• Supply and installation contracts finalised for first phase of offshore wind farm

• Six contractors signed up

• Project on track for first phase construction completion in 2012
  
  DONG Energy, E.ON and Masdar have today (MON) announced that six major supply and installation contracts for London Array have now been signed, paving the way for construction of the world’s largest offshore wind farm. Contracts totalling almost €2bn have been agreed with seven European suppliers, which will be responsible for providing the components and expertise needed to construct the first 630MW phase of the project. Offshore work is scheduled to start early in 2011 with phase one construction finished by the end of 2012. 

  Once complete, the scheme will be the world’s largest, and the first 1GW, offshore wind farm. Sited in the Thames Estuary, the project will supply enough power for around 750,000 homes – or a quarter of Greater London homes – and displace the emission of 1.9m tonnes of CO₂ every year.  The largest contract, worth around €1bn, was signed in May 2009 with Siemens Wind Power, who will be supplying 175 turbines for the first phase of the project. Each will be rated at 3.6MW, be fitted with the new Siemens 120m rotor and have a hub height of 87m above sea level. Siemens Wind Power has also entered into a warranty and five year turbine servicing contract. 

  mfThe Joint Venture between Per Aarsleff A/S and Bilfinger Berger Ingeniuerbeau GmBH has been awarded the foundations contract. As well as supplying and installing the 177 monopiles – including one for each of the two offshore substations – the joint venture will install the wind turbines.  The contract to design, fabricate and install the two offshore substations required for phase one has gone to Future Energy, a joint venture between Fabricom, Iemants and Geosea. Each offshore substation is identical and will be built on three levels, with each deck level being 20m in plan area.  

  Nexans Norway AS has been awarded the contract to supply the 220km of 150kV subsea export cable connecting the offshore substations to the shore. JDR Cable Systems will supply the 210km of 33kV array cables that will link the turbines to each other and to the offshore substations. Visser & Smit Marine Contracting and Global Marine Systems Limited have been selected to carry out the installation of the export and array cables. The two offshore substations electrical systems and onshore substation work will be undertaken by Siemens Transmission and Distribution Ltd, which has already begun work building the onshore substation at Graveney in Kent. 

  Anders Eldrup, CEO of DONG Energy, said: “We look forward to working together with this experienced team of partners. Together we will achieve the goal of constructing the world’s largest offshore wind farm.” Dr Frank Mastiaux, Chief Executive of E.ON Climate & Renewables, said: “Signing these contracts is a significant milestone for the London Array project, which will be a vital scheme as we look to take renewables from being a niche power player to being a significant, vital part of the UK’s energy landscape.”  

  Dr. Sultan Al Jaber, CEO of Masdar, said: “The London Array is a landmark project not only for the UK energy sector but for the global renewable energy industry; the completion of these contract awards marks a major step toward making the project a reality and establishing offshore wind as a viable electricity supply option.” London Array will be built around 20km off the coasts of Kent and Essex. The wind farm will be installed on a 245km² site and will be built in two phases. mfIn May this year, following the increased support announced in the budget for offshore wind, DONG Energy, E.ON and Masdar announced they would be investing €2.2bn in the first phase of London Array. This will cover 100km² and include 175 turbines with a combined capacity of 630MW.  

  The consortium plans to complete the first phase in 2012. If approved, the second phase will add enough capacity to bring the total to 1,000MW. The project consortium partners have the following shareholdings: DONG Energy owns 50%, E.ON has 30% and Masdar has a 20% stake.

   

  Contract details: Wind Turbine Contract: Siemens Wind Power will provide the wind turbines.  The contract is integrated into a wider master agreement with Dong Energy for supply of up to 500 offshore wind turbines.  Siemens Wind Power will be supplying 175 of their 3.6MW machines; these will be fitted with the new 120m rotor and will have a hub height of 87m above sea level.  Siemens Wind Power will also be contracted to provide a warranty and turbine servicing for five years.  The turbines will be transported to site from Denmark.  

