Leasing deal agreed for third huge floating offshore windfarm in the Celtic Sea

The 1.5 gigwatt project from Ocean Winds would straddle both Welsh and English waters in the Celtic Sea

A leasing agreement for a huge floating offshore windfarm in the Celtic Sea, which would straddle both English and Welsh waters, has been agreed. Ocean Winds, the 50-50 joint venture between Spanish firm EDPR Renewables and French venture ENGIE, has entered into an agreement with the Crown Estate for a 1.5 gigawatt project.

It comes after last year Norwegian energy venture Equinor and Gwynt Glas – a joint venture between EDF power solutions and Irish Government-owned ESB – entered into lease deals with owner of the seabed for their respective 1.5 gigawatt floating wind farm schemes.

The project from Gwynt Glas is solely in Welsh waters off the coast of Pembrokeshire, while the scheme from Equinor is located wholly in English waters. The leasing deals were struck under the Crown Estates’s offshore wind leasing round five.

A bidder for the site in both Welsh and English waters initially failed to materialise following a competitive bid process, which led the Crown Estate to re-engage with the marketplace and the resulting agreement with Ocean Winds.

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Once all three are operational, which will be in the mid 2030s, they will have combined capacity for 4.5 gigawatt of clean energy that would generate the electricity needs for more than four million homes and create more than 5,000 direct and supply chain jobs – creating a £1.5bn economic boost.

However, it is not clear how many supply jobs will be Wales and UK-based. All three operators will also be seeking contract for difference support, which will ensure energy produced will be commercially viable, from the UK Government. Turbines could be as high as the Shard building in London at 300 metres on floating platforms similar in size to a football pitch. They will be anchored to the seabed via huge chains.

In its Senedd Election manifesto Reform said it would block all new onshore and offshore renewable projects in Wales. The Celtic Sea projects are not a devolved planning matter, so would require Reform to form the next Westminster Government to implement.

Ocean Winds is a global leader in floating technology and delivered the world’s first semi-submersible floating wind farm, WindFloat Atlantic, in Portugal in 2020. It also delivered fixed bottom offshore wind in the UK including Moray East and Moray West.

Ocean Winds will now focus on developing its project designs, delivering onshore and offshore site surveys, Environmental Impact Assessments (EIA), public engagement and securing planning consents.

Julia Rose, head of offshore wind at the Crown Estate, said: “Round five is such an exciting opportunity to establish an innovative new technology at commercial scale in the UK, supporting many new jobs whilst also contributing to our national energy security and clean energy transition.

“Ocean Winds entering into an agreement for lease for their site in the Celtic Sea is a significant moment and testament to the attractiveness of the UK’s world-leading offshore wind sector. We’re delighted they have achieved this milestone and look forward to working closely with them as they begin their development stage.”

Adam Morrison, UK country manager at Ocean Winds said: “Signing the agreement for lease for the Celtic Sea site demonstrates our commitment to the development of commercial scale floating offshore wind in the UK. Over the coming years we will begin early-stage development work, engaging with local stakeholders to identify opportunities to deliver lasting benefits to our local communities whilst supporting the UK’s energy security and net zero objectives.”

Michael Shanks, Minister for Energy, said: “This is a big step forward, not just for the Celtic Sea, but for Britain’s clean energy future. We’re seeing real momentum behind floating offshore wind and we’re backing an industry where the UK has the expertise to lead.

“This project will mean new skilled jobs and opportunities for communities across Wales and the south West of England. Offshore wind is the backbone of a secure energy system, and today’s milestone shows we’re getting on with the job – investment, jobs and clean, homegrown power that we control.”

Welsh Government Cabinet Secretary for Economy, Energy and Planning, Rebecca Evans said: “This agreement marks another major step forward in our mission to make Britain a clean energy superpower. Ocean Winds joining Equinor and Gwynt Glas in the Celtic Sea demonstrates continued investor confidence in Wales. These projects will create thousands of skilled jobs and help secure our energy independence for generations to come.”