The Crown Estate Announces Round 3 Offshore Wind Development Partners

The expansion of electricity generation from offshore wind energy represents a massive long term investment opportunity which has the potential to generate thousands of jobs in the UK as well as securing a marine renewable electricity source. Round 3 offshore wind energy generation aims to deliver a quarter of the UK’s total electricity needs by 2020.

All parties have now signed exclusive Zone Development Agreements with The Crown Estate, who has responsibility for renewable energy in UK waters, to take the proposals through the planning and consenting phase.

The developers who have signed exclusivity zone agreements are:

1. Moray Firth Zone, Moray Offshore Renewables Ltd which is 75% owned by EDP Renovaveis and 25% owned by SeaEnergy Renewables – 1.3 GW

2. Firth of Forth Zone, SeaGreen Wind Energy Ltd equally owned by SSE Renewables and Fluor – 3.5 GW

3. Dogger Bank Zone, the Forewind Consortium equally owned by each of SSE Renewables, RWE Npower Renewables, Statoil and Statkraft – 9 GW

4. Hornsea Zone, Siemens Project Ventures and Mainstream Renewable Power, a consortium equally owned by Mainstream Renewable Power and Siemens Project Ventures and involving Hochtief Construction – 4 GW

5. Norfolk Bank Zone, East Anglia Offshore Wind Ltd equally owned by Scottish Power Renewables and Vattenfall Vindkraft – 7.2 GW

6. Hastings Zone, Eon Climate and Renewables UK– 0.6 GW

7. West of Isle of Wight Zone, Eneco New Energy – 0.9 GW

8. Bristol Channel Zone, RWE Npower Renewables, the UK subsidiary of RWE Innogy – 1.5 GW

9. Irish Sea Zone, Centrica Renewable Energy and involving RES Group – 4.2 GW

The Prime Minister, Rt Hon Gordon Brown MP said: “Our policies in support of offshore wind energy have already put us ahead of every other country in the world. This new round of licences provides a substantial new platform for investing in UK industrial capacity. The offshore wind industry is at the heart of the UK economy’s shift to low carbon and could be worth £75 billion and support up to 70,000 jobs by 2020. This announcement will make a significant and practical contribution to reducing our CO2 emissions and the Government will work with developers and The Crown Estate to support the growing offshore wind industry and help remove barriers to rapid development.”

The Secretary of State for Energy and Climate Change, Rt Hon Ed Miliband MP said: “Our island has one of the best wind energy resources in Europe and today’s news shows we’re creating the right conditions for the energy industry to invest in harnessing it. This is one of the strongest signals yet that the UK is locked irreversibly into a low carbon, energy secure prosperous future.”

Roger Bright, Chief Executive of The Crown Estate said: “I am delighted that we have today announced the Development Partners for all nine Round 3 zones. We have been working very closely with Government and a wide range of other interests to secure commitments from investors in offshore wind energy in the UK. The Crown Estate will continue to play an active role working closely with our new partners to deliver their offer of 32 GW – which equates to a quarter of the UK’s electricity needs. A series of supply chain events will be held across the UK in January, February and March to support the delivery of this growth industry and these will be hosted by The Crown Estate, the UK Government and the devolved administrations.”

The Crown Estate

On behalf of the nation, The Crown Estate manages a highly diverse property portfolio across the UK. Our job is laid down by Parliament: to enhance the value of the estates we manage and to earn a surplus for the benefit of the UK taxpayer. Our multi-billion pound property and land portfolio annually contributes over £200 million to the Treasury and encompasses four main estates; urban, rural, Windsor and marine. Operating on commercial principles balanced with a strong sense of stewardship, we take our responsibility to manage our assets sustainably very seriously.

The marine estate comprises: over 55 per cent of the UK’s foreshore, the beds of tidal rivers and estuaries and almost all of the seabed out to the 12-nautical-mile territorial limit around the UK. It also includes the rights to explore and utilise the natural resource of the UK continental shelf with the exception of oil, gas and coal.

