Hitec, a unit of Eni, wins support for a large floating wind farm

Flotation Energy, a joint-venture between Eni Plenitude, and HitecVision private equity, announced on Tuesday that their floating offshore project Green Volt had won a contract in Britain's most recent renewable energy auction.

They said that the 2.5 billion pound initiative ($3.28 billion), which will have a maximum capacity of 560 megawatts and be supported by incentives from government, is on track to become the largest floating offshore wind farm in support.

The ship will be 80 km (50 miles), off the coasts of Scotland's northeast.

Vaargroenn's Chief Executive Stephen Bull stated in a press release that "Green Volt" will help accelerate the development and deployment of floating wind farms by stimulating investment in port infrastructure.

The British government announced that it would support up to 131 projects, including wind, solar, and tidal, with a combined capacity of almost 10 gigawatts, enough to power approximately 11 million homes.

The government holds annual auctions to invite renewable project developers, also known as Contracts for Difference, to bid for price guarantees backed by the government for electricity produced.

If wholesale electricity prices fall below the minimum, then the government pays the difference. In the event that they exceed the minimum, the producers must pay the difference back to the government.

Green Volt, once operational, will provide clean energy to the British grid while also providing renewable electricity to nearby platforms for oil and gas.

Eni's renewables unit Plenitude holds 65%, while HitecVision owns the remainder. Bill Berkrot edited the report by Francesca Landini.

(source: Reuters)