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Ørsted warns about energy islands: Wrong solution could become offshore wind's IC4 case

There is a large price difference between the different solutions that the Danish Parliament is considering for future energy islands. Ørsted warns that the cheapest solution is risky.
13. JAN 2021 13.35
Offshore

Two solutions are being worked on for the future energy island that the Danish Parliament has decided to build. The two solutions are: 

- The platform solution: With this solution, the island structure can consist of a number of centrally located steel platforms that stand on steel or concrete foundations on the seabed. Concepts for platform design are well-known and widespread in both the oil, gas and offshore wind sectors.

- Dammed island solution: With this solution, an artificial island is established in the sea by damming a relevant area, after which the water is displaced and the area is filled with sand.

But now Ørsted is warning against establishing an artificial energy island in the North Sea. This is what Børsen writes.

- An artificial island in this context is risky business. We simply fear that this will become the IC4 case of offshore wind. That would be the worst case, says Ulrik Stridbæk, head of energy economics at Ørsted.

Ørsted believes that instead of focusing on an untested solution with an artificial island, we should focus on known technology in the form of steel platforms.

Big difference in price

There is not much difference between the solutions if the islands are to "only" produce 3 GW, which is the initial plan. In the long term, however, the intention is that production from the islands will be increased, and here the prices differ significantly according to price estimates from COWI.

A 3 GW platform solution is estimated at a price of 12 billion DKK, while a 10 GW platform solution is estimated at 38 billion DKK. DKK. This is based on known technology, including the platforms being established as 1 GW platforms.

The estimated price for a so-called dammed island for 3 GW with an associated port is DKK 12 billion. A dammed island for 10 GW with an associated port is estimated at DKK 29 billion. 

Copenhagen Infrastructure Partners: Artificial island offers more opportunities

The Danish Parliament will soon decide on the tender for a new energy island. A consortium consisting of Copenhagen Infrastructure Partners (CIP) together with PFA, Pensiondanmark and Andel (formerly Seas-NVE) is planning to bid for this tender. 

And in CIP, the warning from Ørsted is surprising, as an artificial island offers completely different opportunities than steel platforms. 

- A steel platform has one purpose, and that is to be a high-voltage converter. The island creates many more opportunities, and it creates innovative power. Because it is a new breakthrough that you focus on creating large-scale energy storage and power-to-x on the island itself, says senior advisor Michael Ertmann, CIP.

Michael Ertmann also disagrees with Ørsted that an artificial island is new technology. He points out that establishing artificial islands is not new technology. It is only the technology that will be on the islands that will be new. Therefore, he is not worried that building an artificial island may be useless.

Minister for Climate Dan Jørgensen has not yet commented on which solution the government prefers. But according to Venstre, the political agreement calls for building a dammed island because it has the most potential, writes Børsen.

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https://www.doi.dk/en/vindkraft/artikel/oersted-advarer-om-energioeer-forkert-loesning-kan-blive-havvin-dens-ic4-sag

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