European utility giants EDP and Engie have finalized their 50-50 offshore wind collaboration amid a race for scale in the global offshore wind market.
The pair revealedthe planin May last year after agreeing on a memorandum of understanding. EDP Renewables' and Engie's existing offshore wind projects, in various stages of construction and development, will be folded into the new entity. The aim is for the new company to be a top-five developer of offshore wind globally.
The deal remains subject to regulatory approval by the European Commission but is expected to close during the first quarter of 2020.
The as-yet-unnamed JV will have 1.5 gigawatts under construction including the 950-megawatt Moray East project in the U.K. and the 487-megawatt SeaMade venture in Belgium. The combined development portfolio is 3.7 gigawatts, of which around half is located in Europe and half in the U.S.
Engie andEDPR are not corporate minnows in their own right. That they feel they need to reach for even more scale says a lot about existing and future entrants in the offshore wind sector.
According to its Q3 results, industry leader rsted has 9.9 gigawatts of offshore wind installed or with the final investment decision in place.
Equinor and Shell have already made a splash, and BP and Total are likely to follow. Shell and EDPR are partners in the Mayflower consortium that won804 megawattsof offshore wind capacity in Massachusetts.
In first announcing the JV back in May 2019, Engie and EDPR said joining forces would allow them to "grow their asset base more rapidly and to operate more efficiently.
A spokesperson for EDPR told GTM more details on the joint venture would be released at the end of Q1.
It is not currently known if there is a financial component to the deal to level out the portfolio at 50-50. There are no details on any potential job losses as a result of the merging of capabilities.
EDPR has being selling down its stake in the 950-megawatt Moray East project, with Engie taking a 23.3 percent stake before adding another 10 percent. China Three Gorges has another 10 percent, and Mitsubishi holds a 33.4 percent stake. Moray East won a contract for difference in 2017 at a strike price of57.50($75.30) per megawatt-hour.
The announcement of the new joint venture also made the point of stating that the deal included both fixed bottom and floating offshore wind.
The pair represent a 79.4 percent holding in the Windplus consortium together with Spanish oil firm Repsol and minority partner Principle Power. Earlier this year they connected theworlds largest floating turbineto the Portuguese grid.
EDPR, WindPower Korea and oil engineering firm Aker plan to use Principle Powers WindFloat technology to build a 500-megawatt floating project in South Korea. The KFWind consortium plans to use shipyards in Ulsan to deliver the potential project. South Korea is aiming for 13 gigawatts of offshore wind by 2030. EDPRs stake in the consortium is included in the agreement with Engie.
Floating offshore wind unlocks huge swathes of potential seabed where deeper waters or soil conditions rule out fixed foundations.
Equinor has approved an88-megawatt floating projectto power two of its drilling platforms. Shell acquired the offshore wind developerEolfilast year.
Originally posted here:
- Home | Discover Oil & Gas | Rigzone - December 8th, 2016 [December 8th, 2016]
- Offshore - Wikipedia - December 8th, 2016 [December 8th, 2016]
- EscapeArtist - Live, Work, Travel, Retire & Invest Overseas - December 15th, 2016 [December 15th, 2016]
- Offshore installation manager - Wikipedia - December 30th, 2016 [December 30th, 2016]
- Offshore Energy 17 - January 12th, 2017 [January 12th, 2017]
- Offshore Drilling and Exploration - The New York Times - February 2nd, 2017 [February 2nd, 2017]
- Offshore - novenco-marine.com.php56serv2.webhosting.dk - February 5th, 2017 [February 5th, 2017]
- Further decline in North Sea offshore supply work - BBC News - February 7th, 2017 [February 7th, 2017]
- Japan ignores protests, begins offshore construction work on ... - RT - February 7th, 2017 [February 7th, 2017]
- Offshore Drillers Are Still Seeking Recovery Enjoyed by Shale - Bloomberg - February 7th, 2017 [February 7th, 2017]
- Offshore Profits and US Exports - Council on Foreign Relations (blog) - February 8th, 2017 [February 8th, 2017]
