Shell has withdrawn from two major offshore wind projects off Scotland’s coast following a strategic review, the company said Monday. The move marks a continuation of its recent shift toward oil and gas operations under Chief Executive Officer Wael Sawan.
Shell sold its 50% share in the MarramWind project to ScottishPower Renewables and relinquished its lease for the CampionWind project back to Crown Estate Scotland. ScottishPower Renewables confirmed it will continue developing MarramWind, though the future of CampionWind remains uncertain pending a decision by Crown Estate Scotland.
Refocus under new leadership
Under Sawan’s leadership, Shell has moved away from certain renewable energy ventures to strengthen its traditional energy portfolio. The company said the decision followed an in-depth review of its power strategy.
“After a comprehensive review and in line with Shell’s previously announced refocusing of its power strategy on leveraging Shell’s strengths in trading and retailing, the conclusion was to not take the CampionWind project forward,” a Shell spokesperson said.
CampionWind, located about 100 kilometers (60 miles) off Scotland’s east coast, was expected to generate up to 2 gigawatts of power. Crown Estate Scotland said it will evaluate next steps for the site based on market demand.
ScottishPower continues development
MarramWind, situated 75 kilometers off the northeast coast of Aberdeenshire, has the potential to produce up to 3 gigawatts of energy—enough to power more than 3.5 million homes.
“With sole responsibility for MarramWind – alongside our MachairWind project – we will now continue the development of these wind farms and maintain our positive engagement with local people and businesses,” a ScottishPower Renewables spokesperson said.
ScottishPower Renewables, a subsidiary of Spain-based Iberdrola, remains one of the largest investors in the UK’s renewable energy sector.
Strategic realignment continues
The decision reflects Shell’s broader strategy to prioritize projects that align with its established strengths. The company has recently scaled back investments in offshore wind and hydrogen while increasing focus on liquefied natural gas (LNG) and upstream oil projects to enhance returns and shareholder confidence.
Shell’s exit from MarramWind and CampionWind follows other divestments in renewable ventures as part of its efforts to streamline its energy portfolio. Analysts view the move as consistent with Sawan’s goal to balance financial performance with energy transition commitments.
Both projects were part of Scotland’s ScotWind leasing round, which aims to expand offshore wind capacity and support the country’s net-zero targets. The withdrawal could affect short-term development timelines but is not expected to halt overall progress in the region’s offshore wind expansion.
Crown Estate Scotland said it remains committed to advancing renewable energy opportunities and will explore options for reassigning the CampionWind lease.
The MarramWind and CampionWind projects were initially designed to help Scotland meet its target of generating 11 gigawatts of offshore wind energy by 2030.
Shell’s departure underscores ongoing challenges faced by energy companies in balancing financial discipline with renewable energy ambitions amid shifting global energy priorities.
