DNV GL lends expertise to investors bringing next generation turbine technology to UK offshore wind industry
DNV GL advised the UK Green Investment Bank and Marubeni Corporation in their investment to jointly purchase 50% stake in the Westermost Rough offshore wind farm from DONG Energy
- Process included technical due diligence of first next generation turbine installation in UK – first large scale commercial project in UK using Siemens’ 6 MW direct drive turbine
- New technology to encourage UK market growth – backing from leading global investors to encourage further growth in UK offshore wind market
- Driving cost efficiencies – increases in offshore wind energy output at lower cost to drive efficiency in UK renewable energy production
- Reassuring investor confidence – Supporting investors in current projects essential to deliver financing for the next round of new offshore wind projects
(WK-intern) – Bristol, UK – DNV GL, the world’s largest resource of independent energy experts, has advised the UK Green Investment Bank (GIB) and Japan’s Marubeni Corporation on their joint purchase of a 50% stake in the Westermost Rough wind farm, five miles offshore from Hull. The investment in the UK site, still 50% owned by DONG Energy, will see the first large scale commercial project in the UK using Siemens’ next generation 6 MW direct drive turbine.
The new turbines are almost twice the size of the majority of wind turbines currently operating in the UK and, once operational, Westermost Rough will generate over 800GWh of net renewable electricity. This is enough to power c. 200,000 homes, which is equivalent to a city the size of York. Based on DNV GL’s in-depth technical due diligence and risk analysis of using the new technology, GIB and Marubeni Corporation’s investment will help mobilise capital in the UK offshore wind market at greatly reduced cost.
As the first deployment of the new technology in the UK, and with the backing of major investors, this project could be a game-changer for the UK’s offshore wind market as higher production rates at reduced cost makes it more appealing to external investors domestically and abroad. The financing of lucrative projects such as this will have a positive impact on the maturity of the market, reassuring investors that they can expect a good return on future investments.
DNV GL has also provided consultancy to GIB, which has agreed terms with RWE Innogy UK for a 10% share of the Gwynt y Môr offshore wind farm, once the project is complete. Gwynt y Môr is on track to become the 2nd largest operating offshore wind farm in the world and will be capable of generating up to 576MW of new renewable electricity each year, equivalent to the electricity consumption of c. 400,000 homes, enough to power a city the size of Bristol.
RV Ahilan, Executive Vice President, Renewables Advisory at DNV GL commented: “It is extremely encouraging to see major investors such as the UK Green Investment Bank and Marubeni Corporation supporting the use of next generation turbine technologies and supporting the growth and development of the renewable energy market. The UK is of vital strategic importance to DNV GL and the global energy market as a whole, so we fully support the impetus to embrace next generation technologies and the development of additional sites.”
About DNV GL
Driven by its purpose of safeguarding life, property and the environment, DNV GL enables organisations to advance the safety and sustainability of their business. DNV GL provides classification and technical assurance along with software and independent expert advisory services to the maritime, oil & gas and energy industries. It also provides certification services to customers across a wide range of industries. DNV GL, whose origins go back to 1864, operates globally in more than 100 countries with its 16,000 professionals dedicated to helping their customers make the world safer, smarter and greener.
In the energy industry
In DNV GL we unite the strengths of DNV, KEMA, Garrad Hassan, and GL Renewables Certification. DNV GL’s 3,000 energy experts support customers around the globe in delivering a safe, reliable, efficient, and sustainable energy supply. We deliver world-renowned testing, certification and advisory services to the energy value chain including renewables and energy efficiency. Our expertise spans onshore and offshore wind power, solar, conventional generation, transmission and distribu¬tion, smart grids, and sustainable energy use, as well as energy markets and regulations. Our testing, certification and advisory services are delivered independent from each other.
About The UK Green Investment Bank
The UK Green Investment Bank was launched in November 2012. With £3.8 billion of funding from the UK Government, it is the first bank of its kind in the world. It is a „for profit“ bank, whose mission is to accelerate the UK‘s transition to a greener economy, and to create an enduring institution, operating independently of Government.
Offshore wind is a priority investment sector for GIB. Since launching in November 2012, GIB has made investments in three operational wind farms:
- Rhyl Flats
- London Array
About Marubeni Corporation
Marubeni Corporation, a large, publicly traded Japanese company, founded in 1858 and incorporated in 1949, has its principal office in Tokyo, Japan with 120 offices in 65 countries/areas. Marubeni is involved in the handling of products/services in a broad range of sectors and conducts business investment, development and management on a global level. Marubeni owns approximately 10 GW of net generating capacity or 34 GW of gross capacity in its global power portfolio as of the 31st day of March, 2014. As the owner of numerous projects, Marubeni is committed to creating long-term value from its investments in the power and infrastructure sector.
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