- Diamond Offshore Surprises Everyone With a Fourth Quarter Earnings Gain - Madison.com - February 8th, 2017 [February 8th, 2017]
- Dems: Don't repeal offshore tax rules - The Hill - February 8th, 2017 [February 8th, 2017]
- Offshore Wind Moves Into Energy's Mainstream - New York Times - February 8th, 2017 [February 8th, 2017]
- Trump's Plan to Tap Offshore Profit for Infrastructure Gains an Ally - Bloomberg - February 8th, 2017 [February 8th, 2017]
- China Regulator Urges Insurers to Avoid 'Reckless' Offshore ... - Insurance Journal - February 9th, 2017 [February 9th, 2017]
- Perriello comes out against pipeline and, in a shift, says he is skeptical of offshore drilling - Washington Post - February 9th, 2017 [February 9th, 2017]
- AGL to head offshore amid limited growth options locally - The Sydney Morning Herald - February 9th, 2017 [February 9th, 2017]
- Should Diamond Offshore (DO) Stock Be in Your Portfolio? - Zacks.com - February 9th, 2017 [February 9th, 2017]
- Wind Overtakes Coal Power in Europe as Turbines Head Offshore - Bloomberg - February 9th, 2017 [February 9th, 2017]
- Cuba Eager to Develop Offshore Oil Reserves | OilPrice.com - OilPrice.com - February 10th, 2017 [February 10th, 2017]
- Eni starts production of East Hub Development Project, offshore Angola - Offshore Technology - February 10th, 2017 [February 10th, 2017]
- 'Fifty Shades Darker' Unmasks $22M In Offshore Foreplay International Box Office - Deadline - February 10th, 2017 [February 10th, 2017]
- Statoil looks to Newfoundland offshore after selling off all oilsands assets - Globalnews.ca - February 10th, 2017 [February 10th, 2017]
- Coalition urged to charge 10% royalty on offshore oil and gas projects - The Guardian - February 10th, 2017 [February 10th, 2017]
- Israel Puts Off License Award In First Offshore Oil, Gas Bid Round - OilPrice.com - February 10th, 2017 [February 10th, 2017]
- Cost Impact of Immigration and Visa Reform to US Customers Using Offshore Services - Forbes - February 10th, 2017 [February 10th, 2017]
- These Offshore Drilling Stocks Are Up Big as Earnings Season Starts - Fox Business - February 10th, 2017 [February 10th, 2017]
- Offshore projects help raise profile of wind power in US, Europe - WorkBoat (blog) - February 11th, 2017 [February 11th, 2017]
- Shares of Seadrill Went in the Exact Opposite Direction of Other Offshore Drillers in January - Motley Fool - February 11th, 2017 [February 11th, 2017]
- After selling off all oilsands assets, Statoil looks to Newfoundland offshore - Calgary Herald - February 11th, 2017 [February 11th, 2017]
- Oil and Gas Stock Roundup: The Outlook for Offshore Drilling Continues to Dim - Fox Business - February 11th, 2017 [February 11th, 2017]
- Diamond Offshore Surprises Everyone With a Fourth Quarter ... - Motley Fool - February 12th, 2017 [February 12th, 2017]
- Diamond Offshore Is A Hold - Seeking Alpha - February 12th, 2017 [February 12th, 2017]
- Trudeau: Arctic offshore drilling too dangerous - The Independent Barents Observer - February 12th, 2017 [February 12th, 2017]
- Don't Overlook This Cost-Effective Alternative To Offshore Services - Forbes - February 14th, 2017 [February 14th, 2017]
- Legislation could mean an economic boost in New Bedford offshore wind projects - SouthCoastToday.com - February 14th, 2017 [February 14th, 2017]
- Ontario signals extension on offshore wind project moratorium - BNN - February 14th, 2017 [February 14th, 2017]
- Oil Majors' Plans - No Relief For Offshore Drillers - Seeking Alpha - February 14th, 2017 [February 14th, 2017]
- Director hits back at offshore worker blacklisting claims - BBC News - February 14th, 2017 [February 14th, 2017]
- OPEC Report: Pressure On Offshore Drilling Remains - Seeking Alpha - February 15th, 2017 [February 15th, 2017]
- UK Offshore Wind Construction Had Bumper Year In 2016, Barbour ABI - CleanTechnica - February 16th, 2017 [February 16th, 2017]
- Trump urged to back offshore - Offshore Wind | reNEWS ... - reNews - February 16th, 2017 [February 16th, 2017]
- Russian Spy Ship Spotted Offshore From Connecticut; Congressman Says Goal Is To Test US - CBS Local - February 16th, 2017 [February 16th, 2017]
- Australia Accused Of Committing Crimes Against Humanity In Offshore Detention Centres - BuzzFeed News - February 16th, 2017 [February 16th, 2017]
