Category Archives: Offshore

Subsea power cables and umbilical manufacturer JDR has been selected by US Wind Inc., as the preferred cable partner for its first offshore wind project.

The project is the 750MW Maryland Development project. Expected to be the largest offshore wind farm to date in the USA, the Maryland Development project will include a maximum of 187 turbines in up to 30m water depth, and will be 24km (15mi) off the coast. The project is subject to offshore renewable energy credit in 2017 and final investment decision in 2018. JDR will supply and install both inter-array and export cables.

JDRs scope of supply for the Maryland Development Project includes project management, engineering and manufacture of 196km (122mi) of inter-array cable, 180km (112mi) of export cable (split into three lengths) and cable accessories. Cable installation for both inter-array, export cables and termination and testing of both cable types will also be provided by JDR. Cable manufacture is expected to commence in 2018 with delivery and installation in 2019 and 2020. Engineering works will begin in 2017. The contract is worth more than US$275 million.

The USA is a growing market opportunity and of strategic importance for the offshore renewable industry. This contract award demonstrates customer confidence in JDR as the leading cable partner of choice, says JDR CEO, David Currie.

To support the project, JDR will establish a storage and mobilization facility in Maryland. The company will also open a project management and engineering office base.

Paul Rich, Director of Project Development for US Wind Inc. says: US Wind is proud to be a local, Maryland-based company bringing a new industry to the state along with thousands of manufacturing jobs for generations, as we establish the hub for offshore wind manufacturing for the entire east coast of the US."

Link:

JDR wins US offshore wind farm work - OE Digital

Image: Semisubmersible Songa Delta.

Investment thesis:

The recent oil prices increase that we have experienced since OPEC and non-OPEC nations decided to reduce production at the end of last year, is slowly trickling down from the oil majors, such as Statoil, to the depressed offshore industry, which is desperate to find work for an ever growing unused fleet rusting away, idle and silent, in the Scottish Cromarty Firth, north of Inverness, graveyard (See image below).

The Cromarty Firth, north of Inverness, is currently packed with more unused rigs than it has been at any point in the last decade.

I have been religiously reporting any new contract or possible drilling contract that could be beneficial for the offshore drillers for the past two years, and it is quite disheartening to see such a slowdown in exploration CapEx, when you know how active this segment was, not even three to four years ago..

Yes, of course, we know that the offshore industry, or rather the oil industry in general is highly cyclical and it will come a time when the industry will complain because it cannot keep up with the demand.

However, the offshore drilling industry is a particular breed, for one particular specific reason, at least, and it is called a debt overload. Offshore drillers are buried under a few billion dollars in debt and need to contract their costly fleet to survive and meet their tight debt covenants.

Regrettably, it is becoming increasingly difficult because of the lack of contract aggravated by a series of contract termination and reduced day rates to a breakeven level, which are inadequate to service the long term debt.

This basic principal reduces significantly the "apnea time" in which a driller can survive without breathing air (new contract). Already, many drillers have announced a restructuring under chapter 11 or worse a total liquidation. Hercules offshore is gone, liquidated almost totally now, and Paragon Offshore (OTCPK:PGNPQ) is on life support following the same potential fate.

Many others are about to announce a restructuring in 2017, such as Seadrill (NYSE:SDRL), Pacific Drilling (NYSE:PACD) and Ocean Rig UDW (NASDAQ:ORIG). These companies already announced that a "plan" will be unveiled soon.

Well, it doesn't mean that the industry will disappear, of course not, and many uninformed investors have made this wrong assumption repeatedly.

It means that the offshore industry is shedding away its "old skin" to become leaner (the debt will be gone, replaced by new equity) and smaller (many rigs will be scrapped in the process) for the next bullish phase. The only negative is that the actual shareholders will be left with the "old skin".

Investors and stockholders will have to follow closely this struggling industry based on the price of oil volatility and other factors such as potential contracts. The question is not to deny or embellish a situation, it is rather to adjust the right trading/investing strategy that fits an ever changing environment which requires an impartial examination.

Commentary:

On February 17, 2017, we learned from OffshoreEnergyToday the following:

Oil giant Statoil is currently looking for a drilling rig as it gears up to drill an exploration well on the Verbier prospect in the UK sector of the North Sea.

The Verbier prospect is located in Licence P.2170, Blocks 20/5b & 21/1d in the Central North Sea and is operated by Statoil's UK subsidiary, Statoil (U.K.) Limited, with 70% working interest.

