Inner Sound Stroma in line for major tidal energy project

30th March 2010

The Crown Estate announced today that it is inviting expressions of interest for a tidal energy project in the Inner Sound, which lies between Caithness on the Scottish mainland and the island of Stroma. As one of the most energetic tidal areas in the Pentland Firth, the Inner Sound has potential for a significant commercial tidal energy project, and could increase the potential capacity in the Pentland Firth and Orkney waters to more than 1,200 MW.

Successful bidders for the first competitive wave and tidal leasing round in the Pentland Firth and Orkney waters were announced on 16 March in Wick, Kirkwall and Edinburgh. During the leasing round process, The Crown Estate received bids for development in the Inner Sound. The preferred bidder withdrew at a late stage in the process. Given the Inner Sound's high potential for renewable electricity generation, and the fact that it was one of the most contested areas in the leasing round, The Crown Estate expects that other parties will be interested in the area. It has therefore decided to re-tender the Inner Sound. The Crown Estate is particularly keen to receive expressions of interest in a single commercial project of 200 MW or more installed capacity, to be constructed and operating by 2020.

Should a developer be successful in the re-tendering process and secure an agreement for lease, it would be expected to develop the site and enter the statutory consenting process. The Pentland Firth and Orkney waters enabling actions fund, which comprises developers' option fees and match funding from The Crown Estate, would also increase. For the time being, The Crown Estate has no plans to invite bids and will not consider applications for any other areas of the Pentland Firth and Orkney waters.

Commenting on the announcement, Rob Hastings, Director of the Marine Estate at The Crown Estate said: "After the successful launch of 10 wave and tidal projects in the Pentland Firth and Orkney waters, with a potential capacity of 1,200 MW, we are delighted to make the Inner Sound available for further commercial bids. A tidal project in the Inner Sound could significantly increase the local generation of marine renewable energy and further advance the wave and tidal energy industry. And an increase to the enabling actions fund would help further accelerate and reduce risks in development, through environmental survey work, for example."

Expressions of interest in the area will be invited and companies will be invited to pre-qualify, from Monday 19 April 2010, via The Crown Estate's e-tendering system. A web link to the e-tendering system will be given on this date. The deadline for expressions of interest and pre-qualification will be 17:00 BST on Friday 28 May 2010. The proposed area for development in the Inner Sound is pre-defined, and a map and coordinates are available on The Crown Estate website.

As owners of the UK seabed out to the 12-nautical mile territorial limit and over 55 per cent of the foreshore, The Crown Estate will continue to work closely with its partners, Scottish Government, Highlands & Islands Enterprise, Orkney Islands Council and the Highland Council, to maximise the benefits to the local area and the rest of Scotland from investments such as the offshore renewable energy programme.

In keeping with its core value of stewardship, The Crown Estate would welcome views from local stakeholders that may be affected by the development. Views should be directed to the Wave and Tidal programme team, waveandtidal[AT]thecrownestate.co.uk.

A consultation on proposed areas for a further, separate leasing round in Scottish territorial waters, particularly aimed at potential Saltire Prize competitors, is currently underway. Details are available on The Crown Estate and Scottish Government websites.

Notes On Crown Estate
· On behalf of the nation, The Crown Estate manages a highly diverse £6 billion property portfolio across the UK.
· Our objectives, which are laid down by Parliament under The Crown Estate Act 1961, include enhancing the value of the estate and the revenue it produces.
· Every year we pay all of our surplus revenue to the UK Treasury for the benefit of all UK taxpayers: in 2008/09 this was £226.5 million. £15.5 million of this came from Scotland.
· Our core values of commercialism, integrity and stewardship, guide and inform all our business activities.
· The Crown Estate is committed to working in partnership with the Scottish Government and members of the Scottish Parliament, local authorities and a wide range of other stakeholders to safeguard the long term interests of the environment and the communities with which we work.
· In Scotland, The Crown Estate includes:
- The marine estate consists of over half the foreshore and the seabed out to the 12 nautical mile territorial limit. The Crown Estate has the right to explore and utilise the resources of the UK continental shelf (excluding oil, gas and coal), including the right to license renewable energy in the form of offshore wind, wave and tidal power. We are working with our partners to ensure that Scotland is well placed to take advantage of the benefits that renewables will bring through employment and by reducing carbon emissions.
- The rural estate in Scotland comprises 43,000 hectares and includes the Glenlivet, Fochabers, Applegirth, Stirling and Whitehill estates. It includes 185 agricultural tenancies and 102 residential properties.
- The urban estate includes retail property in Edinburgh.
· In 1999 The Crown Estate established its programme of Marine Stewardship to provide funding to support practical projects, relevant research, and other initiatives that improve the status and management of the marine estate.
· The Crown Estate in Scotland is managed from its Edinburgh Office at 6 Bells Brae, Edinburgh, EH4 3BJ.
www.thecrownestate.co.uk/scotland