Industry news

Ørsted receives consent for 2.4GW Hornsea Three wind farm offshore UK

4 january | wind

The UK Government has issued development consent for Ørsted to construct the Hornsea Project Three offshore wind farm.

Development consent was granted following a six-month examination. Ørsted UK Region head Duncan Clark said: “We are delighted to confirm that Hornsea Three offshore wind farm has been granted consent by the secretary of state for business, energy and industrial strategy.

“This determination is the culmination of a thorough and rigorous process which ensures that the project can deliver much needed clean energy at scale for the UK, whilst ensuring the potential environmental impacts of the project are minimised.

“We’ve worked closely with key stakeholders to develop a robust compensation plan focused on the implementation of onshore artificial nesting structures specifically designed for kittiwakes.”

Kittiwakes are a rare and endangered sea bird that feed in the area of the Hornsea development. British bird charity RSPB criticised the placement of the development, saying it could cause the death of dozens of birds each year.

Clark continued: “The unique compensation plan for Hornsea Three demonstrates that the industry can continue to deliver on the government’s offshore wind ambition of 40GW by 2030 in a sensitive and environmentally responsible way. We would like to thank Shoney Wind for providing specialist knowledge on kittiwake artificial nesting towers.”

With an approximate capacity of up to 2.4GW, the Hornsea Project Three offshore wind farm will be located off the north coast of Norfolk in east England. The area is part of Zone 4, covered by the Round 3 offshore wind licensing arrangements established by The Crown Estate.

29 december | wind

Ørsted to divest 50% stake in 605MW Greater Changhua 1 Offshore wind farm

Danish power company Ørsted has signed an agreement to divest 50% ownership stake in its 605MW Greater Changhua 1 Offshore Wind Farm in Taiwan to Quebec’s Caisse de dépôt et placement du Québec (CDPQ) and Taiwanese private equity fund Cathay PE.

Among the two new partners, CDPQ will be acquiring a majority stake in the offshore wind farm.

As per the terms of the agreement, the two partners will acquire 50% stake in the wind facility besides funding 50% of the payments under the engineering, procurement, and construction (EPC) contract, which encompasses the generation as well as transmission assets.

The total value of the transaction is for approximately NT$75bn ($2.6bn), which will be paid during 2021 and 2022.

23 december | financing

Hannon Armstrong to invest in Clearway Energy’s 1.6GW renewable portfolio

US-based Hannon Armstrong Sustainable Infrastructure Capital has announced a preferred equity investment in a renewable energy portfolio totalling 1.6GW developed and managed by Clearway Energy Group.

Clearway Energy Group’s renewables portfolio includes three wind, one solar, and three solar-plus-storage projects.

The 1.6GW renewable energy portfolio includes 874MW of onshore wind, 192MW of utility-scale solar, and 557MW of utility-scale solar, with 395MW of co-located storage across California, Hawaii, Texas, and West Virginia.

The company has so far already funded nearly $200m of its investment and expects to complete the remaining portion of the financing over the next two years.

It will invest $663m in Clearway Energy Group’s renewable energy portfolio, once fully funded.

23 December | wind

Siemens Gamesa strikes deal for 465MW onshore wind farm in Brazil

Wind power firm Siemens Gamesa has announced plans to develop a 465MW wind farm in Brazil, which will feature its newest and most powerful wind turbines.

The company has signed an agreement with Essentia Energia, a renewable power-focused subsidy of Patria Investments, and will see the facility, dubbed the São Vitor Wind Farm, commissioned by the end of 2022.

The farm will consist of 75 SG 5.8-170 turbines, the latest and largest in its 5.8 range of turbines, which each boast a power output of up to 6.2MW. The company aims to complete construction of the prototypes in early 2021 ahead of construction at the facility.

The deal follows a similar agreement between Siemens Gamesa and Brazilian power company AES, which saw the firms agree to the installation of 52 5.8-170 turbines in the state of Bahia in early 2021.

These agreements are the latest in a series of moves intended to improve wind power generation in Brazil, with a report from the country’s Energy Research Office noting that in 2018, wind power production was 14.4% higher than in 2017. However, this total is just 7.6% of the country’s total domestic power supply, and electricity from wind production is one-tenth that of burning sugar cane for power.

However, both Siemens Gamesa and Essentia Energia are optimistic that deals such as theirs will help address Brazil’s imbalanced energy mix. The Global Wind Energy Council reported that Brazil is the seventh-largest market for wind energy in the world, suggesting that despite the entrenched nature of fossil fuels, there remains potential for clean energy development in the country.

21 december | hydrogen

Scotland dedicates £100m to hydrogen development

As set out in the Scottish Government Hydrogen Policy Statement, the country’s hydrogen sector will receive £100m over the next five years to support Scotland’s transition to net-zero.

