Equinor ASA EQNR in partnership with joint venture Gwynt Glas — formed by EDF Renewables UK and Ireland's ESB — has secured rights to develop major floating wind farms in the Celtic Sea, off the coasts of Wales and South West England. The leases, awarded by The Crown Estate, mark a significant step forward in the United Kingdom's push toward clean energy and job creation in the offshore renewables sector.
EQNR to Develop 1.5 GW Floating Wind Farm
Both Equinor and Gwynt Glas have obtained rights to build 1.5 gigawatts (GW) of floating wind capacity each, paying an annual lease fee of $470 per megawatt (approximately £350 per MW). The combined 3 GW capacity comes as part of The Crown Estate’s broader initiative to enable up to 4.5 GW of floating wind generation in the Celtic Sea, enough to power more than four million homes.
The Crown Estate is expected to announce plans for a third project to utilize the remaining 1.5 GW of capacity by the end of September 2025, with efforts already underway to ensure the full rollout of this initial phase.
EQNR Project Supports U.K. Net Zero Ambitions
Equinor, a seasoned player in offshore wind, sees this as a long-term strategic investment. The company emphasized the scalability and flexibility of the seabed lease, noting the deeper waters of the Celtic Sea offer strong potential for floating wind technology, key to helping the United Kingdom meet its net-zero targets.
Massive Economic and Industrial Impact Expected
The new floating wind farms are set to be among the largest of their kind globally, further strengthening the United Kingdom's leadership in offshore wind. According to The Crown Estate, the projects are expected to attract more than £1 billion in investment and create thousands of jobs, especially in local supply chains and port infrastructure.
This announcement also signals the beginning of a long-term industrial buildout, with The Crown Estate identifying the potential for 4-10 GW of additional floating wind capacity to be brought to market in the Celtic Sea by the end of this decade.
EQNR’s Zacks Rank & Key Picks
EQNR currently carries a Zack Rank #3 (Hold).
Investors interested in the energy sector may look at some better-ranked stocks like Subsea 7 S.A. SUBCY, Oceaneering International, Inc. OII and RPC Inc. RES. Subsea 7 presently sports a Zacks Rank #1 (Strong Buy), while Oceaneering International and RPC carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Subsea 7 helps build underwater oil and gas fields. It is a top player in the Oil and Gas Equipment and Services market, which is expected to grow as oil and gas production moves further offshore.
The Zacks Consensus Estimate for SUBCY’s 2025 EPS is pegged at $1.31. The company has a Value Score of A.
Oceaneering International delivers integrated technology solutions across all stages of the offshore oilfield lifecycle. With a geographically diverse asset portfolio and a balanced revenue mix between domestic and international operations, the company effectively mitigates risk. As a leading provider of offshore equipment and technology solutions to the energy sector, OII benefits from strong relationships with top-tier customers, ensuring revenue visibility and business stability.
The Zacks Consensus Estimate for OII’s 2025 EPS is pegged at $1.79. The company has a Value Score of B.
RPC generates strong and stable revenues through a diverse range of oilfield services, including pressure pumping, coiled tubing and rental tools. The company is strongly committed to returning value to shareholders through consistent dividends and share buybacks. RPC’s current dividend yield is higher than that of the composite stocks in the industry. Its new Tier IV dual-fuel fleet has boosted profits, with plans to further expand high-efficiency equipment to enhance operational capabilities.
The Zacks Consensus Estimate for RES’ 2025 EPS is pegged at 38 cents. The company has a Value Score of A.
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Oceaneering International, Inc. (OII): Free Stock Analysis Report RPC, Inc. (RES): Free Stock Analysis Report Subsea 7 SA (SUBCY): Free Stock Analysis Report Equinor ASA (EQNR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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