Crown Estate Scotland has announced the results of the world’s first leasing round designed to enable offshore wind energy to directly supply offshore oil and gas platforms.
The INTOG (Innovation and Targeted Oil & Gas) leasing process allowed developers to apply for seabed rights to develop offshore wind projects that either reduce emissions from the North Sea oil and gas sector – by supplying renewable electricity directly to oil and gas infrastructure (TOG) – or consist of small-scale (IN) innovative projects of 100MW or less. This distinctive offshore wind leasing is different to any other previously carried out in the UK or in the world.
INTOG, which has been designed in response to demand from government and industry to help achieve the targets of the North Sea Transition Sector Deal through decarbonising North Sea oil and gas operations.
Highlights include:
- 13 projects out of a total of 19 applications – five for IN and eight for TOG – have been offered Exclusivity Agreements.
- Once the Sectoral Marine Plan has been finalised and option agreements signed (expected 2024), around £262m in applicant fees will be secured.
- The area of seabed covered by the IN projects is just over 139km2 and by the TOG projects 1534km2
- Crown Estate Scotland will offer a seabed lease of 50 years for TOG projects and 25 years for IN projects.
The Climate Change Committee (CCC), which advises the government on climate issues, has said that the UK carbon budgets can still be met if new UK fields are developed, provided that additional actions are taken to reduce emissions, such as electrifying offshore platforms with renewable energy.
“However, there is also a wider question: whether developing new UK fields would help or hinder efforts to reduce emissions globally,” said the CCC’s chief executive, Chris Stark, in a letter to the government last year, the Guardian reported.
Further reporting can be read on the BBC News site as well as Recharge and OffshoreWindBiz.
Further information from Crown Estate Scotland can be found here and here.