As hydrogen does not emit carbon dioxide, it can be used as an alternative to natural gas to transfer and store energy and could replace fossil fuels in industrial processes, internal combustion engines, and homes.

Scotland’s goal is to become a leading hydrogen nation, with plans to generate 5GW of renewable and low-carbon hydrogen by 2030, enough to power the equivalent of 1.8 million houses.

Scotland is estimated as one of the most suitable nations to develop competitively priced hydrogen for its economy’s needs as the Scottish waters contribute with some of the best offshore wind resources in the world, and can support the continuing growth and expansion of this sector.

The £100m investment is part of the full £180m Emerging Energy Technologies Fund announced as part of the Scottish Government’s climate change update announced on 16 December.

21 december | deal

Iberdrola to acquire stake in offshore wind projects developer Sea Wind

Spanish electric utility company Iberdrola has signed an agreement to acquire a 50% stake in offshore wind development company Sea Wind, which has a seven-project pipeline.

These projects are in the early stage of development and have a potential capacity up to 7.3GW.

The deal is in line with Iberdrola’s geographical diversification strategy in investment-friendly markets and also creates a Baltic hub together with offshore wind projects in Germany and Sweden.

Additionally, the transaction will also help the company to position itself in the initial stage of development of the country’s offshore wind market.

The alliance between Iberdrola and Sea Wind is also open to the incorporation of Polish partners in the future.

With this transaction, Iberdrola is also promoting the creation of an offshore wind hub in the Baltic Sea which would act as the epicentre of offshore services and local content for the company’s projects in Germany, Poland, and Sweden.

Poland is said to have outlined a strategy to decarbonise its energy mix and intends to install nearly 8GW of offshore wind capacity by 2030.

In brief

Capital Dynamics completes AVSE II solar project acquisition

Capital Dynamics’ Clean Energy Infrastructure business has completed the acquisition of the remaining 69.98% interest in the Arlington Valley Solar Energy II, a 175MWdc solar photovoltaic project from Apollo Funds.

Vestas secures 360MW wind turbine order from Casa dos Ventos in Brazil

Wind turbine manufacturer Vestas has been awarded a 360MW order from Brazilian firm Casa dos Ventos for the Babilônia project, which is located in the cities of Morro do Chapéu and Várzea Nova in Bahia.

Ameren acquires 400MW wind energy project in northeast Missouri

Ameren Missouri, a subsidiary of Ameren Corporation, has completed the acquisition of a 400MW High Prairie Renewable Energy Center in northeast Missouri.

EDF Renewables’ wind project in North Dakota, US begins operations

EDF Renewables North America has announced that the 150MW Merricourt Wind Project in North Dakota, US has achieved its commercial operation phase.

Statkraft to construct two wind farms in Ireland

Norwegian state-owned renewable energy company Statkraft has announced plans to construct two wind farms in Ireland and divest them to Greencoat Renewables.

21 december | wind

Dominion files construction and operations plan for offshore wind

Dominion Energy has filed a construction and operations plan (COP) with the Bureau of Ocean Energy Management to build the 2.64GW Coastal Virginia Offshore Wind (CVOW) commercial project in the US.

CVOW is claimed to be the largest planned offshore wind farm in the country.

The company has filed the COP after a nearly two-year federal review process and intends to begin construction works at the site in 2024.

The CVOW project is expected to generate clean energy that will be sufficient to power up to 660,000 homes in the region, while creating new employment opportunities and a positive economic impact in the region.

In its COP filing, Dominion Energy included details about the proposed offshore wind farm to be installed within a 112,800-acre Commercial Lease Area located 27 miles off the coast of Virginia Beach, which it obtained in 2013.

The company also detailed information about the construction, operations and conceptual decommissioning plans for the wind facility.

Additionally, the plan included data about onshore and support facilities.

18 december | financing

Vestas to acquire 25% stake in Copenhagen Infrastructure Partners

Wind turbine manufacturer Vestas has acquired a 25% stake in investment management company Copenhagen Infrastructure Partners (CIP).

Under the deal, Vestas will acquire the stake for $612m (€500m). This includes $220m (€180m) as an upfront payment and $391m (€320m) as an earnout.

Vestas will invest in a new ‘Energy Transition Fund’ managed by CIP as an anchor investor. The fund will focus on the development of Power-to-X technologies, among others.

This will create a platform for value creation, allowing the company to access returns generated by renewable energy projects. Additionally, the investment will increase the company’s focus on development through the launch of a new dedicated development business unit.

A Vestas spokesperson said that the company aims to expand its footprint in renewable project development. It will also invest in areas of the renewables value chain that lie beyond its existing activities.

Under the new partnership, Vestas and CIP will collaborate on projects in the early phases of development.

Vestas said it will not grant CIP any other preferential consideration as a customer, in regards to its development pipeline or turbine sales. The company will become part of the CIP board, engaging in discussions, but will not be involved in decision making oin the fund.