Boost for Floating Offshore Wind in the U.K.

Written by Martin Lynch, European News Editor for IIR News (Galway, Ireland)

Summary

The budding floating offshore wind sector in the U.K. has been given a badly needed boost by state-body GB Energy's investment in the Pentland floating offshore project in Scotland. It comes just weeks after oil and gas company Shell plc (London, England) dropped two of the world's largest planned floating offshore wind projects, also located in Scotland.

GB Energy Takes Wind Stake

The U.K.'s state-body in charge of renewable energy has made its first offshore wind investment in the proposed Pentland floating offshore project in Scottish waters. 

GB Energy (GBE) (Aberdeen, Scotland) has taken a minority stake in the 100-megawatt project, along with the National Wealth Fund (NWF) (Leeds, England) and Scottish National Investment Bank (Edinburgh, Scotland). The project is being developed by Copenhagen Infrastructure Partners (Copenhagen, Denmark). Each has the option to invest up to £50 million (US$67 million) each as the project progresses. On completion, the project will be one of the first commercial-scale floating offshore wind projects in Europe. It comes just weeks after Shell plc (London, England) abandoned two of the world's largest planned floating offshore wind projects in Scotland as part of its scaling down of renewable energy investment. For additional information, see January, 2025, article--Shell Drops Two Major U.K. Offshore Wind Projects.

Government Keen on Floating Wind

U.K. Energy Minister Michael Shanks said: "Great British Energy is owned by the British people and on a mission to take back control of our energy to protect households across the country, harness our abundant natural resources and deliver energy security and jobs. Floating offshore wind is a huge opportunity for the U.K., and this first stake in a project by Great British Energy helps put us at the forefront of this cutting-edge technology. We said GBE would build up supply chains, create jobs and drive investment to all parts of the U.K. - especially in Scotland and this investment shows our publicly owned energy champion is getting on with the job."

Mark Munro, chief investment officer at Scottish National Investment Bank, added: "The offshore wind potential in Scotland is considerable both as a source of energy and, particularly with floating, to export our supply chain. However, substantial investment is needed to capitalize on the opportunity and ensure it delivers a transformational impact for our economy and our communities. The bank has developed significant expertise in Scotland's burgeoning offshore wind sector and has invested in all areas of the supply chain. Our commitment of up to £50 million (US$67 million) to the Pentland Project is an important step toward developing a thriving and sustainable economy."

The Floating Wind Opportunity

Industrial Info is tracking 25 floating offshore windfarm projects in the U.K. worth more than US$80 billion in investment. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can click here for the reports.

On the back of Scotland's first offshore wind leasing round - ScotWind - in 2022, more than 20 offshore projects were awarded leases with a combined capacity of almost 30 GW. Floating offshore projects accounted for more than half. In September, Industrial Info reported that the 1-gigawatt (GW) Buchan Offshore Wind (Edinburgh, Scotland) project was seeking a planning permit for its floating offshore windfarm located 75 kilometers (km) to the northeast of Fraserburgh on the Aberdeenshire coast. For additional information, see September 15, 2025, article--Permits Sought for Giant Scottish Floating Offshore Windfarm.

New Wind Funding Category

In related news, the U.K. government intends to create a new category for its next offshore wind auction in 2026. The "hybrid" - or Other Deepwater Offshore Wind (ODOW) - category would sit along those for fixed-bottom and floating turbines. This would allow offshore wind projects using non-standard or innovative foundation technologies in deepwater locations to compete for financial support. 

Key Takeaways

• The U.K.'s state-body in charge of renewable energy, GB Energy (GBE), has made its first offshore wind investment in the Pentland floating offshore project in Scotland.
• With other new partners, it could mean up to £150 million (US$201 million) for the project.
• Industrial Info is tracking 25 floating offshore windfarm projects in the U.K. worth more than US$80 billion in investment.

About Industrial Info Resources

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).