Under embargo until midday 16 March 2010
 
Today The Crown Estate announced the names of the successful bidders for the world’s first commercial wave and tidal leasing round, for 10 sites in Scotland’s Pentland Firth and Orkney Waters.  The 1.2GW of installed capacity proposed by the wave and tidal energy developers for 2020, 600MW each from wave and tidal, is four times the peak output of Dounreay power station. This is enough electricity to meet the needs of up to three quarters of a million homes. 

The developers have signed Agreements for Lease with The Crown Estate to take forward the development of their wave and tidal energy installations. This will allow developers to enter the statutory consenting process for their sites with security of access to the seabed.

The Crown Estate, who owns the UK seabed out to the 12 nautical mile territorial limit and over 55 percent of the foreshore, has been working closely with its partners, Scottish Government, Highlands & Islands Enterprise, Orkney Islands Council and the Highland Council, to maximise the benefits to the local area and the rest of Scotland from investments such as the offshore renewable energy programme.

The developers who have signed a total of ten Agreements for Lease are:
Wave:
• SSE Renewables Developments Ltd, 200MW for Costa Head site
• Aquamarine Power Ltd & SSE Renewables Developments Ltd, 200MW for Brough Head site
• Scottish Power Renewables UK Ltd, 50MW for Marwick Head site
• Tenant confidential pending final Board approval, 50MW for West Orkney South site
• Tenant confidential pending final Board approval, 50MW for West Orkney Middle South site
• Pelamis Wave Power Ltd, 50MW for Armadale site

Tidal:
• SSE Renewables Developments (UK) Ltd, 200MW for Westray South site
• SSE Renewables Holdings (UK) Ltd & OpenHydro Site Development Ltd, 200MW for Cantick Head site
• Marine Current Turbines Ltd, 100MW for Brough Ness site
• Scottish Power Renewables UK Ltd, 100MW for Ness of Duncansby site

The First Minister, Alex Salmond, MSP, MP said: “Today marks a major milestone in the global journey towards a low carbon future, with the commercial-scale deployment of marine renewables set to power our economies and help safeguard the planet for generations to come. These waters have been described as the Saudi Arabia of marine power and the wave and tidal projects unveiled today – exceeding the initial 700MW target capacity – underline the rich natural resources of the waters off Scotland.
 
“Leading international energy companies and innovators continue to be drawn to Scottish waters, which boast as much as a quarter of Europe’s tidal and offshore wind resource and a tenth of the continent’s potential wave capacity.  Together with some 11GW of planned offshore wind developments, these latest marine renewables projects show that Scotland is powering ahead in the development and deployment of clean, green energy.
 
“The Scottish Government is working with The Crown Estate, developers and key partners to support this rapidly-growing industry, to ensure communities such as those in Caithness and Orkney are well-placed to reap the benefits and to secure Scotland’s position as the green energy powerhouse of Europe.”

The Secretary of State for Scotland Jim Murphy said: "This is a welcome world-first for Scotland and I am happy to see the major steps being taken to harness Scotland's wave and tidal energy. It is an extremely exciting time for renewables in Scotland and across the rest of the UK as we use more of our natural resources to generate our power.

"Scotland is naturally placed to make the most of this green revolution and we will continue to work with others to ensure the potential of Scottish waters, alongside wind power, is fully met.

"It is encouraging to see the number of successful bidders for the Pentland Firth and Orkney Waters. There is no doubt we are set to see a significant expansion in the commercial development of wave and tidal energy in the near future and the UK government will continue to put a low-carbon and energy-secure future at the heart of its priorities."

Roger Bright, Chief Executive of The Crown Estate said: “I am delighted that today, in Wick and Kirkwall, we have announced the successful bidders for the world’s first commercial wave and tidal leasing round in the Pentland Firth and Orkney Waters. The 1.2GW of marine renewable generation capacity, 600MW each from wave and tidal, is generating four times the electricity of Dounreay power station in its heyday. This shows the world that marine energy can produce significant electrical power and offer a real alternative to conventional power production.

