UPDATE: E.ON, Dong Partner To Bid In UK Offshore Wind Tender
March 03 2009 - 1:17PM
Dow Jones News
Germany utility E.ON AG (EOAN.XE), Denmark's Dong Energy A/S and
Norway's Fred. Olsen Renewables said Tuesday they have formed a
consortium to bid in the U.K.'s Round 3 tender to develop up to 25
gigawatts of offshore wind.
The consortium has bid for exclusive rights on a number of zones
in the tender, a statement from the companies said.
"Round 3 represents a challenge to both developers and the wider
industry. Nothing on this scale has been done before," said Niels
Bergh-Hansen, executive vice president of DONG Energy.
The consortium is competing with European energy companies and
utilities, including Norway's StatoilHydro ASA (STO), Spain's
Iberdrola Renovables SA (IBR.MC), Germany's RWE AG (RWE.XE) and the
U.K.'s Scottish and Southern Energy PLC (SSE.LN) who have already
formed partnerships to bid in the round.
"We have brought together companies with the financial ability
and the experience of working on major on- and offshore wind
projects, as well as working in difficult offshore conditions in
the oil and gas industry, to make this a success," said Dave
Rogers, E.ON's regional director for renewables.
The consortium members have been involved in over 60% of
existing operational offshore wind farms around the world and are
currently building five offshore wind farms with a capacity of 800
megawatts.
The three companies have worked together on renewable and
offshore wind projects dating back to the 1990s and have
contractual commitments extending beyond 2020.
Interest in Round 3 exceeded expectations after 96 U.K. and
international companies registered following the launch of the
tender last year.
The U.K.'s Crown Estate, which is conducting the licensing
round, said earlier Tuesday it was encouraged with the response it
had received and would issue more details March 16 following an
initial assessment of all the submissions.
The Crown Estate hopes to complete awards towards the end of
2009. It has estimated that construction is likely to require
investment of between GBP60 billion and GBP80 billion.
Fred. Olsen Renewables is a wholly owned subsidiary of
Oslo-listed Bonheur ASA (BON.OS) and Ganger Rolf ASA (GRO.OS).
-By Selina Williams, Dow Jones Newswires +44 207 842 9262;
selina.williams@dowjones.com