sounds like it could be a sea monster, but it is actually a shade of blue.
This article on offshoreWind.biz is entitled Cerulean Reveals 6 GW Floating Offshore Wind Bid Under INTOG Leasing Round.
These are the two introductory paragraphs.
Green energy infrastructure developer Cerulean Winds has revealed it will bid for four seabed lease sites with a combined capacity of 6 GW of floating wind to decarbonise the UK’s oil and gas sector under Crown Estate Scotland’s Innovation and Targeted Oil and Gas (INTOG) leasing round.
This scale will remove more emissions quickly, keep costs lower for platform operators and provide the anchor for large-scale North-South offshore transmission, Cerulean Winds said.
Note.
- It is privately-funded project, that needs no government subsidy and will cost £30 billion.
- It looks like each site will be a hundred turbines.
- If all the sites are the same, they could be 1.5 GW each, with the use of 15 MW turbines.
- Each site will need £7.5 billion of investment. So it looks like Cerulean have access to a similar magic money tree as Kwasi Kwarteng.
This paragraph describes their four hundred floating bases.
The steel floating bases would constitute hundreds of thousands of tonnes of steel, which unlike cement fixtures, can be floated out from shore which is said to be ideal for the UK.
Building those bases, is a very large project.
On their web site, Cerulean Winds have a page entitled Targeted Oil And Gas Decarbonisation.
This the page’s mission statement.
Cerulean Winds, a green energy & infrastructure developer, is leading a pioneering bid to reduce carbon emissions from oil and gas production through floating offshore wind.
These three paragraphs describe the scheme.
Cerulean Winds pioneering bid proposes an integrated floating wind and hydrogen development across four offshore floating wind farms located West and East of the Shetland Islands and in the North and the South of the Central North Sea (CNS). The objective of the project is to generate electricity from floating wind farms located far offshore on otherwise unallocated and uneconomic seabed areas in order to power oil and gas platforms with green energy.
Cerulean Winds’ dedicated power transmission network will offer both green electrons and green molecules to oil & gas production facilities across the UK Continental Shelf (UKCS) with surplus energy used in the production of green hydrogen. This dual approach allows the project to support all ages of oil and gas platforms with constant, reliable power and minimal brownfield modifications.
The optimised scale at which Cerulean Winds’ proposed scheme operates makes it the world’s largest decarbonisation project. It offers green energy to operators for asset power generation, delivered through an affordable Power Purchase Agreement (PPA). Another big advantage is the scheme does not require any public subsidies, but funded entirely through private investment.
That is sensational.
Effectively, they’re building four 1.5 GW power stations in the seas around us to power a large proportion of the oil and gas rigs.
I do have some thoughts.
Who Pays For This Massive Project?
This project overview on the Cerulean web site is entitled The Cerulean Winds INTOG Scheme and it gives many more details of the project.
I will refer to this page as the project overview in the subsequent text.
This is the first sentence of the first paragraph.
Our basin-wide scheme represents more than £30 billion of private investment in a single strategic infrastructure project.
Consider.
- The London Olympics in 2012 cost £9 billion.
- The Elizabeth Line will probably cost around £20 billion.
- The Channel Tunnel in 1994 cost £9 billion.
This project is a lot bigger than these.
Will your spare fifty pounds, still be in your mattress, when Cerulean Winds has put its £30 billion together?
I think so, as this is the last sentence on the page.
The scheme is ‘private wire’ and will not require Government subsidies… being funded entirely through private investment, with no cost to the tax payer.
There will of course, be tax rebates available, as they are for any business from the smallest to the largest.
Green Hydrogen Will Be Produced Offshore
The project overview says this about green hydrogen.
The scheme would use floating offshore wind to power oil and gas assets with surplus energy converted into green hydrogen. Cerulean Winds recognise each brownfield site has a different set of requirements and this would give operators the flexibility to electrify some Brownfield assets without the need to interrupt existing production or shutdown. It would also safeguard oil and gas jobs and create new green energy jobs within the floating wind and hydrogen sectors within the next five years.
The operator will have a choice of energy – electricity or hydrogen.
How Will The Project Earn An Income?
It appears that the project, will have a number of income streams.
The main stream, is described in this sentence from the project overview on the web site.
We have a deep understanding across the energy sector and will partner with the operator to agree the best way to achieve decarbonisation targets at the lowest possible cost. Our approach offers both green electrons and green molecules to the platforms through an affordable Power Purchase Agreement (PPA).
