The Offshore Valuation

The Offshore Valuation

          
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The Offshore Valuation

A Valuation of the UK’s Offshore Renewable Energy Resource
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    In This Article
    • Offshore renewable resources have the potential to transform the U.K. from a net energy importer into a net energy producer.

    • This study focused on five offshore renewable technologies: fixed offshore wind, floating offshore wind, tidal stream, tidal barrages, and wave power.

    • Three deployment scenarios were developed to frame the valuation and illustrate a range of possible outcomes.

     

    The U.K. is now most of the way through its first great offshore energy asset—its stock of hydrocarbon reserves. But its second offshore asset, renewable energy, could be just as valuable. In fact, the energy generated through wind, wave, and tidal power has the potential to transform the country from a net energy importer into a net energy producer over the next four decades.

    The Offshore Valuation puts a real value on what the renewable-energy resource that surrounds the U.K.’s coasts might bring in terms of jobs, investment, infrastructure creation, income, and clean and affordable energy. The results underscore the transformative power of this asset. In harnessing 29 percent of the practically available wind, wave, and tidal power by 2050, the U.K. would generate the electricity equivalent of 1 billion barrels of oil annually, matching North Sea oil and gas production. Under the same scenario, the U.K. would reduce its carbon-dioxide emissions by 1.1 billion tons between 2010 and 2050—which would go a long way toward meeting the 2050 climate targets—while creating 145,000 new jobs.

    This valuation is based on estimates of the future demand for clean energy, the size of the resources available, the practical constraints that could prevent this value from being realized, and the economic value of clean electricity. Three deployment scenarios were developed to frame the valuation and illustrate a range of possible outcomes.

    The study was commissioned by Offshore Valuation Group, an informal collaboration of government and industry organizations.

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