Talisman Energy to Build Offshore Wind Farm

Talisman Energy (UK) Limited, is to construct a £24m deepwater wind farm demonstrator project adjacent to the Talisman operated Beatrice Field, 25km off the east coast of Scotland.

The power generated by the turbines will be used at the Beatrice platform and will operate alongside Talisman's existing operations at Beatrice without affecting production. It is anticipated that construction of these turbines will begin later this year and first electricity generation is expected to begin late in 2006. A number of jobs will be created in Scotland and other parts of the UK, mainly in the areas of engineering design, fabrication and operations support.

The existing infrastructure will be used to test the feasibility of wind farms in water depths of 35 to 45 metres. Initially the two turbines will provide electric power for Beatrice and, if successful, Talisman will evaluate a large scale commercial project. It is hoped to demonstrate that it is possible to use offshore oil and gas expertise in the renewable energy business thereby potentially providing new opportunities for investment and employment in the North Sea. The demonstrator project will test technologies for deepwater wind farms distant from the shore, with no visual impact. The results will help determine if large-scale developments of this type are a practical and economic source of renewable energy. The project will include the design, construction, installation and operation of two prototype turbines.

The demonstrator project will receive £3m in funding from each of the Scottish Executive and the UK Department of Trade and Industry and €6m from the European Commission. Talisman and their co-venturer in this project, Scottish and Southern Energy will each contribute over £7m. To date, Talisman and SSE have conducted four feasibility studies, collectively spending £2 million.

During the five-year period of the demonstrator project, Talisman will collect performance data, look for ways to reduce costs and develop operating procedures. If the project is successful, Talisman will consider the construction of a full-scale offshore wind farm. A commercial venture could generate up to one gigawatt of electricity, which is equivalent to almost 20% of Scotland's current electricity demand.

The Beatrice wind farm demonstrator project has been incorporated into the pan-European initiative, DOWNVInD (Distant Offshore Wind farms With No Visual Impact In Deepwater). DOWNVInD has been established as a catalyst for commercializing deepwater wind farm technology and includes 14 different organizations from six European countries.

The Commission will contribute €6m from its research budget to theDOWNVInD "integrated project", which has a total cost of €30m. The partners will try to meet or exceed a cost reduction target of 20% that would make offshore wind farms in deep water economically viable.