The partners in the license are Jersey Oil & Gas and CIECO Exploration and Production with 18% and 12% interests, respectively.

Statoil, as the operator of the license, made a commitment to drill the exploration well in November last year.

According to Jersey's statement on Friday, Statoil is currently undertaking a tender process for a drilling rig and all related services to drill the Verbier well this summer. The rig contract is expected to be awarded in the near future, Jersey O&G added.

Jersey O&G also said that, in addition to Statoil's work, it is conducting further technical studies to improve and update the group's understanding of the Verbier prospect...

... Additionally, pursuant to the terms of the farm-out, Statoil is funding all costs up to $25 million in respect to the drilling of the first exploration well on the license.

In the same article, we learned also that another well will be drilled in another part.

Related to its other license in the North Sea, the Licence P.1989 Blocks 14/11, 12 & 16, Jersey O&G also said on Friday that Azinor Catalyst Limited has stated its intention to drill an exploration well the Partridge prospect, previously named Homer, later this year. Jersey has 20% working interest in the license...

Conclusion:

The offshore industry is walking a thin line right now, between "life and death". Yet, I believe strongly that it is a strategical mistake to look at the sector as a non-potential investment.

The only paramount question is how, not if. As an investor and trader you have the chance to get the best of any situation, as long as you are willing to understand it honestly, and without being blinded by pre-judgement. Offshore is not dead and it will rebound.

Companies like Transocean (NYSE:RIG), Ensco (NYSE:ESV), Noble (NYSE:NE), Diamond Offshore (NYSE:DO) and Rowan Companies (NYSE:RDC) are a few that can be considered as a long-term opportunity when the time will be right.

Rystad Energy is explaining clearly:

However, with two years of cost cutting programs in the offshore value chain, 2016 and 2017 are showing full competitiveness within these two sources of supply. This shows what the offshore industry has worked with during the downturn. In a time when many thought that offshore projects could not compete with shale, offshore operators managed to turn uncommercial projects into highly competitive projects with the help from service companies. Offshore projects that were uncommercial at $110/bbl in 2013 are now commercial at an oil price of $50/bbl.

Sometimes it is important to move through a reversal of fortune because, like the phoenix the industry will be rising again from its own ashes. Thus, be patient and vigilant for the early signs.

Inportant note: Do not forget to follow me on the offshore drilling industry. Thank you for your support.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: I trade and own long positions in the offshore drilling segment.

Editor's Note: This article covers one or more stocks trading at less than $1 per share and/or with less than a $100 million market cap. Please be aware of the risks associated with these stocks.

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Offshore Drilling - 2 Floaters Needed In The Verbier Field And In The Partridge Prospect In UK North Sea - Seeking Alpha

Published on February 20th, 2017 | by Joshua S Hill

February 20th, 2017 by Joshua S Hill

The 497 megawatt EnBW Hohe See offshore wind farm off the coast of Germany is set to proceed following Canadian energy infrastructure company Enbridges decision to invest in the project, and German engineering company Siemens committing for the first time to provide complete construction work.

German public utility company EnBW made a final construction and investment decision back at the end of 2016, and appointed Siemens to provide not just the wind turbines, but full construction work, including providing the foundations. This week, the project received its last green light, with Canadian energy infrastructure company Enbridge acquiring 49.9% of the shares in the Hohe See project.

The EnBW Hohe See offshore wind project is set to be constructed in the exclusive economic zone in the North Sea, off the coast of Germany. It will cover an area of approximately 42 square kilometers, and upon completion will have a total capacity of 497 megawatts (MW) thanks to 71 Siemens 7 MW wind turbines. The project is estimated to be able to provide electricity for around 560,000 average households.

With Enbridge at our side, we can realise our largest offshore wind farm to date and at the same time generate financial scope through this participation for the development of new projects, said EnBW CEO Frank Mastiaux. This is now the third successful participation model with which we are sharing the risk and represents another major step in the implementation of our EnBW 2020 strategy.

With an investment volume of around 1.8 billion euro, we have not only taken one of the largest investment decisions in the history of our company but despite the currently difficult economic conditions, we are continuing to rigorously invest in the implementation of our strategy and through EnBW Hohe See we are developing another cornerstone for safeguarding the future of EnBW. Following its commissioning in 2019, the wind farm will make a substantial contribution to our Group operating result.

Siemens will begin manufacturing the 71 SWT-7.0-154 wind turbines from its new nacelle plant in Cuxhaven beginning in the middle 2018, with delivery expected for early 2019. Siemens will also provide the large monopile foundations, measuring up to 80 meters and with a weight of 1,500 tonnes.

