South Korea plans to build 8.2GW, $43bn offshore wind farm

The Government of South Korea reportedly plans to build an 8.2GW offshore wind facility by 2030, using an investment of $43.2bn (KRW48.5tn). This development would become the world’s largest single offshore development when finished.

Reuters reported that the project forms part of the government’s efforts to encourage economic recovery from the Covid-19 pandemic.

The project also forms a significant component of South Korean President Moon Jae-in’s Green New Deal. This legislative programme started last year and focuses on limiting the country’s dependence on fossil fuels, aiming for carbon neutrality by 2050.

Jae-in attended a signing ceremony for the new wind project which took place southwestern coastal town of Sinan. There he said: “With this project, we are accelerating the eco-friendly energy transition and moving more vigorously toward carbon neutrality.”

Korea Electric Power Corp, SK E&S, Hanwha Engineering & Construction, Doosan Heavy Industries & Construction, CS Wind Corp, and Samkang M&T Co also attended the signing event.

According to Reuters, the companies have agreed to provide $42.4bn (KRW47.6tn) in funding for the project. The government will provide the remaining $802m (KRW0.9tn).

In addition to generating renewable energy, the wind project will create 5,600 jobs in the region. It will also boost the country’s existing 1.67GW wind power capacity to 16.5GW by 2030.

Officials said the wind farm will produce energy equivalent to the output of six nuclear reactors.

Denmark approves plan for energy island in North Sea

The Danish government has reportedly approved plans for the construction of the first artificial “energy island” in the North Sea.

The island would act as a hub for offshore wind development, built 80km off the coast of Denmark in the North Sea. The island covers an area of 120,000m², equivalent to 18 football fields.

Once completed, it would store and supply energy to power nearly three million European households. It would also supply green hydrogen for shipping, aviation, industry and heavy transport sectors.

Reuters reported that an investment of approximately $33.9bn (DKK210bn) would be required for the construction of the island.

The island is currently in its initial phase, involving installation of approximately 200 wind turbines with a combined capacity of 3GW.

Denmark Energy Minister Dan Jorgensen was quoted by the news agency as saying: “This is truly a great moment for Denmark and for the global green transition. [The island] will make a big contribution to the realisation of the enormous potential for European offshore wind.”

The latest move comes as the European Union announced transformation of its electricity system to mostly rely on renewable energy within ten years. It will also increase its offshore wind energy capacity approximately by 25 times before 2050.

The project is part of Denmark’s target to cut greenhouse gas emissions by 70% by 2030 from 1990 levels.

US BOEM to resume environmental review of Vineyard Wind project

US authorities have announced their intention to resume the environmental review for the Vineyard Wind 1 project.

The US Bureau of Ocean Energy Management (BOEM) said that, as part of President Biden’s pursuit of renewable energy production, it would resume the wind farm’s environmental review.

Biden has also issued orders to identify ways of speeding up renewable energy development in public lands and waters.

The Vineyard Wind 1 offshore wind project lies 15 miles off the coast of Martha’s Vineyard, Massachusetts. It would generate 800MW, making it one of the most powerful offshore wind power projects in the US.

The project is a joint venture between Avangrid Renewables and Copenhagen Infrastructure Partners.

BOEM director Amanda Lefton said: “Offshore wind has the potential to help our nation combat climate change, improve resilience through reliable power, and spur economic development to create good-paying jobs.

“BOEM is committed to conducting a robust and timely review of the proposed project.”

In December last year, Vineyard Wind contracted GE Renewable Energy as the preferred supplier of wind turbines for its offshore wind farm.

Brookfield Infrastructure agrees to sell Enwave for $4.1bn

Brookfield Infrastructure has agreed to sell its wholly-owned North American district energy business Enwave.

Enwave will be sold through two separate deals. IFM Investors and the Ontario Teachers’ Pension Plan Board will acquire 100% of Enwave’s Canadian business, while QIC and Ullico will acquire 100% of the US business.

