Norwegian hydropower giant Statkraft will link with compatriot industrial group Aker to enter Norway’s first offshore wind tender, in a move that marks a U-turn by the former after it walked away from the sector in 2015.

Statkraft and Aker Offshore Wind will form a 50/50 project vehicle to prepare a bid to build fixed-bottom offshore wind at Sørlige Nordsjø 2 (SN2), one of two zones Norway is opening up for a total potential of up to 4.5GW of fixed and floating projects with tenders beginning this year.

Utility Statkraft – Europe’s largest producer of hydropower– said it was attracted to the tender “by falling investment costs, the location of [the] SN2 project facilitating export of the power produced offshore to other European markets and the electrification of Norwegian oil & gas installations.”

Entering the Norwegian round with Aker with marks a U-turn by Statkraft, which in 2015 said it would exit the sector following investments in some of the early UK offshore wind projects, deeming the industry too capital-intensive for its taste.

But Statkraft has retained big ambitions in onshore wind and solar, and CEO Christian Rynning-Tønnesen said on Wednesday: “By entering a cooperation with Aker Horizons and Aker Offshore Wind, we are exploring a value-creative opportunity in Norway.

“We have expertise in the development and operations of wind power and have previously been engaged in offshore wind in the UK. Strong growth, falling technology costs and a changed competitor landscape indicates that offshore wind will take a larger role in the European energy transition.”

Aker Horizons is the Aker group’s investment arm and also part of the co-operation agreement with Statkraft.

Aker Offshore Wind was spun-out by Aker last year as part of a push into renewables and the energy transition by the Norwegian group, which has deep roots in the oil & gas sector.

The Norwegian tender is set to attract the attention of a clutch of oil & gas players, including Italy’s Eni and local state-controlled giant Equinor.

Another branch of the Aker’s interests, Aker BP, last year signalled it would seek opportunities in the tenders in conjunction with Aker Offshore Wind.

Late in 2020 Fred Olsen Renewables also said it would link with Norwegian power group Hafslund Eco in a bid to build wind and transmission projects off Norway.

Wind

Statkraft back in love with offshore wind after Aker link-up for Norway bid