Shell has dealt a blow to Scotland’s renewable ambitions by pulling out of two of the world’s largest floating wind projects.
The company confirmed it was relinquishing its interest in CampionWind and MarramWind projects as part of the oil giant’s exit from the sector.
With potential capacities of 3GW and 2GW, respectively, they were joint ventures between Shell and ScottishPower Renewables (SPR), part of Spain’s Iberdrola Group. They were awarded to the partners under the ScotWind leasing round in early 2022.
SPR has taken full ownership of MarramWind, while Shell has become the sole owner of CampionWind and has subsequently returned the lease to Crown Estate Scotland.
In a statement, Shell said: “After a comprehensive review and in line with Shell’s previously announced refocusing of its power strategy on leveraging Shell’s strengths in trading and retailing, the conclusion was to not take the CampionWind project forward. Shell therefore returned the lease option to Crown Estate Scotland (CES).
“Shell believes that returning the CampionWind lease to CES will offer the best opportunity for any potential future the site may have. Substantial pre-investment work has already been undertaken to de-risk the site, which Shell hopes will support any possible future.”
The decision relates to Shell’s strategy shift in the power business from late 2024, where it said it would not be leading new offshore wind developments.
Shell says it remains committed to supporting the UK’s offshore wind ambitions through trading, marketing and facilitating development through long-term contracts. Its strategic pivot, however, focuses on power trading and integrated energy solutions rather than majority share investments in power generation assets.
Shell also recently withdrew from the Atlantic Shores offshore wind joint venture in the US.
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