Round 3

The UK requires a scale increase in renewable power generation; a large part of which will come from Round 3. Round 3 offshore wind energy generation aims to deliver a quarter of the UK electricity needs by 2020. Delivery of this capacity will require extensive engagement with many stakeholders and a massive investment in onshore and offshore energy infrastructure and supply chains.

The Crown Estate’s approach to ensure the best chance of delivering Round 3 includes:

* A robust selection of parties capable of developing, constructing, financing and operating offshore wind projects
* Development with The Crown Estate to the consent stage, involving shared development risk and more than £100m financial investment by The Crown Estate
* A zonal approach to assess cumulative impact, engage holistically with stakeholders and improve supply chain confidence
* The use of The Crown Estate’s Marine Resource System (MaRS) tool to provide a transparent and rational approach to site selection
* Engagement with stakeholders over national and zonal issues to highlight issues early and build long-term relationships.

The Crown Estate is undertaking a number of enabling actions. These commenced in 2009 and include aerial bird surveys, marine mammal research and funding for the industry aviation plan. The overall purpose is to de-risk and accelerate development within Round 3.

Keeping to the Round 3 programme, the bid and award process was concluded at the end of 2009 for the nine offshore wind development zones. The development partners will now lead the early stages of development of the zones and will identify potential wind farm sites to take forward.

* Zone 1 – Moray Firth
* Zone 2 – Firth of Forth
* Zone 3 – Dogger Bank
* Zone 4 – Hornsea
* Zone 5 – Norfolk
* Zone 6 – Hastings
* Zone 7 – West of Isle of Wight
* Zone 8 – Bristol Channel
* Zone 9 – Irish Sea

Zone 1 – Moray Firth

Zone developer

EDP Renováveis and SeaEnergy Renewables Limited (SERL) (the 80 per cent owned subsidiary of SeaEnergy) have formed Moray Offshore Renewables Limited (MORL) to develop the zone and the Agreement provides SERL with the right to retain a 25 per cent working interest in MORL and all designated windfarm developments within the zone, whilst EDPR holds a 75 per cent interest. Under the terms of the development agreement, signed by MORL and The Crown Estate, the company has been awarded the exclusive rights to develop wind farm sites within the zone.

Key facts on zone 1 – Moray Firth

* The total zone area is 520km2, equivalent to 28km distance to mainland (calculated from centroids)
* Maximum depth is 57 metres, equivalent to 12.9 double decker buses stacked one on top of each other
* Minimum depth is 30m, equivalent to 6.8 double decker buses stacked one on top of each other

Zone 2 – Firth of Forth

Zone developer

Seagreen Wind Energy Limited is a partnership between SSE Renewables (part of Scottish and Southern Energy plc) and Fluor Limited, the UK operating arm of Fluor Corporation. The company combines the extensive renewables development, asset management and operations experience of one of the UK’s leading energy companies, with the offshore project delivery expertise of one of the world’s largest publicly owned engineering, procurement, construction and maintenance services companies. This partnership builds on an existing relationship. SSE and Fluor jointly developed the first of the Round 2 projects under construction: the 500 MW Greater Gabbard Offshore wind farm located off the coast of Suffolk. Greater Gabbard is currently the world’s largest offshore wind farm under construction and is on schedule for completion in 2012.

