Denmark Proceeding with Energy Island as Contractors Prepare to Bid
Denmark is moving forward with its ambitious plan for what is being called the world’s first energy island. Announced by the Danish Ministry of Climate, Energy and Utilities, the plan calls for a man-made island that would become a hub for the offshore wind industry as well as host other sustainable energy projects. The Danish Energy Agency is currently in dialogue with potential bidders for the energy island tender, which is expected to be launched by Q3 2022.
Copenhagen Infrastructure Partners (CIP), a global fund manager focused on renewable energy investments, announced that it has assembled a consortium of companies within marine and offshore construction services, to develop the energy island in the Danish North Sea. CIP, which represents the project’s investors, which include Danish pensions and the utility company Andel, selected four contractors, ACCIONA, Boskalis, DEME, and MT Højgaard International, to participate in the project. These contractors, together called the NJORD Group, have extensive experience in large projects and will make up one of the groups bidding for the project.
“Copenhagen Infrastructure Partners has thoroughly screened the most experienced experts and the world’s best-suited contract partners for the Energy Island project,” says Thomas Dalsgaard, Partner in CIP. “We are confident that the NJORD Group offers the experience and capabilities needed for a successful project execution in a safe and reliable manner, even in a harsh marine environment far offshore in the Danish North Sea.”
The concept for the energy island calls for it to be located in the North Sea located approximately 50 to 60 miles off the Danish west coast, where conditions for green energy production based on offshore wind are optimal. Around 200 wind turbines are expected in the first phase of the project and they would be connected to the island which initially would have 5GW of capacity, which is triple the current installed offshore capacity in Denmark. The island in the North Sea along with a second hub at the Danish island of Bornholm will be scaled up to be able to connect 10 GW of offshore wind to Denmark and other neighboring markets. The concept also calls for the North Sea Island to host an innovation zone with potential for large-scale energy storage and Power-to-X technologies, and provide accommodation and operation and maintenance services from onsite harbor facilities.
According to CIP, the signing of this agreement marks a significant step towards realizing the project designed to provide the infrastructure unlocking the rapid and unprecedented build-out of global offshore renewable energy.
In September, the Danish Energy Agency published its second round Discussion Paper as part of a market dialogue regarding the procurement framework for the construction and co-ownership of the Energy Island in the North Sea. The process was gathering input from bidders to help define the project. The goal is to complete the project and have it operational by 2033.