Press release
THE CROWN ESTATE TO FUND MARINE ENERGY R&D IN THE PENTLAND FIRTH STRATEGIC AREA
20 February 2009
The Crown Estate has today announced that it plans to match fund option fees paid by developers in order to de-risk and accelerate the development of tidal and wave energy projects in the Pentland Firth Strategic Area.
Option fees will be charged in order for developers to secure sites for commercial scale marine energy development whilst they prepare environmental impact assessments and apply for planning consent and financial approvals. The fees have been set at a level proportionate to the investment required to develop commercial scale sites and will be payable over two years.
The Crown Estate will match fund the option fees and the resulting combined fund will be invested to accelerate the timetable for successful development. Early funding priorities are expected to include data gathering within the strategic area, grid infrastructure design and co-ordination, supporting research and development, and promotion in the development of health, safety and environment Codes of Practice.
Rob Hastings, Director of the Marine Estate at The Crown Estate, said: “The payment and match funding of option fees will demonstrate both The Crown Estate’s and the developers’ commitment to realising the potential of wave and tidal energy in the Pentland Firth Strategic Area. The Crown Estate believes that targeted investment now will help reassure stakeholders whilst reducing development timescales.”
Energy Minister Jim Mather said: “This is another welcome step towards making Scotland a world leader in marine renewable energy. Coupled with a public and private sector that is investing heavily in wave and tidal energy, The Crown Estate is playing a significant part by helping to accelerate the development of the massive power potential in the Pentland Firth.”
Option fee payments have been made by offshore windfarm developers since sites were first made available to the market in 2001. Offshore windfarm option payments were used to set up COWRIE (Collaborative Offshore Wind Research into the Environment).
Prior Information
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