Statoil and Statkraft have decided to start building the Dudgeon Offshore Wind Farm off the coast of Norfolk, UK. The project aims for full production in late 2017.
When completed, Dudgeon will provide renewable energy for ca 410,000 households in the UK. The Dudgeon development will now move into a new phase, starting with construction of onshore cables and an onshore substation. Offshore construction work will start in 2016.
Statoil's senior vice president for the renewable energy cluster, Siri Espedal Kindem, says: "With today’s investment decision, we have once again proven Statoil's ability to create value within the offshore wind business by utilizing 40 years of leading competence and experience from complex oil and gas industry projects. This is in line with our commercial and stepwise approach to renewable energy development."
The total investment in Dudgeon is estimated to be £1.5 billion (NOK 15 billion).The Dudgeon owners are preparing for a partnership structure reflecting this investment level.
"We are very satisfied to have reached a positive decision for Dudgeon. This strengthens and confirms Statoil’s strategic ambition of gradual and profitable growth as an industrial offshore wind player. Dudgeon represents a strong partnership with broad experience and expertise within the energy sector and offshore wind", says chairman of the Dudgeon board, Halfdan Brustad, and adds:
"We believe this project could further strengthen our position in the UK, benefiting from the positive and constructive dialogue already established with UK authorities, local communities and suppliers. Building on the Sheringham Shoal experience, we now look forward to a progressive dialogue with key stakeholders such as the Norfolk public community, the local supply chain and the authorities".
Combining Statoil's offshore competence with Statkraft's experience from large renewable energy projects will generate value for owners, suppliers and UK industry as a whole.
The Dudgeon investment could provide benefits for the UK's offshore wind industry. At least 70 local jobs will be created directly in the operations phase and additional jobs during construction and indirectly in the supply chain.
Head of project development and construction for offshore wind in Statkraft, Ole Johan Lindaas, says: "Statkraft is very pleased with the Dudgeon project entering the construction phase where the project will install large, innovative wind turbines. Technology development is a key to the future of offshore wind and the long-term players in the industry, and contributes to bringing down the costs of offshore wind projects."
Energy Minister Michael Fallon said:
"Today's decision underlines the success of our new contracts and will bring about a steady stream of investment in renewable electricity."
"As the best place in the world to invest in offshore wind, the UK is attracting millions of pounds of investment, supporting hundreds of local green jobs and strengthening its energy supply with home-grown sources. We have already attracted £34 billion of private sector investment in renewable electricity since 2010, with the potential to create almost 37,000 jobs in the UK."
Statoil is the operator of the Dudgeon Offshore Wind Project and will lead the project towards production, followed by operations and first electricity to grid during the first half of 2017.
About the project:
Dudgeon Offshore Wind Farm will be constructed with 67 wind turbines, each with a capacity of 6 MW, totalling 402 MW installed generation capacity. The annual energy production is estimated to be 1.7 TWh. This is enough energy to power up to 410,000 UK homes. The North Sea project site is located 32 km offshore, north of the town of Cromer in North Norfolk, and 20 km north-east of the Sheringham Shoal Offshore Wind Farm.
Dudgeon Offshore Wind Farm is owned by the two Norwegian companies Statoil and Statkraft, with Statoil as the operator of both the construction and operations phases.
The license for the Dudgeon site was awarded by the UK government during the Round 2 allocation in 2003.
About the owners:
Statoil is an integrated technology based international energy company, primarily focused on upstream oil and gas business. Statoil is headquartered in Norway, with 21,000 employees and operations in 36 countries. It has more than 30 years' experience from its work on the continental shelf, pioneering complex offshore projects under the toughest conditions. Statoil is listed on the NYSE and the Oslo Stock Exchange.
Statkraft is Europe's leader in renewable energy. The group develops and generates hydropower, wind power, gas power and district heating, and is a major player on the European energy exchanges. Statkraft has 3,700 employees in more than 20 countries. Statkraft has been active in the UK since 2003. The company develops, owns and operates renewable power production facilities and is also involved in the trading and origination of power from its own projects and those of third parties. Statkraft operates hydropower plants and onshore and offshore wind farms across the UK.
Dudgeon key facts:
Local media spokesperson (UK)