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INTOG secures exclusivity agreements for Scottish offshore wind

4C Offshore | Chloe Emanuel
By: Chloe Emanuel 19/05/2023 Crown Estate Scotland

INTOG leasing, a pioneering initiative, is poised to attract investment in offshore wind projects in Scottish waters while driving the decarbonization of North Sea operations. This process allows developers to apply for seabed rights to develop projects that either reduce emissions from the North Sea oil and gas sector by supplying renewable electricity directly to oil and gas infrastructure (TOG) or consist of small-scale (IN) innovative projects of 100 MW or less.

The much anticipated announcement on March 24 unveiled 13 projects, with five classified as IN and eight as TOG, being offered initial agreements called Exclusivity Agreements. These agreements encompass projects with a proposed capacity of up to 499 MW for the IN category.

As a result, all five IN projects have now secured Exclusivity Agreements, granting the successful applicants the green light to commence offshore wind development work while Marine Scotland's planning process for the INTOG Sectoral Marine Plan (INTOG SMP) is underway.

Once a proposed project is included in the final INTOG SMP, an option agreement will be offered, facilitating project progression through the planning, consenting, and financing stages. It's important to note that the responsibility for these subsequent steps does not rest with Crown Estate Scotland. The projects will only advance to a full seabed lease once all these multifaceted development stages have been successfully completed.

INTOG applications were evaluated through an open auction process, with judgments based on a combination of price and quality, fostering fair competition and promoting innovation in the sector. Option agreements are expected to be extended in 2024, contingent upon developers submitting a Supply Chain Development Statement (SCDS) to secure their position. Information derived from these Statements will be made publicly available, promoting transparency and accountability.

The TOG projects are anticipated to finalize their Exclusivity Agreements later this year, further solidifying INTOG's comprehensive and transformative approach to offshore wind development. INTOG's framework not only cultivates groundbreaking innovation in the offshore wind sector but also propels the transition to a sustainable and decarbonized energy landscape in the North Sea.

The Exclusivity Agreements mark a pivotal step toward unlocking the immense potential of Scottish waters, paving the way for groundbreaking projects that will revolutionize the energy industry and contribute significantly to the nation's net zero aspirations.

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