The one year contract requirements have been reached for Dudgeon – a milestone demonstrating that the project qualifies for its investment contract.
The approval for Dudgeon in meeting the milestone requirements was confirmed by the Low Carbon Contracts Company (LCCC), the designated independent Counterparty to CFDs, last week. Dudgeon issued the milestone requirement notice on 7th May 2015, two days ahead of schedule.
"This milestone fulfillment is very good news for the project, and it confirms that we’re progressing according to plan in the development of the wind farm. Important elements and decisions to undertake the project, such as financial commitment, consents, timetable and key contracts, have been fulfilled. Onshore construction has just started, but will pick up considerably throughout this year, preparing for the offshore installation campaigns in 2016 and 2017," says Statoil's Vice President and Chairman of the Dudgeon Board of Directors, Halfdan Brustad.
"The contractual milestone has been reached through excellent work by the project team and good collaboration with the government's delivery body, LCCC. The process and the dialogue towards approval have been excellent", he added.
Nic Rigby, LCCC's Head of Contract Management, explains: "Congratulations to Dudgeon that they have completed their milestone requirements and reached this pivotal point. Not only does this confirm significant commitment to the projects by the company but it is also a step closer to ensuring we will have the low carbon generation that this country needs."
Dudgeon Offshore Wind Farm was awarded an Investment Contract under DECC's Final Investment Decision (FID) Enabling for Renewables process in April 2014. The project is one of the first investments from the UK Electricity Market Reforms (EMR), designed to build the world's first low carbon electricity market. The CfD contract and a known Strike Price provide a sustainable and long-term basis for the significant investment needed to construct the Dudgeon Offshore Wind Farm. It is expected to have an installed capacity of 402MW, enough energy to power up to approximately 410,000 UK homes.
Dudgeon will play an active role in the development and industrialization of the UK offshore wind industry. The wind farm is expected to have an operational lifetime of 24 years, during which time worked valued at £1.2b will be sourced in the UK. The onshore operation and maintenance base will be on the river harbour quayside in Great Yarmouth, Norfolk from where up to 70 people will be employed.
Dudgeon Offshore Wind Limited, which holds the licenses and consents to enable it to construct the Dudgeon offshore wind farm, is owned by two Norwegian companies, Statoil and Statkraft, and Abu Dhabi's renewable energy company, Masdar. Statoil holds the responsibility as operator for both the construction and the operational phase.
Statoil is an international energy company with operations in 33 countries. Building on 40 years of experience from oil and gas production on the Norwegian continental shelf, it is committed to accommodating the world's energy needs in a responsible manner, applying technology and creating innovative business solutions. It is headquartered in Stavanger, Norway with approximately 23,000 employees worldwide, and is listed on the New York and Oslo stock exchanges.
Statkraft is Europe's largest generator of renewable energy and is the leading power company in Norway. The company owns, produces and develops hydropower, wind power, gas power and district heating. Statkraft is a major player in European power trading and has 3,600 employees in more than 20 countries.
Masdar is Abu Dhabi's renewable energy company advancing the development, commercialisation and deployment of clean energy technologies and solutions. The company serves as a link between today’s fossil fuel economy and the energy economy of the future. Wholly owned by the Mubadala Development Company PJSC, the strategic investment company of the Government of Abu Dhabi, Masdar is dedicated to the Emirate’s long-term vision for the future of energy and water.
For further information please contact:
Nigel Tompkins [the Norfolk contact for media and community enquiries].
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Issue date: 20-05-15