It looks like the oil and gas companies that own the rigs will be significant contributors to Cerulean’s cash flow.
Green electrons (electricity) and green molecules (hydrogen) will also be brought ashore and sold to various operators and the grid.
What Happens To The Gas That Is Currently Used To Power The Oil And Gas Rigs?
I do wonder, the gas, which will no longer be needed to power the rigs will give a boost to the supply to UK consumers.
They’ve thought of that one.
Under a heading of Reducing Gas Imports, this is said.
The project also aims to maximise recovery of energy from offshore platforms. With few exceptions, each platform have their own gas turbines for power generation, burning gas extracted from the reservoirs. Approximately 10% of the gas produced each year is used in offshore power generation. By replacing the need for gas power generation with a supply of clean, green energy, Cerulean Winds’ project frees important volumes of gas produced by platforms for consumption and reduces the UK’s import of gas from overseas.
This project, when it is fully implemented could increase UK gas production by up to ten per cent.
What’s In It For The Rig Operators?
They will have some benefits.
- They will cut their carbon dioxide emissions.
- They will sell about ten percent more of the gas they extract.
- Decarbonisation will not necessarily mean large capital expenditure on the rig.
- I also suspect, that some conveniently-placed rigs will be used to send excess hydrogen from Cerulean Winds’ electrolysers to the shore.
Some rig operators will make money from decarbonisation.
When Will The Project Be Complete?
This is the first paragraph on the project overview.
Our basin-wide scheme represents more than £30 billion of private investment in a single strategic infrastructure project. The locations will be West and East of the Shetland Islands and in the Central North Sea (CNS). They will become operational by 2028.
So we don’t have to wait for ever!
What Happens To Cerulean’s Project, When The Oil And Gas Runs Out Or We Stop Using Oil And Gas?
There would now be four 1.5 GW wind farms in the North Sea, that could be connected to the National Grid.
Conclusion
It looks like Cerulean Winds are a very different energy company.
An Update To Will We Run Out Of Power This Winter?
My Methods
Project Timescales For Wind Farms
In How Long Does It Take To Build An Offshore Wind Farm?, I came to these conclusions.
- It will take six years or less from planning consent to commissioning.
- It will take two years or less from the start of construction to commissioning.
I shall use these timescales, as any accelerations by the government, will only reduce them.
Dates
If a date is something like 2024/25, I will use the latest date. i.e. 2025 in this example.
The Update
In Will We Run Out Of Power This Winter?, which I wrote in July this year, I did a calculation of how much renewable energy would come on stream in the next few years.
I summarised the amount of new renewable energy coming on stream like this.
- 2022 – 3200 MW
- 2023 – 1500 MW
- 3024 – 2400 MW
- 2025 – 6576 MW
- 2026 – 1705 MW
- 2027 – 7061 GW
This totals to 22442 MW.
But I had made two omissions.
- Hornsea 3 wind farm will add 2582 MW in 2026/27.
- Hinckley Point C nuclear power station will add 3260 MW in 2027.
Ørsted have also brought forward the completion date of the Sofia wind farm to 2023, which moves 1400 GW from 2024 to 2023.
The new renewables summary figures have now changed to.
- 2022 – 3200 MW
- 2023 – 2925 MW
- 3024 – 1326 MW
- 2025 – 6576 MW
- 2026 – 1705 MW
- 2027 – 13173 MW
This totals to 28554 MW.
Note.
- The early delivery of the Sofia wind farm has increased the amount of wind farms coming onstream next year, which will help the Winter of 2023/2024.
- It will also help the Liz Truss/Kwasi Kwarteng government at the next election, that should take place in early 2025.
- Hornsea 3 and Hinckley Point C make 2027 a big year for new renewable energy commissioning.
By 2027, we have more than doubled our renewable energy generation.
The Growth Plan 2022
In this document from the Treasury, the following groups of wind farms are listed for acceleration.
- Remaining Round 3 Projects
- Round 4 Projects
- Extension Projects
- Scotwind Projects
- INTOG Projects
- Floating Wind Commercialisation Projects
- Celtic Sea Projects
I will look at each in turn.
Remaining Round 3 Projects
In this group are the the 1200 MW Dogger Bank B and Dogger Bank C wind farms, which are due for commissioning in 2024/25.
Suppose that as with the Sofia wind farm in the same area, they were to be able to be brought forward by a year.
The new renewables summary figures would change to.
