As part of the ScotWind clearance process run by Crown Estate Scotland, seabed agreements for THREE new offshore floating wind projects have been offered.
According to the Crown Estate, the ScotWind Leasing program gives companies the right to build and run offshore wind farms on seabed regions in Scottish waters. This will result in billions of pounds of economic investment, according to the program.
Applicants who fit the criteria but were unsuccessful in securing their preferred locations during the previous lease procedure could now apply for a place off the east coast of Shetland.
The development of green hydrogen technology, which is intended to completely replace all of the diesel and gasoline used on Shetland by 2050, will also be a major emphasis of all three initiatives.
According to Crown Estate Scotland, the successful applicants will pay option fees totaling £56 million, which will then be given to the Scottish Government for public investment.
It is anticipated that the projects will pay the Scottish Government £4 million per gigawatt per year once they start producing energy.
According to the initial supply chain pledges, Scotland will receive an average investment of £1.2 billion for every gigawatt of capacity installed.
The world’s largest commercial round for floating offshore wind, ScotWind will usher in a new age for Scotland’s offshore wind sector, according to First Minister Nicola Sturgeon. ScotWind also pioneers the Gigawatt scale for large-scale floating wind technology.
“Once projects are operational, it will yield several billion pounds more in rental revenues, which will be invested for the benefit of the people of Scotland.
“Russia’s unlawful invasion of Ukraine and the current cost-of-living crisis have brought into stark focus the necessity of speeding the switch to renewable energy sources, including hydrogen.
“Nearly 100% of Scotland’s net power consumption already comes from renewable sources, and we’re working to lower energy demand while accelerating the use of renewable energy, she continued.
The Scottish Government views offshore wind as one of our most significant economic and environmental potentials, together with the hydrogen generation that we anticipate offshore wind will enable.
It has the potential to lower carbon emissions, increase energy security, and generate tens of thousands of high-quality employment. All of Scotland will gain from it, but the northeast will benefit the most and play a significant role in the region’s transformation from the oil and gas capital of Europe to one of the capitals of net zero energy in Europe.
The initiatives, according to Colin Palmer, director of the marine at Crown Estate Scotland, will considerably boost Scotland’s transition to net-zero energy.
“This is a terrific outcome for Shetland and for Scotland,” he remarked. In respect to the opportunities around green hydrogen, these initiatives have a huge potential to truly increase Scotland’s progress toward its net zero objectives.
The 20 ScotWind projects have a total capacity of 27.6 GW after accounting for these three, and initial supply chain agreements show an average investment in Scotland of £1.4 billion for every gigawatt of power constructed.
This outcome is another evidence that Scotland is setting the bar for offshore wind, using cutting-edge technology, and utilizing hydrogen.