Royal Dutch Shell has pulled out of the UK’s flagship wind farm project, the London Array, leaving plans for a huge expansion of Britain's offshore wind power generation effort severely disrupted.
At 1000 MW the London Array was to be the world’s biggest offshore wind farm, located at a site near the entrance of the Thames Estuary and containing 341 turbines.
Shell had an equal share in the project with E.On and Dong Energy. It plans to sell its stake, while increasing its investment in onshore wind farms in the US.
The move is a blow to the government’s plans to meet renewable energy targets through offshore wind. There is no likelihood of the UK's meeting its own or European Union renewable energy targets without a huge investment in offshore wind power. John Hutton, secretary of state for business, announced plans last year to build the equivalent of 33 London Arrays by 2020.
Shell has given no detailed reasons for its decision. The cost of the London Array was estimated at £1bn in 2003 and £1.5bn in 2005, but has risen to at least £2bn as the global rush to wind energy has driven up the price of components.
Eon believes that, at the very least, some delay to the project is now inevitable. Dong has said it is “looking into all options”.
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