- 2022 – 3200 MW
- 2023 – 2925 MW
- 3024 – 3726 MW
- 2025 – 5076 MW
- 2026 – 1705 MW
- 2027 – 13173 MW
This totals to 28554 MW.
It looks like if Dogger Bank B and Dogger Bank C can be accelerated by a year, it has four effects.
- The renewables come onstream at a more constant rate.
- SSE and Equinor, who are developing the Dogger Bank wind farms start to get paid earlier.
- The UK gets more electricity earlier, which helps bridge the gap until Hornsea 3 and Hinckley Point C come onstream in 2027.
- The UK Government gets taxes and lease fees from the Dogger Bank wind farms at an earlier date.
Accelerating the remaining Round 3 projects would appear to be a good idea.
Round 4 Projects
According to Wikipedia’s list of proposed wind farms, there are six Round 4 wind farms, which total up to 7026 MW.
Accelerating these projects, is probably a matter of improved government regulations and pressure, and good project management.
But all time savings in delivering the wind farms benefits everybody all round.
This document from the Department of Business, Industry and Industrial Strategy lists all the Contracts for Difference Allocation Round 4 results for the supply of zero-carbon electricity.
Many of these projects are smaller projects and I suspect quite a few are shovel ready.
But as with the big wind farms, there are some projects that can be brought forward to everybody’s benefit.
Norfolk Boreas
Norfolk Boreas wind farm is one of the Round 4 projects.
The wind farm is shown as 1400 MW on Wikipedia.
On the web site, it now says construction will start in 2023, which could mean a completion by 2025, as these projects seem to take about two years from first construction to commissioning, as I showed in How Long Does It Take To Build An Offshore Wind Farm?.
The new renewables summary figures would change to.
- 2022 – 3200 MW
- 2023 – 2925 MW
- 3024 – 3726 MW
- 2025 – 6476 MW
- 2026 – 1705 MW
- 2027 – 11773 MW
This still totals to 28554 MW.
This acceleration of a large field would be beneficial, as the 2025 figure has increased substantially.
I would suspect that Vattenfall are looking hard to accelerate their Norfolk projects.
Extension Projects
I first talked about extension projects in Offshore Wind Extension Projects 2017.
The target was to add 2.85 GW of offshore wind and in the end seven projects were authorised.
- Sheringham Shoal offshore wind farm – 719 MW with Dudgeon
- Dudgeon offshore wind farm – 719 MW with Sheringham Shoal
- Greater Gabbard offshore wind farm
- Galloper offshore wind farm
- Rampion offshore wind farm – 1200 MW
- Gwynt y Môr offshore wind farm – 1100 MW
- Thanet offshore wind farm – 340 MW
These are the best figures I have and they add up to an interim total of 3359 MW.
I suspect that these projects could be easy to accelerate, as the developers have probably been designing these extensions since 2017.
I think it is reasonable to assume that these seven wind farms will add at least 3000 MW, that can be commissioned by 2027.
The new renewables summary figures would change to.
- 2022 – 3200 MW
- 2023 – 2925 MW
- 3024 – 3726 MW
- 2025 – 6476 MW
- 2026 – 1705 MW
- 2027 – 14773 MW
This now totals to 31554 MW.
Accelerating the extension projects would be a good idea, especially, as they were awarded some years ago, so are probably well into the design phase.
ScotWind Projects
I first talked about ScotWind in ScotWind Offshore Wind Leasing Delivers Major Boost To Scotland’s Net Zero Aspirations.
It was planned to do the following.
- Generate 9.7 GW from six wind farms with fixed foundations.
- Generate 14.6 GW from ten floating wind farms.
But since then three more floating wind farms with a total capacity of 2800 MW have been added, as I wrote about in Three Shetland ScotWind Projects Announced.
I suspect that some of these projects are ripe for acceleration and some may well be generating useful electricity by 2030 or even earlier.
INTOG Projects
I wrote about INTOG in What Is INTOG?.
I can see the INTOG Projects contributing significantly to our fleet of offshore wind turbines.
I have already found a 6 GW/£30 billion project to decarbonise oil and gas rigs around our shores, which is proposed by Cerulean Winds and described on this web page.
If the other large INTOG projects are as good as this one, then we’ll be seeing some sensational engineering.
Floating Wind Commercialisation Projects
This page on the Carbon Trust website is entitled Floating Wind Joint Industry Programme (JIP).
They appear to be very much involved in projects like these.
The page has this description.
