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Birmingham Post
Birmingham Post
Business
Lauren Phillips

Crown Estate signs deal for wind farm off Anglesey coast

An area off the north Welsh coast has been successful in a lease agreement stage with the UK Government to build an offshore wind farm. The Mona project, located off the coast of the north east of Anglesey, is one of six offshore wind projects that have been granted Agreements for Lease by the Crown Estate.

The project will be developed by a consortium of EnBW and BP and is proposed at 1.5MW capacity. The other successful projects include two off the Yorkshire coast from RWE and a third off the coast of Lincolnshire with Green Investment Group and Total.

EnBw and BP are also behind a project west of Morecambe Bay. The final project is also off the Lancashire Coast from Cobra Instalaciones y Servicios and Flotation Energy Plc.

The six projects are expected to add 8GW of capacity and generate power by 2030.

Read more: Scottish green freeports show huge potential for Welsh equivalent, says Celtic Freeport bid

The Crown Estate was given the thumbs-up to sign the agreements by then business secretary Kwasi Kwarteng in July last year. Together the projects will pay around £1 billion to the Crown Estate every year, money which can then be passed on to the Treasury.

Under the taxpayer-funded Sovereign Grant, which is currently £86.3 million a year, the Monarchy receives 25% of the Crown Estate’s annual surplus, which includes an extra 10% for the refurbishment of Buckingham Palace.

However, Kind Charles has asked for the profits from the deal (which would usually lead to a jump in the monarchy’s official funding) to be used for the “wider public good” rather than as a funding boost for the monarchy.

The new agreements are announced ahead of ambitious plans by Crown Estate to deliver a 4GW floating offshore wind farm in the Celtic Sea by 2035, with the region assessed to have the economic potential to accommodate up to an additional 20GW by 2045.

The authority has already revised the five areas of seabed under consideration for the project in the Celtic Sea ahead of its upcoming leasing round. It will refine the areas further into potential ‘project development areas’ within which the first generation of commercial-scale floating wind farms can be built. These will be open for competitive tender in mid-2023.

Dan Labbad, chief executive of The Crown Estate, said: “The UK’s offshore wind achievements to date are nothing short of remarkable, and this next generation of projects point to an even more exciting and dynamic future.

“They demonstrate the far-reaching value that our world-class offshore wind sector can deliver for the nation: home grown energy for all, jobs and investment for communities, revenue for the taxpayer, clean energy for the benefit of the environment and a considerate, sustainable approach which respects our rich biodiversity.

“Moving forward, working with our stakeholders to continue unlocking this value is what drives us, and we are more committed than ever to lead the way in ensuring this important benefit is realised for our environment and for the nation.”

Gus Jaspert, managing director of Marine at The Crown Estate, said: “Today marks a significant milestone for the UK on the road to net zero, unlocking green energy potential for more than seven million homes and demonstrating to the world that the UK offshore wind industry is growing at pace to help meet the climate challenge.

“As we face up to energy, climate and biodiversity challenges, we will continue to convene the best minds and support new technologies which will help realise the potential of the seabed as a key component of the UK’s renewable energy system; a home to a thriving natural environment; and a route to energy security.

“I’d like to thank all those who have collaborated with us on this leasing round to ensure the UK continues to lead the way in rebalancing energy provision away from fossil fuels for the benefit of present and future generations.”

Julie James, the Welsh Government’s Minister for Climate Change, said: “Today’s announcement is an important step forward - not just to deliver sustainable future sources of energy but also for the Welsh economy and communities.

“We are determined to make the most of opportunities afforded by the urgent need to scale up renewable energy generation to transition away from fossil fuels and believe offshore wind will play a major role in the future energy system in Wales.

“We have a high level of ambition for the sector, and we are looking to maximise the employment opportunities across the supply chain and continue to work with The Crown Estate to deliver on our ambitions”.

Richard Sandford, vice president of UK offshore wind at BP, said: “I’m delighted our Morgan and Mona projects have reached another milestone in their journey to deliver 3GW of low carbon energy to the UK.

“I’m immensely proud of what the team has achieved with EnBW so far – delivering our largest ever integrated offshore wind survey, working with the local communities, engaging with the supply chain, and submitting scoping reports. All of this has led to today’s agreement and more importantly brings us one step closer to delivering enough low carbon energy to power the equivalent of more than three million UK homes.”

Holger Grubel, head of portfolio for development offshore wind at EnBW, said: “EnBW appreciates to see the HRA process completed and we are happy to enter into the Agreements for Lease for our projects Morgan and Mona, which we are developing together with our partner bp.

“EnBW is endeavouring to decarbonise electricity generation. With these projects, we are not only contributing to the UK government’s target of 50 GW offshore wind by 2030 but are also on target for our own ambition to become CO2 neutral by 2035.

“In the past months, we have established a strong project team and have progressed in aligning with key stakeholders, started the surveying and consenting activities and are in a good dialogue with National Grid regarding the grid connection. We appreciate reaching the AfL milestone with TCE today and we are looking forward to further working with our UK partners to realise our offshore wind projects in the Irish Sea.”

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