UK green infrastructure developer Cerulean Winds Ltd today unveiled a GBP-10-billion (USD 14.2bn/EUR 11.6bn) plan combining floating wind and hydrogen production to decarbonise oil and gas assets in the UK Continental Shelf (UKCS).
The ambitious venture calls for the deployment of more than 200 of the largest turbines at North Sea sites West of Shetland and in the Central North Sea, totalling 3 GW of capacity. The turbines will supply electricity to the offshore facilities, with roughly 1.5 GW powering onshore green hydrogen plants.
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The company said that a formal request for seabed leases has been filed with Marine Scotland.
Cerulean Winds is founded by Dan Jackson and Mark Dixon, who have worked together on large-scale offshore infrastructure developments in the oil and gas industry.
“The decision to proceed with the scheme will ultimately rest with the Scottish Government and Marine Scotland and their enthusiasm for a streamlined regulatory approach,” said Jackson.
The developer warned that without a rapid decarbonisation of UK oil and gas assets, there is a risk of earlier decommissioning and significant job losses. It estimates its proposition could safeguard the current 160,000 oil and gas jobs and create 200,000 jobs in the floating wind and hydrogen sectors within the next five years.
Cerulean Winds said it has carried out the necessary infrastructure planning for the required level of project readiness and aims to achieve financial close in the first quarter of 2022. Construction would start shortly afterwards and energisation could begin in 2024. The project will need no subsidies or contract for difference (CfD) and will provide green power to offshore platforms at a price below current gas turbine generation, according to the announcement.
Cerulean Winds is being advised by Societe Generale SA (EPA:GLE) and Piper Sandler.
“The Cerulean UKCS decarbonisation project has the potential to meet all of the basin’s transition needs by reducing oil and gas emissions as quickly as possible whilst also introducing large scale green energy,” commented Societe Generale global head of power advisory and project finance Allan Baker.
(GBP 1.0 = USD 1.419/EUR 1.162)
The Cerulean proposition. Image by Cerulean Winds.
