Signed at the North Sea Summit in Belgium last week, the Ostend Declaration builds on a cooperation agreement signed by Belgium, Denmark, Germany and the Netherlands in May 2022, doubling that agreement’s target of at least 65 GW by 2030 and 150 GW by 2050, and bringing five more countries onboard – Ireland, France, Luxembourg, the Netherlands, Norway and the UK.

Furthermore, in response to Russia’s ‘energy blackmail’, the nine countries also reiterated in the Ostend Declaration their commitment to reducing their fossil fuel consumption and dependence on imports.

An associated Industry Declaration includes more than 100 companies, representing the whole value chain of offshore wind and renewable hydrogen in Europe, outlining what the nine governments need to do now to deliver their offshore wind ambitions and make the North Sea ‘a renewable powerhouse for Europe’.

Commenting on the announcements, WindEurope notes that in order to deliver ambitious targets, not only will it be necessary to significantly increase current North Sea offshore wind capacity, but it will also require developing hybrid offshore wind farms and an interconnected and meshed offshore wind grid alongside major investment in Europe’s wind energy manufacturing capacities.

WindEurope suggests that, in the European Union (EU), the recently proposed Net Zero Industry Act (NZIA) marks a first step in investing in wind manufacturing capacity and supporting infrastructure; while in the UK, ‘Powering Up Britain’ plans to deliver energy security, investments and net zero emissions will be important.

However, the wind association claims these policies are ‘falling short for now’, suggesting that the NZIA is ‘overly focused on technological breakthroughs, rather than actual scaling up of existing supply chains’.

‘Expanding the offshore wind value chain is now primarily a volume game,’ continues WindEurope. ‘Today, Europe can manufacture 7 GW of offshore wind turbines a year. To meet the expansion path outlined in the Ostend Declaration Europe needs to manufacture 20 GW a year by the second half of this decade. And bottlenecks in the manufacturing of foundations, cables, substations and in the availability of installation, service and other offshore wind vessels are looming today already. Similarly, if the UK is to meet its 50 GW target for 2030, significant acceleration is needed in grid development and supply chain investment.’

The association also notes: ‘Europe needs to double its annual grid investments and channel €9bn into the modernisation and expansion of its port infrastructure between now and 2030.’

The Industry Declaration also touches upon financing mechanisms, auction design, industrial policy and electricity market design. ‘All of these are crucial to unlock the investments needed to deliver Europe’s offshore wind ambitions,’ states WindEurope. ‘In 2022 not a single offshore wind farm reached final investment decision. Uncoordinated market interventions, price caps and national clawback measures deterred investments. Governments must restore investor confidence and allow for a combination of contracts-for-difference, power purchase agreements and merchant projects in their market design.’

In addition to wind projects, the Ostend Declaration also considers the development of a ‘well-functioning market and infrastructure’ for ‘renewable hydrogen production at massive scale as well as electricity and hydrogen interconnectors and national projects, including the possibility for co-financing by countries without direct access to the sea’.

Furthermore, the Declaration notes that ‘given the potential role of carbon capture, utilisation and storage (CCUS) for contributing to decarbonisation, and the potential of the North Seas to store CO₂ in geological formations’, there is a need to ‘better coordinate storage and offshore infrastructure planning’ in signatory countries embarking on such projects.

Norway to study new areas for offshore wind 
In related news, the Norwegian Petroleum Directorate (NPD) reports that 20 areas on the Norwegian Continental Shelf have been identified that ‘could be technically suitable for offshore wind, and where there are relatively few conflicts of interest [between the environment, fisheries and other industries]’. The areas are located along the entire Norwegian coast, from Skagerak in the south to the Barents Sea in the north.

The new areas are being investigated in response to the Norwegian government’s call to prepare areas for the development of 30 GW of offshore wind by 2040. Such a development would correspond to almost a doubling of current Norwegian power production.