The Floating Wind Joint Industry Programme is a world leading collaborative research and development (R&D) initiative dedicated to overcoming technological challenges and advancing commercialisation of floating offshore wind.
This graphic shows the partners and advisors.
Most of the big wind farm builders and turbine and electrical gubbins manufacturers are represented.
Celtic Sea Projects
The Celtic Sea lies between South-East Ireland, Pembrokeshire and the Devon and Cornwall peninsular.
The Crown Estate kicked this off with press release in July 2022, that I wrote about in The Crown Estate Announces Areas Of Search To Support Growth Of Floating Wind In The Celtic Sea.
This map shows the five areas of search.
One Celtic Sea project has already been awarded a Contract for Difference in the Round 4 allocation, which I wrote about in Hexicon Wins UK’s First Ever CfD Auction For Floating Offshore Wind.
Other wind farms have already been proposed for the Celtic Sea.
In DP Energy And Offshore Wind Farms In Ireland, I said this.
They are also developing the Gwynt Glas offshore wind farm in the UK sector of the Celtic Sea.
- In January 2022, EDF Renewables and DP Energy announced a Joint Venture partnership to combine their knowledge and
expertise, in order to participate in the leasing round to secure seabed rights to develop up to 1GW of FLOW in the Celtic Sea. - The wind farm is located between Pembroke and Cornwall.
The addition of Gwynt Glas will increase the total of floating offshore wind in the UK section of the Celtic Sea.
- Blue Gem Wind – Erebus – 100 MW Demonstration project – 27 miles offshore
- Blue Gem Wind – Valorus – 300 MW Early-Commercial project – 31 miles offshore
- Falck Renewables and BlueFloat Energy – Petroc – 300 MW project – 37 miles offshore
- Falck Renewables and BlueFloat Energy – Llywelyn – 300 MW project – 40 miles offshore
- Llŷr Wind – 100 MW Project – 25 miles offshore
- Llŷr Wind – 100 MW Project – 25 miles offshore
- Gwynt Glas – 1000 MW Project – 50 miles offshore
This makes a total of 2.2 GW, with investors from several countries.
It does seem that the Celtic Sea is becoming the next area of offshore wind around the British Isles to be developed.
How do these wind farms fit in with the Crown Estate’s plans for the Celtic Sea?
I certainly, don’t think that the Crown Estate will be short of worthwhile proposals.
Conclusion
More and more wind farms keep rolling in.
What Is INTOG?
This page on the Crown Estate Scotland web site outlines INTOG.
This is the introduction at the top of the page.
Innovation and Targeted Oil & Gas (INTOG) is a leasing round for offshore wind projects that will directly reduce emissions from oil & gas production and boost further innovation.
Developers can apply for seabed rights to build two types of offshore wind project:
IN – Small scale, innovative projects, of less than 100MW
TOG – Projects connected directly to oil and gas infrastructure, to provide electricity and reduce the carbon emissions associated with production
INTOG is designed, in response to demand from government and industry, to help achieve the targets of the North Sea Transition Sector Deal, which is a sector deal between government and the offshore oil and gas industry.
I have a few thoughts and have also found some news stories.
Isolated Communities
This document from the Department of Business, Industry and Industrial Strategy lists all the Contracts for Difference Allocation Round 4 results for the supply of zero-carbon electricity that were announced yesterday.
The document introduces the concept of Remote Island Wind, which I wrote about in The Concept Of Remote Island Wind.
I don’t know of one, but there might be isolated communities, with perhaps a dodgy power supply, who might like to improve this, by means of a small offshore wind farm, meeting perhaps these criteria.
- Less than 100 MW.
- Agreement of the locals.
- A community fund.
- An important use for the electricity.
Locations and applications could be.
- A small fishing port, where winds regularly bring the grid cable down in winter.
- A village with a rail station to perhaps charge battery-electric trains.
- A deep loch, where floating wind turbines are erected.
- To provide hydrogen for transport.
We shall see what ideas are put forward.
Floating Power Stations
Floating wind farms are generally made up of individual turbines on floats.
- Turbines can be up to the largest used onshore or on fixed foundations.
- The Kincardine floating offshore wind farm in Scotland uses 9.5 MW turbines.
- The floats are anchored to the sea bed.
- There is a power cable connecting the turbines appropriately to each other, the shore or an offshore substation.
But we are talking innovation here, so we might see some first-of-a-kind ideas.
Single Floating Turbines
A large floating wind farm, is effectively a large number of floating wind turbines anchored in the same area of sea, and connected to the same floating or fixed substation.
