Crown Estate Scotland has today published more information on its Innovation and Targeted Oil and Gas (INTOG) offshore wind leasing process.
The INTOG Response Document summarises responses from thirty-six potential applicants and stakeholders whose comments covered timescales, seabed agreement terms and conditions, Supply Chain Development Statements (SCDS), and evaluation.
INTOG will enable developers to apply for seabed rights for small scale innovative offshore wind projects of less than 100MW and for projects connected to oil and gas installations, to reduce carbon emissions associated with those sites.
Those who submitted comments welcomed INTOG, recognising its innovative approach to decarbonisation suggested amendments which Crown Estate Scotland will reflect in the final leasing documentation include:
- Moving the target launch date from June 2022 to August 2022.
- Extending the initial application window from two to three months.
- Extending the Option Period (within which a lease can be requested) from five to seven years.
- Doubling the Lease Period from twenty-five to fifty years.
- Allowing SCDS commitments to be submitted when securing the Option Agreement, as opposed to at the application stage.
The SCDS will help support a fair and smooth transition by furthering the development of supply chain for offshore wind.
The INTOG leasing round, due to be launched summer 2022, is a ‘first of its kind’ and there is no direct precedent to consider when finalising the design and requirements. In addition, the objectives for INTOG (stimulating innovation and decarbonising oil & gas) are different from those of other offshore leasing rounds and as a result some key features of the INTOG design and requirements, including pricing, are also different.
INTOG is separate to the ScotWind Leasing round for commercial scale offshore wind projects in Scottish waters.
The full INTOG Response Document can be found here.