Shell, BKK and Lyse will lead the way in the restructuring of Norway, and join forces to develop offshore wind. The three companies plan to apply for licenses for both fields that the Norwegian authorities have opened up for development, Sørlige Nordsjø II and Utsira Nord.
– We are establishing a long-term, industrial partnership with a common ambition to be central in the work with green change. With this, we will contribute to the development of new profitable jobs and sustainable industry in Norway. 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 licenses, says CEO Marianne J. Olsnes of Norske Shell. Shell has been a global player in wind power for over 20 years, with wind power projects in Europe, the USA and Asia.
The cooperation agreement between the three companies was signed recently. The work of preparing the two applications is well underway. The alliance has great ambitions for the project, and believes that especially the Southern North Sea II, with its location on the border of the Danish shelf, is ideal for connection to Europe. Both fields are demanding in relation to development solutions and technology, but the partnership represents competence and capacity that has moved the boundaries of what is possible in the past.
– We see Norway as an interesting area both to ensure Europe enough renewable electric power and to develop floating offshore wind solutions that can become commercial. Also from a global perspective, we see Lyse and BKK as valuable partners with expertise from hydropower and grid solutions, says Hessel de Jong, who heads Shell’s offshore wind business in Europe.
Great opportunities for the supplier industry in Norway
The authorities allow Utsira Nord to have up to 1500 MW offshore wind and Sørlige Nordsjø II up to 3000 MW. While Sørlig Nordsjø II challenges the current boundaries of bottom-fixed technology, Utsira Nord will require innovative solutions for floating wind power.
– We have not tied ourselves to a specific supplier of technology. Our projects will provide great opportunities for the Norwegian supplier industry. The Norwegian supplier industry is world-class in terms of innovation, quality and safety requirements. The market for offshore wind is growing strongly globally, and we want to contribute to the Norwegian supplier industry being able to create a competitive advantage in the world, says CEO Eimund Nygaard in Lyse.
Interaction between wind and water
BKK and Lyse have in-depth knowledge of the entire energy system with production of renewable energy, construction of complex infrastructure and good knowledge of energy trading and power exchange.
– The two renewable energy forms hydropower and wind power complement each other perfectly. The North Sea has one of the world’s best wind resources. When there is a lot of wind, we can save water in our reservoirs. When the wind is calm, we can cover the demand for power with the adjustable hydropower. We want to contribute to the electrification of the oil and gas industry and connect the offshore wind development in the southern part of the North Sea to relevant markets in Europe. The interaction between offshore wind and hydropower and between Norway and Europe will be an advantage here, says CEO Jannicke Hilland in BKK.
Facts about the actors
Shell will become a net zero-emission company by 2050 and has ambitions to be a total supplier of renewable energy to both individuals and companies worldwide. With the new partnership, Shell anchors its plans to also become a renewable player in Norway. The company builds on deep technological and commercial expertise as well as a global marketing apparatus. It was Shell who found Troll, the largest gas field in Norway and designed the giant Troll A – which is the largest humanity has built and then moved to its destination. Norske Shell is headquartered in Stavanger and is the operator of fields on the Norwegian shelf and will produce gas for several decades to come. Shell has 80,000 employees in more than 70 countries and has been in Norway for 109 years.
BKK is the largest company in renewable energy in Western Norway, and one of Norway’s largest hydropower producers. BKK owns 38 hydropower plants, and is also responsible for important infrastructure such as power grids, fiber, district heating and charging. BKK is owned by Statkraft, 17 municipalities and two municipal power teams in Western Norway. The company is headquartered in Bergen and has over 1300 employees.
Lyse is the country’s third largest hydropower producer. Nationally, the group has become a significant challenger in fiber-based broadband and delivers products and services under the Altibox and Smartly brands. Lyse has experience with complex infrastructure projects, including transmission cables abroad. Lyse is owned by 14 municipalities in Sør-Rogaland. The group is headquartered in Stavanger and has over 1300 employees.