Shell, Lyse, BKK team up for offshore wind bids in Norway

Shell has joined Norwegian utilities Lyse and BKK to bid to develop offshore wind in Norway, the companies said June 17.

The partnership would bid to develop fixed-bottom capacity in the Sorlige Nordsjo II (SN2) licence area as well as floating turbines at Utsira Nord, it said.

"Together we can offer the best from global to local resources in a joint project, and become a very solid applicant for these offshore wind concessions," Norske Shell CEO Marianne Olsnes said.

Shell is the fourth oil and gas company to express interest in the Norway offshore wind tenders with some 4.5 GW on offer.

Energy minister Tina Bru said June 8 that it expects to award concessions for two or three areas without subsidy at SN2.

Details for the tender would be given in Q1 2022.

The 2,596 square km area, which borders the Danish sector in Norway's Southern North Sea, was ideally positioned to deliver electricity into Europe.

Regulation of such hybrid projects is being discussed in the EU and in the North Sea Energy Cooperation with Norway's government currently assessing impacts and legal aspects aiming to clarify details in advance of an award of areas.

Shell said the area was "ideal for connection into Europe."

Meanwhile, subsidies were expected for up to three 500 MW floating offshore wind projects at Utsira Nord offshore Haugesund.

Shell in 2019 bought floating wind developer Eolfi in France.

In the Netherlands, a 750 MW offshore wind project awarded to a consortium involving Shell in 2016 started this year, while Shell and utility Eneco were awarded the 750 MW HKZ concession without subsidies.

Norway offshore wind interest

On June 14, BP joined Norwegian utility Statkraft and construction company Aker to bid for projects at SN2. A consortium of Equinor, German utility RWE and aluminum maker Hydro already declared interest in May.

Denmark's Orsted, Fred Olsen and Oslo utility Hafslund also formed a partnership for bottom-fixed and floating offshore wind in Norway.

German utility EnBW would bid with Norwegian partners only for a fixed-bottom project within the SN2 area, while Italy's Eni partnered with Equinor to bid for a floating project.