Savills was instructed to act on behalf of Statoil ASA, the Norwegian state energy company, in respect of an innovative offshore windfarm development off the coast of Aberdeenshire.
The aim was to exploit the generation potential of deep-water sites, Statoil ASA, under its subsidiary, Hywind (Scotland) Limited, have developed innovative technology that permits offshore wind turbines to “float” on the ocean surface and be anchored to the seabed by cables. The Buchan Deep site will host five pilot turbines with a generating capacity of 30 megawatts.
Savills was instructed to acquire the land rights for the onshore section of the project. Electricity generated by the wind farm will be transferred to the mainland via an undersea cable to Peterhead. Savills was instructed to acquire a substation site in Peterhead and negotiate the route of the onshore section of the cable.
We identified a number of sites on the western periphery of Peterhead that complied with the brief set by the client. The preferred site was a former industrial compound leased by the local authority to a company in administration. Savills, together with the client’s solicitors, negotiated with the lessee’s administrators for the assignation of the lease in favour of Statoil.
Following the acquisition of the substation site, Savills consulted with the client on selecting the cable route between the substation and the landfall point of the subsea cable. The challenge was that the two sites were at diametrically opposite sides of Peterhead and it was necessary to identify a route through the town which was both as short as possible and limited the number of separate landowners.
Savills conducted extensive title research and review of the proposed route using resources from Registers of Scotland, ultimately identifying a route along a former disused railway line and a number of public spaces to agree a route that was both direct and required the negotiation of only two land owner agreements.
In conjunction with the client’s solicitor, it was recommended to the client that a Minute of Wayleave be sought from both of the landowners on the cable route. The Minute of Wayleave would be convertible to a Deed of Servitude on the fulfilment of particular conditions. Due to the complex nature of the project and the contracts, Savills collaborated with the client’s solicitor in negotiating the detailed terms of the agreements and consideration with both landowners’ respective agents and solicitors.
Additionally, Savills consulted with the local authority to obtain agreement for the insertion of the cable under various public roads in Peterhead.
Savills assisted the client in lodging the planning application to the local authority for the construction of the cable route and substation. Planning permission was subsequently granted.
In addition to procuring the substation site and the Minutes of Wayleave, Savills was instructed to acquire a suitable site for a working compound to accommodate the client’s contractors during the project construction works. Again, Savills conducted a survey of the local area to identify several sites that were compliant with the client’s requirements. A lease for the client’s preferred site was subsequently negotiated and agreed by Savills.
All contracts for the onshore aspect of the project were agreed at the beginning of 2016. Construction commenced that spring and the windfarm was fully commissioned by the end of 2017.