UK Gov’t Tweaking CfD Rules Ahead Of 8th Allocation Round, Proposes ‘Other Deepwater Offshore Wind’ Category
The title of this post, is the same as that of this article on offshoreWIND.biz.
This is the sub-heading.
The UK government has launched a consultation on proposed refinements to the Contracts for Difference (CfD) scheme ahead of Allocation Round 8 (AR8) and future rounds, including targeted changes to the terms concerning offshore wind and floating wind projects.
These two paragraphs add more details.
The consultation, published by the Department for Energy Security and Net Zero, seeks industry feedback on contractual and eligibility adjustments, some of which are intended to reflect the increasing scale and complexity of offshore wind developments, specifically floating and other deepwater projects.
For floating offshore wind, the government is proposing changes to CfD contract terms to better align with the technology’s development timelines. These include a proposed extension of the Longstop Period to give floating wind projects more time to commission and avoid termination of their CfD contract.
The government also wants to lower the Required Installed Capacity (RIC) threshold for floating offshore wind projects.
Currently, all CfD technologies are required to deliver a minimum of 95 per cent of the capacity they have contractually agreed to install, except for (fixed-bottom) offshore wind, whose RIC is set at 85 per cent to reflect the construction risks, such as encountering unsuitable seabed conditions after work has commenced. As floating wind projects, which were so far in the range of 100 MW, have grown in scale and complexity, the government plans to apply the same RIC requirement as for fixed-bottom offshore wind.
The CfD scheme currently supports two categories of offshore wind technology: fixed-bottom offshore wind and floating offshore wind, with the regulations in use (Allocation Regulations 2014) considering only the foundation designs that float to be floating offshore wind. With the ODOW category, the government wants to make room for the novel hybrid foundation designs, “which may be suitable for deepwater deployment but do not technically float and would therefore not be considered eligible as ‘floating foundations’ under the existing legal definition of ‘floating offshore wind’.”
This last paragraph sums up the reasons for the changes.
The proposed refinements are intended to ensure the CfD scheme remains fit for purpose as offshore wind technologies evolve, while maintaining investor confidence and supporting timely project delivery.
Hopefully developments at ports like Belfast, East Anglia, Inverness & Cromarty FreePort,Lowestoft and Tyne will encourage to develop wind farms around the shores of the UK.
MoU Signed To Develop Scottish Highlands As Offshore Wind And Renewables Hub
The title of this post, is the same as that of this article on offshoreWIND.biz.
This is the sub-heading.
The Inverness and Cromarty Firth Green Freeport (ICFGF) has signed a Memorandum of Understanding (MoU) with the UK and Scottish governments and The Highland Council, creating a formal framework for cooperation in developing the Highlands as a major international hub for the offshore wind and renewable energy sector
This is the first paragraph.
The agreement is said to unlock GBP 25 million (approximately EUR 29 million) in funding from the UK government, which ICFGF plans to use to support the delivery of significant infrastructure projects and its partner ports.
These are some points from the rest of the article.
- Inverness and Cromarty Firth Green Freeport aims to bring up to 11,300 jobs to the Highlands.
- Significant investments we’ve already include the Sumitomo subsea cable plant at Nigg and the Haventus energy transition facility at Ardersier.
- Over the next 25 years, ICFGF is expected to attract over GBP 6.5 billion of investment.
- The Green Freeport includes three tax sites: Cromarty Firth, which includes Port of Nigg, Port of Cromarty Firth, and Highland Deephaven.
- Ardersier Energy Transition Facility has secured a GBP 100 million joint credit facility to create nationally significant infrastructure for industrial-scale deployment of fixed and floating offshore wind.
- It has placed contracts with more than 110 local firms as part of the development.
These investments will setup the long-term future of Inverness and the Highlands of Scotland.
The Inverness and Cromarty Firth Green Freeport (ICFGF) has this web site, with these messages on the home page.
