Offshore wind farm construction to start after funding put in place
The construction os a flagship wind farm project off the Angus coast is due to start after raising £3.5 billion in funding.
The 1080 megawatt (MW) development is to be located 15km out in the North Sea and will be the first UK project to use Vestas 15.0 MW turbines. Once operational, its 72 turbines will generate almost five terawatt hours (TWh) of energy each year, with power being delivered to an onshore substation under construction at Cockenzie, East Lothian.
Terms for the £3.5 billion, which includes transmission asset costs, have been reached with lenders comprising 22 banks.
The developer say the project will make a significant contribution to UK’s energy security and emissions reduction targets, as well as to the economy, through use of local suppliers.
Inch Cape has, so far, spent almost £300 million with more than 300 UK companies including environmental, technical and engineering design consultancies, civil and structural engineers, survey contractors and project management support.
Paul Lennon, head of offshore wind, hydrogen and long-term storage at ESB, said: “Reaching this major milestone of financial close is a significant achievement for ESB, Red Rock Renewables and the whole project team. It is testament to the resilience, expertise and capability of the project team, project partners and both shareholders.
“Offshore wind will play a key part in the delivery of ESB’s Net Zero Strategy by 2040 and Inch Cape is an important step along that journey.
Xiaomeng Chen, Red Rock Renewables CEO, added: “This success is a testament to the efficient design and cutting-edge technologies employed by the project, highlighting our resilience and commitment to making it one of the largest green investments in Scotland while contributing to the UK’s net zero goals."
Offshore construction is due to begin in the second quarter of this year, with the start of installation of the export cables and followed by the installation of the offshore platform. First power is expected in late 2026 and with a commercial operation date in 2027.
Inch Cape was first awarded planning consent in 2014 but since then has evolved to incorporate the latest technology and design. It has a 50-year lease with Crown Estate Scotland and has secured 15-year contracts with the Low Carbon Contracts Company (LCCC) through the UK Government’s Contract for Difference (CfD) auctions of 2022 and 2024.
Inch Cape Project Director John Hill said: “I am very proud for the project team – it is a great achievement to reach financial close on the Inch Cape project, which is at the forefront of technology in the offshore wind industry. The project is the largest infrastructure project currently in construction in Scotland and will deliver huge quantities of clean low-cost energy once completed in 2027.”