[ad_1]
Equinor may post a NOK 9 billion profit after BP buys half of two offshore wind projects in the US – A very good day, Equinor’s director of new energy solutions Pål Eitrheim tells E24.
Here Equinor’s director of new energy solutions, Pål Eitrheim, is glad to have received the Empire license outside of New York in 2017. Now you can be happy that the company earns NOK 9 billion from the sale of two wind power licenses US Navy.
Eskil Eriksen, Equinor
Published:
BP buys half of the licenses for the Empire Wind and Beacon Wind projects off the east coast of the United States for $ 1.1 billion (9.89 billion crowns).
This means the two licenses are valued at $ 2.2 billion, 12 times more than what Equinor gave when it won the 2017 and 2019 auctions. Equinor paid a total of $ 177.5 million for the two licenses.
– I think it’s a very good day. This is a sale and a deal that creates good values. We count a profit of approximately $ 1 billion as a result of the sale, Equinor’s director of new energy solutions, Pål Eitrheim, tells E24.
– Is it common with such a large increase in value?
– We are at least very satisfied with the agreement that has been signed, says Eitrheim.
also read
Equinor sells its stake in offshore wind in the US for about $ 10 billion.
Obvious benefits
Several countries have offshore wind auctions and many of them offer a guaranteed minimum price for electricity. But bidding can be demanding and Equinor has lost a few rounds.
In recent years, there has been strong growth in offshore wind, and development of the technology has contributed to larger turbines and falling development costs. Eitrheim believes that there are several reasons for the increased value of the licenses.
Prime Minister Erna Solberg and CEO Eldar Sætre at Equinor are looking at the area outside of New York where the Empire Wind project will take place.
Pontus Höök
– I think it’s a combination of several things. I believe that many have opened their eyes to the fact that offshore wind will be instrumental in driving the restructuring of the energy sector globally. It will be a sector of enormous growth, he says.
The first half of 2020 has been a record bustle for the offshore wind industry. Projects for 28 offshore wind farms were financed for a total of $ 35 billion during the half year, 319 percent more than in the same period last year, according to figures from Bloomberg New Energy Finance.
Last year, a record amount of offshore wind power was installed worldwide, 6,100 megawatts. The industry organization Global Wind Energy Council (GWEC) expects 6,600 megawatts to be installed in 2020 and predicts an eight-fold increase by 2030.
– Offshore wind power has some obvious advantages. One is that it can supply green energy on a large scale, it has a relatively high capacity factor (uptime per year, journal.anm.), And it has a technological development in which the size of the turbine has reduced costs within the fixed turbines. We think the same can happen with floating offshore wind power, says Eitrheim.
There, the company has high hopes. Equinor came out early with its Hywind concept for floating turbines, with a test turbine installed as early as 2009. The company has expanded the 30-megawatt Hywind Scotland floating wind farm and is now building the 88-megawatt Hywind Tampen.
– When Hywind Tampen is operational in 2022, we will operate a third of the fleet with floating offshore wind power, says Eitrheim.
– It has done a lot of good
As head of new energy solutions, Eitrheim is responsible for both CO₂ purification and offshore wind power, which are important focus areas for Equinor. He points out that Equinor in the February capital market session gave signs that this type of sale in renewable projects is an important part of the company’s strategy.
– This frees up capital that can be used for further growth in renewable energy, he says.
– For me, this is an agreement that confirms that Equinor has done a lot of good. We have taken initial positions, acquired competence and experience. I am incredibly proud of those who have helped transfer the offshore expertise from oil and gas to offshore wind, says Eitrheim.
The Empire project is the more mature of the two licenses where BP now becomes a co-owner. Phase one will cost around three billion dollars, and there is the possibility of a second phase of the project. The Beacon project may take a little longer to develop and there are also plans for a two-phase development.
Has sold other projects
Equinor has also previously sold parts of its offshore wind projects. Last year, the company sold a quarter of the Eon Arkona-operated offshore wind farm in Germany to a Credit Suisse fund for NOK 5 billion.
The company also has several co-owners of the British Sheringham Shoal and Dudgeon projects. In addition, Equinor will develop the gigantic Dogger Bank project together with SSE.
The model of selling himself into projects to finance new projects is something that Danish Ørsted has also pursued in recent years. It is also a model that Statkraft wants to use for his projects. Eitrheim will not say whether it will consider selling to more projects.
– I don’t want to comment on that, says Eitrheim.
