Flotation Energy and Vaargroenn, the joint venture between Eni’s Plenitude and HitecVision, announce that their Green Volt project, a 560 MW floating wind farm, has won a contract in the UK renewable energy auction.
The £2.5 billion project will be located 80 kilometers off the coast of northeast Scotland.
It is the largest floating wind farm to receive government support under this scheme.
Key government support
Contracts for Difference (CfD) in the UK provide economic security by guaranteeing a minimum price for the electricity generated, thereby limiting exposure to fluctuations in the energy markets.
This mechanism, essential for attracting investment in large-scale projects, compensates for differences if wholesale prices fall below the agreed price.
Conversely, producers pay back the difference when prices exceed this threshold.
This support framework is part of a national strategy to achieve 10 gigawatts of additional renewable capacity, meeting carbon emission reduction targets while securing energy supply.
Industrial and logistics outlook
Green Volt requires the development of a robust port infrastructure and local supply chain, creating opportunities for industrial players and offshore service providers.
The strategic positioning of the farm, close to existing facilities, aims to optimize logistics costs and reduce transit times for maintenance and construction operations.
The UK supply chain could benefit directly from this project, particularly in the shipbuilding, component manufacturing and offshore installation services sectors.
Partner positioning
Eni subsidiary Plenitude holds a 65% majority stake in Vaargroenn, while HitecVision controls the remainder.
Both partners aim to expand their renewable energy portfolios.
The UK represents a key market due to its favorable regulatory framework and economic incentives, attracting significant investment from players in the energy sector.
HitecVision is pursuing its diversification strategy by investing in low-carbon projects, consolidating its position in the clean energy market.
An impact on the British energy mix
Green Volt will contribute to the UK electricity grid and also supply energy to nearby oil and gas facilities, facilitating their energy transition.
This model could prove relevant for other future projects, combining renewable energy production and support for existing energy infrastructures.
The UK’s reliance on floating wind technologies is strengthening its energy independence and limiting its dependence on fossil fuels, while meeting the growing demand for electricity.
Renewable energy auctions and support via CfDs demonstrate the UK government’s commitment to maintaining a favorable environment for the development of large-scale projects.
Energy companies such as Flotation Energy and Vaargroenn are adapting their strategies in response to these incentives, favoring investment in projects with high growth potential.