“This announcement demonstrates the UK’s position as the leader in wave and tidal technologies. Through our experience and some of the best natural resources in the world we have been able to launch the first wave and tidal energy projects on a commercial scale. This emerging industry has a bright and promising future, with vast amounts of untapped energy in the seas all around us, and The Crown Estate looks forward to working with partners in Wick and Kirkwall to realise the area’s marine energy potential.”   

The level of competition for sites within the leasing round area, with bids from 20 companies for 42 sites, highlights the appetite for companies to invest in Scottish waters. The Crown Estate takes its stewardship responsibility very seriously, and is pleased that this has resulted in the signing of Agreements for Lease with those companies demonstrating the clearest ability and pedigree to make best use of these sites in a responsible manner.

-Ends-

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Notes to Editor
• On behalf of the nation, The Crown Estate manages a highly diverse £6 billion property portfolio across the UK.  The value of its holdings in Scotland is £237 million.
• Our objectives, which are laid down by Parliament under The Crown Estate Act 1961, include enhancing the value of the estate and the revenue it produces.
• Every year we pay all of our surplus revenue to the UK Treasury for the benefit of all UK taxpayers: in 2008/09 this was £226.5 million. £15.5 million of this came from Scotland.
• Our core values of commercialism, integrity and stewardship, guide and inform all our business activities.
• The Crown Estate is committed to working in partnership with the Scottish Government and members of the Scottish Parliament, local authorities and a wide range of other stakeholders to safeguard the long term interests of the environment and the communities with which we work.
• In Scotland, The Crown Estate includes:
 The marine estate consists of over half the foreshore and the seabed out to the 12 nautical mile territorial limit. The Crown Estate has the right to explore and utilise the resources of the UK continental shelf (excluding oil, gas and coal), including the right to license renewable energy in the form of offshore wind, wave and tidal power. We are working with our partners to ensure that Scotland is well placed to take advantage of the benefits that renewables will bring through employment and by reducing carbon emissions.
 The rural estate in Scotland comprises 43,000 hectares and includes the Glenlivet, Fochabers, Applegirth, Stirling and Whitehill estates. It includes 185 agricultural tenancies and 102 residential properties.
 The urban estate includes retail property in Edinburgh.

• In 1999 The Crown Estate established its programme of Marine Stewardship to provide funding to support practical projects, relevant research, and other initiatives that improve the status and management of the marine estate.

• The Crown Estate in Scotland is managed from its Edinburgh Office at 6 Bells Brae, Edinburgh, EH4 3BJ.
www.thecrownestate.co.uk/scotland

Partner quotes

Councillor Sandy Park, Convener of The Highland Council and Chairman of the Advisory Board to the Caithness and North Sutherland Regeneration Partnership, warmly welcomed the announcement.
 
He said: “This is an important milestone in the development of marine and tidal energy in the North of Scotland and promises to play a key role in the redevelopment of the economy in Caithness and North Sutherland.  The bonus is that it promises clean green renewable energy and good quality new jobs, which will greatly benefit our communities.”

William Roe, chair of Highlands and Islands Enterprise (HIE) said: "This announcement signals the first step towards the commercialisation of marine renewable energy generation from the Pentland Firth and Orkney Waters. As the Scottish Government's economic development agency, HIE holds a pivotal role among the stakeholder relationships which are together moving marine energy generation forward from aspiration towards reality. We will be continuing to target our expertise towards supporting developers, supply chain companies, inward investors and local communities to create a globally successful industry and to ensure that the potential benefits are fully realised for Scotland."

Orkney Islands Council Convener Stephen Hagan said: “We welcome The Crown Estate's contribution to driving forward the commercialisation of wave and tidal energy production.

“Orkney has already been home to key innovations in the generation and distribution of renewable power, with the European Marine Energy Centre's test facilities for wave and tidal devices open since 2004 and the UK's first smart grid system launched here by Scottish and Southern Energy last December.

“Our involvement in renewable energy stretches back for decades with years of academic study into marine resources. Today, 40% of our electricity needs are already being met from renewables.

“Orkney boasts an ideal combination of natural resources and centuries of essential maritime expertise.  We continue to invest in our maritime facilities and skills and look forward to expanding the expertise and knowledge on the islands which support this new industry and energy source.”

