Energy Voice | Wind energy shaking up the mix for investments
With offshore wind in sight of its Holy Grail, and oil companies experiencing a renaissance, the North Sea is primed for a badly needed investment boost.
Oil fields are being placed in the right hands as majors step aside from non-core assets, while the supply chain can realistically hope to attract private equity funds.
Offshore wind has made so much progress that developers may soon be able to get projects off the ground without government subsidies.
Mike Beveridge, managing director at investment banking firm Simmons and Company International, said the wind industry had become very serious and was proving more cost competitive as larger turbines capable of generating more power are introduced.
He said: As new technology is adopted you have an industry that looks like it can operate without subsidies.
Getting to a subsidy-free offshore wind environment was always the Holy Grail, so if were in sight of that, then the industry is going to continue to develop and thats really positive.
Mr Beveridge observed that more oil service companies are gravitating towards what has become a very attractive adjacent market.
It is an eye-opening trend, given that no such businesses were serious about offshore wind as recently as three to four years ago.
Offshore wind fits nicely alongside offshore oil and gas services, he said.
It gives growth and diversity.
Were seeing more mergers and acquisitions transactions that have an offshore wind flavour and we expect that to continue.
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