The deals are worth $4.1bn on an enterprise value basis. Net proceeds from the transactions are expected to be worth approximately $950m.

Brookfield Infrastructure CEO Sam Pollock said: “The sale of Enwave caps off a hugely successful investment for Brookfield Infrastructure, one in which we grew the business significantly through organic growth initiatives and follow-on acquisitions.

“These transactions begin what we anticipate being another strong year for Brookfield Infrastructure’s capital recycling program.”

Brookfield Infrastructure acquired Enwave in 2012. Under Brookfield’s ownership, Enwave’s network expanded with the acquisitions of district energy systems.

Enwave operates in 13 cities and has more than 800 customers under long-term contracts. It delivers 3,792,000 pounds per hour of heating and 327,000t of contracted cooling capacity across its network.

ENGIE incorporates divisions in a new MESCATA business

French multinational electric utility company ENGIE has announced that as of 1 January 2021, it has merged its Africa portfolio with the MESCAT division (the Middle East, South and Central Asia, and Turkey), forming the enlarged business unit ENGIE MESCATA, headquartered in Dubai, UAE.

ENGIE says that regional offices will be used as part of its updated strategy to keep accelerating the transition towards carbon-neutral economies.

The joining of ENGIE MESCAT and Africa is seen as mutually beneficial, combining scale and expertise with deep market knowledge.

ENGIE MESCATA’s newly-appointed CEO, Sébastien Arbola, said: “Enlarging our geographical scope will allow us to have a much greater impact on the markets where we operate and to better serve our clients as we accompany them in their path towards carbon neutrality.

“Our strategic focus will be on markets that are currently or potentially large, have attractive growth profiles, and a transparent and stable regulatory framework. We will maintain a strong local presence to build up-front relationships with our customers and respond to their needs.”

In line with ENGIE’s strategic orientations, ENGIE MESCATA’s activities will revolve around four major priorities: growth opportunities in thermal energy and desalination; growth in renewable energies; investments in energy infrastructure project; and refocus of client solutions on complex, high value-added offers in the countries where it already has a firm presence.

As part of its updated strategy for international locations, the company has outlined that power generation activities in Africa will be targeting the development of utility-scale generation in four countries: Egypt, Morocco, Senegal, and South Africa.

ENGIE has been present in Africa for over 50 years, during which time the group has installed 3.15GW of power generation capacity in operation and construction.

To optimise partnerships and financing around the energy access activities, the off-grid energy companies Mobisol, Fenix, and Power Corner are now gathered under a single entity, ENGIE Energy Access. They will report directly into ENGIE’s corporate thermal and energy supply division, under the supervision of Arbola.

BP completes stake acquisition in offshore wind farms from Equinor

BP has completed a 50% stake acquisition in two offshore wind lease areas from Equinor for $1.1bn, as announced in September.

Under the partnership, the companies will develop up to 4.4GW through the Empire Wind and Beacon Wind projects, located off the US East Coast.

In 2016, Equinor acquired the Empire Wind lease area, which is 15-30 miles southeast of Long Island and covers a total area of 80,000 acres. Its two phases of development will generate 2GW of clean energy.

The Beacon Wind lease area is spread across 128,000 acres and is located nearly 20 miles south of Nantucket and 60 miles east of Montauk Point. The offshore wind farm will generate 2.4GW of renewable energy.

Additionally, BP and Equinor have agreed to pursue further growth in the US offshore wind market.

BP gas and low carbon energy executive vice-president Dev Sanyal said: “We see significant opportunities by rapidly growing BP’s offshore wind business, making a major contribution to our strategic goals and developing assets that will provide long-term, stable returns.

“Partnering with Equinor, we look forward to developing these world class assets in the fastest growing energy sector.

“We will work with communities and authorities in New York to develop a leading offshore wind industry hub, including the South Brooklyn Marine Terminal and the Port of Albany.”