Inch Cape Offshore Wind Farm – Development Update (UK)

The Crown Estate and SeaEnergy PLC are pleased to confirm developments concerning SeaEnergy Renewables Limited’s (SERL) interest in the Inch Cape Offshore Wind Farm (Inch Cape).

In February 2009, The Crown Estate awarded the Inch Cape site to a consortium comprised of SERL, SeaEnergy’s 80% owned subsidiary, and RWE npower renewables as a part of the Scottish Territorial Waters leasing round conducted by The Crown Estate in association with the Scottish Government. In connection with the site award, the consortium entered into an Exclusivity Agreement with The Crown Estate providing the exclusive right for the consortium to negotiate an agreement for lease (AFL) for a term of 50 years. The Exclusivity Agreement also provided the right to undertake further studies into the feasibility of the 905MW offshore wind farm, 15.5 kilometres east of the Angus coastline. Entry into the AFL is scheduled to follow the completion of a Strategic Environmental Assessment by the Scottish Government which is expected later this year.

RWE npower renewables has notified SERL and The Crown Estate of its desire to exit the Inch Cape project. This is due to the considerable size of its other onshore and offshore renewable generation commitments.

The Crown Estate views the Inch Cape project as being important to the delivery of the Scottish Territorial Waters leasing round and to the UK in maintaining the delivery of the Offshore Wind Energy Programme.

To demonstrate their joint commitment to the project The Crown Estate and SERL have entered into discussions with the aim of ensuring that the site’s development schedule and activities can progress as expeditiously as possible. These discussions are intended to lead to the establishment of a Memorandum of Understanding between The Crown Estate and SERL that will provide terms for the delivery of Inch Cape and may increase SERL’s interest in the project.

SERL CEO Joel Staadecker said: “Inch Cape is an important site for Scotland, which expects to benefit from the construction and operation of offshore wind farms off the coast of central Scotland. We are delighted that The Crown Estate shares our commitment to the project and look forward to successful discussions to agree terms for its delivery. We are also very pleased at the prospect of potentially increasing our equity stake in what is a great project.”

It is envisaged that a further announcement will be made when the negotiations have concluded.

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Source: seaenergy, May 25, 2010;