Norway’s Sovereign Wealth Fund Acquires Stake In 573 MW Race Bank Offshore Wind Farm
The title of this post, is the same as that of this article on offshoreWIND.biz.
This is the sub-heading.
A consortium made up of investment funds belonging to Australia-headquartered Macquarie Asset Management and Spring Infrastructure Capital has reached an agreement to divest a 37.5 per cent stake in the 573 MW Race Bank offshore wind farm in the UK to Norges Bank Investment Management.
These four paragraphs give more details of the deal.
The stake was sold to the Norwegian sovereign wealth fund for approximately GBP 330 million (about EUR 390.6 million).
According to Norges Bank Investment Management, the fund acquired Macquarie European Infrastructure Fund 5’s 25 per cent stake and Spring Infrastructure 1 Investment Limited Partnership’s 12.5 per cent interest in the Race Bank offshore wind farm.
A Macquarie Capital and Macquarie European Infrastructure Fund 5 consortium acquired a 50 per cent stake in Race Bank during the construction phase in 2016. Macquarie Capital divested its 25 per cent stake in the wind farm in 2017.
With the deal, Arjun Infrastructure Partners will remain co-investor for 12.5 per cent of the wind farm and Ørsted will remain a 50 per cent owner and operator of Race Bank.
These are my thoughts.
The Location of Race Bank Wind Farm
This map from the Outer Dowsing Web Site, shows Race Bank and all the other wind farms off the South Yorkshire, Lincolnshire and Norfolk coasts.
From North to South, wind farm sizes and owners are as follows.
- Hornsea 1 – 1218 MW – Ørsted, Global Infrastructure Partners
- Hornsea 2 – 1386 MW – Ørsted,Global Infrastructure Partners
- Hornsea 3 – 2852 MW – Ørsted
- Hornsea 4 – 2600 MW – Ørsted
- Westernmost Rough – 210 MW – Ørsted and Partners
- Humber Gateway – 219 MW – E.ON
- Triton Knoll – 857 MW – RWE
- Outer Dowsing – 1500 MW – Corio Generation, TotalEnergies
- Race Bank – 573 MW – Ørsted,
- Dudgeon – 402 MW – Equinor, Statkraft
- Lincs – 270 MW – Centrica, Siemens, Ørsted
- Lynn and Inner Dowsing – 194 MW – Centrica, TCW
- Sheringham Shoal – 317 MW – Equinor, Statkraft
- Norfolk Vanguard West – 1380 MW – RWE
Note.
- There is certainly a large amount of wind power on the map.
- Hornsea 1, 2 and 3 supply Humberside.
- Hornsea 4 will supply Norwich and North Norfolk.
- Norfolk Vanguard West would probably act with the other two wind farms in RWE’ Norfolk cluster.
- Ignoring Hornsea and Norfolk Vanguard West gives a total around 4.5 GW.
- There are also two 2 GW interconnectors to Scotland (Eastern Green Link 3 and Eastern Green Link 4) and the 1.4 GW Viking Link to Denmark.
I wouldn’t be surprised to see a large offshore electrolyser being built in the East Lincolnshire/West Norfolk area.
The primary purpose would be to mop up any spare wind electricity to avoid curtailing the wind turbines.
The hydrogen would have these uses.
- Provide hydrogen for small, backup and peaker power stations.
- Provide hydrogen for local industry, transport and agriculture,
- Provide hydrogen for off-gas-grid heating.
- Provide methanol for coastal shipping.
Any spare hydrogen would be exported by coastal tanker to Germany to feed H2ercules.
Do We Need Wind-Driven Hydrogen Electrolysers About Every Fifty Miles Or so Along The Coast?
I can certainly see a string along the East Coast between Humberside and Kent.
- Humberside – Being planned by SSE
- East Lincolnshire/West Norfolk – See above
- North-East Norfolk – See RWE Goes For An Additional 10 GW Of Offshore Wind In UK Waters In 2030.
- Dogger Bank – See RWE Goes For An Additional 10 GW Of Offshore Wind In UK Waters In 2030.
- Sizewell – See Sizewell C And Hydrogen.
- Herne Bay – Under construction
I can see others at possibly Freeport East and London Gateway.
Highland Council Greenlights West Of Orkney Windfarm Onshore Plans
The title of this post, is the same as that of this article on offshoreWIND.biz.
This is the sub-heading.
The Highland Council has approved the onshore plans of the 2 GW West of Orkney Windfarm project, being developed by TotalEnergies, Corio Generation, and Renewable Infrastructure Development Group (RIDG) in Scotland.
These are the first three paragraphs.
The onshore application for planning permission in principle was approved on 4 June and outlines the underground cables and electrical infrastructure required to connect the offshore wind farm to the national transmission network.
