BP Enters UK Offshore Wind Market as Seabed Leases Hit Record Prices -- Update
--BP entered the U.K. offshore wind market in the latest auction
of seabed rights
--Oil majors BP and Total both bid as they seek low-carbon
--SSE missed out on leases and said bidding was at record high
By Jaime Llinares Taboada
Oil majors BP PLC and Total SE were among the successful bidders
in the U.K.'s latest auction of seabed leasing rights for offshore
wind projects, as pressure to develop low-carbon energy drove up
A consortium between BP PLC and EnBW Energie Baden-Wuerttemberg
AG was the successful bidder for two projects with a combined
capacity of three gigawatts, the maximum award. BP said the bid
marks its entry into the U.K. offshore wind sector and the projects
are expected to be operational in seven years.
BP and EnBW were the highest bidders and will pay 154,000 pounds
per megawatt per year, or an annual fee of 462 million pounds ($635
million) for the projects.
The leasing round was the U.K.'s first auction of offshore
rights since 2010. The Crown Estate said successful bidders have
committed to aggregate initial investment of GBP879 million
Total's joint venture with Macquarie Group Ltd.'s Green
Investment Group was awarded rights for a 1.5 gigawatt project.
Germany's RWE AG won two licenses for a combined 3 gigawatts of
capacity in the auction, while a partnership formed by Cobra
Instalaciones y Servicios, S.A. and Flotation Energy plc won a 480
The rest of the successful bids ranged from RWE's GBP76,203 to
Cobra-Flotation's GBP93,233 per megawatt and year.
U.K. energy company SSE was unsuccessful in the auction and said
bids represented record high levels for these tenders. SSE, which
is aiming to develop at least one gigawatt of renewable capacity
per year during the second half of the decade, said it will
continue to pursue opportunities in the U.K. and abroad.
Write to Jaime Llinares Taboada at email@example.com;
(END) Dow Jones Newswires
February 08, 2021 05:39 ET (10:39 GMT)
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