Europe’s strategic hub for renewable energy
Transforming the Highland economy and delivering national energy security
Conclusion
This area will become one of the most vibrant places in Europe.
Redevelopment Of Scottish Port Begins As Owner Secures GBP 400 Million For Offshore Wind Upgrade
The title of this post, is the same as that of this article on offshoreWIND.biz.
This is the sub-heading.
Haventus, the owner of the Ardersier Port in the Moray Firth, Scotland, has taken a final investment decision and kicked off construction work on redeveloping the port to serve both fixed-bottom and floating offshore wind projects. The revamped port is expected to open in the second half of 2025.
These are the first two paragraphs.
This month, Haventus was granted a GBP 100 million (approximately 117 million) joint credit facility from the Scottish National Investment Bank and UK Infrastructure Bank with GBP 50 million (approx. EUR 58.5 million) investment from each.
This follows a GBP 300 million (approx. 351 million) investment commitment by the energy investment firm Quantum Capital Group in 2023 when Haventus began the redevelopment of Ardersier Port.
This page on the Haventus web site, gives more details of the Port of Ardersier.
Included are.
- Access channel width – 160 m.
- Access channel depth – 12.4 m.
- Landside area – 350 acres.
- 420m main quay.
- 80 m Ro/Ro capable berth.
- People-friendly midges
- Green Freeport tax site designation
- More space is available if required.
There is also an informative video.
Haventus say they are delivering a world-leading energy transition facility. I can go along with that!
These are my thoughts.
The Location Of The Port of Ardersier
This Google Map shows the location of the Port of Ardersier.
Note.
- The large expanse of water in the middle of the map is Moray Firth.
- The blue arrow at the bottom of the map indicates Inverness Airport.
- Inverness Airport, has a railway station on the Aberdeen and Inverness Line.
- The village of Ardersier is on the the Eastern bank of the Moray Firth
- The Port of Ardersier is in the North-East corner of the map.
The city of Inverness, with a population of around 48,000, is a few miles South-West of the South-West corner of the map.
Which Windfarms Will Be Built And Serviced From The Port Of Ardersier?
This map shows the various ScotWind leases, around the North of Scotland.
The numbers are Scotwind’s lease number in their documents.
These are the Scotwind wind farms to the North-East of Scotland, that could reasonably be assumed to be built and served from the Port of Ardersier.
- 7 – DEME Concessions Wind – 200 km² – 1.0 GW – Floating
- 8 – Falck Renewables Wind – 256 km² – 1.0 GW – Floating
- 9 – Ocean Winds – 429 km² – 1.0 GW – Fixed
- 10 – Falck Renewables Wind – 134 km² – 0.5 GW – Floating
- 11 – Scottish Power Renewables – 684 km² – 3.0 GW – Floating
- 12 – BayWa r.e. UK – 330 km² – 1.0 GW – Floating
These are the Scotwind wind farms to the North-West of Scotland, that could reasonably be assumed to be built and served from the Port of Ardersier.
- 13 – Offshore Wind Power – 657 km² – 2.0 GW – Fixed or Floating
- 14 – Northland Power – 390 km² – 1.5 GW – Floating
- 15 – Magnora – 103 km² – 0.5 GW – Floating
- 16 – Northland Power – 161 km² – 0.8 GW – Floating
These ten wind farms add up to 12.3 GW.
Transport
Consider.
- Obviously, heavy components will be brought in by sea, using the Ro/Ro capable berth or using a crane to unload a barge.
- Personnel will be able to fly in for the day.
- Will some visitors rom London use the Caledonian Sleeper to and from Inverness station to get a full day on site and a good night’s sleep, whilst travelling.
But I do see a problem with local traffic to and from the site.
Hydrogen Buses
This page on the Sizewell C web site, discusses how they will use hydrogen buses.
I could see the Port of Ardersier taking a leaf out of Sizewell C’s book and run hydrogen buses to Inverness, Inverness Airport and other nearby towns.
