DONG Energy to invest £6 billion in Humber by 2019
DONG Energy, the world leader in offshore wind power, will invest £6 billion in the Humber region over the period of 2013 – 2019, a new report has revealed.
The report – Impact of DONG Energy Investment in the Humber Area pdf – has been produced by Regeneris Consulting, an independent economic development and generation consultancy. It shows that:
- Over the period 2015 – 2020, DONG Energy will support an average of 1,600 construction jobs per year in the Humber.
- Up to 500 long-term jobs could be created in DONG Energy's operations and maintenance activity from 2020 onwards.
- DONG Energy's offshore wind farms in the Humber will meet the electricity needs of over 1.5 million homes once future projects are fully operational.
- £1.2 billion potential Gross Value Added (GVA) could be secured by the Humber from 2010 – 2030 as a result of DONG Energy investments.
Brent Cheshire, DONG Energy's UK Country Chairman, said:
"Our £6 billion of investment in the Humber by 2019 is creating long-term high-skills jobs, supporting a thriving UK supply chain and helping the region continue as a hub for the UK's renewable energy sector.
"Along with other offshore wind companies, we are making a major contribution to the development of the Northern Powerhouse, building strong local economies for years to come.
"The UK is our largest market for offshore wind and we are honoured to be part of the significant growth of the Humber. We see an exciting future in the region with great opportunities for local businesses and people."
Lord Haskins, Chair of the Humber Local Enterprise Partnership, said:
"I welcome this report, which shows the impact of DONG Energy's investments on the Humber. The report is a further demonstration of how investment in the offshore wind sector can have a positive effect on local communities and the economy – in the Humber, as the UK's energy estuary, and in the country as a whole.
"We look forward to further such reports as the industry grows and will continue to do all we can to support it."
DONG Energy currently has two offshore wind farms (Lincs and Westermost Rough) in operation on the East Coast, meeting the electricity needs of over 340,000 homes. Two further projects (Race Bank and Hornsea Project One) are under construction or in development and once they are operational, DONG Energy offshore wind farms in the region will meet the electricity needs of over 1.5 million homes.
DONG Energy has also acquired the lease for the rest of the Hornsea offshore wind development zone and if built, Hornsea Project Two and Hornsea Project Three could deliver a further 3 gigawatts (GW) of offshore wind power, and additional investment into the Humber region beyond 2019.
The report highlights that DONG Energy's involvement in the Humber has been supportive of a number of wider developments as well, such as the construction of the Siemens wind turbine factory in Hull, making the region a major hub for the offshore wind industry.
The investment that DONG Energy and others have made to develop offshore wind farms in the Humber area has triggered a range of new skills and training developments and investments locally. These include The University of Hull investing in training provision to serve the offshore wind sector, Hull College opening a Digital and Green Energy Centre to support local businesses and offer qualifications, and an £11 million investment into a new University Technical College (UTC) in Scunthorpe specialising in engineering and renewably energy.
Rob Sampson, Head of Operations for Westermost Rough at DONG Energy, said:
"Having worked in offshore wind in Grimsby for the last five years I have seen the positive impact that investment has had on Grimsby Docks.
"Local businesses and the community are now talking about wind power in the town. I'm so lucky to be doing such pioneering work with a team of local people from Grimsby."
Impact of DONG Energy Investments in the Humber Area has been released during Offshore Wind Week, a week of events to show how far the technology has come and what more can be achieved in the future. More information can be found at www.offshorewind.works.
Notes to editors:
- Impact of DONG Energy Investments in the Humber Area is a report commissioned by DONG Energy and undertaken by Regeneris Consulting, an independent economic development and generation consultancy. The report sets out an overview of the economic impact that DONG Energy's investments to date have had, and that future investments will have, in the Humber area. It focuses on both the direct impacts of the investment, and the wider supply chain, skills and inward investment benefits that DONG Energy's investments have supported.
- The report draws together information gathered through desk based analysis as well as:
• Economic impact modelling of the direct, supply chain and induced impacts of DONG Energy investments in offshore wind farms off the coast of the Humber.
• Consultation with economic development officers, supply chain firms and other stakeholders within the Local Enterprise Partnership, local authorities, the University of Hull and business & sector bodies.
- Gross Value Added (GVA) is a standard UK measure of economic value, used by the Government and the Office for National Statistics. It is effectively a measure of profits generated in businesses and salaries paid to employees. £200 million of GVA has already been secured in the Humber based on current DONG Energy activity in the region. £1 billion of additional GVA is estimated to be generated from 2010 – 2030, bringing the total estimated GVA to £1.2 billion.
- Lincs offshore wind farm is 25% owned by DONG Energy, 25% by Siemens Project Ventures and 50% by Centrica. Westermost Rough offshore wind farm is 50% owned by DONG Energy, 25% by Marubeni Corporation and 25% by the UK Green Investment Bank. Race Bank and Hornsea Project One offshore wind farms are 100% owned by DONG Energy.
About DONG Energy:
DONG Energy is one of the leading energy groups in Northern Europe. Our business is based on procuring, producing, distributing and trading in energy and related products in Northern Europe. Headquartered in Denmark, DONG Energy has around 6,500 employees, including 600 in the UK. The Group generated DKK 67 billion (EUR 9.0 billion) in revenue in 2014. For further information, see www.dongenergy.co.uk