Equinor and Gwynt Glas have entered into agreements for lease with the Crown Estate for their respective floating wind projects in the Celtic Sea, marking the next major milestone in the UK’s Offshore Wind Leasing Round 5.
The two developers were named preferred bidders in June for sites off the coasts of South Wales and south-west England, each with a capacity of up to 1.5GW.
The deals give the companies exclusive rights to progress development of their projects.
The milestone was finalised ahead of the Future Energy Wales conference in Newport and represents a significant vote of confidence in the UK’s offshore wind sector at a time of global energy market volatility, according to the Crown Estate.
Round 5 is expected to deliver up to 4.5GW of floating offshore wind capacity across three sites in the Celtic Sea.
Research published last year suggested the round could support more than 5300 new jobs and contribute £1.4bn to the UK economy.
The Crown Estate said it is working to secure a developer for the remaining site and will provide an update in due course.
Equinor and Gwynt Glas – a joint venture between EDF power solutions and ESB – will now focus on project design, site surveys, environmental impact assessments, public engagement and planning consents.
Once complete, they can apply for full leases to build and operate the wind farms, which could be operational by the mid-2030s.
The Crown Estate said the projects include industry-leading commitments on social, economic and environmental measures.
These include ensuring at least 3.5% of new workers are employed as apprentices and that a minimum of 10% of all new workers aged 19–24 will not currently be in education, employment or training.
Gus Jaspert, managing director for marine at the Crown Estate, said: “As we edge closer to celebrating 25 years of UK offshore wind in December, the entry of Gwynt Glas and Equinor into agreements for lease in the Celtic Sea is testament to the world-leading industry we see before us today.
“That the UK is in a position to host large innovative floating offshore wind projects off our coasts is the result of many years of planning, investment and ambition. These projects will be among the largest of their kind anywhere in the world, with the potential to provide millions of homes with clean energy and support thousands of new jobs.”
Energy minister Michael Shanks said: “Today’s agreements build upon this legacy through world-leading floating offshore wind in the Celtic Sea, creating thousands of jobs, delivering industrial renewal in places like Port Talbot and across the South West, and protecting families from volatile fossil fuel markets with homegrown power that we control.”
Welsh cabinet secretary for economy, energy and planning Rebecca Evans added: “Floating offshore wind in the Celtic Sea represents a once-in-a-generation opportunity to create thousands of jobs. I am determined to maximise the benefits for Wales, and I welcome the Crown Estate’s focus on local apprenticeships and the employment of young people across the region.”
Gwynt Glas project director Mark Hazelton said: “We are delighted to have reached this major milestone which represents a significant vote of confidence in the UK’s floating offshore wind sector. The Agreement for Lease underscores our shared commitment to delivering a transformative renewable energy project that will not only contribute to our energy security but also bring economic and social benefits to Wales, South West and the UK.”
Melissa Read, head of regional development UK renewables at Equinor, added: “Completion of the Agreement for Lease is a positive step forwards since the Round 5 auction in June. We look forward to developing this site in the Celtic Sea further over the coming years and unlocking, together with the industry, the future potential for floating wind in the UK market.”