The North of Scotland certainly won’t be short of green hydrogen to power the buses.
Hydrogen
Conclusion
If you thought that the only useful wind-driven thing to come out of Scotland was bagpipes, you had better think again.
The Port of Ardersier will be the factory and operation and maintenance port for one of the largest offshore wind industries in the world.
Two Ports Advance To Next Stage Of UK Gov Funding For Floating Wind
The title of this post, is the same as this article in Ground Engineering.
This is the sub-heading.
Port Talbot in Wales and Port of Cromarty Firth in Scotland have advanced to the next stage of a government funding scheme to develop port infrastructure that will facilitate floating offshore wind.
These three paragraphs introduce the developments.
The UK Government has agreed that the port expansion projects should progress to the next stage of its floating offshore wind manufacturing investment scheme (FLOWMIS) known as the primary list phase.
Up to £160M of grant funding will be allocated to certain investments in the floating offshore wind sector under the scheme.
The money will go towards funding the basic infrastructure necessary to support the assembly of floating offshore wind turbines. This includes the construction, replacement and upgrade of port infrastructure to accommodate large components such as towers and blades, as well as steel and concrete foundations and mooring cables required for floating offshore wind.
The article also says this about Port Talbot.
The Future Port Talbot project in south Wales would see the port transformed into a major hub for the manufacturing, assembly, and integration of floating offshore wind components for projects in the Celtic Sea.
Associated British Ports (ABP), which owns and operates the port, welcomed the government’s decision.
Note.
- Port Talbot will almost certainly use locally produced steel.
- There appears to be at least 4,832 MW of floating wind to be developed in the Celtic Sea in the next few years.
Port Talbot would be ideally placed to handle both English and Welsh coasts and waters in the Celtic Sea.
The article also says this about the Port of Cromarty Firth.
The Port of Cromarty Firth (PoCF) on the east coast of the Scottish Highlands will undergo a fifth phase of expansion work. This will develop the facilities and infrastructure necessary to enable the port to support offshore wind infrastructure projects off the coast of Scotland.
Over £50M has also been earmarked for the port’s expansion.
There appears to be at least 15,216 MW of floating wind to be developed in Scotland in the next few years.
Both ports seem to have welcomed the funding.
Adding the plans for Scotland and the Celtic Sea together gives a figure of just over 20 GW of floating wind to be developed in the next few years.
Conclusion
Surely, the award of funding for floating wind, is a good way to create a new industry and jobs in these two areas and also perform some sensible levelling-up.
I also suspect that spending £160 million to enable the construction of 20 GW of floating wind farm is a good return on the investment.
ABP To Explore Opportunities For Offshore Wind Port In Scotland
The title of this post, is the same as that of this article on offshoreWIND.biz.
This is the sub-heading.
Associated British Ports (ABP) has signed an agreement to investigate an area for the development of infrastructure to support offshore wind manufacturing, assembly, and marshalling and green energy on the Cromarty Firth in Scotland, within the Inverness Cromarty Firth Green Freeport.
This first paragraph gives a bit more information including the possible location.
The area, located within the proposed Nigg and Pitcalzean area of the Green Freeport, could support both fixed-bottom and floating offshore wind projects and play a major role in the development of current and future ScotWind leasing rounds, said ABP.
This Google Map shows the location of the Port of Nigg.
Note.
- The Moray Firth with Inverness at its Southern end is the large body of water in the centre of the Southern half of the map.
- The Port of Nigg is on Cromarty Firth and marked by a red arrow.
- Nigg and Pitcalzean are to the North of the port.
This second Google Map shows an enlarged view of the port.
Note.
- Pitcalzean House is in the North-East corner of the map.
- The Port of Nigg is in the centre of the map.
- The water to the West and South of the port is Cromarty Firth.
- The yellow structures in the port are fixed-bottom foundations for wind farms.
