Sweden's Vattenfall joins Seagust JV for Norway offshore wind bid
08/02/2022 06:00
By Nora Buli
OSLO, Feb 8 (Reuters) - Swedish utility Vattenfall will join
the growing list of firms competing for licences to build
offshore wind farms off the coast of Norway, it said on Tuesday.
Vattenfall is partnering with the Seagust joint venture
formed by Norwegian investment firms Arendals Fossekompani (AFK)
AFK.OL and Ferd in preparing a bid in upcoming tenders.
"We are always looking into the most favourable market and
now Norway is increasingly more attractive," Helen Bistroem, who
heads Vattenfall's wind business, told Reuters.
With its long coastline and often harsh weather, Norway has
great wind resources, which the government is now preparing to
harness.
Meanwhile, AFK and Ferd provide the strong local connection
Vattenfall was seeking, Bistroem added.
"We truly believe we are a top contender now in this
licence," she said.
Norway has announced plans to open two North Sea areas -
Soerlige Nordsjoe II and Utsira Nord - for development of up to
4.5 gigawatt (GW) of bottom-fixed and floating offshore wind
capacity, which has garnered massive interest from domestic and
international investors. urn:newsml:reuters.com:*:nL1N2UI0J6
While competition will be strong, Vattenfall has a lot of
offshore wind experience, Bistroem added.
The firm already operates 4 GW of wind power, two thirds of
which is offshore, with another 2 GW under construction and 6 GW
under planning.
In Norway, offshore wind is seen as a key industry to
replace its dominant oil and gas sector in the transition to a
cleaner energy future.
However, the tender process has faced a delay recently amid
a spike in power prices, rising domestic demand and discussions
over whether Norwegian offshore wind farms should be connected
to other markets.
"Whatever happens there, offshore wind farms will have a
dampening effect on any prices, wherever you start," Bistroem
said.
The question of whether Norway will permit exports to other
markets via so-called hybrid cables was not in itself a deal
breaker for investment, which depended on the whole package of
conditions to be offered, she added.
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(Reporting by Nora Buli
Editing by Mark Potter)
((Nora.Buli@thomsonreuters.com; (+47) 21 04 05 56; Reuters
Messaging: nora.buli.thomsonreuters.com@reuters.net))