Last year, the project became the first ScotWind proposal to submit both its offshore consent application to Scottish Ministers and its onshore planning application to The Highland Council.
The onshore application provides information on proposed cable landfalls on the north Caithness coast, the project’s substation at Spittal in Caithness, and the underground cables which will extend around 25 kilometres and connect to the substation.
According to the project page of the West of Orkney wind farm web site, the target for commissioning of the wind farm is 2029.
This wind farm appears to be making a play to be the first of the ScotWind Leasing developments to be commissioned.
I have some thoughts.
Converting The Flotta Oil Terminal To The Flotta Hydrogen Hub
This first paragraph of the Wikipedia entry for the Flotta Oil Terminal, describes it like this.
The Flotta oil terminal is a major crude oil reception, processing, storage and export facility on the island of Flotta, in the south of Scapa Flow in the Orkney Islands. It receives and processes crude oil delivered by a subsea pipeline from the Piper, Claymore, Tartan and Golden Eagle platforms and associated fields. The terminal includes facilities for exporting stabilised crude oil (and formerly liquefied petroleum gases) by tanker.
It is now proposed to add the Flotta Hydrogen Hub to the Flotta Oil Terminal.
This document on the Repsol web site, describes the Flotta Oil Terminal.
- This page is the Flotta Hydrogen Hub web site.
- This page discusses, what will be done with the green hydrogen produced by electrolysis.
- The green hydrogen page, has an excellent map of the hydrogen and electricity flows to and from the Flotta Hydrogen Hub.
The Flotta Oil Terminal will be developed into a major hydrogen production and distribution facility.
South Korea, UK Strengthen Offshore Wind Ties
The title of this post, is the same as that of this article on offshoreWIND.biz.
This is the sub-heading.
The Republic of Korea (ROK) and the UK have signed a memorandum of understanding (MoU) concerning cooperation on offshore wind energy
These three paragraphs outline the MoU.
The UK and ROK already have a proven relationship in offshore wind, with large-scale investments in the UK’s supply chain and in the development of ROK’s offshore wind sector.
This MoU emphasises the will to build on this existing cooperation to accelerate deployment, address barriers to trade, and encourage mutual economic development through regular government-to-government dialogue and business-to-business cooperation, according to the partners.
The participants will support the UK and ROK’s offshore wind deployment by sharing experience and expertise from their respective sectors.
These are my thoughts.
The British And The Koreans Have A Long Record Of Industrial Co-operation
My own experience of this, goes back to the last century, where one of the biggest export markets for Artemis; the project management system, that I wrote was South Korea.
We had started with Hyundai in Saudi Arabia, where the Korean company was providing labour for large projects.
I can remember modifying Artemis, so that it handled the Korean won, which in those days, came with lots of noughts.
The Korean, who managed their Saudi projects returned home and luckily for us, wanted a system in Korea.
Paul, who was our salesman for Korea, used to tell a story about selling in Korea.
Our Korean friend from Hyundai had setup a demonstration of Artemis with all the major corporations or chaebols in Korea.
Paul finished the demonstration and then asked if there were any questions.
There was only one question and it was translated as “Can we see the contract?”
So Paul handed out perhaps a dozen contracts.
Immediately, after a quick read, the attendees at the meeting, started to sign the contracts and give them back.
Paul asked our friendly Korean, what was going on and got the reply. “If it’s good enough for Hyundai, it’s good enough for my company!”
The King Played His Part
King Charles, London and the UK government certainly laid on a first class state visit and by his references in his speech the King certainly said the right things.
I always wonder, how much the Royal Family is worth to business deals, but I suspect in some countries it helps a lot.
With Artemis, we won two Queen’s Awards for Industry. Every year the monarch puts on a reception to which each company or organisation can send three representatives. I recounted my visit in The Day I Met the Queen.
For the second award, I suggested that we send Pat, who was the highest American, in the company.
Later in his career with the company, when he was running our US operations, Pat. found talking about the time, he met the Queen and Prince Philip, very good for doing business.
I wonder how many business and cooperation deals between the UK and Korea, will be revealed in the coming months.
This Deal Is Not Just About The UK And Korea
This paragraph widens out the deal.
In addition, participants accept to promote business activities and facilitate opportunities for UK and ROK companies to collaborate in ROK and the UK, as well as joint offshore wind projects in third countries, according to the press release from the UK Government.
An approach to some countries without the usual bullies of this world may offer advantages.
Has One Secondary Deal Already Been Signed?
This paragraph talks about a recent deal between BP, Dutch company; Corio and the South Koreans.
The news follows the recent announcement from South Korea’s Ministry of Trade, Industry and Energy that two UK companies, Corio Generation and BP, submitted investment plans for offshore wind projects in South Korea totalling about EUR 1.06 billion.
This deal was apparently signed during the state visit.
