Fluor Corporation (FLR) announced that its UK division, Fluor Limited, and SSE (Scottish and Southern Energy plc), have been awarded exclusive rights by The Crown Estate to develop the Round 3 offshore wind farm zone in the Firth of Forth, off the coast of Scotland.
The proposed wind farm zone is located approximately 22 kilometers from the East coast of Scotland, and covers an area of 2,852 square kilometers in the outer Firth of Forth. The zone has a potential installed capacity of up to 3.4 gigawatts (GW) which would almost double Scotland’s entire existing renewables capacity.
The 32 GW of installed capacity proposed by the offshore wind energy developers for 2020 would supply a quarter of the UK’s electricity needs. It implies that the UK will have a secure and low carbon electricity supply. In addition, the UK economy will benefit as offshore wind farm is a growth industry that will create new businesses and jobs as well as attracting inward investment.
Seagreen Wind Energy Limited, formed by Fluor and SSE, integrates extensive renewables development, asset management and operations experience of a UK utility with the offshore project delivery expertise of one of the larger publicly owned engineering, procurement, construction and maintenance services companies.
Seagreen will shortly commence the environmental assessment and technical feasibility phase of the development. This will be followed by securing supply chain commitments and structuring the financing for the projects. Fluor does not anticipate booking the first project into backlog before 2015.
Fluor Corporation, through its subsidiaries, provides engineering, procurement, construction management, and project management services worldwide. Its two segments are Oil & Gas and Power. Major competitors are ABB Ltd (ABB) and Foster Wheeler AG (FWLT).
We currently have a Neutral recommendation on FLR.
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