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Birmingham Post
Birmingham Post
Business
David Laister

Offshore wind acceleration welcomed by Orsted and wider industry council

Further acceleration of the UK’s offshore wind deployment has been welcomed by industry leader Orsted.

Last week’s publication of the government’s Energy Security Strategy saw targets lifted for a second time in two years, with 50GW by 2030 now the aim - a fivefold increase.

It comes as the UK boasts the largest pipeline, with hydrogen also being brought to the fore - another huge opportunity where headway is being made on the Humber.

Read more: Orsted to take bold green step with first bio-fuelled offshore wind vessel heading to Grimsby

Pledges to speed up the planning consenting process have also been welcomed.

Duncan Clark, Orsted’s UK lead, described the release as a “truly momentous day for the offshore wind industry and for every consumer in the UK”.

He said: “20 years ago there were only two wind turbines in UK waters, and now, as a nation, we are leading the world in offshore wind and making the radical changes we need to rapidly make offshore wind the backbone of the UK’s electricity system.

“There is no doubt that the technology works, there is no doubt that it is low-cost, and now with the Government and industry committing to make the changes needed to accelerate deployment, UK consumers need have no doubt that we can deliver the secure, low-cost electricity that the country needs, creating jobs and regenerating coastal regions.

Business Secretary Kwasi Kwarteng, right, then Clean Growth Minister, talks with Duncan Clark on a visit to Orsted's East Coast Hub in Grimsby. (Rick Byrne / GrimsbyLive)

“We are pleased to see the commitment on creating a more effective planning system and understand that further action will be taken to ensure that the electricity grid will be developed to support the transformation of our electricity system.”

Hornsea Two, a 1.3GW addition to Orsted’s East Coast cluster, will take the world-leading title from ‘little sister’ Hornsea One when it is commissioned later this year, with a huge £3 billion buy-in completing from French financial institutions as the Danish giant continues its strategy of developing then divesting a significant stake will retaining operations and maintenance - with nearly 400 now employed in Grimsby.

In terms of its pipeline, the company has Hornsea Three, Hornsea Four and a potential Race Bank extension in the vicinity alone, with the fleet forming a strong share of the 50GW target.

Hydrogen is also moving forward at pace, with Orsted looking to provide the green ‘umph’ behind the Gigastack project to fuel switch heavy industry on the South Humber Bank, working with Phillips 66 and ITM Power. It is also exploring marinised electrolysis - production within a turbine tower out at sea.

In the wider Humber area, Scunthorpe is understood to be the subject of a hydrogen town pilot, with Shell joining Uniper on a project that sits next to Orsted's onshore substations.

Mr Clark, who has hosted Business Secretary Kwasi Kwarteng in Grimsby to discuss the developments, said: “It is fantastic to see increased ambition on green hydrogen. It’s vital that the UK now takes the opportunity now to support the development of clean, green hydrogen. The expansion of offshore wind opens up the opportunity for us to use renewable electricity to create renewable fuels such as green hydrogen for industry and transport. There is a real economic opportunity for the UK to establish itself at the forefront of green hydrogen if it gets the appropriate support from the Government.”

Offshore Wind Industry Council co-chair Danielle Lane has also welcomed the development.

Vattenfall’s UK country manager said: “It’s great to see that the Prime Minister is determined to work closely with the industry to ramp up the UK’s offshore wind capacity rapidly over the course of this decade to five times its current level, putting it at the centre of his ambitious energy security strategy.

Danielle Lane, co-chair of the Offshore Wind Industry Council, and Vattenfall’s UK country manager. (Vattenfall)

“To achieve this the planning process needs to be far more agile than it is currently, so we particularly welcome his commitment to ensure that consenting decisions will take no more than a year in future. We need to increase Britian’s energy security as swiftly as possible and industry will work with Government so that the planning process enables projects in the right locations and protects our marine environment.

“We also need to see faster progress on installing vital new grid infrastructure so that we can make the most of the enormous amounts of clean electricity we’re generating offshore.

“Innovative technologies like floating wind and green hydrogen also have key roles to play.

The world-leading 5GW target for floating wind set by the Prime Minister will help to kickstart a whole new British industry manufacturing cutting-edge technology which we can export worldwide.

“Electricity generated by offshore wind will also be used to make green hydrogen, which offers us enormous flexibility as it can be used in a wide range of sectors to replace gas, so we’re pleased to see an increase in the hydrogen target and a recognition of the importance of this technology in our future energy mix.”

“New offshore wind is one of the UK’s cheapest sources of new power, with costs plummeting by two-thirds in the space of just four years, so it has a key role to play in reducing consumer bills in the years ahead”.

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