Norway's oil major StatoilHydro ASA (STO) and renewable energy generator Statkraft, U.K. utility Scottish and Southern Energy PLC (SSE.LN) and German utility RWE AG (RWE.XE) have formed a consortium to bid for U.K. offshore wind licenses, the companies said Thursday.
The partnership brings together StatoilHydro's extensive experience of international offshore project delivery and SSE and RWE's renewables development, construction and expertise to bid in the U.K's Round 3 tender for 25 gigawatts of offshore wind.
"Each of the four consortium members - all leading players in their own right - recognize that by joining forces we have an ability to make a significant contribution to the future of wind energy in the U.K. and demonstrate our commitment to the continuing development of offshore wind," said Peter Raftery, project manager of the Forewind consortium.
Interest in Round 3 has already exceeded expectations and 96 U.K. and international companies have registered, following the launch of the tender June 4.
Applications are to be submitted by the beginning of March and awards are expected to be made by the end of 2009. Construction of the projects is estimated to require investment of between GBP60 billion and GBP80 billion.
The Forewind consortium will be facing stiff competition from a partnership formed late last year between the world's top two wind power operators and developers - Sweden's Vattenfall Group and ScottishPower Renewables, a unit of Spain's Iberdrola SA (IBE.MC).
Vattenfall and ScottishPower Renewables are aiming to develop 6 gigawatts of installed wind power capacity by 2020, or enough electricity to power six million homes.
The U.K., which is already a world leader in offshore wind, is counting on the green electricity generating source to meet binding European Union targets to boost renewable energy use and reduce carbon emissions by 2020.
Last week, the U.K.'s Crown Estate, which owns the U.K. seabed around the coast, granted nine companies and consortia exclusive rights to develop over six gigawatts of offshore wind in Scottish territorial waters. Investment there is estimated at around GBP20 billion over the next seven years.