Shell exits two wind projects off the UK coast after strategic review

Shell Divests from Two UK Offshore Wind Projects After Review

Shell's Strategic Shift in Renewable Energy

By Stephanie Kelly

Details of the Exits

LONDON (Reuters) -Shell has exited the MarramWind and CampionWind projects off the coast of Scotland following a strategic review, the company said on Monday.

Future of Offshore Wind Projects

Shell sold its 50% interest in MarramWind to ScottishPower Renewables and returned the CampionWind lease to Crown Estate Scotland, it said. While ScottishPower Renewables said it would continue the development of MarramWind, it was not immediately clear whether CampionWind would move forward as proposed under Crown Estate Scotland. 

Impact on Local Communities

The oil major, under CEO Wael Sawan, has pivoted away from renewables and doubled down on oil and gas to boost investor confidence.

"After a comprehensive review and in line with Shell’s previously announced refocusing of its power strategy on leveraging Shell’s strengths in trading and retailing, the conclusion was to not take the CampionWind project forward," a Shell spokesperson said.

As proposed, CampionWind, 100 km (60 miles) from the east coast of Scotland, could deliver up to 2 gigawatts of power.

MarramWind, located 75 km off the north-east coast of Aberdeenshire, has a potential capacity of up to 3 gigawatts. If successfully developed, it could power the equivalent of more than 3.5 million homes.

"With sole responsibility for MarramWind – alongside our MachairWind project – we will now continue the development of these windfarms and maintain our positive engagement with local people and businesses," a ScottishPower Renewables spokesperson said.

ScottishPower Renewables is owned by Spanish utility Iberdrola <IBE.MC>.

(Reporting by Stephanie KellyAdditional reporting by Susanna TwidaleEditing by Emelia Sithole-Matarise and Frances Kerry)