SSE Renewables has pulled out of a tidal energy project in Orkney, it has been unveiled.

The lease for the project has now been transferred to Cork-based DP Energy.

The transfer will see DP Energy to take on the development of the Westray South project in Orkney with the potential to install up to 200MW of tidal turbines over two phases. A consent application for the first 60MW phase is expected to be submitted later this year.

The investment required to construct phase one of the project is expected to be in the region of £200m and will generate enough electricity to power 40,000 homes and saving an estimated 56,000 tonnes of CO2 a year.

The Westray South site is adjacent to the European Marine Energy Centre (EMEC) tidal test facility in Orkney, and its relatively sheltered location and moderate water depths make it a promising early development site.


Simon De Pietro, Managing Director of DP Energy, said: "This is a very significant development for DP Energy and is a further expression of our confidence in tidal energy generation as a key component in the portfolio of reliable, predictable and emissions free power sources needed to take us into a more self-sustainable future.

"The approach we take is technology neutral and based on the fact that the site and project comes first and that technology is simply a means of achieving cost competitiveness and driving down the cost of energy.

"This ensures projects are buildable in the future as the least cost solution develops and as the industry matures and ensures potential competition in the market."

Richard Escott, Head of Offshore Development at SSE Renewables, added: "As part of the ongoing review of our marine assets which we began last September, we have decided that the best option for our Westray South project is to transfer the ongoing and future development of the project to DP Marine Energy Ltd.

"DP Energy has a clear strategy for developing marine projects and we are pleased to be able to hand on this project to a committed developer."

(JP)