  Foundations Contract: The project will use monopile foundations and these will be supplied by a joint venture between, Per Aarsleff A/S and Bilfinger Berger Ingeniuerbeau GmBH, which specialises in supplying monopile and transition pieces to the offshore wind energy sector. 177 monopiles will be supplied in total, including those needed for the two offshore substations.  The contract also includes the installation of the foundations and wind turbines.  Offshore Sub Station Contract: Phase 1 will require two offshore substations to be installed within the middle of the wind farm.  Future Energy, a joint venture between Fabricom, Iemants and Geosea of Belgium, has been awarded the contract to design the substation superstructures as well as design, fabricate and install the offshore substation structures. Before the structures are transported offshore the electrical hardware will be installed and tested by the Electrical Systems contractor.  Each offshore substation is identical. They will be built on three levels, with a floor area of approximately 20m by 20m.  A heavy lift vessel has been committed for the installation as each assembled substation will weigh around 1400 tonnes. Export Cables Contract: Each offshore substation will be connected to the shore by two cables.  Nexans Norway AS from

  Norway has been awarded the contract to supply a total of 222km of undersea cable.  The cable will be designed to operate at 150 kV, and will also include fibre optic cores to enable data transmission from the wind turbines and electrical system to shore.  Installation will be carried out in both 2011 and 2012.

   Array Cables Contract: There will need to be in total 209km of various lengths of cables to connect the wind turbines to the offshore substations. JDR Cable Systems of Hartlepool in the

  UK has been awarded the contract to supply these cables.  The cables will be designed to operate at 33kV, and like the export cable will also include fibre optic cores for data transmission. 

   Offshore Cable Installation Contract: Installation of the export and array cables will be carried out under a contract with Visser & Smit Marine Contracting and Global Marine Systems Limited. The contract will cover connection from the onshore substation to the offshore substations, between the turbines and the offshore substations. Work on the installation is scheduled to start in 2011 and will continue through 2012.” Offshore Substations Electrical Systems and Onshore Substation Contract: Siemens Transmission and Distribution Ltd of

  Manchester in the
  UK have been awarded the contract to supply, install and commission the electrical systems for Phase 1 of London Array.  Siemens Transmission and Distribution Ltd are already working onshore at Graveney in
  Kent building the onshore substation.  The footprint of the substation covers 20 acres and is being built to a novel design resulting from a design competition that was undertaken in the planning process.  Work is at present on schedule.  In February 2010 National Grid will also come on site to start construction of its section of the substation.  A connection to the National Grid is scheduled to be completed in October 2011.  In addition to building the onshore substation, Siemens Transmission and Distribution Ltd will be supplying, installing and commissioning the electrical equipment on the offshore substations. 

22 May 2009.
The latest project newsletter is available to download.
Click here to open or right click to save to your PC (PDF, file size 0.8mb).

• First phase of London Array offshore wind farm gets go ahead
• Partners invest €2.2bn in landmark project
• First power due to be produced in 2012

LONDON, May 12th, 2009 – DONG Energy, E.ON and Masdar have today announced that they will invest €2.2bn in building the first 630MW phase of the London Array offshore wind farm in the Thames Estuary.

Once complete, the scheme will be the the world’s largest, and the first 1GW, offshore wind farm. The project will supply enough power for around 750,000 homes – or a quarter of Greater London homes - and displace the emission of 1.9m tonnes of CO2 every year.

Today’s announcement comes after the UK Government’s recent proposal to increase its support for offshore wind power. The partners are satisfied that the project is now financially viable and are now keen to push ahead with construction and to produce the first renewable power in 2012.

Anders Eldrup, CEO of DONG Energy, said: “Following the 2 ROC announcement, and our subsequent decision to build the Walney projects, I’m thrilled that we today also have the final investment decision on the London Array project. The decision to build the London Array offshore wind farm is a very significant cornerstone in DONG Energy’s strategy to increase the proportion of electricity generated from renewable energy sources. DONG Energy has built approximately half of all offshore wind farms in operation in the world today.

