Flotation Energy, led by former Scottish government minister Nicol Stephen, has signed a deal with Norwegian firm Vårgrønn for two floating offshore wind farms capable of supplying more than 2.4 million homes.

Renewable electricity will be provided to oil and gas platforms, aiming to significantly reduce their carbon emissions.

The Green Volt and Cenos wind farms will also provide electricity to the UK grid and are among the most advanced offshore wind projects in Europe for the electrification and decarbonisation of oil and gas platforms. 

Combined, Green Volt and Cenos are expected to create more than 8,000 jobs during construction as well as several hundred jobs during the operational phase, delivering around £6 billion of gross value added.

Mr Stephen, CEO of Flotation Energy said: “Participating oil and gas platforms will have electricity, currently generated by gas and diesel turbines, replaced by renewable energy.

“The windfarms will also deliver up to 7TWh of power back to the UK grid each year – the equivalent of providing affordable, renewable electricity for more than 2.4 million UK homes.”

The former Scottish Liberal Democrat leader, Deputy First Minister and Enterprise Minister added: “In an era where the cost of living is at an all-time high, offshore wind provides an effective, low-cost solution to help the UK tackle climate change and deliver long-term renewable power.

“Overall, the Green Volt and Cenos projects are estimated to save around three million tonnes of carbon each year.

“This will play a crucial role in achieving Scotland’s 2045 Net Zero target and delivering The North Sea Transition Deal’s goal to halve offshore emissions by 2030.”

Vårgrønn is a joint venture between the energy company Plenitude (Eni) and the Norwegian energy entrepreneur and investor HitecVision. Vårgrønn currently holds a 20% stake in Dogger Bank, the world’s largest offshore windfarm under construction.

Olav Hetland, CEO of Vårgrønn, said: “Flotation Energy and Vårgrønn are making valuable progress towards leading the commercialisation of floating offshore wind technology in Europe.”

RenewableUK’s senior policy analyst on emerging technologies Laurie Heyworth said: “Innovative frontrunner projects like Green Volt and Cenos will play a crucial role in boosting the development of a world-class floating wind supply chain in the UK for projects here and abroad.

“Our analysis shows that floating wind will provide more than half of the UK’s offshore wind generation by 2050, bringing over £43 billion in economic value and more than 29,000 jobs.

“It will play a critical role in regenerating coastal communities in particular, with £4 billion of public and private investment needed to transform up to eleven ports across the UK into industrial hubs for mass roll-out of floating wind by the end of the decade.”