Announcing three new floating wind projects

This announcement is an important step forward in the government’s offshore wind initiative. In addition to providing power to a region with high electricity demand, the announcement represents significant opportunities for new contracts for the supplier industry, said Norwegian Minister of Energy, Terje Aasland as he released the news.

The announcement and all related documents are available on this page: Utsira Nord

The allocation of project areas and state aid will occur in two stages, with a maturation phase in between. In the first stage, three project areas will be awarded to the applicants who score highest in a competition based on objective and non-discriminatory criteria:

• Cost level, realism, and maturity
• Innovation and technological development
• Implementation capability
• Sustainability
• Positive ripple effects

Auction

The competition for state aid will be conducted after the maturation phase. To participate in the state aid competition, applicants must have submitted a license application and provided a bank guarantee for participation in the auction. The auction will only be held if at least two applicants meet the requirements.

One applicant will be awarded state aid, and the winner will be the one who bids the lowest support requirement to realize their project. Bids above the maximum state aid limit of NOK 35 billion will not be accepted.

The winner must establish a project as close to 500 MW as possible, depending on the chosen turbine size. Applicants who do not win the support competition may apply to extend their exclusive rights to the project area under the Offshore Energy Act.

Mature locations

The project is expected to be an important step in the development of commercial floating offshore wind on the Norwegian continental shelf.

The government also plans regular announcements of areas and support competitions, as outlined in the Ministry of Energy’s Prop. 1 S (2024–2025). The level of state aid will be determined in connection with each announcement round and approved by the national assembly Stortinget.

- I look forward to receiving strong applications from the offshore wind industry. The model for awarding project areas and state aid is tailored to floating offshore wind and can contribute to both technological development and cost reductions for future projects. The model has been developed in close dialogue with the offshore wind industry, comments Minister of Energy Terje Aasland. Photo: Charlotte H: Lem. 

The Ministry has also tasked the Norwegian Water Resources and Energy Directorate (NVE) with conducting strategic environmental assessments of identified offshore wind areas in Norwegian waters. These assessments will be completed by the end of June 2025. They will evaluate coexistence with other industries and environmental considerations, providing important information for decisions on future openings and announcements on the Norwegian continental shelf.

Vestland has skills and technology

Decades of experience from oil and gas in Vestland have cultivated a skilled workforce and advanced technologies, easily transferable to offshore wind. This is documented in the report “VindVest 2024” that can be downloaded here.

This industrial history has also made our region able to develop a strong infrastructure for business activities related to marine and maritime operations. The potential to utilize established infrastructure for offshore wind activities is greater in some areas, for example, due to space, location, depth conditions, and axle load capacity, as well as the opportunities arising from established players or the combination of several established players.

Invest in Bergen are dedicated to supporting companies looking to capitalize on the opportunities identified in VindVest 2024.  Don’t hesitate to contact any of our advisors to explore opportunities in the region.