Capital spend on sea-based wind to outpace offshore oil & gas by 2024: WoodMac
Analyst group sees $210bn going into offshore wind in the next five years, as petro-giants wake up to industry's 'greater certainty and transparency'
Offshore wind will attract capital expenditure (Capex) of $211bn (€189bn) between 2020 and 2025, according to new research by Wood Mackenzie.
The researchers said investors traditionally targeting the oil and gas sector will find offshore wind increasingly attractive, helping to drive Capex.
“There is limited crossover today, but first movers have gone with the wind and more will soon follow,” Wood Mackenzie said.
It said offshore wind investments offer greater certainty and transparency because deployment is largely tied to government incentives.
About 82% of the forecast offshore capacity to 2025 has been awarded a support scheme or is in more advanced stages of development, the research said.
This compares with global offshore upstream oil and gas Capex, where the current trend for short-cycle projects lowers the visibility and certainty of investment outlooks beyond 2022, it said.
Wood Mackenzie added that the offshore wind supply chain is also entering a period of transformative growth.
“The number of project interfaces – the supply deals associated with a project – is both broadening and decreasing, while the size of projects and contracts is growing,” the analysts said.