There’s A Lot Of Wind Power To Be Harvested
These last two paragraphs summarise the wind potentials of the UK and Korea.
The UK has the world’s second-largest installed offshore wind capacity, with a government target to more than triple this capacity by 2030 to 50 GW, including 5 GW of floating offshore wind.
Back in 2018, the South Korean Government set a 2030 offshore wind target of 12 GW in its Renewable Energy 3020 Implementation Plan, which was reaffirmed by the now-former South Korea’s president Moon Jae-in in 2020. Since 2022, it has been reported that the country has a target of reaching 14.3 GW of offshore wind power by 2030.
Note that the UK’s population is almost exactly 30 % bigger than Korea’s.
So why will the UK by 2030, be generating three-and-half times the offshore wind power, than Korea?
Twenty days ago, I wrote UK And Germany Boost Offshore Renewables Ties, where I believe the sub-plot is about long-term power and energy security for the UK and Germany.
Long term, the numbers tell me, that UK and Irish seas will be Europe’s major powerhouse.
Australia’s Offshore Wind Market Could Significantly Benefit from Collaboration with UK Suppliers, Study Says
The title of this section, is the same as that of this article on offshoreWIND.biz.
This is the sub-heading.
A new study has been launched that highlights significant opportunities for the UK to share its wind farm expertise with Australia’s emerging offshore wind market
These three paragraphs outline the study.
The Australian Offshore Wind Market Study, conducted by Arup, evaluates potential Australian offshore wind markets and analyses the strengths, weaknesses, and opportunities for UK support.
Key findings indicate that the Australian offshore wind market could “substantially” benefit from collaboration with the UK suppliers, given the UK’s 23 years of experience and its status as the second largest offshore wind market globally, boasting 13.9 GW of installed capacity as of 2023, according to the UK Government.
Currently, Australia has over 40 offshore wind projects proposed for development.
I believe that the Australians could be a partner in the deal between the UK and Korea, as all three countries have similar objectives.
Conclusion
The Korean and German deals. and a possible Australian deal should be considered together.
Each country have their strengths and together with a few friends, they can help change the world’s power generation for the better.
- Just as the UK can be Europe’s powerhouse, Australia can do a similar job for South-East Asia.
- Any country with lots of energy can supply the green steel needed for wind turbine floats and foundations.
I would have felt the Dutch would have been next to join, as their electricity network is solidly connected to the UK and Germany. But after this week’s Dutch election, who knows what the Dutch will do?
The Lincolnshire Wind Powerhouse
In August 2022, reports started to appear about the Outer Dowsing Wind Farm, like this article on offshoreWIND.biz, which is entitled Corio, Total Submit Scoping Report For 1.5 GW Outer Dowsing Offshore Wind Project.
There is now a web site.
- Outer Dowsing Offshore Wind is a 1.5GW project located approximately 54km off the Lincolnshire coast.
- It is a joint project between TotalEnergies and Corio Generation.
This map from the Outer Dowsing Wind Farm web site, shows the location of the wind farm.
These are the sizes of the various windfarms, that are shown on the map.
- Dudgeon – 402 MW
- Hornsea 1 – 1218 MW
- Hornsea 2 – 1386 MW
- Hornsea 3 – 2852 MW
- Hornsea 4 – 1000 MW – Not shown on map.
- Humber Gateway – 219 MW
- Lincs – 270 MW
- Lynn and Inner Dowsing – 194 MW
- Norfolk Vanguard West – No information, but Norfolk Vanguard is 1800 MW
- Outer Dowsing – 1500 MW
- Race Bank – 580 MW
- Sheringham Shoal – 317 MW
- Sheringham Shoal and Dudgeon Extensions – 719 MW
- Triton Knoll – 857 MW
- Westernmost Rough – 210 MW
Note that these total up to 11724 MW, but with Norfolk Vanguard the total is 135224 MW.
Gas-Fired Power Stations
There are also several active gas-fired power stations.
- Immingham – 1240 MW
- Keadby – 734 MW
- Keadby 2 – 893 MW
- Keadby 3 – 910 MW – Planned to be fitted with carbon capture.
- Saltend – 1200 MW
- South Humber Bank – 1365 MW
- Spalding – 860 MW
- Sutton Bridge – 819 MW
Note that these total up to 8021 MW.
Viking Link
The Viking Link is a 1.4 GW interconnector, that links Bicker Fen in Lincolnshire and Denmark, that should be operational at the end of 2023.
Gas Storage
There are two major gas storage facilities in the rea.
- Aldbrough Gas Storage is formed of salt caverns to the North of the Humber.
- Rough Gas Storage is to the East of the Humber in a depleted gas field.
Both will eventually be converted to store hydrogen, which could be used by local industrial users or the proposed hydrogen power station at Keadby.
The Anonymous Widower 