Shell and ScottishPower Renewables (SPR) have exchanged their interests in two joint floating offshore wind projects in Scotland. SPR has taken full control of the 3 GW MarramWind, while Shell is now the sole owner of the 2 GW CampionWind. However, Shell has returned the CampionWind lease to Crown Estate Scotland, as confirmed to offshoreWIND.biz.
“After a comprehensive review and in line with Shell’s refocused power strategy on leveraging strengths in trading and retailing, the decision was made not to continue with the CampionWind project. Shell, therefore, returned the lease option to Crown Estate Scotland (CES),” a Shell spokesperson told offshoreWIND.biz.
“Shell believes returning the CampionWind lease to CES will offer the best opportunity for any potential future for the site. Substantial pre-investment work has already been done to de-risk the site, which Shell hopes will support any possible future endeavors.”
ScottishPower and Shell were awarded seabed rights for the MarramWind and CampionWind floating wind project sites in the ScotWind auction in 2022.
The news of Shell exiting the two Scottish offshore wind projects follows its voluntary withdrawal from Atlantic Shores Offshore Wind, where it assigned its 50 percent membership interests to its partner, EDF, ending its participation in the US offshore wind market.
The exit from the US project is partly due to Shell’s broader strategic review announced last year and challenges in the now uncertain US market.
The ownership swap and subsequent CampionWind lease return in Scotland are outcomes of Shell’s recently announced strategy refresh.
Shell emphasized that its broader strategy now prioritizes power trading and integrated energy solutions over holding majority stakes in power generation assets. The company plans to support the UK’s offshore wind sector through trading, marketing, and development via long-term contracts, according to the spokesperson.
As for MarramWind, Reuters reported that the project’s new sole owner, ScottishPower Renewables, will continue the development of the 3 GW floating wind farm and maintain engagement with local communities and businesses.
Reuters also noted that for the CampionWind site, located 100 kilometers offshore the east coast of Scotland, Crown Estate Scotland will assess options according to market demand.
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Original Story at www.offshorewind.biz