New Green Schemes Planned for U.K. Coastline

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July 10 (Bloomberg) -- Crown Estate Director of Energy and Infrastructure Rob Hastings discusses the U.K.’s offshore wind expansion plans on “The Pulse.” (Source: Bloomberg)

Seabed around the u.k. we are opening up new areas of seabed for the development of this new technology.

Wave and tidal technology.

The idea is to provide the opportunity for developers to find a way of reducing the cost of technology, make it more reliable, more deployable.

The u.k. is blessed with a vast resource of this natural resource.

Can we get that deployed?

Can we make a material contribution to the u.k.'s energy mix going forward?

What is the potential?

The potential is quite huge.

The projects that we are doing right now in terms of policing process that we are doing, is to understand exactly what that potential is.

The natural resources last.

-- resource is vast.

Can we deploy it in a reliable way?

We believe we can.

We believe we could have an energy resource which matches any other renewable energy generation.

Where is the greatest potential?

Is it in the u.k., the bristol channel?

It is relatively distributed around the u.k. there are two types of technologies we are talking about.

One is tidal energy and the other is wave energy.

Tidal energy is located in specific locations where the title ranges are greater.

If you look at areas around the southwest of the u.k. and the north, around scotland, there are locations.

Locations of high tidal energy.

For wave, it is different locations.

Generally they are in places where you would imagine.

Southwest and maybe in the north atlantic regions.

Some of those areas are highly energetic and potentially quite useful.

Is one more affordable or cost-efficient than the other?

They are relatively similar in terms of the cost of energy.

Tidal energy is probably more advanced.

It is early days.

We are trying to understand exactly what that looks like.

There is an awful lot of energy going into making this happen.

It is a great story.

If you went to places like the north of scotland, you would see lots of energized people looking to develop this technology.

Some very big corporate enterprises are coming in behind it.

Companies like siemens and alstom.

So those are your plans?

In some cases, yes.

There is also energy generators such as scottish power, edf, the big names are all actively engaging in the process to understand how they can -- how does it work from a revenue point of view?

What is the relationship in terms of the revenue and how it is generated and distributed?

The crown estate is effectively the landlord.

We lease the seabed to developers.

Our income is dependent on the value of the power that is produced from the generating assets that may be on that seabed.

It is relatively nominal.

Relative to the generation value , the asset for the investor.

The crown estate doesn't invest in these assets.

We are the landlord.

We make the seabed available.

Our income is relatively modest in the scheme of things.

But these are -- generally the expectation is, if you compare it to its predecessor, offshore wind, these are infrastructure assets which are very high-value assets.

Typically measured in billions of euros and pounds.

You would imagine the returns that investors would require would match up against investments necessary to make this happen.

Interesting, thank you.

We are going to take a break.

For those listening on bloomberg radio, the first word is up next.

For our euros, a second hour of "the pulse" is next.

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This text has been automatically generated. It may not be 100% accurate.

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