Masdar | Investment; RWE, Dogger Bank South
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The prospect of an Abu Dhabi based entity buying into a North Sea Wind Farm may seem strange indeed at first sight.
The 11-billion-pound investment by Masdar, the Abu Dhabi futures company, bringing with it a 49% stake in the Dogger bank offshore wind farm of the UK is important for several reasons. Masdar however are no strangers to the world of offshore wind and indeed to their long-term JV partner the German RWE (EON) extending as far back as 2005.
Masdar are involved in the London Array offshore wind farm stepping in to make sure the project, which is supported, got through the tricky hurdles which accompany the build out to one of the largest UK offshore wind farms. Masdar have learned by doing as an involved partner, they've got London base and an appetite for more global investment. This multibillion pound in what will collectively become the world’s largest wind farm is built on profound sectoral knowledge.
Its not been an easy ride; falling prices to the consumer over the last decade have started to go up again. In part this is due to COVID and European wars. To keep the trajectory moving downwards Masdar are taking a longer-term view or strategic view of a post oil and gas future for Abu Dhabi and indeed the wider Middle East and intend to invest in projects around the world.
The Dogger bank offshore wind farm has gone through various iterations. One smart early move was to set a separate consenting body ‘Forewind; involving UK and Norwegian interests, developing and consenting in phases and then working out who gets what once ready for build out and operation- which is obviously now
Dogger Bank was chosen it was very shallow waters, and favourable ground conditions for trouble-free turbine installations meaning the cost of foundations relatively low, with less steel required. The site indeed is so shallow that it used to be on land and even claimed to have a king of Dogger land
The scheme is so large that there are multiple electrical grid connection points traversing the East of England with a host of back up ports and logistical interfaces. From a consenting point of view any outstanding issues have been resolved as we go to build out.
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The owners’ engineers have carried out advanced due diligence and engineers and the board worthy of investment. Masdar are familiar with going through financial close and the central importance of securing a bankable offtake.
From a consenting perspective, any outstanding issues have been resolved as we go to build out. The owner’s engineers have carried out advanced due diligence and engineers and the board worthy of investment. Masdar are familiar with going through financial close and the central importance of securing a bankable project offtake.
A couple of things I noticed over the North Sea a few weeks ago, is how much of the North Sea there is already built out and look forwards at some stage to a possible re-activation of Gigastack which is also proposed for the east coast.
Various iterations of the European hydrogen backbone may be useful as well, offering future offtake flex as wind farms move from electrical energy but also hydrogen generators and a second molecular route to market.
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Going forwards - and in a rather curious and circular historical turn of events - potential energy islands mooted offering a route to the European and global market should economics allow.
JV partners Masdar are helping it across the line and obviously build out to now happening and it will give a master perhaps an insight into how they might build out.
JV partners Masdar are helping it across the line and obviously build out to now happening and it will give a master perhaps an insight into how they might build out. They are active in over 40 countries from Europe to Central Asia and North America?
RWE was itself recently successful in the Gulf of Mexico leasing round and I'm sure that many of the lessons learned the harsh climate in the North Sea might well find themselves transposed to the Gulf of Mexico going forward. So, a big global step forward for a partnership that might be worth tracking. We certainly are and will survey the UK offshore landscape in the deep-dive experts’ programme under preparation for 2024; Contact us at [email protected]; if this is of interest to your company.
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