- US Wind Secures Cabling Partner For MD Offshore Project - North American Windpower - February 16th, 2017 [February 16th, 2017]
- Professional Diversity Network: Offshore Investment Fund, Dropping ... - Seeking Alpha - February 16th, 2017 [February 16th, 2017]
- Vineyard Power vying for offshore wind farm - News - capecodtimes ... - Cape Cod Times (subscription) - February 16th, 2017 [February 16th, 2017]
- Liquidity Warnings Send Hornbeck Offshore Services, Inc.'s Stock Plunging - Motley Fool - February 16th, 2017 [February 16th, 2017]
- Will Offshore Stymie Oil States? - Seeking Alpha - February 16th, 2017 [February 16th, 2017]
- Enbridge Partners with EnBW on 497-MW German Offshore Wind Project - Marketwired (press release) - February 17th, 2017 [February 17th, 2017]
- JDR lands US offshore bounty - reNews - February 17th, 2017 [February 17th, 2017]
- Natural gas leaks from offshore pipeline in Alaska - Press Herald - February 17th, 2017 [February 17th, 2017]
- Halliburton's GRIP delivers rapid response to offshore source-control incidents - WorldOil (subscription) - February 18th, 2017 [February 18th, 2017]
- Model advances analysis of offshore BOP closure during extreme conditions - WorldOil (subscription) - February 18th, 2017 [February 18th, 2017]
- IRS Cracks Down on Offshore Tax Cheats - CPAPracticeAdvisor.com - February 18th, 2017 [February 18th, 2017]
- Vineyard Power vying for offshore wind farm - Cape Cod Times (subscription) - February 18th, 2017 [February 18th, 2017]
- Offshore Yuan Exposed to Onshore Risks as Spread Narrows - DailyFX - February 18th, 2017 [February 18th, 2017]
- Offshore Somalia: East Africa's Oil Frontier - Midnimo Information Center - February 20th, 2017 [February 20th, 2017]
- Emas Offshore refinancing deal delayed - Splash 247 - Splash 247 - February 20th, 2017 [February 20th, 2017]
- The Offshore Markets: 2016 In Review - Hellenic Shipping News Worldwide - February 20th, 2017 [February 20th, 2017]
- Court Declines to Halt Long Island Offshore Wind Lease - RTO Insider - February 20th, 2017 [February 20th, 2017]
- Fuel the American economy with offshore energy - The Detroit News - February 20th, 2017 [February 20th, 2017]
- Congress says won't renew liquor licenses of offshore casinos in Goa - Times of India - February 20th, 2017 [February 20th, 2017]
- An offshore deal for Indigenous people? - Policy Options (registration) - February 20th, 2017 [February 20th, 2017]
- Exclusive: Petronas considers $1 billion stake sale in offshore gas project - sources - Reuters - February 20th, 2017 [February 20th, 2017]
- JDR wins US offshore wind farm work - OE Digital - February 20th, 2017 [February 20th, 2017]
- Offshore Drilling - 2 Floaters Needed In The Verbier Field And In The Partridge Prospect In UK North Sea - Seeking Alpha - February 20th, 2017 [February 20th, 2017]
- Rystad Energy Believes That Offshore Projects Are Becoming Competitive Again - Seeking Alpha - February 20th, 2017 [February 20th, 2017]
- EnBW Hohe See 500 MW Offshore Wind Farm To Proceed With Siemens & Enbridge - CleanTechnica - February 20th, 2017 [February 20th, 2017]
- Offshore catering staff reject offer after phone ballot - BBC News - February 21st, 2017 [February 21st, 2017]
- Child abuse inquiry to hold limited public hearings into offshore ... - The Guardian - February 21st, 2017 [February 21st, 2017]
- Iberdrola Completes Installation Of First Turbine At 350 Megawatt ... - CleanTechnica - February 22nd, 2017 [February 22nd, 2017]
- Offshore drilling opponents re-gear for new round of battles | News ... - Charleston Post Courier - February 22nd, 2017 [February 22nd, 2017]
- Hornbeck Offshore Services: Too Many Problems Will Drag The Stock Further Down - Seeking Alpha - February 22nd, 2017 [February 22nd, 2017]
- US grid can handle more offshore wind power, cutting pollution and power costs - Science Daily - February 22nd, 2017 [February 22nd, 2017]
- Fugro to conduct natural leakage survey in offshore Kenya ... - Offshore Technology - February 23rd, 2017 [February 23rd, 2017]
- Russia inks second Turkish Stream pipe offshore construction contract - New Europe - February 23rd, 2017 [February 23rd, 2017]
- Trump to seek jobs advice from firms that offshore US work - Reuters - February 23rd, 2017 [February 23rd, 2017]
- W&T Offshore Expected to Reduce Net Losses in 4Q16 - Market Realist - February 24th, 2017 [February 24th, 2017]