Inverness & Cromarty Firth Green Freeport has a web site.
A Quote From Henrik Pedersen
Henrik Pedersen is CEO of ABP and the article quotes him as saying this.
We’re excited to explore the potential of Nigg, applying our experience across the UK, including at our Ports of Grimsby, Hull, Lowestoft and Barrow which already host significant offshore wind activity and at Port Talbot, where we are developing a Floating Offshore Wind port project. We look forward to working with key local partners, the community, and public sector stakeholders.
The article also has this final paragraph.
The Floating Offshore Wind Taskforce’s recently published “Industry Roadmap 2040”, estimated that planed floating offshore wind projects in Scottish waters alone will require three to five integration ports.
There is certainly going to be a significant number of ports, that will be supporting offshore wind activity.
Cromarty Firth And Forth To Host First Green Freeports
The title of this post, is the same as that, of this article on the BBC.
This is the sub-heading.
Sites at Cromarty Firth and the Forth have been selected to host Scotland’s first green freeports.
These three paragraphs outline the deal.
The winning bids were revealed in a joint announcement by the UK and Scottish governments.
The special economic zones north of the border are being created under a scheme agreed by the two governments.
The successful applicants will be able to offer tax incentives and lower tariffs in the zones.
At least it seems that Westminster and Holyrood are in agreement.
What Is A Green Freeport?
This article on the BBC, is entitled Freeports: What Are They And Will They Help The Economy?.
It is a good summary of freeports in the UK.
This press release from the UK Government is entitled Joint Cooperation To Deliver Two New Green Freeports In Firth Of Forth And Inverness And Cromarty Firth, contains this statement from Deputy Scottish First Minister; John Swinney.
This is a milestone achievement in the process to deliver Green Freeports for Scotland. Inverness and Cromarty Firth Green Freeport and Forth Green Freeport will support businesses to create high-quality, well-paid new jobs, promote growth and regeneration, and make a significant contribution to achieving our net zero ambitions.
A rigorous joint selection process has been followed. The successful applicants showed a strong determination to embed fair work practices, including payment of the Real Living Wage, and to enshrine net zero initiatives in their work.
We look forward to working closely with them to ensure they deliver maximum positive impact and become operational as soon as possible. We will also work with the unsuccessful bidders to consider how they can build on the plans set out in their bids to deliver jobs and growth in their regions outside the Green Freeports programme.
Scotland has a rich history of innovation, trade and manufacturing and as we look to seize the many opportunities achieving net zero offers, the creation of these internationally competitive clusters of excellence will help us to create new green jobs, deliver a just transition and support our economic transformation.
This statement may be a lot more about aspiration, than hard directions, but having in my lifetime seen Scotland rally round their newborn oil and gas industry, I am very hopeful that the concept of a green freeport will be successful.
Unless anyone can correct me, I do feel that Scotland’s two green freeports are a world first.
Forth Green Freeport
This is the home page of the Forth Green Freeport.
- It talks about being Central to Scotland’s green ambitions.
- Places shown on a map of the freeport are Burntisland, Edinburgh Airport, Grangemouth, Leith and Rosyth.
- The freeport has a long list of partners.
It appears to be a well-backed ambitious plan.
Cromarty Green Freeport
Opportunity Cromarty Firth are leading the development of the Cromarty Green Freeport and they have this web site.
This is the sub-heading on the home page.
Opportunity Cromarty Firth (OCF), is a consortium leading a bid in the current competition for Green Freeport status, which could “revolutionise” the Highland economy and stimulate major new manufacturing activity locally and elsewhere in Scotland and the UK.
It is following by these two paragraphs.
The consortium is backed by port owners Port of Cromarty Firth, Global Energy Group, Port of Inverness and The Highland Council alongside a dozen regional businesses, public sector organisations and academic bodies.
OCF believes the creation of such a zone on the Firth would maximise local and Scotland-wide benefits from a pipeline of renewable energy projects placing the Highlands at the heart of the drive towards net-zero and create tens of thousands of jobs.
