UPDATED 1 Sept: The EI library in London is temporarily closed to the public, as a precautionary measure in light of the ongoing COVID-19 situation. The Knowledge Service will still be answering email queries via email , or via live chats during working hours (09:15-17:00 GMT). Our e-library is always open for members here: eLibrary , for full-text access to over 200 e-books and millions of articles. Thank you for your patience.

Integrated E&Ps rapidly accelerate offshore wind market share

A paradigm shift is occurring in the offshore energy sector with the recent surge in momentum to achieve net zero emissions by 2050 having a profound impact on oil and gas company strategies. European supermajors are at the forefront of this energy transition with the results of February’s UK seabed leasing auction a clear signal of intent, according to Westwood Global Energy Group. Of the 8 GW up for auction, joint ventures including European supermajors were awarded 56%.

BP, in partnership with German utility EnBW, was a big winner, receiving the rights to 3 GW of the new capacity. This was preceded by BP’s first foray into the offshore wind sector, the 50% acquisition of the Empire Wind and Beacon Wind prospects in the US from Equinor back in September 2020. Combined, the Empire 1, 2 and Beacon Wind 1 could add up to 1.7 GW of further generation capacity for BP.

Equinor has arguably led the pack, according to Westwood. It entered 2021 with almost 400 MW of generation capacity at Sheringham Shoal, Dudgeon and Hywind Scotland off the UK and Arkona offshore Germany. In addition to the US projects being developed with BP, Equinor is also investing heavily in Poland and South Korea with 2.4 GW of generation capacity being planned. The Norwegian E&P company is also pioneering commercial-scale floating wind with the 2019 sanction of the 88 MW Hywind Tampen development which will link to the Snorre & Gulfaks oil platforms in the North Sea. (See
Petroleum Review’s May 2021 issue for more information.)

Total has also been busy with the acquisition of a 23% interest from WPD in the 640 MW Yunlin development off Taiwan in April 2021. This move builds on the French E&P company’s 51% interest in the up to 1.5 GW Seagreen complex off the UK.

Currently, European supermajors are expected to increase their offshore wind generation capacity from around 400 MW in 2020 to 8,200 MW by 2030, forecasts Westwood. However, the market analyst notes that this only accounts for 3% of expected total installed capacity and the figure represents only current equity participation with significant potential for upside given the rapid momentum observed over the past 12 months. In particular, all eyes will be on the results of the upcoming ScotWind leasing round with a further 10 GW potentially up for grabs and BP & EnBW hoping to enjoy similar levels of success.

News Item details

Journal title: Petroleum Review

Countries: Europe -

Organisation: BP|Equinor|Total

Subjects: Offshore wind - Business management -

Please login to save this item