We are happy to apply our full scope of engineering services at EnBW Hohe See offshore wind project, said Michael Hannibal, Offshore CEO at Siemens Wind Power. The extended scope makes this 497-megawatt wind power plant one of the largest projects that we have ever executed. Our customer thereby benefits from the proven experience of a multinational company along the entire value chain of large offshore wind projects.

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Tags: Enbridge, EnBW, EnBW Hohe See, Germany, Hohe See, siemens

Joshua S Hill I'm a Christian, a nerd, a geek, and I believe that we're pretty quickly directing planet-Earth into hell in a handbasket! I also write for Fantasy Book Review (.co.uk), and can be found writing articles for a variety of other sites. Check me out at about.me for more.

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EnBW Hohe See 500 MW Offshore Wind Farm To Proceed With Siemens & Enbridge - CleanTechnica

If I had to count the number of times I have heard that we need to lift Indigenous people out of poverty and make Indigenous people equal and productive partners in Canadas social and economic fabric, I just would not know where or when to begin. It seems I have been hearing similar sentiments going back more than 45 years.

We heard it from politicians dating back to the Supreme Courts decision in Calder in 1973.

We heard it from the Royal Commission on Aboriginal Peoples in 1996.

We heard it from Prime Minister Stephen Harper in the governments apology on residential schools on June 11, 2008.

We heard it during the Truth and Reconciliation Commission process and in the commissions calls to action in 2015.

And we are especially hearing it now in what appears to be the Liberal governments desire to open nation-to-nation relationships with Indigenous peoples and to implement the United Nations Declaration on the Rights of Indigenous Peoples.

This is just a smattering of what has, up to now, proven to be nothing more than lip service.

Indigenous people still lag behind the rest of the country in educational achievements. Many Indigenous people live in overcrowded homes in communities that lack the infrastructure to provide safe drinking water to their people. It is a well-known fact that the rate of incarceration of Indigenous persons in our prisons far exceeds that of the non-Indigenous population, as does the proportion of Indigenous children in foster homes.

It is time we recognized that poverty is at the root of the social malaise in which many of our Indigenous people find themselves. Most Indigenous people in this country are not as lucky as some of their western First Nations cousins, who are sitting on oil and gas reserves and have found themselves in a bargaining position that would be the envy of many. And more power to them. The result in places like Fort McKay First Nation in Alberta which is prospering from the oil sands service businesses it has built is perhaps what meaningful partnerships are supposed to look like looking at it from a distance.

It is time to take a new approach to how we create wealth in Indigenous communities. Despite the many efforts to roll out various government economic development programs, which support projects like building service stations and hotels, what we as a country need to do is turn our minds to how we attract new investment to Indigenous communities.

The federal government has a policy that deals with addressing past wrongs: cases where First Nations have lost land through, among other things, the unlawful surrender of reserve land. Many of the events that gave rise to todays land claims happened well over a century ago. The policy deals with the settlement of specific claims. In the Atlantic region of Canada, the process tends to take years, sometimes decades, to resolve and usually involves financial compensation determined by actuarial calculations. It also often involves the replacement of lost land by allowing the First Nations to acquire new land to add to their reserves.

Canadas offshore hydrocarbon resources hold huge potential for growth, which up to now has been the domain of the oil companies. Canadians should start thinking about the ownership of those lands and the benefits that flow from them in a different way, starting with the creation of a new deal for First Nations.

I can hear the arguments before a discussion like this even gets started. People will say that the offshore areas are not traditional Indian lands, nor have Indigenous people traditionally played a role in the development of offshore oil and gas. Lets look at it another way. The whole industry of offshore oil exploration and production is anything but traditional and is a new economic driver, particularly in eastern Canada. What long traditional history of activity does Canada or its provinces have in the offshore that entitles the government to control land leases and choose who has access to them? Canada was not involved in offshore oil and gas at the time of contact that is, when Euro-immigrants landed on the shores of North America, 500 years ago.

The place to start is to set aside lands in the offshore known to hold significant resources for willing Indigenous communities to control.

We need to consider how to involve more Indigenous communities in the benefits associated with oil exploration and production. The place to start is to set aside lands in the offshore known to hold significant resources for willing Indigenous communities to control so that they become the authorities negotiating with the oil companies for exploration and drilling rights. What could possibly be wrong with that idea?

