Oil companies have a natural advantage in that business, since they have spent decades learning how to manage financial, political and project-development risks, he said.
As the renewables industry shifts to more subsidy-free projects, it may be the established oil companies that can handle the gambles that come with competing at market prices.
Also, they are able to leverage their offshore marine technical expertise.” Shell already has taken a 50 percent stake in a 680-megawatt offshore wind farm in Dutch waters and is seeking to expand that footprint, according to Gainsborough.
Shell envisions farms that are more than 15 times bigger in order to increase the technology’s competitiveness and reduce costs, he said.
You’ve got to have a much bigger balance sheet than many of the players that play today.” Green-power developers are adapting to the idea that they’ll need to work with more fossil fuel companies in the future, according to John Pires, head of M&A and project finance at Northland Power Inc., a Toronto-based firm that owns the majority stake of the Gemini offshore wind project in the Netherlands.