There would appear to be a lot of aspiration and a good list of partners, but the plans for the freeport don’t seem to be as advanced as those for the Forth Green Freeport.
No Shortage Of Electricity
One thing, that will not be a problem for either freeport, is going to be a poor electricity supply, as both the Forth Estuary and Cromarty Form will be the home to several gigawatts of offshore wind.
In addition, it is likely that the wind farms in the Cromarty Firth will be backed by large amounts of pumped storage hydroelectricity in the Great Glen.
Wind Farms Close To The Cromarty Firth Green Freeport
These wind farms are currently close to the Cromarty Firth Green Freeport.
- Beatrice – 10 MW – Operational
- Beatrice Extension – 588 MW – Operational
- Moray East – 950 MW – Operational
- Moray West – 862 MW – Operational in 2025
- Caldeonia – 2000 MW – Operational in 2030
This is a grand total of 4410 MW. Hinckley Point C will be 3260 MW.
Wind Farms Close To The Forth Green Freeport
These wind farms are currently close to the Forth Green Freeport.
- Seagreen – 862 MW – Operational in 2023
- Inch Cape – 1080 MW – Operational in 2026/27
- Neart Na Gaoithe – 450 MW – Operational in 2024
- Forthwind – 12 MW – Operational in 2023/24
- Berwick Bank 4100 MW – Operational in 2030
This is a grand total of 6504 MW.
North of Scotland Hydrogen Programme
One plan that seems to be being developed by OCF is the North of Scotland Hydrogen Programme, which has this web page on the OCF web site.
These paragraphs outline the plan.
The North of Scotland Hydrogen Programme was established through Opportunity Cromarty Firth and brings together key partners who share ambitions for the region’s renewable, low carbon future. The programme aims to develop a state-of-the-art hub in the Cromarty Firth to produce, store and distribute green hydrogen at scale to the region, Scotland, other parts of the UK and Europe.
The Highlands will be at the centre of future large-scale production of green hydrogen if the Cromarty Firth wins Green Freeport status.
ScottishPower and Storegga have expressed their support for the Green Freeport bid by Opportunity Cromarty Firth (OCF), which could attract more than £1 billion investment to the area and create thousands of jobs and local supply chain opportunities during construction.The joint developers recently announced plans to develop one of the UK’s largest green hydrogen electrolyser plants on the Cromarty Firth. The project’s initial phase would see the facility produce up to 30 megawatts (MW) of green hydrogen to be used in heating processes in nearby whisky distilleries.
Achieving Green Freeport status would have the potential to bring forward significant investment in a larger-scale plant by up to 10 years and would place the Highlands firmly at the centre of future large-scale production of green hydrogen, because of the region’s enormous growth potential of offshore wind, which is critical to the industry’s development.
Note.
- The hydrogen from the first phase of the electrolyser will be used in the whisky industry.
- Gradually, hydrogen use will widen throughout the region.
- I suspect that as hydrogen production grows, it will be exported from the freeport.
This map from the web site shows all the energy flows.
Note.
- Aquaculture is a use for the oxygen produced by the electrolyser.
- Everybody is promoting spaceports. Both hydrogen and oxygen can be used as rocket fuel.
- Hydrogen or electricity is shown powering all sorts of transport, including buses, a cruise ship, trains and trucks.
It certainly is a comprehensive plan.
Hydrogen At The Forth Green Freeport
Hydrogen is mentioned on the About page of the Forth Green Freeport web site in this general statement.
Investments will stimulate growth in trade, providing expanded logistics and trade capacity for existing and emerging industries including advanced modular systems, biofuels, hydrogen and carbon capture and storage, as well as support additional R&D capability and green incubator space to drive SME and start-up business growth.
But as INEOS are a partner, I would expect some hydrogen production from all that green offshore electricity.






