00:02:21
ITN
Shell pulls out of UK wind farm
Shell pulls out of UK wind farm
Shell has announced plans to sell its stake in the world's largest offshore wind power scheme.The oil giant is looking to dispose of its 33 per cent shareholding in the £2 billion London Array project which, if built, would supply enough electricity to power a quarter of Greater London homes.The move comes as it shifts its wind power focus to the United States where it says government incentives offer competitive returns.E.ON, a partner in the 341-turbine project, said Shell's decision could delay the project and introduced "a new element of risk" to the scheme.Environment Secretary Hilary Benn told MPs at question time: "I have to say the news that Shell wishes to sell its stake I would describe as very disappointing."And I think a lot of people would want to understand why that was the case, especially in a week in which the company has announced record profits."Mr Benn said the Government would continue to give its full support to the project.Friends of the Earth energy campaigner Nick Rau said: "We're very disappointed that Shell - which touts itself as a progressive green company - is pulling out of the London Array project, and leaving a key clean energy project high and dry."Shell announced a 12 per cent profit rise yesterday to £3.92 billion. It should be investing those profits in renewable energy projects not focusing its efforts on making money from sucking fossil fuels out of the ground and contributing to climate change."A spokeswoman for Shell said: "We constantly review our projects and investment choices in all of our businesses, focusing on capital discipline and efficiency."In this context the London Array project, which is still in its development phase, is being looked at as part of an ongoing process."We have a small but growing wind energy business. Our current focus for new projects is in the United States where we can leverage our business development skills, project management and power trading skills, and of course government incentives to deliver what we believe are competitive returns."The announcement is the latest blow to wind power projects in the UK, coming just days after the Scottish Executive turned down plans for a 181 turbine wind farm on Lewis.
ITN | May 1, 2008