Key facts on zone 2 – Firth of Forth

* The proposed capacity is almost double Scotland’s existing renewable generation capacity
* The total zone area is 2,852km2 –only a fraction of which will be developed – which is approximately twice the size of the Kingdom of Fife or ten times the size of the city of Edinburgh
* The zone lies directly outside the 12nm (22km) territorial waters limit
* The average distance to shore is 53.8km (calculated from centroids of likely wind farm areas) and extends to approximately 80km offshore at its furthest point
* The mean water depth of the zone is 50m and ranges between 30 and 80 metres
* The zone is approximately 40km wide (east to west) and 70km long (north to south)
* There are four Scottish Territorial Waters development sites immediately inshore of the zone; Bell Rock (SSE Renewables and Fluor), Inch Cape (RWE and SeaEnergy), Neart na Gaoithe (Mainstream) and Forth Array (Fred Olsen Renewables)

Zone 3 – Dogger Bank

Zone developer

Forewind is a consortium of four leading international energy companies – SSE (Scottish and Southern Energy plc); RWE npower renewables, the UK subsidiary of RWE Innogy, and two of Norway’s largest companies, Statkraft and Statoil.

SSE (Scottish and Southern Energy plc) is one of the largest energy companies in the UK, Statoil is a world leading offshore operator, Statkraft is Europe’s largest generator of renewable energy and RWE npower renewables is one of the UK’s leading onshore and offshore wind farm developers and operators which has a strong diversified position in renewables with significant ambition for growth.

The consortium combines international offshore project delivery and renewables generation experience with UK utility expertise.

Key facts on zone 3 – Dogger Bank

* The Dogger Bank zone is located off the east coast of Yorkshire between 125 and 195 kilometres offshore.
* It extends over approximately 8660 km2 with its outer limit aligned to UK continental shelf limit as defined by the UK Hydrographic Office
* Equivalent in size to North Yorkshire
* This is the largest zone in Round 3
* The water depth ranges from 18–63 metre
* Maximum depth is 63.5 metres, equivalent to 14.4 double decker buses stacked one on top of each other
* Minimum depth is 18.6m, equivalent to 4.2 double decker buses stacked one on top of each other
* As the development partner, Forewind will now begin to carry out the extensive surveys, assessments and planning required for the consent process. The consortium’s commitment is to secure all the necessary consents for the construction and development of Dogger Bank, up to the point of an investment decision, which is anticipated around late 2014.
* Forewind has agreed with The Crown Estate a target installed capacity of 9GW, though the zone has a potential for approximately 13GW, which equates to around 10 per cent of the total projected UK electricity requirements.
* If developed it is likely to be the world’s largest offshore wind project.

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Zone 4 – Hornsea

Zone developer

Mainstream Renewable Power

Since its inception in February 2008, Mainstream Renewable Power has grown to become a global company with 100 employees across seven countries and four continents. Mainstream’s mission is to work together with partners and communities to deliver a successful business that accelerates global progress towards a sustainable future. The company’s vision is of a future where economies can thrive, free from the restrictions of fossil fuels. Mainstream has the passion, the expertise and the resources to make that vision a reality.

Mainstream’s Centre of Excellence for Offshore Wind in London combines a dynamic and entrepreneurial team that is united by a passion and vision to deliver commercially viable projects at pace and at scale. Building on the experience of key individuals responsible for developing the Greater Gabbard Offshore Wind Farm, the team continues to attract key experienced individuals from the UK offshore wind industry and beyond. To date the team has secured development rights for the 450 MW Neart na Gaoithe offshore wind farm in Scotland and is developing the 1GW Horizon project in German waters.

For further information visit:

* Mainstream Renewable Power

Siemens Financial Services

Together with renowned partners, Siemens Project Ventures (SPV) has with equity capital contributions been involved worldwide in the development of infrastructure projects, particularly in the energy, transport and telecommunication sectors. SPV has already participated in the development of 11 international power plant projects with an overall capacity of more than 7,000 MW as well as in three telecommunication projects, two medical centres and an airport, with a cumulative project volume of 7 billion USD. SPV is a Group company of Siemens Financial Services GmbH (SFS), an international provider of financial solutions in the business-to-business area. With about 1,900 employees and an international network of financial companies coordinated by Siemens Financial Services GmbH, Munich, SPV supports Siemens as well as non-affiliated companies, focusing on the three sectors of energy, industry and healthcare. SPV finances infrastructure, equipment and working capital and act as a competent manager of financial risks within Siemens. By leveraging its financing expertise and its industrial know-how SPV creates value for its customers and help them strengthen their competitiveness.

