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Wood Mackenzie: Big Oil involved in

30% of offshore wind FIDs in 2020

GLOBAL MAJOR European oil companies were involved oil companies at least. Large European oil com-
in 30% of the offshore wind final investment panies have targeted 125 GW in renewables by
decisions (FIDs) in 2020 globally, says research 2030, says Wood Mackenzie. US oil companies
by the Scotland-based consulting firm Wood such as ExxonMobil and Chevron are lagging.
Mackenzie. The multi-billion-dollar offshore wind sector,
Last year saw a record 8.7 GW of offshore which is highly capital intensive, is also booming
wind FIDs, noted Søren Lassen, Wood Macken- globally, especially in the UK and other countries
zie’s head of offshore wind research, in the con- bordering the North Sea, and in China and else-
sultancy’s recent webinar, Big Oil’s impact on the where in Asia. Wood Mackenzie forecasts global
transformation of offshore wind. installed capacity will exceed 200 GW by 2030.
The oil companies involved were Equinor, “Big Oil always goes in big,” commented
Total, Eni and Royal Dutch Shell. Simon Flowers, chairman of Wood Macken-
“The FIDs in 2020 clearly show the impact zie. “It has to, if any new strategic position is to
the majors are having in the offshore wind sec- make a material impact on its massive portfo-
tor,” Lassen said, according to Riviera Maritime lios. And offshore wind is the big new thing the
Media. European Majors are seizing upon, an ‘oven-
“They are clearly here to stay too. The majors ready’ zero-carbon technology with big growth
also won half of the tenders for offshore wind prospects.
projects in 2019-2020,” he said. “Just this week, BP and Total made head-
His research indicated that in contrast, oil line-grabbing bids in the latest UK offshore wind
companies accounted for only 2% of the 3.7 MW lease round,” he said.
of projects reaching FID in 2019. That company Capacity growth is going to be huge and sus-
was Norway’s Equinor. Shell accounted for 3% tained over decades, added Flowers. “Offshore
of the 4.2 MW of green-lit projects in 2018, and wind is niche today at 35 GW, just 6% of global
no oil companies were investors in offshore wind wind capacity, most of which is onshore. But
projects that were given the go-ahead in 2017. recent technology advances – bigger turbines,
The startling trend is important because oil higher capacity factors, floating turbines – have
companies must futureproof themselves against got offshore wind to the cusp of scaling up,” he
the inevitable energy transition by diversifying. said.™
Big Oil is becoming Big Energy, for Europe-based

P10 www. NEWSBASE .com Week 12 •24 March•2021