Technip's offshore wind business launched in Scotland

MoU with Spain's Iberdrola signed at French firm's Aberdeen offshore wind base

First Minister Alex Salmond has hailed a new partnership between energy engineering and construction services provider Technip and Spain's Iberdrola, announced at the French company's new "centre of engineering excellence" for offshore wind in Scotland.

Mr Salmond joined Technip Chairman and CEO Thierry Pilenko in Aberdeen on 1 August 2011 to formally launch the company's offshore wind business, which is being headquartered in the city.

Mr Pilenko and Keith Anderson, Chief Executive of ScottishPower Renewables (SPR) and head of Iberdrola's Glasgow-based Global Offshore Division, signed a Memorandum of Understanding that will see Technip join a consortium bidding for up to 1.25 Giga Watts of offshore wind capacity in two of five sites that the French government has offered for competitive tender in the first phase of its plans to reach a national target of 6 GW by 2020.

The First Minister said: "Technip is a world-leading project management, engineering and construction business that has built its reputation for excellence in the oil & gas industry, where of course it has been a major player in Aberdeen for decades. Today's launch signals the company's determination to play a key part in the growing European offshore wind industry. Technip's decision to headquarter its European offshore wind business in Aberdeen signals the leading role that Scotland is playing in the development and deployment of leading-edge clean energy generation. The MoU with Iberdrola - with its global offshore wind base in Glasgow - for developments off the French coast, underlines that the expertise being developed in Scotland can help harness not only the huge natural resources off our own coast, but the massive clean, energy resources around the world."

Thierry Pilenko, Chairman and CEO of Technip commented: "This opening and the MOU signature with Iberdrola both confirm that Technip, a world leader in the oil and gas industry, is strongly committed to the development of renewable energies. We have in the Group all the talents, know-how and track record in offshore operations and project management to play a major role in the offshore wind business in Europe".

Commenting on the MoU, Mr Anderson, said: "Technip's new offshore wind offices in Aberdeen are a welcome addition to Scotland's growing renewable energy sector. We established our global headquarters for offshore wind in Glasgow over a year ago, and since then a number of world leading companies have set-up offices in Scotland. We are also very pleased to welcome Technip into our consortium to bid for offshore wind projects in France. As a well-established company, with a strong presence in France and in all major energy capitals they are an ideal partner to help us bid for these major projects."

Ron Cookson, Senior Vice President, Technip Offshore Wind at Technip added: "We are very pleased to be part of the consortium and look forward to working with Iberdrola and its partners on the French bid. Joining the consortium also represents a key milestone for us in terms of the development of our business and is indicative of our commitment to this growing sector."

Notes to editors

Background:

The launch of Technip's offshore wind business underlines the company's commitment to the sector and represents another milestone in achieving its ambition to become a leading player in the market. Other recent milestones include the Vertiwind wind turbine project launch and acquisition of the assets of the former Subocean offshore cable installation specialist. The Group also delivered the world's first floating wind turbine 'Hywind' in Norway and has vast experience in offshore operations and project and fleet management.

The French Government has a target to introduce 6,000 MW of offshore wind capacity by 2020. The first phase (3,000 MW) of the process was launched in June 2011, and will see five offshore wind zones developed along the French coast. Today's MoU will see Technip join, as construction and engineering partner, a consortium led by Iberdrola's SPR unit, bidding for two of the five zones. Areva will supply turbines for the consortium.

Iberdrola is the largest wind energy company in the world and has a pipeline of around 10,000 MW in offshore wind projects across Europe, primarily in the UK.

Scotland has some of the greatest renewable resources in Europe, with as much as a quarter of the continent's offshore wind and tidal energy potential and an estimated 10 per cent of its wave power capacity. Last year's Offshore Valuation Study estimated Scotland's practical offshore renewables resource at 206 GW. Harnessing just a third of this potential could enable Scotland to meet its own domestic electricity needs seven times over by 2050 - positioning the country as a massive net exporter of renewable energy.

In 2009 just over 27 per cent of Scotland's electricity demand came from renewables. The target for 2020 is for renewables to contribute at least 100 per cent of demand. There are currently some 7 GW of renewables capacity installed, under construction or consented around Scotland. Exclusivity agreements for offshore wind projects amounting to up to 10 GW of generation capacity in Scottish waters over the next decade have been granted through the Crown Estate's Round Three and Scottish Territorial Waters leasing rounds.

Scotland is also building on its established offshore engineering expertise from North Sea oil & gas to secure its position as leading centre for offshore renewables R&D. In the last year, world-leading power system manufacturers Mitsubishi, Gamesa and Doosan have all announced plans to develop next generation offshore wind turbine technology in Scotland, while ABB and Alstom have made investments in Scottish wave energy technologies.

For information on Scotland's offshore wind sector, see www.offshorewindscotland.org.uk

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