For further information visit:

* Siemens Financial Services

Key facts on zone 4 – Hornsea

* The Hornsea zone will provide enough electricity to meet 4 per cent of all electricity demand in the UK and power approximately 3 million homes
* The UK goal for renewable electricity generation is approximately 30 per cent. Hornsea’s offshore generation will account for approximately 12 per cent of that target
* The width of the Hornsea zone is approximately equivalent to the width of the UK from Liverpool to Hull
* The total zone area is 4,735 km²
* The zone lies between 34km and 190km off the Yorkshire coast
* Water depths across the zone are predominantly between 30 and 40m, with maximum depths to 70m
* The zone is adjacent to the River Humber, 200km South of Newcastle and 75km North of The Wash
* The Humber estuary is triangulated by three main population centres, Hull to the North, Grimsby to the South East and Scunthorpe to the South West

Zone 5 – Norfolk

Zone developer

ScottishPower Renewables is part of Iberdrola Renovables, the largest wind energy company in the world with an installed capacity of 10,477 MW at the end of September 2009, and a pipeline of over 57,400 MW. ScottishPower Renewables had 802 MW of installed capacity at the end of September 2009, and a pipeline of 5,115 MW.

Vattenfall AB is the state owned Swedish energy utility. It is Europe’s fifth largest generator of electricity and largest generator of heat. It currently operates nearly 400 MW of offshore wind capacity around Europe, including the 90 MW Kentish Flats, off Whitstable in Kent. It also has 2,700 MW of offshore wind capacity in the pipeline and includes under construction more than 400 MW of offshore wind capacity around Europe including the 300 MW Thanet Wind Farm, also off Kent and operational in 2010, and the 150 MW Ormonde Wind Farm, off Barrow-in-Furness.

Key facts on zone 5 – Norfolk

* The total zone area is 6036.8km2, which is approximately 10 per cent larger than the county of Norfolk itself. HOWEVER, NOT ALL OF THIS WILL BE DEVELOPED.
* 55.5km distance to mainland (calculated from centroids of lease areas), approximately the same as the distance by road from Southwold to Ipswich.
* Maximum depth is 70.1 metres, equivalent to 12.9 double decker buses stacked one on top of each other
* Minimum depth is 5m, equivalent to 1.1 double decker buses stacked one on top of each other
* This is the shallowest of all the Round 3 zones

Zone 6 – Hastings

Zone developer

E.ON were early pioneers in offshore wind with the country’s first offshore wind scheme at Blyth and one of the first commercial scale projects at Scroby Sands off Great Yarmouth. Since then we have constructed the 180 MW Robin Rigg project which is going through the latter stages of commissioning. This year, along with our consortium partners, E.ON gave the go ahead to construct the first phase of the largest offshore wind farm in the UK, the 1,000 MW London Array project, which the company plans to have operational by the end of 2012.

Offshore wind is an important part of E.ON’s renewable strategy both in UK and other European waters. Round 3 is vital for delivering its growth agenda. E.ON’s experience from offshore projects in the UK and other parts of Europe has provided the company with a vast amount of knowledge. E.ON is focused on applying this knowledge to drive a step change in the delivery and performance of future offshore wind farm schemes, with the aim of driving down the overall costs of generation.

