Welligence Energy Transition │How to unlock value from the UK’s latest offshore wind round?

May 2, 2023

This note expands on our previous INTOG note, going deeper into Area 6 (led by Flotation Energy) and Area 7 (led by Cerulean Winds) to illustrate the drivers that would allow successful electrification of upstream operations. Specifically, we focus on: 1) what facilities can be electrified by wind farms, 2) benefits for the upstream players, 3) minimum conditions for the wind developers to breakeven, and 4) the combination of gas prices and carbon taxes that make this a win-win for both sides.