Today the government tells First Nations that they are free to find land for economic development purposes, adjacent to their reserves. (Often that is difficult. Try finding high-potential land in New Brunswick that is not already controlled by a major entity!) Rather than that approach, lets see how the government can work with Indigenous communities to acquire land in the offshore so they can work with the oil companies to develop arrangements that will see revenue-sharing, employment and other benefits. This approach would create sustainable, lasting resources for their communities. It is a way to share the wealth.

In 1978, Minister of Fisheries and Oceans Romo LeBlanc reserved three deep-sea shrimp fishing licences for fishermens organizations in Labrador. Much of the newly discovered resource was off the Labrador coast. New entities were born in Labrador, owned and controlled by the fishermen, and the early days saw a plethora of foreign and domestic interests travelling to Labrador to meet with fishermen to make deals. And many deals were made. People new to this fishery became trained and employed on the vessels in the offshore fishery. Money began flowing to the companies that the fishermen owned, by way of licence fees, and that allowed the community-based companies to invest in other ventures in the community.

In southern Labrador, for example, new fish plants were built, new resources harvested and new jobs created. Additionally, as a result of those licence fees, the people created their own credit union, which has been highly successful. So with the stroke of a pen, and not insignificant vision, LeBlanc transformed many coastal communities by creating these new opportunities and diversifying an economy that benefited Indigenous people.

Yet there were those voices that said to Indigenous fishermen, You people have no place in this fishery. You have no tradition in it. You are babes in the woods. Leave this to the big boys! Well, Labrador fishermen were persistent and held onto LeBlancs vision. They continue to be players in this offshore fishery, whether the big boys like it or not.

To help lift Indigenous people out of poverty, Canada can do something similar with respect to the management of offshore oil lands and resources. All it takes is political guts, visionary leadership and an open mind, as Romo LeBlanc demonstrated in the late 1970s.

Photo:Verena Matthew/Shutterstock.com

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An offshore deal for Indigenous people? - Policy Options (registration)

PANAJI: The opposition Congress on Monday said it would not renew the liquor licences of offshore casinos after March 31 if voted to power on March 11, the day of counting of votes for the February 4 Assembly elections. "Once we form the government, I assure you we will not renew the excise licences of the offshore casino vessels once they expire on March 31," AICC secretary Girish Chodankar told reporters. Banning the offshore casinos in Mandovi river was one of the prominent promises made by the Congress in its election manifesto. "The Congress party will take appropriate legal remedies to insulate its decision to ban the sale of liquor on offshore casinos from any legal implications. We will have to make sure that the casino operators don't challenge our decision in the court," he said. As the casinos currently operating in Mandovi river are 800 metres away from national highway, they do not fall under the purview of a recent Supreme Court order under which the liquor outlets located within 500 metres of state or national highways will have to shut down.

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Congress says won't renew liquor licenses of offshore casinos in Goa - Times of India

EMAS Offshore Limited, a subsidiary of Ezra Holdings, is still in the process of negotiating and finalising the details of its refinancing agreement with its lenders.

In an update on the Singapore Exchange late on Friday night, the offshore support vessel firm said it has requested its lenders to extend the time for finalising the definitive agreements to 60 days from Feb 10, 2017.

The group had in December said it had signed a term sheet with all its lenders to refinance its financial obligations over a period of five years from Dec 12, 2016; this was subject to documentation and conditions set out in definitive agreements entered into between the various parties within 60 days from Dec 12.

The group, which is also listed on the Oslo bourse, said it will make further announcements when the definitive agreements are entered into, or when there are material developments on these ongoing initiatives.

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Emas Offshore requests deadline extension to refinancing talks - THE BUSINESS TIMES

Fundamental Forecast for the Yuan:Neutral

The USD/CNH set a higher low this week than the previous two weeks. The onshore Yuan, on the other hand, remained within a tight range for the third consecutive week. The two Dollar/Yuan pairs have been driven by different themes of recent: The Dollars strength weighted more on the offshore pair, while the onshore Yuan eyed more on moves from Chinas Central Bank. As the spread between the offshore Yuan and the PBOCs guided level narrows, this segregation could be eased over the following periods.

In terms of the offshore pair, the odds and timing of the U.S. Federal Reserve raising rates, as well as expectations on U.S. President Trumps tax cuts plan have been primary drivers to its trend and this likely continue to be the case. Fed Chair Yellens two-day testimony added mixed moves to Dollar pairs, including the USD/CNH. Next week, the U.S. economic calendar is dotted with housing and labor gauges, which are expected to add volatility to Dollar pairs.

