The Aberdeen Offshore Wind Farm is on track to come online from early 2018, after Vattenfall yesterday confirmed it would invest more than £300m in the 92.4MW project.

The Swedish utility announced it has reached a final investment decision and triggered an agreement to acquire the Aberdeen Renewable Energy Group’s 25 per cent share in the project for an undisclosed sum, making Vattenfall the 100 per cent owner of Aberdeen Offshore Wind Farm Limited.

The 11-turbine project is intended to test and demonstrate technologies and techniques capable of slashing the cost of offshore wind power.

Gunnar Groebler, senior vice president and head of business area wind at Vattenfall, said the project promised to deliver a major boost to the region.

“Vattenfall, AREG, The Crown Estate, the Scottish Government and many others have been working since consent in 2013 to deliver the project and support the increasing competitiveness of the offshore wind sector,” he said. “Now the Vattenfall team and our contractors will focus on building the project safely and help establish the north east of Scotland as an international centre for offshore wind innovation.”

The move was welcomed by Scotland’s Minister for Business, Innovation and Energy, Paul Wheelhouse, who hailed the decision as “great news for the industry”.

“Scotland is admired around the world for our work in renewable energy,” he said. “This project will keep our nation at the forefront of innovation by allowing energy companies to identify new ways to reduce operating costs. We’re working hard to ensure offshore wind projects can help generate the low carbon electricity supply Scotland needs and the associated high quality engineering jobs Scotland wants.”

Vattenfall highlighted how the investment decision had come just weeks after the UK’s vote to leave the EU, arguing the project highlights its “long-term aim to extend our wind power capacity in Britain”.

“The British government wants wind power to continue to make up a significant part of the country’s climate-neutral electricity generation,” said Magnus Hall, CEO and president at Vattenfall, in a statement. “We aim to be a part of this development and grow in Britain. Above all we believe that the British and Scottish governments will continue to support the growth of offshore wind power in line with the ongoing reduction of the associated costs.”

The move came as Bloomberg reported the government will provide long-awaited details on the next round of auctions of price support contracts for new offshore wind projects in the coming weeks. The auction round is expected to take place before the end of the year and is designed to deliver a new wave of offshore wind projects capable of delivering further cost reductions for the industry.

Liberty Group investment

In other offshore renewables news, the BBC reported today that steel firm Liberty Group has acquired equipment from Welsh wind turbine tower manufacturer Mabey Bridge following its closure last year.

Liberty Group’s executive chairman, Sanjeev Gupta, is also an investor in the proposed Swansea Bay tidal lagoon project and the BBC said the company is now expected to use the new equipment to provide masts for the offshore wind industry, pylons for National Grid, and turbine casings for Tidal Lagoon Power, if the Swansea Bay project secures approval.

“Our aim is to create a world-class centre for the production of tubular towers and other large-scale steel fabrication,” Gupta was quoted as saying. “Most of these products are currently imported, so there is great potential to substitute this with our own production of best-in-class and competitive British towers.”

He added that it was “particularly appropriate” that the new business would supply the renewable energy market, as Liberty Group’s wider ‘green steel’ strategy aims to use renewable energy to produce steel in the UK.

RSPB challenge

However, in less encouraging news for the offshore wind industry a court ruling this week could represent a major setback for four planned Scottish projects.

A Scottish court ordered the Scottish government to reconsider planning approvals granted in 2014 for the Inch Cape, Neart na Gaoithe and Seagreen Alpha and Bravo offshore wind projects following a legal challenge from RSPB Scotland.

Lawyers for the conservation group successfully argued ministers should have given more consideration to the potential impact of the projects on marine wildlife.

Minister for Business, Innovation and Energy Paul Wheelhouse said the Scottish Government would now consider the ruling, but also stressed it “remains strongly committed to the development of offshore wind energy”.

“Clearly, protecting Scotland’s marine environment is of paramount importance: it is at the heart of the Scottish Government’s approach to offshore renewable energy applications, and we are keen to work constructively with both the RSPB and renewable energy developers to ensure the sector has a bright future in Scotland,” he said.