E.ON and Masdar play down doubts over London Array
Wednesday 21 January 2009
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| If completed, it is expected that the London Array could generate enough energy to power 750,000 homes |
Two of the partners in the troubled 1GW London Array offshore wind scheme have played down reports that one of them is having second thoughts about its commitment to the project.
Both Abu Dhabi-owned Masdar, which owns a 20% stake in the London Array, and its partner E.ON, both claimed that a statement made by a Masdar official at the World Future Energy Summit about the economics of the project had been misunderstood by the press.
But E.ON, which owns a 30% stake in the London Array, confirmed that the project will not be given the green light until it can be sure that it is economically viable.
Masdar was quoted in the UK press yesterday as telling delegates at the World Future Energy Summit in Abu Dhabi that the that the economics of the project should be "revisited", and that it was working to establish its "feasibility".
A spokesman for E.ON said: "We're going through the tendering process for London Array and, until we ensure that the project is economic, we're unable to give it the green light."
"However, while the economics are certainly difficult, we're hopeful that the sums will add up and the project will get built on time," he added.
E.ON, which told New Energy Focus today that it was "confident" the project would go ahead as planned, had told press this week that the company was waiting to see if falling steel prices would have an impact on the cost of turbines.
While the economics are certainly difficult, we're hopeful that the sums will add up and the project will get built on time
Masdar, which is owned by the state of Abu Dhabi, sought to dispel concerns about its commitment to the London Array.
In a statement sent to New Energy Focus today, the company said: "In the context of a positive discussion about the opportunities associated with the global economic downturn, Ziad Tassabehji, Masdar's director of utilities and asset management, said that the London Array partners would be looking closely at the financials of the London Array project to identify ways in which efficiencies can be achieved.
"Masdar believes that the current financial situation actually creates financial opportunities for this project and will continue to work closely with its partners to progress work," it concluded.
London Array
The £1.5 billion London Array project, which was given planning consent in 2006, ran into difficulties last year, following the withdrawal of one of the original partners Shell, in May.
The proposals were salvaged in July, when the remaining partners, E.ON and Danish firm DONG Energy bought out Shell's stake to become 50:50 partners (see this New Energy Focus story).
And the wind farm was given a further boost in October when Masdar bought a 20% stake from E.ON (see this New Energy Focus story).
Located 20km (12 miles) off the Kent coast in the Thames Estuary, the first phase of the London Array is due to be completed in 2012.
When the entire scheme is finished it will comprise up to 341 turbines and have a generating capacity of up to 1GW, enough to power 750,000 homes.
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