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European Countries Look to North Sea as Green Power Engine

FILE PHOTO: Power-generating windmill turbines are seen at the Eneco Luchterduinen offshore wind farm near Amsterdam, Netherlands September 26, 2017. REUTERS/Yves Herman//File Photo

European Countries Look to North Sea as Green Power Engine

Reuters
Total Views: 891
April 24, 2023
Reuters

By Kate Abnett

OSTEND, Belgium, April 24 (Reuters) – Leaders from European countries surrounding the North Sea pledged on Monday to rapidly scale up offshore wind power generation in the region to strengthen energy security, at a summit in Ostend, Belgium.

Leaders from seven European Union countries, including France, Germany and the Netherlands, alongside non-EU countries Norway and Britain pledged to speed up their buildout of wind farms, develop “energy islands” – or connected renewable generation sites at sea – and work on carbon capture and renewable hydrogen projects in the region.

The aim is to curb reliance on Russian gas, and reduce use of CO2-emitting fossil fuels, which remain dominant. Norway last year became Europe’s biggest gas supplier, after Russia cut deliveries to Europe following its invasion of Ukraine.

“Because of Russia’s brutal war on Ukraine, it has made it absolutely clear that we need to produce more energy ourselves,” said Danish Prime Minister Mette Frederiksen, who added that the massive expansion of renewable energy was crucial to fight climate change.

North Sea Nations to Work Towards Infrastructure Security Pact

In a joint statement, the countries’ leaders said they would aim for a combined 120 gigawatts (GW) ofoffshore wind capacity by 2030 in the North Sea and northern seas including the Irish sea, and 300GW by 2050. 

That would more than quadruple the countries’ 25GW of existing North Sea wind capacity. Belgium, Denmark and Ireland plus Luxembourg, which does not have a coast, also signed the pledge.

The United Kingdom signed the declaration but Prime Minister Rishi Sunak did not attend the summit.

Some countries announced projects to spur the green energy push, which will require bigger investments than countries and companies have planned. The Netherlands and Britain said they plan to build Europe’s biggest cross-border electricity link connected to an offshore wind farm. 

European companies, however, including Orsted and Equinor, warned that their sector is currently too small to support the infrastructure expansion, and increased policy support and funding would be needed to deliver the targets.

French President Emmanuel Macron said the buildout of offshore wind must be driven by European manufacturers, to avoid the expansion of renewable energy creating new dependencies on foreign imports.

“This is a very important opportunity in terms of sovereignty and resilience,” Macron told a news conference. 

Final investment decisions in European offshore wind farms hit a 10-year low in 2022 as developers faced record-high inflation, soaring interest rates and volatile energy markets.

Investment has recovered since, but in future years, European spending required for wind generation is likely to be below target, Wood Mackenzie analysts told Reuters, which would raise the risk of increased reliance on imported parts from China and elsewhere.

The EU and Norway also pledged on Monday to develop infrastructure to capture and store CO2 from industrial emissions in depleted North Sea gas fields.

(Reporting by Kate Abnett, Marine Strauss, Julia Payne; editing by Barbara Lewis and Jonathan Oatis)

(c) Copyright Thomson Reuters 2023.

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