I can’t see any reason, why a single floating wind turbine couldn’t be anchored by itself to provide local power.
It might even be connected to an onshore or subsea energy store, so that it provided a more constant output.
Surely, a single turbine perhaps ten miles offshore wouldn’t be a very large blot on the seascape?
I grew up in Felixstowe and got used to seeing HM Fort Roughs on the horizon from the beach. That is seven miles offshore and some people, I know have windsurfed around it from the beach.
TwinHub
I talked about TwinHub in Hexicon Wins UK’s First Ever CfD Auction For Floating Offshore Wind.
TwinHub mounts two turbines on one float and this is a visualisation of a TwinHub being towed into place.
Note.
- The design turns into the wind automatically, so that the maximum amount of electricity is generated.
- A Contract for Difference for a 32 MW TwinHub has been awarded, at a strike price of £87.30/MWh, that will be installed near Hayle in Cornwall.
- With a capacity factor of 50 %, that will produce just over 140,160 MWh per year or over £12 million per year.
This article on the BBC, which is entitled Funding Secured For Floating Wind Farm Off Cornwall, gives more details of the Hayle TwinHub.
The possibility of a floating wind farm off the coast of Cornwall has moved a step closer after securing government funding, project bosses have said.
Swedish company Hexicon plans to install its TwinHub system, with the hope it could begin operating in 2025.
It would be deployed about 10 miles (16km) off Hayle.
Project supporters said it could be a boost to the local economy and help establish Cornwall in the growing renewable energy sector.
Figures have not been released, but it is understood the government funding has effectively secured a fixed price for the power TwinHub would produce for 15 years, making it economically viable.
The article says that this 32 MW system could develop enough electricity for 45,000 homes.
This could be a very suitable size for many applications.
- As at Hayle, one could be floated just off the coast to power a remote part of the country. As Cornwall has a few old mine shafts, it might even be backed up by a Gravitricity system on shore or another suitable non-lithium battery.
- Could one float alongside an oil or gas platform and be tethered to it, to provide the power?
Scotland’s hydroelectric power stations, prove that not all power stations have to be large to be successful.
Vårgrønn and Flotation Energy’s Joint Bid
This article on offshoreWIND.biz is entitled Vårgrønn And Flotation Energy To Jointly Bid in INTOG Leasing Round, gives a few details about their joint bid.
But there is nothing substantial about ideas and locations.
I can see several joint ventures with a suitable system, bidding for various projects around the Scottish coast.
Cerulean
Cerulean sounds like it could be a sea monster, but it is a shade of blue.
This article on offshoreWind.biz is entitled Cerulean Reveals 6 GW Floating Offshore Wind Bid Under INTOG Leasing Round.
These are the two introductory paragraphs.
Green energy infrastructure developer Cerulean Winds has revealed it will bid for four seabed lease sites with a combined capacity of 6 GW of floating wind to decarbonise the UK’s oil and gas sector under Crown Estate Scotland’s Innovation and Targeted Oil and Gas (INTOG) leasing round.
This scale will remove more emissions quickly, keep costs lower for platform operators and provide the anchor for large-scale North-South offshore transmission, Cerulean Winds said.
Note.
- It is privately-funded project, that needs no government subsidy and will cost £30 billion.
- It looks like each site will be a hundred turbines.
- If they’re the same, they could be 1.5 GW each.
- Each site will need £7.5 billion of investment. So it looks like Cerulean have access to a similar magic money tree as Kwasi Kwarteng.
Effectively, they’re building four 1.5 GW power stations in the seas around us to power a large proportion of the oil and gas rigs.
For more on Cerulean Winds’ massive project see Cerulean Winds Is A Different Type Of Wind Energy Company.
Will There Be An Offshore Wind Supermarket?
I can see the big turbine, float and electrical gubbins manufacturers establishing a one-stop shop for developers, who want to install small wind farms, that meet the INTOG criteria.
So suppose, the archetypal Scottish laird in his castle on his own island wanted a 6 MW turbine to go green, he would just go to the B & Q Offshore web site and order what he needed. It would then be towed into place and connected to his local grid.
I can see modular systems being developed, that fit both local infrastructure and oil and gas platforms.
Conclusion
I can see scores of projects being submitted.
I even know the son of a Scottish laird, whose father owns a castle on an island, who could be taking interest in INTOG. They might also apply under Remote Island Wind in another leasing round.
But we will have to wait until the end of March 2023, to find out who have been successful.