Energy

The Bureau of Ocean Energy Management (BOEM) with support from the Bureau of Safety and Environmental Enforcement (BSEE) published new research on Dec. 3, that indicates certain economic policy changes may help increase oil and natural gas production in the Gulf of Mexico (GOM), using deepwater infrastructure already in place.

On December 11, the U.S. Senate passed Congressman John Garamendi’s (D-CA) amendment ensuring full enforcement of the Jones Act and other federal laws in offshore wind development in the final National Defense Authorization Act (NDAA) for fiscal year 2021.

The Norwegian Minister of Petroleum and Energy, Tina Bru, announced an investment of 120 million NOK (11.3 million EUR) in a new wind power research center in Norway.

Norwegian energy major Equinor has signed a deal with Yxney to roll out the Maress software for data driven decarbonization for their chartered offshore service fleet operating in Norway.

Eni's CEO, Claudio Descalzi, and Saipem's CEO, Stefano Cao, today signed a Memorandum of Understanding (MoU) to cooperate on the identification and engineering of decarbonization initiatives and projects in Italy.

Amazon, the technology company based in Seattle, Washington, has signed a 10-year corporate power purchase agreement with Ørsted, the world-leader in offshore wind, to offtake the output of 250MW from Ørsted's planned 900MW Borkum Riffgrund 3 offshore wind farm in Germany.

Bakker Sliedrecht will electrify the crane vessels Thialf and Sleipnir of Heerema Marine Contractors so that they can be powered with green shore power.

Eco Wave Power has signed a collaboration agreement with Meridian Energy Australia Pty Ltd. Meridian Energy Australia (MEA) is a wholly owned subsidiary of Australasia’s largest renewable energy generator Meridian Energy Limited.

Support from Marine-i is enabling Falco Drone Technologies to develop a pioneering new drone which could play a vital role in the inspection and maintenance of floating offshore wind installations. A prototype of their innovative design will commence trials in summer 2021.

US Wind Inc. (“US Wind”) has named Jeffrey Grybowski as Chief Executive Officer.

The project aims to produce green hydrogen using renewable electricity from offshore wind off the coast of Netherlands of about 4 gigawatts by 2030, and 10+ gigawatts by 2040, kickstarting the hydrogen economy in Northwest Europe.

Equinor has entered into an agreement with Eni to sell a 10% equity interest in the Dogger Bank Wind Farm A and B assets in the UK for a total consideration of around GBP 202.5 million.

Eni has also entered into an agreement to purchase a 10% interest in Dogger Bank A and B from project partner SSE on the same terms. Once the transaction is complete, the new overall shareholding in Dogger Bank A (1.2 GW) and Dogger Bank B (1.2 GW) will be – SSE (40%), Equinor (40%) and Eni (20%).

Eni will enter the assets effective from financial close of project financing which was reached on 25 November. The consideration of around GBP 202.5 million reflects the payment to Equinor for a 10% equity interest in both Dogger Bank A and Dogger Bank B. Equinor’s shareholder loan financing to date of around GBP 185 million was repaid following the financial close.

“This is our third offshore wind transaction in less than two years. Once again, we have demonstrated Equinor’s ability to create value from renewables projects. The divestment is in line with our strategy. We access attractive acreage early and at scale, then leverage our technology and experience to mature and de-risk projects. Today’s deal underpins our track record in consistently capturing value from world class assets,” says Pål Eitrheim, executive vice president in New Energy Solutions in Equinor.

Equinor and SSE Renewables secured 3.6 GW of offshore wind contracts for Dogger Bank’s three phases, Dogger Bank A, Dogger Bank B and Dogger Bank C in the UK Government’s 2019 Contract for Difference auctions.

The first two phases of Dogger Bank reached recently financial close at competitive terms, underlining the attractiveness of the UK offshore wind assets and the confidence in the joint venture. Dogger Bank C is being developed on a different timescale with financial close to follow at a later stage. There is no change to the ownership of the third phase, Dogger Bank C (1.2 GW), in which Equinor and SSE each have a 50% stake.

SSE Renewables are leading the construction of the 3.6 GW project, and Equinor will lead on the wind farm’s operations.

“Dogger Bank is the largest wind farm in the world under construction, and we are pleased to welcome Eni as a new partner. Through the sheer scale of the project, we have delivered record-low contract prices for the UK market, and as operator of the wind farm we will continue to deliver value to the UK for years to come. Together with our partners we will continue to drive the energy transition to a net zero emissions future for the UK,” says Eitrheim.

“For Eni, entering the offshore wind market in Northern Europe is a great opportunity to gain further skills in the sector thanks to the collaboration with two of the industry’s leading companies, and to make a substantial contribution to the 2025 target of 5 GW of installed capacity from renewables, an intermediate step towards the more ambitious target of zero net direct and indirect greenhouse gas emissions in Europe by 2050,” says Claudio Descalzi, Chief Executive Officer of Eni.

The transaction is expected to close in early 2021, subject to regulatory and lenders approvals and customary purchase price adjustments.

Equinor is developing as a broad energy company, and on 2 November this year announced its ambition to become a net-zero energy company by 2050. The company aims to become a global offshore wind major and expects to increase its current installed capacity to 12-16 GW, around 30 times the current level, by 2035.