Progress for Utsira Nord, but only one project will get government support

The Norwegian government confirmed to Dagens Næringsliv that only one project will now receive support for developing floating offshore wind, most likely at the area Utsira Nord. The support amounts to up to 35 billion NOK and the capacity is 500 MW. 

"The supplier industry is, of course, disappointed, as we had expected two projects to receive support. It is important to ensure diversity in the supply chain, and this will now become more difficult," says Nesse.

The industry has consistently communicated to the government that they want a binding timeline for project announcements, which includes the capacity for each announcement.

"This is important for the suppliers to gain the predictability necessary to make the right investments for the future. The positive aspect now is that we are actually moving forward, and that Utsira Nord will be realized, despite only having one project in the first round," says Nesse, adding:

"At the same time, many countries globally are developing floating offshore wind, and analysis show 200 GW under development. It is extremely important for the development of Norwegian suppliers that we have a domestic market and that we are early adopters of floating offshore wind."

Recently, the industry has faced high interest rates and high raw material prices. The latest analysis from Menon Economics is promising, showing that the costs of floating offshore wind will decrease as interest rates and prices are expected to go down.

"At this stage, it is absolutely crucial that we invest in innovation within floating offshore wind, as technological development is the key driver to reducing costs," says Nesse.

He encourages the supplier industry to now focus strategically on international opportunities.

"Norway has a world-class supplier industry in offshore wind. Our expertise from oil and gas, the maritime sector, and our natural advantages allow Norwegian suppliers to secure important international contracts in floating offshore wind," says Nesse, pointing to markets like the UK, France, South Korea, and Japan as particularly interesting for floating offshore wind.