Entering into the world’s largest offshore wind farm project further strengthens DONG Energy’s leading position in this field.”

E.ON CEO Dr. Wulf Bernotat said: “I’m delighted that work can now get underway on the world’s largest offshore wind farm. The start of London Array will mark a key milestone in our roadmap as we continue with our ambitious strategy to take renewables to an industrial level. With this pioneering scheme, we see a significant increase in scale for offshore wind and also for E.ON as we aim to become the world’s largest offshore wind farm developer.

“Today’s announcement is proof that, if all interested parties work together, renewable power can be taken to its next level and so make a real difference to the fight against climate change.”

Dr. Sultan Al Jaber, CEO of Masdar, said: “The leadership of Abu Dhabi recognizes the importance of global collaboration and engagement to deploy renewable energy on a large scale. The London Array represents Masdar’s strategic approach to renewable energy, whereby real partnerships are formed between government and the private sector. This project is a great achievement for the UK government, E.ON, DONG Energy and Masdar, which exemplifies our commitment to build cooperation to take renewable energy further down the path to widespread global adoption.” Prime Minister Gordon Brown said: “The London Array is a flagship project in our drive to cut emissions by 80% by 2050 and meet future energy needs. The UK is a world leader in offshore wind farms, creating jobs and prosperity for the economy.  That’s why we have increased our support for this technology as we move towards a low carbon future. “E.ON, DONG Energy and Masdar are to be congratulated for their work on the London Array.”

Energy and Climate Change Secretary Ed Miliband said: “This is another green light for green energy. It’s a vote of confidence in the support the Government has put into backing renewable energy.

“The UK is already the world’s leading offshore wind power and this multi-billion pound project will help keep us there, cut our carbon emissions and contribute to secure energy supplies.”

Onshore work is now due to start in the summer, with offshore work due to start in early 2011.

The scheme will be built around 12 miles off the coasts of Kent and Essex. The wind farm will be installed on a 90 square mile site and will be built in two phases. The consortium hopes the first phase of 630MW will be completed and generating in 2012. The first phase will consist of 175 turbines. The second phase will add enough capacity to bring the total to 1,000MW.

The companies behind London Array, the world’s largest offshore wind farm, have welcomed the UK Government’s proposal to increase its incentives to build offshore wind farms.

DONG Energy, E.ON and Masdar, which make up the joint venture, were reacting to the Government’s energy proposals. The Government proposes to increase the number of Renewable Obligation Certificates (ROCs) available for offshore wind generation. Recognising the contribution offshore wind will make to reducing the UK’s carbon emissions, the Government proposal was to issue two ROCs for every megawatt hour of offshore powerproduced, doubling the original incentive.

The partners will now await the findings of the Government’s review and consultation process but believe the proposed increased incentive will help boost the economics of the London Array scheme and so its commercial viability. The partners will now conclude their review processes before making an announcement on the final investment decision for the first phase in the near future.

Anders Eldrup, Chief Executive of DONG Energy A/S, said: “We welcome the two ROC announcement which will support the development of offshore wind in the UK. Realising the London Array project is an important step to continue DONG Energy’s offshore development, and to the implementation of our strategy of significantly expanding our position within sustainable energy.”

Dr Wulf Bernotat, Chief Executive of E.ON AG, said: “We very much welcome the move by the UK Government to increase its support for offshore wind. The enhanced incentives will help transform the industry and improve the economics for the pioneering London Array project. The Government’s decision recognises the difficulties that energy companies face when they look to build offshore wind. We feel optimistic about the future of the offshore wind industry in the UK and the London Array scheme.”

“We applaud the responsiveness of the UK government to the needs of a growing and incredibly vital industry,” said Dr. Sultan Al Jaber, CEO Masdar.

London Array would eventually be the world’s first 1GW offshore wind farm, and would be built around 20km off the coasts of Kent and Essex. Once built, it will supply enough power for approximately 750,000 homes –or a third of Greater London homes.

