Statoil has made the final investment decision to build the world’s first floating wind farm: The Hywind pilot park offshore Peterhead in Aberdeenshire, Scotland.
This marks an important step forward for offshore wind technology, and potentially opens attractive new markets for renewable energy production worldwide.
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The decision triggers investments of around NOK 2 billion, realizing a 60-70 percent cost reduction per MW from the Hywind demo project in Norway.[Native Advertisement]
Statoil will install a 30 MW wind turbine farm on floating structures at Buchan Deep, 25 km offshore Peterhead, harnessing Scottish wind resources to provide renewable energy to the mainland. The wind farm will power around 20,000 households. Production start is expected in late 2017.
“Statoil is proud to develop the world’s first floating wind farm. Our objective with the Hywind pilot park is to demonstrate the feasibility of future commercial, utility-scale floating wind farms. This will further increase the global market potential for offshore wind energy, contributing to realising our ambition of profitable growth in renewable energy and other low-carbon solutions,” says Irene Rummelhoff, Statoil’s executive vice president for New Energy Solutions.
The pilot park will cover around 4 square kilometres, at a water depth of 95-120 metres. The average wind speed in this area of the North Sea is around 10 metres per second.
Rummelhoff adds: “We are very pleased to develop this project in Scotland, in a region with a huge wind resource and an experienced supply chain from oil and gas. Through industry and supportive policies, the UK and Scotland is taking a position at the forefront of developing offshore wind as a competitive new energy source.”
Welcoming Statoil’s Hywind development, Scotland’s Deputy First Minister John Swinney says: “Hywind is a hugely exciting project – in terms of electricity generation and technology innovation – and it’s a real testament to our energy sector expertise and skilled workforce that Statoil chose Scotland for the world’s largest floating wind farm.”
“The momentum is building around the potential for floating offshore wind technology to unlock deeper water sites. The ability to leverage existing infrastructure and supply chain capabilities from the offshore oil and gas industry create the ideal conditions to position Scotland as a world leader in floating wind technology,” he adds.
The British Energy and Climate Change Secretary, Amber Rudd says: “This is fantastic news for Scotland and the whole of the UK, demonstrating that we are open for business and that the UK’s offshore wind industry continues to go from strength to strength.”
“This exciting project is a great example of how innovation can help to power our homes and add to our energy mix – offering clean, secure energy to Britain’s hardworking families and businesses,” she adds.
Statoil works with several Scottish suppliers and partners on the project. The project will provide additional work for industry in Scotland and other countries. The onshore operation and maintenance base will be located in Peterhead, also drawing on resources from Statoil’s existing office in Aberdeen.
Hywind is a unique offshore wind technology developed and owned by Statoil. The concept has been verified through six years of successful operation of a prototype installed off the island of Karmøy in Norway. Hywind with its simplicity in design is competitive towards other floating designs in water depths of more than 100 metres.
New Energy Solutions for the global market
In May, Statoil announced the establishment of New Energy Solutions as a separate business area reporting to the CEO, reflecting the company’s aspirations to gradually complement its oil and gas portfolio with profitable renewable energy and low-carbon solutions. As a starting point Statoil’s existing offshore wind portfolio constitutes the activities in this area. Hywind Scotland is the business area’s first new investment.
Offshore wind already has a strong foothold in Europe with 10 GW installed capacity, and a global potential to reach more than 100 GW by 2030. With fixed turbines, offshore wind is optimal for 20-50 metres water depth. With floating structures, further expansion will be enabled in new deep-water areas around the world.
Key energy partner to the United Kingdom
Statoil is a key energy security partner for the UK and pursues a broad range of activities relating to energy production and sales in Britain. Statoil is a leading supplier of natural gas to the British market, with a market share around 20 percent.
The company is also active on the UK Continental Shelf, including the development of the Mariner oil field, operatorship for the Bressay project and holding several exploration licences. Statoil’s Global Strategy and Business Development division is based in London.
Statoil was the operator in the development phase for the 88 turbine Sheringham Shoal offshore Wind Farm, 20 kilometres off the coast of Norfolk. Sheringham Shoal started producing in 2012.
The same year Statoil and Statkraft acquired the nearby Dudgeon offshore wind farm project. Statoil is also partner in the Dogger Bank offshore wind project. In combination, Statoil’s UK offshore wind business has the long term potential to provide competitive low carbon electricity to around 4.5 million UK homes.
In late 2018 a thirty-year adventure will begin 250 kilometres off Scotland’s north-east coast. That’s when the first oil tanker will leave the Mariner field, bound for the world’s energy markets. It’s been a long journey. Mariner is a sleeping giant, discovered more than thirty years ago.
But because of the oil’s extremely high viscosity, previous operators were not able to extract it. In 2007, we acquired the operatorship, and with the experience gained from working with other heavy oil fields, we managed to solve the challenges. The Mariner project will be one of Statoil’s most innovative developments ever.
Discovered in 1981 on the East Shetland Platform, approximately 150 kilometres east of the Shetland Islands, the Mariner field is a daunting prospect for oil and gas producers. Mariner is a heavy oil field characterised by dense, viscous oil.
In December 2012, Statoil and its partners decided to take on the challenge and made the investment decision for the Mariner project, which entails a gross investment of more than GBP 4.5 billion. This was the largest capital commitment to the UK Continental Shelf (UKCS) in more than a decade.
The concept chosen includes a production, drilling and quarters (PDQ) platform based on a steel jacket, Mariner A, with a floating storage unit (FSU), Mariner B. Drilling will be carried out from the Mariner A drilling rig, with a jack-up rig assisting for the first 4 years.
The Mariner oil field consists of two shallow reservoir sections: the deeper, Maureen formation at 1492 meters and the shallower Heimdal reservoir at 1227 meters. The oil is heavy with API gravities of 14.2 and 12.1 and viscosities at reservoir conditions of 67 cP and 508 cP, respectively for Maureen and Heimdal.
The development of the Mariner field will contribute more than 250 mmbbls reserves with average plateau production of around 55,000 barrels per day. The field will provide a long term cash-flow over 30 years. Production is expected to commence in 2018.