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Bloomberg
French oil company Total SA is among the final bidders for a stake in an offshore wind farm that may cost more than $7 billion to develop and operate, according to people familiar with the matter.
The move is significant because it highlights growing interest from major oil companies in renewables assets. It also would be the first facility of its kind in the UK built without full state support.
The British utility SSE Plc is developing the wind farm in Scotland’s section of the North Sea. It’s seeking partners to help shoulder the costs and risks.
For Total, buying into the 1,075-megawatt Seagreen project forms a foundation for its ambition to develop offshore wind farms in Europe, putting it in competition with Royal Dutch Shell Plc to break into the growing market for offshore wind assets.
The multi-billion-dollar projects at sea have become the specialty of European energy companies looking to capitalise on the global energy transition. They’re attractive to oil companies because their scale and the skills needed to build them make them similar to offshore oil projects.
With the purchase, Total could gain expertise that would help it achieve its aim to bid in forthcoming government offshore-wind auctions. The project is expected to cost $7.3 billion over its lifetime.