Key facts on zone 6 – Hastings

* The Hastings zone is located off the West Sussex coastline, out to sea off Brighton
* The area is 270.2 km2, equivalent to 54,000 football pitches
* It is over 13km from the coast at its closest point and nearly 26km at its furthest
* At 19.7km to the centre of the Hastings zones, this represents the same distance as from Brighton to Glyndebourne
* The shallowest parts of the zone at around 19m are of a similar depth to the London Array project awaiting construction in the Thames estuary
* The deeper areas of up to 62m are more likely to be avoided, so not all of the zone will used to locate wind turbines

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Zone 7 – West of Isle of Wight

Zone developer

Eneco applies an integrated distribution strategy and specialises in the production, transmission, trading, supply and metering of energy (electricity, gas and heat) and related products and services. Eneco is making a transition to becoming a sustainable energy company and will make substantial investments in the area of sustainable energy during the coming years. Eneco develops sustainable projects working on wind power, sun power, biomass and heat. In total the company serves approximately two million business and domestic customers. Eneco employs 7,000 people. The head office is located in Rotterdam.

For further information visit:

* Eneco (English version)
* Eneco (Dutch version)

Key facts on zone 7 – West of Isle of Wight

* The total zone area is 723.7km2, equivalent to the size of Anglesey, however Eneco anticipates that up to 30 per cent of the zone will be developed
* 20.7km distance to mainland (calculated from centre of the lease area)
* The point furthest away from the shore is nearly 32km (19.8 miles) from the coast.
* Maximum depth is 56.3 metres, equivalent to 12.8 double decker buses stacked one on top of each other
* Minimum depth is 27.8m, equivalent to 6.3 double decker buses stacked one on top of each other
* Target Capacity: Eneco currently believes that around 30 per cent of the zone could be developed, providing approximately 900 MW of capacity
* Producing approximately 2.8 TWh/year
* Equivalent to the electricity demand of approximately 587,000 homes (based on 900 MW installed)*
* CO2 emissions avoided approximately 1,186,000 tonnes (based on 900 MW installed)* Project status: in design and appraisal

Zone 8 – Bristol Channel

Zone developer

RWE npower renewables is the UK subsidiary of RWE Innogy and one of the UK’s leading renewable energy companies, dedicated to generating electricity using sustainable, environmentally-friendly resources. The company has the resources and expertise to develop, build and operate high quality, commercial-scale renewable energy schemes throughout the UK. Its operating portfolio includes both onshore and offshore wind farms, and a hydroelectric power plant. Utilising these natural resources provides significant sources of power for the UK’s present and future electricity needs. Through existing projects and those in development, RWE npower renewables works in close partnership with communities and companies around the UK.

Key facts on zone 8 – Bristol Channel

* The total Bristol Channel zone area is 949.7km2
* 24.4km distance to mainland (calculated from centroids of lease areas)
* Maximum depth is 60.9 metres, equivalent to 13.8 double decker buses stacked one on top of each other
* Minimum depth is 19.5m, equivalent to 4.4 double decker buses stacked one on top of each other
* Following the award of the zone it is RWE npower renewables intention to develop a 1,500 megawatt wind farm called Atlantic Array within the zone.
* The Atlantic Array site extends over 492 km2 with water depths ranging from 23 to 56 metres
* The Atlantic Array site is 14km from the North Devon Coast and 18km from the south Wales coast at its closest point
* The Atlantic Array site already benefits from having a connection agreement with

National Grid, which will enable first power to be exported from the project in late 2015

Zone 9 – Irish Sea

Zone developer

Centrica is a leading integrated energy company with growing businesses in the UK and North America. Centrica secures and supplies gas and electricity for millions of homes and businesses and offers a distinctive range of home energy solutions and low-carbon products and services.

Key facts on zone 9 – Irish Sea

* The zone is approximately 15 km (9 miles) from the southern boundary of the zone to Anglesey, over 20 km to the Isle of Man and over 40 km to the Cumbrian coast
* Total area of approximately 2,200 km2
* Potential capacity of the zone is over 4 GW. The number of households this would supply is approximately 3 million.

There is potential for a number of windfarm sites within the Irish Sea zone. Not all of the zone will be developed. A wide variety of factors will be considered in selecting these wind farm sites, including:

* Water depth (min approximately 28m and max is approx 78m)
* Environmental constraints
* Shipping
* Fishing
* Oil and gas activity
* Aviation and radar
* Connection to National Grid