Statoil introduces partner in floating wind project

Statoil has agreed to divest 25% of its assets in Hywind Scotland pilot park, the world’s first floating wind farm, to Masdar.

The wind farm offshore Peterhead in Aberdeenshire, Scotland will power approximately 20,000 households when in production from late 2017.

Through the transaction Statoil and Masdar have agreed to share the development risk and Masdar will cover 25% of previous and future costs. Following this divestment Statoil holds a 75% share in Hywind Scotland.

The pilot park will cover around 4 square kilometres 25 km offshore Peterhead at water depths of 95-120 metres. The average wind speed in this area of the North Sea is around 10 metres per second.

The Hywind Scotland substructures have been constructed in Spain and will arrive at the yard at Stord in Norway later this spring followed by assembly during the summer of 2017, before sail off to Peterhead.

Offshore wind already has a strong foothold in Europe with 11GW installed capacity, and a global potential to reach more than 100 GW by 2030. With fixed turbines, offshore wind is optimal for 20-50 metres water depth. With floating structures such as Hwyind further expansion will be enabled in new deep water areas around the world.

Irene Rummelhoff, Statoil’s executive vice president for New Energy Solutions, said:

"The Hywind Scotland pilot park has the potential to open attractive new markets for renewable energy production worldwide. With Masdar onboard as a strong strategic partner we are teaming up with a company with high ambitions within renewable energy. We believe Masdar can be a strong partner also in future Hywind projects and we hope that our collaboration will result in future value creation opportunities for both parties."

"We expect floating offshore wind farms to benefit from the general cost development within the offshore wind segment. The objective of the Hywind Scotland pilot park is to demonstrate cost efficient and low risk solutions for future commercial scale floating wind farms. This will further increase the global market potential for offshore wind energy, contributing to realising Statoil’s ambition of profitable growth in renewable energy and other low-carbon solutions."

Chief Executive Officer at Masdar, Mohamed Jameel Al Ramahi, stated:

"Masdar is excited to join the team developing the world’s first floating wind farm, and to build on our partnership with Statoil. Hywind Scotland represents the next stage in the evolution of the offshore wind industry, combining the project management experience and technical expertise of one of the world’s largest offshore energy players – and our own capabilities in renewable energy development acquired over the last decade in the UK and international markets.”