The wind farm will be installed on a 90 square mile site and will be built in two phases. The consortium hopes the first phase of 630MW will be completed in 2012 and generating during the London Olympic Games. The first phase will consist of 175 turbines. The second phase will add enough capacity to bring the total to 1,000MW.

A Decommissioning Programme has been drafted which sets out the measures to be taken in connection with the decommissioning of the offshore elements of the London Array Wind Farm, in accordance with London Array Limited’s requirement under Section 105 of the Energy Act 2004. Click here to find out more.

16 October 2008.
Masdar has entered into the London Array scheme through a joint venture agreement with E.ON
Click here to download full press release (file size 96kb).

21 JULY 2008

DONG Energy has today together with E.ON agreed to acquire Shell’s stake in the London Array offshore wind farm project for an undisclosed sum.

DONG Energy is pleased to be able to continue with the development of this project in collaboration with E.ON and that a swift solution has been reached with Shell to the benefit of the project.

No investment decision has been made by DONG Energy regarding the project.

DONG Energy’s current wind projects, include amongst others the Storrun onshore wind farm in Sweden (30 MW), the Karnice I onshore wind farm in Poland (30 MW), the Horns Rev II offshore wind farm in Denmark (209 MW) as well as the Gunfleet Sands I and II (108 and 65 MW) and the Walney (151 MW) offshore wind farms in the UK.

21 JULY 2008

E.ON, one of the UK’s leading renewable generators, has today (MONDAY) joined with Danish utility DONG Energy to buy out Shell’s stake in the London Array offshore wind farm for an undisclosed sum.

The two companies will now become 50:50 partners in the project, which, when built, could generate enough power to supply a quarter of Greater London homes.
 
Dr Paul Golby, Chief Executive of E.ON UK, said: “We’re pleased that, together with DONG Energy, we’ve been able to secure the future of the project, and we’d also like to thank Shell for their contribution to the project’s significant progress to date.

“That also means that we hope to be able to keep the project on track and we should be able to complete the first phase by the end of 2012, subject to securing a number of important contracts, such as those for the wind turbines.

“We believe that offshore schemes such as this have an important part to play as we look to ensure security of supply for the UK, reduce carbon emissions and keep energy as affordable as possible for our customers.”
Mike Lewis, Managing Director Europe of E.ON Climate & Renewables, said: “This deal underlines our commitment to offshore wind, not only in the UK but across the world.

“However, while the economics of this project remain challenging, we believe this flagship project will give us invaluable experience as we go forward with the next generation of offshore projects.

“That means that we can take the lessons we learn from London Array for future projects that are further offshore and, potentially, even larger.”

Shell has committed to leave its staff in the project until the end of the year to enable a smooth transition and handover.

Under the E.ON Climate & Renewables banner, the company already operates a 60MW offshore wind farm in UK waters – Scroby Sands off Great Yarmouth – and is currently building a 180MW scheme – Robin Rigg in the Solway Firth. It also applied for planning permission to build the 300MW Humber Gateway offshore wind farm.

E.ON has a renewable development portfolio in the UK that could produce enough renewable power for around a million homes and displace the emission of almost two million tonnes of carbon dioxide a year. Worldwide, the Group plans to invest €6bn in renewable energy projects by 2010.

In addition, E.ON UK is committed to cutting the amount of carbon it produces for every unit of electricity it generates by 10% by 2012, having already reduced it by 20% since 1990. The Group is aiming to cut the same figure by 50% by 2030.

MARCH 2008

As London Array has now received all of the major consents required for both the offshore and onshore elements of the project, the tender process for the major construction contracts is underway. The project has adopted a multi-contract approach with a number of major contract packages covering different elements of construction. In general a pre-qualification exercise will be carried out for each package to select suitable contractors for a competitive tendering exercise. It is anticipated the tender process will continue for much of 2008.

Details of the pre-qualifications are being published in the trade press but we would also encourage anyone interested in bidding for any of the tender packages to send their details to us via the Contact us page. Your details will be entered in our supplier’s database and where appropriate passed on to the relevant major contractors once they are appointed.