EnergiWatch Norway has asked French Total Energies for an update on Utsira Nord after Norwegian Energy Minister Terje Aasland postponed the floating offshore wind project again before Easter.

”There are no changes at Skjoldblad,” Norsk Havvind chair Thor Otto Lohne told EnergiWatch Norway before the latest postponement, referring to the consortium consisting of Total Energies, Iberdrola and Norsk Havvind.

In a more recent statement, Total Energies says it ”can confirm Thor Otto Lohne’s statement”. 

”Central role”

In a letter to the Ministry of Petroleum and Energy - sent shortly after Skjoldblad withdrew from the Sørlige Nordsjø II project - the trio of partners wrote that the decision to withdraw from that tender ”does not change our interest in the Utsira Nord auction”.

The letter was sent at the end of November last year, with the three companies emphasizing ”Skjoldblad’s continued belief that offshore wind will be an important part of Norwegian industry and energy supply going forward. Our ambition to play a central role in this remains unchanged”.

Before Easter - and before it was announced that Utsira Nord was postponed further - Selmer partner Håkon Sandbekk announced that at least one leading foreign player had decided to withdraw from the offshore wind project. The reason is the delayed application deadline and other uncertainties.

”I’m pretty sure that several foreign players will not continue, even though the Ministry of Energy will soon provide a new application deadline for Utsira Nord,” Sandbekk said.

Shortly after the story was published, news broke that Utsira Nord will be postponed until next year.

Off-putting contract structure

Sandbekk problematized several parts of what he describes as the government’s overall package, including the contract structure.

”The structure of the differentiated contract and the level of state aid for Sørlige Nordsjø II may deter more people from proceeding with Utsira Nord. The government should signal its intention to improve the conditions for the Utsira Nord round,” he said.

Another important measure, according to Sandbekk, is an inflation adjustment of the contract price in the operation phase, which was not included in Sørlige Nordsjø II.

”The stakeholders I talk to give the impression that if they don’t now get indications that the government will take steps to make Utsira North a little more attractive, they will have a hard time defending moving forward,” the partner said.

(Translated using DeepL with additional editing by Catherine Brett)