Offshore wind farm will deliver £2billion for the Isle of Man, claims Ørsted

'Mooir Vannin' would be built within Manx territorial waters

The company planning to create a wind farm in Manx territorial waters claims the project will generate £2billion for the Isle of Man's economy over its 35-year lifespan.

Ørsted is hoping to build the 87-turbine Mooir Vannin Offshore Wind Farm 6-12 nautical miles off the east coast of the Island.

The estimated £2bn figure, the company says, is based on 'expected revenues from taxation and seabed rental' which would be paid directly to the Isle of Man Treasury, plus donations to local organisations and projects from a 'Community Investment Fund'.

Although the exact details of the agreement with government are confidential, the company says it is on 'similar favourable terms to Treasury as equivalent arrangements in the UK'.

The total is based on Ørsted's 'expectations and assumptions', whilst discussions remain ongoing with the Isle of Man Government over the 'exact details' of the taxation regime.

Also, the income would depend on the size of the wind farm that the Isle of Man Government grants consent for and is then constructed.

Jamie Baldwin is the Mooir Vannin Wind Farm Project Director:

Ørsted submitted an application for Marine Infrastructure Consent earlier this year, and it is currently awaiting decision. 

A public consultation is due to take place in 2026.

Should planning permission be granted, it's anticipated the wind farm will become operational sometime between 2031-2033.

How much would Ørsted make?

Construction costs are expected to be in the region of £4.5billion, with Mr Baldwin telling Manx Radio that the company aims to make 'a reasonable margin':

Where to connect

Ørsted is currently exploring two options in terms of where to bring electricity generated by the wind farm to the Isle of Man.

One option would be via a new electrical cable directly between part of the wind farm array and the Island.

Option two would be to connect the wind farm solely to the UK grid, with the option for the Island to buy power generated by the wind farm. 

Ørsted is 'in discussions with Manx Utilities and Isle of Man Government departments to explore these possibilities'.

History

In 2014 the Isle of Man Government issued a tender for leasing an area of the Island's territorial seas for offshore wind as part of the first 'Marine Plan'.

An Agreement for Lease was signed in 2015, and since then Ørsted has been developing proposals for the Mooir Vannin Offshore Wind Farm off the Island’s east coast. 

It would be the first of its kind in Manx waters, which extend to 12 nautical miles from the coastline. 

Ørsted says it has already made a significant investment in project development, including around £2million for a geotechnical seabed survey carried out in June this year.

Elsewhere in the news

Ørsted, a Danish company, is Europe's largest wind power firm and has made international headlines in the past 24 hours after its shares dropped by a third.

The Financial Times reports that the group 'blamed Donald Trump’s administration for derailing its business model'.

The company has reportedly opted to raise $9.4bn in new funds after 'recent material developments in the US scuppered efforts to sell a stake in its Sunrise Wind project off the New York coast'.

On the Island, Garff Commissioners is hosting a public meeting later this month to find out what resident’s views are on Ørsted's plans.

It will take place at the Laxey Working Men’s Institute at 7pm on Tuesday, 26 August.

Read more HERE.