Best offshore wind company: Big Oil’s foray into green energy could push prices up

The world’s largest developer of offshore wind farms, Denmark-based Ørsted, fears that the race of the biggest oil companies to enter offshore wind could lead to seabed price spikes, which would hurt the seabed. the competitiveness of the project and the speed of technological development. .

“Our concern is that if this inflation continues, it will eventually hurt the rate at which we accelerate technology or the competitiveness of technology,” said Mads Nipper, CEO of Ørsted. Reuters in an interview ahead of the Reuters Events: Global Energy Transition conference.

Major international oil companies, including Shell, BP, Equinor and TotalEnergies, have accelerated investments and the development of offshore wind in Europe and the United States as they plan to strengthen their renewable energy portfolios in their commitments zero net emissions.

Equinor from Norway said it is “determined to be a major global player in offshore wind energy”. All the oil companies that embark on offshore wind present their offshore experience and skills as key catalysts to become major players in the sector.

But the race for seabed area to build offshore wind farms could push prices much higher, especially if governments don’t make more areas available for offshore wind development, Nipper told Reuters. Ørsted.

“If substantial amounts are to be made available, there will be enough for everyone,” he said.

In some recent large transactions, BP and its partner EnBW have been selected as the preferred bidder for two very attractive 60 year leases in the UK’s first round of offshore wind leasing in a decade. TotalEnergies Between earlier this month in a giant offshore wind farm project in the Scottish North Sea.

At the start of the year, Equinor and BP were selected to provide New York State with offshore wind power in one of the largest renewable energy purchases in the United States to date.

Ørsted, for its part, plans to invest the equivalent of more than US $ 57 billion by 2027 as part of a new strategy to become a global player in green energy.

Ørsted, which currently has 12 gigawatts (GW) of renewable capacity installed worldwide, plans to nearly triple that capacity to 50 GW by 2030, the company mentionned on its Capital Markets Day in early June.

By Tsvetana Paraskova for OilUSD

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