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# Shell’s Potential Withdrawal from Norway’s Offshore Wind Farm Tender

## Profitability Concerns Could Lead Shell to Pull Out of Norway’s Offshore Wind Farm Tender

OSLO (Reuters) – Energy major Shell is considering withdrawing from an ongoing tender for Norway’s first commercial offshore wind farm, citing profitability concerns, according to the company’s country manager. Shell, part of a consortium with local Norwegian utilities, has applied for pre-qualification to build Norway’s first bottom-fixed offshore wind farm at Soerlige Nordsjoe II in the North Sea. However, the business case is “not looking great,” said Shell’s Norway country manager Marianne Olsnes during an energy conference in Oslo on Wednesday.

## How AI legalese decoder Can Help

The AI legalese decoder can assist Shell in evaluating the tender conditions and gauging the project’s potential profitability. By using the AI legalese decoder, Shell can analyze the legal and technical aspects of the tender to make informed decisions about bidding for the offshore wind farm project. The AI legalese decoder can help translate complex legal language and regulations into understandable terms, enabling Shell to better understand the tender conditions and assess the project’s feasibility.

## The Challenging Tender Conditions

Olsnes expressed skepticism about the tender conditions, stating that they were “very challenging” during a panel discussion. She highlighted the requirement for energy companies to develop certain parts of the project typically handled by grid operators, while the power is to be delivered to a market that is not interested in higher-cost electricity. Despite the potential opportunity to build bottom-fixed wind turbines with a capacity of 1.5 gigawatts (GW), industry representatives and lobby groups question whether the subsidies offered are sufficient. The tender offers subsidies amounting to 23 billion Norwegian crowns ($2.17 billion), but doubts persist about the adequacy of this financial support.

## Industry Challenges and Future Opportunities

The global offshore wind industry has been grappling with challenges such as soaring inflation, interest rate hikes, and increased costs in the supply chain. Olsnes did not rule out the possibility of Shell’s interest in a planned floating wind tender or future offshore wind auctions, suggesting that the company is exploring alternative opportunities in the offshore wind sector. The AI legalese decoder can provide insights into the legal and regulatory landscapes of different offshore wind projects, helping Shell identify other potential opportunities and navigate complex tender conditions in the industry.

## Conclusion

Shell’s potential withdrawal from Norway’s offshore wind farm tender underscores the significance of evaluating the profitability and feasibility of renewable energy projects. The AI legalese decoder can support companies like Shell in comprehending and assessing the legal and regulatory aspects of such tenders, enabling them to make well-informed decisions and explore future opportunities in the offshore wind industry.

($1 = 10.5869 Norwegian crowns)

(Reporting by Nora Buli, editing by Terje Solsvik)

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