Floating offshore wind will bring at least three gigawatts of clean energy into Wales and the South West. The Crown Estate’s big summer’s announcement has been confirmed with agreements for lease and the Celtic Sea is established as a credible market. Great stuff. But…. What now?
Expect announcements and industry chatter on Allocation Round 7, the Clean Industry Bonus and turbine availability – but the concerns of many companies may be more earthy: When will there be contracts? Does a UK SME have a fighting chance of winning anything in FLOW? What can be done ahead of time? Our take on these common queries below – along with information on key markets, opportunities and upcoming events.
· When will there be contracts in Celtic Sea FLOW?
Contracts in LR5 projects are many years away. The 10-year leases were won (by EDF-ESB-GwyntGlas and Equinor) at a low price because the risk is high. It will take time to learn technical lessons elsewhere and scale-up infrastructure in the region. Test and demonstrations could provide valuable “stepping stones” and we hope for breakthroughs soon.
· Does a UK SME have a fighting chance of winning anything in FLOW?
Maybe. The view of many highly capable UK suppliers is that this is an industry prone to talk as it slides to the right. However, it has a deliverable pipeline, political will and many millions in the pot to invest in the UK supply chain. If/when the final third is signed off by industry, commitment from the Crown Estate and HMG will be matched to a cool $1billion. Setting the stage for GB Energy to play a breakthrough role. Strategic intentions must be balanced against shorter term returns but bold decisions are needed to get the ball rolling (especially in the Celtic Sea). Our companies could take a leading role to deliver offshore wind in the UK and around the world – a pragmatic approach to transition with lessons learned from fixed is essential. For now then, the answer remains… maybe.
· What can be done ahead of time?
Market confidence is not the same as contracts – so it’s key to be agile across sectors with canny business development. “No regret activity” is key. Go-ahead companies developing solutions ahead of FLOW challenges bear very real risks. Such ambition is vital for both the FLOW industry and UK plc – but the lights must be kept on.
Business support into offshore wind is available but commercial contracts will always be more appealing. Work in oil and gas and/or the defence sector could form a useful pathway to UK success in FLOW – or it could divert away from this global green energy industry. This industry can’t rely on net-zero good-will however; it needs to work with other sectors and fully engage with the many capable companies who would willingly meet its challenges. For companies looking to Celtic Sea FLOW specifically; be proactive, sign up to Piranha and see more info below but expect a long journey.
Contact CSP. We are now a proud delivery partner on the OWGP Wind Expert Support Toolkit (WEST) scheme and an adviser on MaritimeUK-SW’s Advisor Network. So feel free to get in touch. Until then, info on key markets, opportunities and upcoming events below. Feel free with feedback too as these quarterly updates are set to evolve and diversify a little.
KEY MARKETS
Celtic Sea – FLOW
- Test and Demonstration Sites (T+D)
- FabTest – Activity in Falmouth is ramping up with recent deployments for offshore renewables
- Pembrokeshire Demonstration Zone – PDZ is paving the way for hydrogen production from offshore wind
- Twinhub (32MW) – Hexicon are seeking FID for the old WaveHub site.
- WhiteCross (100MW) – Flotation have consent and marine license in hand and are expected to bid into AR7.
- Erebus(100MW) – BlueGem have bid into previous rounds and a AR7 proposal is probable.
- Llyr1 (100MW) – Floventis’ site is yet to win consent and less likely to bid into AR7.
- Leasing Round 5 The Crown Estate’s announced agreements for lease (LR5) with Equinor and Gwynt Glas. See our analysis here; Celtic Sea LR5: Unpacked
- Leasing Round 6 and Beyond Updates expected by the new year on “Future of Offshore Wind” and “Marine Delivery Routemap”
Korea – FLOW
· Specifically, Equinor’s Firefly / Bandabuli 750MW FLOW project has potential to progress industrialisation solutions which could inform their Celtic Sea development.
France – FLOW
- EDF’s Provence Grand Large (25MW) and Méditerranée Grand Large (250MW) are moving ahead and lessons learned in partnership with local suppliers will be key to delivering even closer to home.
UK – Fixed Wind
- Domestic fixed wind has its access challenges for smaller UK companies but remains key for those looking to FLOW in the future. Various projects at different stages but to highlight EDF/ESB’s Neart na Gaoithe off the coast of Fife and Equinor’s Dogger Bank in the North East. Partnering between companies in Scotland, the North East and the Celtic Sea region is encouraged.
South-West – Defence
- Investment in Plymouth will bring opportunities for capable companies across the region. The defence sector could delay UK’s offshore wind ambition or help prepare in advance of it. Either way, contracts will flow sooner from defence and the south-west sets to benefit from the state of the world.
OPPORTUNITIES
As soon as commercial opportunities arise in the Celtic Sea we’ll post them on PIRANHA. Ahead of that don’t be shy to use this online hub to put forward your solutions to the market challenges and use it to connect with collaborators.
- You can also sign up to each development projects’ supply chain portal. Do be aware that this is not necessarily the same as embedding yourself into the developer’s supplier framework nor put you on the radar of future Tier 1s. However: Celtic Sea T+D developers invite sign-ups via the links in the T&D section. Gwynt Glas is the development page of EDF/ESB and ESB – inviting applications to their qualification system for offshore wind development in UK and Ireland in: Technical and Professional Services, Geotechnical Survey, Geophysical Survey and Offshore Wind Resource and MetOcean Measurement.
- For business support and grants: CSP are now partners on the OWGP Wind Expert Support Toolkit (WEST) programme! Ask us and we’d be delighted to help you scale-up and grow in this market via this programme. Offshore Wind Growth Partnership have the big bucks for developing a UK supply chain for offshore wind. Rounds are frequent and bidding in is not too complex Further rounds of The Crown Estate’s Supply Chain Accelerator Fund are over the horizon – but will offer devex support to your investment propositions. MaritimeUK-SouthWest are just about to launch an advisor network website and look out too for upcoming innovation funds through SHORE You can also sign up to the Celtic Sea Cluster, managed by ORE Catapult, for pure focus on Celtic Sea FLOW.
UPCOMING EVENTS
Events season is upon us and FOMO is a powerful driver… CSP will be at the following:
- NOF’s Offshore Wind North East. 5-6th November in Sunderland. Smaller conference and exhibition. Delegate ticket is £354 for non-members.
- OEUK/CTI-CSP’s “Celtic Connections”. 11th November at 5pm in Aberdeen.
- RUK’s Floating Offshore Wind. 12-13th November in Aberdeen. Large conference and exhibition.
- OWGP/OREC’s Supply Chain Spotlight. 11th December in Edinburgh. Conference and exhibition. £175 for delegates.