On Chinas side, event risks would be low amid a light calendar; the major focus will be on Chinas Central Bank. The top policymaker has been reducing excessive Yuan liquidity since the Lunar New Year, targeting at bring monetary policy back to normal from slightly loose. However, this tweaked credit strategy did not bring much impact to the offshore Yuan over the past few weeks. Normally, a tighter policy would send the countys currency higher. Lets take a look first at why it did not work, as this may help us find out when it will.

The PBOC has been using open market operations as well as lending facilities to withdraw excessive cash from the financial market. Suspending and resuming liquidity injections through reverse repos and increasing target lending rates aim to delicately adjust liquidity to desirable levels. These moves are different from a hike in reserve requirement ratio which will have a long-lasting effect to the economy and in turn a greater impact to the Yuan.

More importantly, the offshore Yuan was already stronger than the guided level set by the PBOC. Since early January, the offshore Yuan has been both above the onshore Yuan and the Yuan fix (except during the Lunar New Year) until this week. This means that from the regulator point of view, the offshore Yuan might have been already overvalued.

However, as the spread between the offshore Yuan and the Yuan fix narrows, this could be changed. The PBOC has strengthened the Yuan fix for four consecutive days this past week. On Wednesday, the offshore Yuan dipped below the PBOCs guided level, the first time in two weeks. As of 1:40pm EST, the reversed spread has expanded to 50 pips. Traders will want to keep a close eye on the PBOCs guidance next week. If the policymaker continues to recognize levels of the offshore Yuan, the link between the onshore and offshore markets could strengthen again, and onshore policies may weigh more on the offshore pair.

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Offshore Yuan Exposed to Onshore Risks as Spread Narrows - DailyFX

By: PTI | Panaji | Published:February 19, 2017 7:29 pm (Source: File/Representational image)

It will be business as usual for the offshore casino vessels in Goa as they are situated beyond the 500 meters criteria decided by the Supreme Court while banning sale of liquor along the national and state highways. The Goa Excise Department, which is currently mapping the liquor outlets along the highways, said that casinos in river Mandovi are 800 metres away from the bridge on the national highway.

The Supreme Court in its recent order has banned sale of liquor within 500 meters of the state and national highway. If any casino vessel is within 500 metres of the bridge we will not renew their licence. But as per Google Map, they are 800 metres away from the bridge on national highway, State Excise Commissioner Menino DSouza told PTI.

The excise department has started the process to implement the order stating that all those covered by the Apex Court directives will not have their licences renewed after March 31, 2017. River Mandovi is home for four off-shore casino vessels which are approachable from the road crossing through Panaji city.

While it is a relief for casino vessels, the cruise boats ferrying tourists will be impacted by the SC order. The boat cruises are located within 500 meters of the national highway no 17. Right now we have to go as per the law and licenses will not be renewed after March 31, the official said.

There are four boat cruises operating in Mandovi and the sunset cruises are permitted to serve liquor on board by the Excise department.

Original post:

It will be business as usual for offshore casinos in Goa - The Indian Express

Doug Fraser @dougfrasercct

CHATHAM This June, the state will solicit bids seeking offshore wind farms to produce 400 megawatts of electricity. Its the first of four phases of what state officials hope will be 1,600 megawatts of offshore power; 15 percent of what the state uses annually, enough power to replace what will eventually be lost when Pilgrim Nuclear Power Station shuts down.

Submitting a bid in June will be the first tangible step for a group of Marthas Vineyard residents who started the Vineyard Power energy cooperative six years ago in response to a lot of the things they didnt like about the nowdefunct Cape Wind project. It has 1,400 members and claims the cooperative represents 5,000 people on the island.

Richard Andre, president of Vineyard Power, said their prospects improved dramatically when Gov. Charlie Baker signed legislation in August that required that powerutilities solicit and contract for 1,600 megawatts of offshore wind power as part of their energy portfolio by 2027.

Then, we knew we would have a buyer for our power, Andre said.

Vineyard Power representatives came to the headquarters of the Cape CodCommercial Fishermens Alliance in Chatham on a stormy Wednesday to get feedback from fishermen.

Perhaps it was fitting that there werent many fishermen in the audience, because Andre said that unlike Cape Wind, which was sued by Vineyard fishermen and hotly contestedby many Cape fishermen, they havent received any negative feedback.

We identified our site in 2009 as an area with the least amount of fishery conflicts, Andre said.

