Floating offshore wind has huge potential for the UK to get closer to clean energy targets, but the scaling of this relatively new sector is not without its challenges.
With news that Aberdeen will be home to the new state-owned GB Energy and that over £8.3billion is up for grabs, it’s unsurprising that it was the subject of much chatter at the Floating Wind conference in the Granite City last week.
Conversations across the show floor and panel sessions alike recognised the need for innovation and investment to drive the sector forward, though hard truths remained around the requirement for greater support from government to unlock barriers.
Part of the unique appeal of floating wind is the access to deeper waters – going beyond the reach of conventional fixed-bottom turbines. In regions like the North Sea, this may prove to be a game changer for accessing previously unviable wind resource at depths of over 60 metres.
Additionally, the supply chain and employment benefits associated with investment in offshore wind are substantial. According to industry estimates, the UK’s floating offshore wind sector could support between 22,000 and 67,000 jobs by 2040. This would not only strengthen the national economy but also provide new opportunities in coastal communities at risk of oil and gas job losses, where many wind projects are now being developed. The conference also outlined opportunities to strengthen the domestic supply chain through stepping-stone projects ahead of the broader ScotWind roll-out, meaning smaller, local businesses could be supported in a just transition enabled by the wind sector.
However, as with all paradigm shifts, the challenges ahead for the floating wind industry remain prominent, and largely unresolved. Due in no small part to high upfront cost associated with the manufacturing of supporting infrastructure, investors and developers alike are concerned with low returns relative to their initial investment. This, alongside uncertain regulatory landscapes, which vary from country to country, leaves the sector grappling with a lack of certainty, which then impacts on development schedules.
It is clear that work remains to be done to raise the sector from its infancy, into a more secure investment bet. A standardised turbine design for and an increased level of collaboration across different projects would be good starting points. The energy and passion from speakers at the event for getting floating wind ‘off the ground’ was certainly admirable.
So, could GB Energy be a welcome catalyst to derisk early UK projects? With a remit to fund new and existing clean technologies, as well as small and medium-sized renewable energy projects, there’s a school of thought that floating wind should be high on the agenda.
The Government has said key functions of GB Energy will include leading projects through development stages to speed up delivery whilst capturing more value for the British public. And investing in projects alongside the private sector, to help them get off the ground.
Energy Minister Michale Shanks delivered a recorded message at the conference where he said the government is determined to keep leading the way to shape the future of the industry and unlock potential. He pointed to the Floating Offshore Wind Taskforce which was announced on the first day of the event and underlined the contribution the floating wind sector could make to the economy, suggesting over £40 billion by 2050
With ambitions for GB Energy to deliver a ‘fully decarbonised power system by 2030’, there are some major fundamental changes to the grid and to the regulatory system that need to be first addressed.
One thing that was certain across the speaker sessions is is that the potential of deepwater floating wind for decarbonisation and creating export value is significant, and the government should play an enabling role in helping to speed up progress.
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