Ørsted (Dong Energy): £7bn potential to the UK economy in wind energy export market
In the same week that Dong Energy has changed its name to Ørsted following the sale of its fossil fuel assets, the firm based in Copenhagen, Denmark, has estimated that the wind energy export market could be worth as much as £7bn to the UK by 2050.
Speaking at an event at the political Conservative party conference, Ørsted’s Head of Programme Assets Management, Benj Sykes, has said that the industry is likely to be worth anywhere between £5bn to £7bn in the next 30 years.
“We need to make sure we can access those markets where the opportunities lie,” he said, speaking of the countrywide need to seize potential export deals presented by Brexit.
Having been awarded a contract for its current Hornsea project, Ørsted is currently building the world’s largest offshore wind farm, expected to provide 1.4GW of power.
“This is a breakthrough moment for offshore wind in the UK and a massive step forward for the industry,” said Matthew Wright, Managing Director of the company.
“Not only will Hornsea project two provide low cost, clean energy to the UK, it will also deliver high quality jobs and another huge boost to the UK supply chain.”
Being built 89 miles off the coast of Yorkshire, the wind farm will produce enough energy to provide power for as many as 1.3mn UK homes.
Drax advances biomass strategy with Pinnacle acquisition
The Group’s enlarged supply chain will have access to 4.9 million tonnes of operational capacity from 2022. Of this total, 2.9 million tonnes are available for Drax’s self-supply requirements in 2022, which will rise to 3.4 million tonnes in 2027.
The £424 million acquisition of the Canadian biomass pellet producer supports Drax' ambition to be carbon negative by 2030, using bioenergy with carbon capture and storage (BECCS) and will make a "significant contribution" in the UK cutting emissions by 78% by 2035 (click here).
This summer Drax will undertake maintenance on its CfD(2) biomass unit, including a high-pressure turbine upgrade to reduce maintenance costs and improve thermal efficiency, contributing to lower generation costs for Drax Power Station.
In March, Drax secured Capacity Market agreements for its hydro and pumped storage assets worth around £10 million for delivery October 2024-September 2025.
The limitations on BECCS are not technology but supply, with every gigatonne of CO2 stored per year requiring approximately 30-40 million hectares of BECCS feedstock, according to the Global CCS Institute. Nonetheless, BECCS should be seen as an essential complement to the required, wide-scale deployment of CCS to meet climate change targets, it concludes.