Shell abandons two wind farms off the UK Coast after Strategic Review

Shell announced on Monday that it had abandoned the MarramWind project and the CampionWind project off the coasts of Scotland after a strategic review.

Shell announced that it sold its 50% share in MarramWind, to ScottishPower Renewables, and returned the CampionWind Lease to Crown Estate Scotland. Although ScottishPower Renewables has said that it will continue to develop MarramWind it is not clear if CampionWind as proposed by Crown Estate Scotland would proceed.

Under Wael Sawan's leadership, the oil major has shifted away from renewables, and redoubled its focus on oil and natural gas in order to increase investor confidence.

Shell spokesperson: "After a thorough review, and in accordance with Shell's previously-announced refocus of its power strategy to leverage Shell's strengths on trading and retailing the project was not taken forward."

CampionWind could produce up to two gigawatts, as proposed. It is located 100 km (60 mi) off the coast of Scotland.

MarramWind is located 75 km north-east of Aberdeenshire and has a capacity up to 3 gigawatts. It could power more than 3.5 millions homes if it is successfully developed.

ScottishPower Renewables said that with the sole responsibility of MarramWind, along with our MachairWind Project, we would now be able to continue developing these windfarms while maintaining our positive engagement and relationships with local businesses and people.

ScottishPower Renewables, a subsidiary of Iberdrola in Spain, is owned by the Spanish utility. (Reporting and additional reporting by Susanna Twidal Editing by Emelia Sithole Matarise, Frances Kerry and Emelia Sithole Matarise)

(source: Reuters)