200-turbine wind and hydrogen plan floated by green infrastructure developer

Cerulean has undertaken the necessary infrastructure planning for the scheme to ensure the required level of project readiness, targeting financial close in Q1 2022. Construction would start soon after with energisation commencing in 2024. An Infrastructure Project Finance model, commonly used for major capital projects is being adopted and Société Générale, one of the leading European financial services groups is advising Cerulean Winds.

Cerulean Winds founding director Dan Jackson said, “The UK is progressing the energy transition, but a sense of urgency and joined-up approach is required to enable rapid decarbonisation of oil and gas assets or there is a risk of earlier decommissioning and significant job losses.

“Emissions are quite rightly no longer acceptable, but with emissions penalties and taxes coming, the UK oil and gas industry’s role in homegrown energy security during the transition could be threatened unless current decarbonisation efforts can be greatly speeded up. The consequences of not moving quickly enough will be catastrophic for the economy and the environment.”

Société Générale global head of power advisory and project finance Allan Baker said, “The Cerulean UKCS decarbonisation project has the potential to meet all of the basin’s transition needs by reducing oil and gas emissions as quickly as possible while also introducing large-scale green energy. We are pleased to be supporting the leadership on what is a transformational proposition for the UK.”

Corporate finance advisors to the energy industry Piper Sandler are also advising. Piper Sandler managing director project finance Tim Hoover said, “Piper Sandler investment bankers in the UK and in the US have partnered with Cerulean’s leadership over the last year to develop the UKCS decarbonisation model and we are pleased it is now at the regulatory approval stage. It is a scheme that understands the needs and requirements of the financial markets to make it bankable.”

Cerulean estimates that 160,000 oil and gas jobs can be safeguarded and 200,000 new roles within the floating wind and hydrogen sectors will be created within the next five years. Mr Jackson added, “We have a transformative development that will give the UK the opportunity to rapidly decarbonise oil and gas assets, safeguard many thousands of jobs and support a new green hydrogen supply chain.

“The decision to proceed with the scheme will ultimately rest with the Scottish Government and Marine Scotland and their enthusiasm for a streamlined regulatory approach. The ask is simply that an exceptional decision is made for an extraordinary outcome. We are ready to deliver a self-sustained development that will decarbonise the UKCS and be the single biggest emissions abatement project to date.”

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