Developer quotes

Martin McAdam, Chief Executive Officer of Aquamarine Power said: “The Crown Estate’s leasing round is a significant milestone for the marine energy sector and is a key step towards the industry’s commercialisation, enabling it to meet its full potential to deliver clean sustainable power as well as highly skilled long-term employment. 

“Harnessing the power of the sea to produce clean energy will play a crucial role in our future energy security and in meeting the UK’s climate change objectives.  Deploying Oyster on a commercial scale has the potential to generate millions of pounds for the Scottish and UK economy and to create hundreds of jobs on a local and national level.

“Aquamarine Power and SSE Renewables will continue to work in close consultation with the local community and key stakeholders to ensure the sustainable and responsible development of our proposed Oyster project.”

Commenting on today's announcement, James Ives, Chief Executive of OpenHydro, said: "Today's development marks a major step forward for both OpenHydro and SSE Renewables and the marine renewable industry in general.  The decision by The Crown Estate to award our joint venture a 200 MW lease as part of the Pentland Firth leasing round must be commended. I have no doubt that this award will prove a major first step in delivering tidal energy at utility scale onto the UK national grid. This development will also provide many further benefits for the local economy, including employment and valuable inward investment.  We are very excited about further developing our presence in Scotland which will build on OpenHydro's important research work that has been ongoing at the European Marine Energy Centre (EMEC) since 2006.”     

Commenting on the three projects, with a cumulative capacity of 150MW, Chief Executive Officer of Pelamis Wave Power Ltd, Neels Kriek, said: “The Crown Estate’s process has set our industry on course towards delivering marine projects of utility scale, and PWP is delighted that both Scottish Power Renewables and another large International Utility endorsed our technology in their applications. We are proudly and uniquely aligned in our respective goals of delivering renewable energy through multiple commercial Pelamis projects in the next 5 to 10 years.” Kriek continued: “The challenges associated with the ambitions which have been set today are significant, and the team at PWP are energised to embrace these challenges to the benefit of Scottish Power Renewables, our other customers and the UK low carbon economy objectives. I am confident that we are ideally placed with the significant support from the Scottish Government and DECC to translate today’s announcement into a global success for the UK, Scotland and the sector.”

Martin Wright, Managing Director of Marine Current Turbines said: “The Pentland Firth and Orkney waters are strategically the most important marine energy areas in Western Europe so we are delighted to have secured approval for a lease by The Crown Estate.  I believe that MCT is in a very strong position to capitalise on this significant and challenging opportunity.  MCT already has the valuable experience of deploying and operating SeaGen in Northern Ireland’s Strangford Lough and within the next two to three years we expect to have deployed our first tidal farm in UK waters.”

Keith Anderson, Director of ScottishPower Renewables, said: “The announcement today is another significant step forward for Scotland and its ambition to be a world leader in generating renewable electricity. The Pentland Firth has some of the best marine energy resources in the world, and we are delighted to have secured two excellent development sites.

“ScottishPower Renewables is committed to playing a major part in helping Scotland to take a leading role in marine renewables globally. As well as the environmental benefits that will come from developing this major new source of renewable energy, marine power also represents wider economic opportunities in terms of creating a new industry and new skill sets that could be exported all over the world.

“Marine power will be a key part of our business going forward, building on our considerable onshore and offshore wind portfolio, and we have ambitions to investigate and develop further wave and tidal power projects in the coming years.”

Stephen Wheeler, Director of SSE Renewables said: “SSE Renewables is delighted by the award of exclusive rights to develop wave and tidal sites at four locations in the Pentland Firth and Orkney Waters. 

“As the leading generator of renewable energy in the UK, SSE is committed to building on our existing portfolio to develop viable wave and tidal sites using industry-leading marine technologies. 

“We believe our commitment to marine renewables will not only deliver a significant contribution to the renewable energy mix and climate change targets, but also enhance Scotland and the UK’s position as world leaders in marine energy.  We look forward to working closely with statutory bodies, local communities and the Crown Estate to develop these sites prior to bringing forward applications”.