The process was helped considerably by the federal government in 2009 when theBureau of Energy Management mapped out areas of the ocean with good wind and relatively few conflicting uses or environmental concerns. John Pappalardo, CEO of the Cape Cod Commercial Fishermens Alliance, was part of the team that helped to eliminate large areas that were valuable for fishing, shellfishing or for fish habitat.

This zone was much larger. We shaved a huge piece out of it primarily because of scallops, Pappalardo said.

At over 500 feet tall, the 40 to 70 turbines that would be constructed in the first phase would be spaced more than a half mile apart. Andre told the audience there would be no reduced speed or areas closed to navigation or fishing. It has not been determined yet whether there could be anything like a kelp or mussel farming operation using components of the turbine. There would be money available to reimburse fishermen displaced during construction work.

By locating them 12 miles offshore, Andre said the turbines would only be visible on extremely clear days and, even then, would be far off in the distance.

We wanted a different model than Cape Wind. We wanted there to be local benefit, local employment, and local input into the project, Andre told the audience. Weve met with over 20 fishing groups since March of 2016.

Vineyard Power partnered with Vineyard Wind, which holds the lease on the 260 square miles of ocean 12 miles south of the island. Vineyard Wind is a subsidiary of Copenhagen Infrastructure Partners, a Danish company that invests pension funds from NorthernEurope. It has $3.5 billion in assets, Andre said, and is primarily focused on renewable energy projects. CIP has managed and invested in over 1,000 megawatts of offshore wind turbines currently being built in Europe, according to its website.

Three companies, Deepwater Wind, another Danish company, Dong Energy, and Vineyard Power hold the three federal leases in federal waters south of the Vineyard that were designated as appropriate for offshore wind through an ocean zoning process. In September, the three companies signed letters of intent to use the state-run $113 million New Bedford Marine Commerce Terminal, which had been built in anticipation of the ill-fated Cape Wind offshore wind farm being constructed.

This December, Eversourceacquired 50 percent ownership of the offshore wind farm proposed by Dong Energy.

All three offshore wind companies could be submitting bids this summer, Andre said. Price is the primary consideration, and he anticipates the winning bid will be in the mid-teens per kilowatt hour as compared with Cape Winds prices, which were over 20 cents. Each subsequent bid phase is required to start at a lower price than the previous ones as improved technology and economies of scale reduce costs. Europe, where they have been producing such power for decades, has seen offshore wind drop to 10 cents, Andre said.

The area south of the Vineyard has been rated the best or second best on the East Coast for the strength and consistency of its wind, Andre toldthe audience.

Vineyard Wind ships were out on Nantucket Sound this summer and fall doing seismic and sonar testing on the sea bed to determine what type of foundation would be required for the turbines.

Environmental studies of impacts on birds and marine life, and permitting, will continue for another two years. Construction could start as early as 2020 and take two years. It will take about 2,000 construction workers for the first phase, and Andre said the plan is to employ a lot of local workers.

The company with the winning bid would also have to get state permits to run cables, which will be buried 6 feet deep in the sea bed, to the mainland.

Follow Doug Fraser on Twitter:@dougfrasercct

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Vineyard Power vying for offshore wind farm - Cape Cod Times (subscription)

These figures signify a 42% share of Britains construction contract value in the utilities and power sector, and 21% of the entire UK infrastructure sector.

This trend in increased offshore wind developments is expected to continue, with Barbour ABI reporting that 23.3bn worth of construction contract value is currently in the pipeline.

Their lead economist, Michael Dall, said: Back in 2013 offshore wind farms accounted for only 7.5% of the annual construction value for the utilities and power sector, which increased in 2016 on the back of significant investment in this type of project.

With reports showing that the cost of producing electricity in this way have fallen significantly, the increase in construction value makes sense.

We have also seen a large uptake in the planning pipeline for future offshore wind farms over the coming years, suggesting this burgeoning sector will continue to expand in 2017 and beyond.

The increase in value of wind farm developments last year was significantly impacted by the Beatrice, Galloper, and East Anglia projects, which are together worth 3bn, and once constructed, will produce over 1,600MW of renewable energy per hour.

The UKs annual offshore wind farm construction contract value since 2013 is shown below:

UK energy minister Jesse Norman said: The UKs leadership in offshore wind clearly demonstrates that it is an attractive destination for renewable energy investment.

Thanks to the efforts of developers, the UKs vigorous supply chain and support from government, renewables costs are continuing to fall.

"Offshore wind will continue to help the UK to meet its climate change commitments, as well as delivering jobs and growth across the country.

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UK offshore wind farm construction hit record high in 2016 - The Actuary