The award of a Contract for Difference for a 400MW floating wind project off Scotland is a “clear vote of confidence” from the government in the UK’s ability to build the first commercial scale floating offshore wind farm.
Flotation Energy and Vargronn are the developer partnership behind the £2.5bn Green Volt project which cleared the Allocation Round 6 (AR6) auction at £139.93/MWh, well below the £176/MWh maximum available in Pot 2.
Offshore Energies UK stated Green Volt is a “significant development” in unlocking the potential of the government’s Innovation and Targeted Oil and Gas initiative which is designed to provide wind energy to power the oil and gas platforms which are still needed during the energy transition, and at the same time supply the UK grid.
The trade body stated: “The UK is a world leader in the deployment of static offshore wind and this support for floating wind will put the country at the forefront of nations deploying the new technology.
“It will also help to take forward the evolving North Sea energy industry and its supply chain as the UK unlocks more floating wind opportunities.”
Vargronn chief executive Stephen Bull said: “This award is a clear vote of confidence from the UK Government in our plans to build Europe’s first commercial scale floating offshore wind farm.
“It is fantastic news for both our project and the wider floating offshore wind sector.
“Green Volt will stimulate investment in new port infrastructure, helping accelerate the development of more floating windfarms.
“We look forward to expanding our dialogue with the supply industry.”
Flotation Energy chief executive Nicol Stephen added: “Scotland is already a global pioneer in floating wind.
“This funding will kickstart the next phase of Europe’s largest floating wind project 80 km off the coast of north-east Scotland … It will create over 2800 jobs during construction.
“Once operational, the floating offshore windfarm will supply clean power to the UK grid, while also supplying renewable electricity to nearby oil and gas platforms.”