MEMBER NEWS: Aberdeen Offshore Wind Farm reports 2020 profits of £16m

August 3, 2021
MEMBER NEWS: Aberdeen Offshore Wind Farm reports 2020 profits of £16m

Courtesy of Energy Voice.

A prominent north-east offshore wind farm made millions of pounds last year in spite of the impact of Covid-19.

Aberdeen Offshore Wind Farm, located just a handful of miles from the Granite City, reported pre-tax profits for 2020 of £16 million.

That is a relatively sizeable increase on 2019’s figure of £12.96m.

Also known as the European Offshore Wind Deployment Centre (EOWDC), the development reported 2020 revenue of £48.9m, a fractional drop on the £51.6m it turned over last year.

The marginal decrease was primarily put down to volatility in power prices, driven by weaker demand resulting from lockdowns across much of Europe.

In the long term, a “slightly higher” turnover is expected as the UK reaches “some level of normalcy” and prices increase.

The financial results for the 93.2 megawatt (MW) offshore wind farm were submitted by its owner, Swedish renewables giant Vattenfall.

Opened in September 2018 by First Minister Nicola Sturgeon, the development cost about £340 million to build and its 11-turbines are among the most powerful in the world. It is expected to operate for about 25 years.

Jean Morrison, chairwoman of Aberdeen Renewable Energy Group (AREG), which had a hand in conceiving the wind farm, said: “These results are very encouraging. The EOWDC is a valuable test site for many new technologies and is playing a vital role in developing the next generation of offshore wind projects.

“With the recent interest in the ScotWind leasing round, it shows that the Scottish offshore wind sector is in a very healthy place and we must capitalise on that with the growth of a strong, local supply chain.

“This project continues to give back to the region. Vattenfall’s commitment to investing up to £150,000 per year throughout the life of the wind farm is ensuring that important community projects are supported across the north east.”

The development in Aberdeen Bay was created to act as a test bed for new offshore wind technologies.

Vattenfall announced in January that it planned to kit out each turbine with the “world’s first” in-tower toilet.

The cubicle will address the industry’s long standing “elephant in the room”, increasing safety and productivity.

But the EOWDC hasn’t proved popular with everyone. In 2014, former-US President Donald Trump sought to derail the development by mounting a legal challenge against the plans.

Mr Trump claimed the turbines would negatively impact the view from his golf course in Balmedie, Aberdeenshire.

In 2019, about four years after his case was dismissed, Trump International Golf Club Scotland was told it had to pay £225,000 to the Scottish Government in order to cover the legal fees.

Commenting on the EOWDC’s financial results, Stephen Flynn, SNP MP for Aberdeen South, said: “This appears to be highly encouraging and demonstrates that with the right support, offshore wind can deliver.

“Scotland’s renewables potential is huge and our reputation can only be enhanced by the success of projects like this.”

He added: “This project has really come up trumps and the Scottish Government deserve huge credit for backing the development despite immense pressure from a certain golf club owner.”

Read the article on the Energy Voice website here.

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AREG is the original energy transition organisation, working on behalf of members to empower the energy supply chain and champion its expertise. Please get in touch if you have any questions or would like to find out more about membership.

Contact Us
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AREG has played an important role in the growth of Scotland’s renewable energy sector, engaging the supply chain and developing the European Offshore Wind Deployment Centre. However, we are only at the very beginning of the transition that AREG was established to both lead and support so there are still opportunities for companies to get into the constantly evolving renewables supply chain. We look forward to continuing our work together as renewables builds on its place as Scotland’s main source of power, and as we seek to deliver real change in the crucial areas of heat and transport.

Scottish Renewables
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Aberdeen & Grampian Chamber of Commerce has worked closely with AREG since its formation. The recent progress in the developments of offshore wind projects by Equinor and Vattenfall are as a result of the work of the group over many years. The north-east is known as the oil and gas capital of Europe. At the Chamber, we believe the region must evolve its position to being recognised as the energy capital. Whilst hydrocarbons will continue to be essential in driving our economy for years to come, the generation of renewable resources will play an increasingly important role in providing cost-effective power, innovative development and economic growth.

Aberdeen & Grampian Chamber of Commerce
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The enthusiasm and dedication of the early group that would become AREG was fundamental in us choosing to launch All-Energy in Aberdeen. The first tiny show was held in 2001, and AREG’s Chairman at the time, Jeremy Cresswell, played such an active role that I often describe him in terms such as All-Energy’s ‘midwife’. All-Energy is now the UK’s largest renewable and low carbon energy exhibition and conference in terms of number of attendees, space booked, and number of exhibiting companies. As AREG became firmly established, their presence and support for the event grew spectacularly over the years. We thank them most sincerely for their invaluable input.

All-Energy
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Vattenfall has forged a strong working relationship with AREG through the development of the European Offshore Wind Deployment Centre. AREG has worked tirelessly on behalf of the North East and it can take enormous credit for the growth of sustainable energy in the region and the path it has cleared for the region to capture further investment.

Vattenfall
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Aberdeen City and Shire is emerging as a key location for renewables by successfully transferring its world-class oil and gas expertise into the sector and AREG has done much to advance this through a broad range of initiatives. It has acted as a catalyst in driving further investment in the local economy by engaging with companies, Government, public bodies and existing projects and we have been pleased to support their efforts. Scottish Enterprise will continue to engage with AREG as we increase Scotland’s use of renewable energy.

Scottish Enterprise