Wales Highlights 2020/21 - The Crown Estate
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Wales Highlights 2020/21
The Crown Estate
Wales Highlights 2020/21
W A L E S H I G H L I G H T S 2 0 2 0/2 1
Working for Wales 1,500MW
Potential capacity of the Round 4 project off the
Northern Welsh coast
The Crown Estate manages marine and land assets in
Wales. This report provides a summary of the highlights
and main developments for the period from 1 April 2020
to 31 March 2021. Further reporting on our activities
2.3m tonnes
Amount of C02 emissions which could be saved
in Wales, and how we are fulfilling our duty under the a year, as a result of the Round 4 project off the
Northern Welsh coast
Environment (Wales) Act 2016 Part 1 – Section 6 to protect
the natural environment in the region can be found online in
our Biodiversity and Resilience of Ecosystems Report 2019
at: thecrownestate.co.uk/biodiversity-report-wales
Our new strategy, and our commitment The 2020/21 financial year has Inland, we own over 50,000 acres of
to be a net zero carbon business by been a year dominated by COVID-19. Welsh uplands and common land which
2030, recognises the importance of We are acutely aware of the pressures is primarily rough pasture for grazing,
biodiversity. Our objective is to actively the pandemic has put on our stakeholders but also acts as an important natural
invest to support the essential role and society in general, and of the resource for all to enjoy within the Welsh
played by biodiversity in the provision of resulting economic challenges some of countryside. The value ascribed by our
ecosystem services through the creation, our customers and operations in Wales independent valuers to our agriculture
protection, restoration and enhancement continue to face. Our approach has been portfolio in Wales increased during the
of natural habitats on land and at sea. to maintain a dialogue with our customers year from £0.6 million to £2.2 million,
Our contribution to the UK’s agenda on and partners during this difficult time to primarily as a result of a change in
biodiversity will be a major component help navigate the operational challenges valuation approach of our common
of the Environmental value we deliver brought about by the pandemic. land holdings in Wales.
as part of our developing Value Creation
A more detailed account of our UK-wide We are responsible for around 250,000
Framework (VCF). More detail on both
operational response relating to our acres of mineral-only interests,
our Group strategy and the VCF can be
customers and stakeholders can be found with eight sites currently leased for
read on pages 12-15 of our latest Annual
on page 36 of our latest Annual Report mineral extraction.
Report online at: thecrownestate.co.uk/
online at: thecrownestate.co.uk/Annual-
Annual-Report-2021 In addition, we manage the rights to
Report-2021
deposits of gold and silver, known as Mines
Our long-term success relies on our
relationships with all of our stakeholders,
Areas of responsibility Royal. There is one Mines Royal lease and
Our responsibilities in Wales include two pending Mines Royal leases. There are
from our customers and partners
the seabed out to 12 nautical miles. six current Mines Royal options and one
through to the communities we serve.
Our interests therefore include pending option.
We aim to bring a partnership approach
to these relationships to achieve the best renewable energy, which is our most
outcomes for everyone. Building strong significant activity in Wales; oil and gas
collaborative relationships is also central pipelines, marine aggregate extraction,
to understanding our stakeholders’ needs. telecommunications and power cables.
In addition, we hold the rights to the
resources on the continental shelf,
such as natural resources and offshore
energy, but excluding fossil fuels. We also
manage around 65 per cent of the Welsh
foreshore and riverbed, which includes
a number of ports, such as the busy and
multi-functional port of Milford Haven in
Pembrokeshire, and various marinas.
2The Crown Estate
Wales Highlights 2020/21
Supporting offshore As a result of Offshore Wind Leasing Wave and tidal
renewable energy Round 4 the valuation of our Marine
Wales also has significant wave and
portfolio in Wales has increased
Offshore wind tidal energy potential. We continue to
significantly in the year from £49.2 million
play a role in supporting this sector
During 2020/21, across our seabed to £549.1 million. As with all the Round 4
through engagement with the Marine
holdings, cumulative operational capacity projects, there is significant risk around
Energy Wales Working Group, Welsh
in the offshore wind sector increased this Round 4 project off the Northern
Government’s Consenting Strategic
from 9.31GW to 9.61GW (an increase of Welsh coast, which will result in future
Advisory Group and through discussions
0.3GW). One of the largest operational variability for both income and capital
with our customers around their awarded
wind farms in the UK, the 576MW values as this project progresses through
leased sites. We continue to offer the
Gwynt y Môr offshore wind farm off the its life-cycle. If this project moves into the
opportunity to access the seabed for
north coast of Wales, suffered an export option period, the associated net revenue
wave projects up to 3MW or tidal stream
cable failure towards the end of 2020. profit will begin to be recognised and paid
projects up to 30MW and several test and
By routing power through the remaining annually to the Treasury for the benefit of
demonstration projects are targeting a
cables of the transmission asset it was the nation’s finances. More information
2023 start date.
possible to keep the output reduction to on the risks and financial impact of
a minimum. The asset is still operating Round 4 projects can be found on pages Marine aggregates
with a constrained capacity, at c.82% of 30-31 of our latest Annual Report The Crown Estate is responsible for
normal capacity, until the full investigation online at: thecrownestate.co.uk/Annual- licensing the extraction of aggregates
is completed and the export cable Report-2021 where we manage the seabed.
fully repaired. Marine aggregates are an important
Floating offshore wind
You can read more about the UK’s resource for Wales, accounting for
During the year we signed an Agreement approximately 80% of sand and gravel
offshore wind sector in our 2020 Offshore
for Lease for the proposed 96MW Erebus usage in South Wales.
Wind Operational Report online at:
floating wind demonstration project, in the
thecrownestate.co.uk/OSW-Report-2020 In 2020, the tonnage of marine
Welsh waters of the Celtic Sea. This is the
Round 4 first time that rights have been awarded aggregates delivered to Welsh ports
for floating wind in Wales, marking a decreased very slightly to 683,125
During 2019, following 18 months of tonnes, all of which was dredged from
market and stakeholder engagement, we milestone moment for the Welsh offshore
wind sector. Welsh Waters. A total of 1,380,597
launched an innovative leasing process tonnes were dredged from Welsh Waters,
to award new offshore wind development There is significant market appetite and an increase of 51% on the prior year.
rights in support of government targets capability to meet the UK Government’s
for 2030 and beyond. In February 2021, target of delivering 1GW of energy from This increase is predominantly as a result
six projects were selected through the floating wind by 2030, and we have of three Exploration areas that converted
competitive tender. The provisional started work to design and deliver a new to Production areas in the previous year
outcome of Round 4 provides the potential leasing opportunity for early commercial- which led to an increase in the value placed
for up to 8GW of capacity and a strong scale floating wind projects in the on our marine aggregates portfolio in
field of developers with both new entrants Celtic Sea. Wales from £10.5 million to £14.9 million.
and incumbents. As part of our commitment to regularly
This could create projects of around
One of the six projects selected is located 300MW in Welsh Waters and provide tender exclusive rights to enter an
off the Northern Welsh coast, North innovation and learning opportunities for Exploration and Option Agreement for
East of Anglesey. The successful bidder the local supply chain, positioning them marine aggregates, we will be holding a
was a consortium of EnBW and BP and to win more business at home and abroad tender in 2021 to help ensure the future
the project has a potential capacity of as the industry grows to commercial pipeline of this critical building material
1,500MW. This would provide enough scale. The leasing process will balance component for the construction sector
power to meet the electricity needs of the opportunity for a new, clean electricity and to support coastal defence and
approximately 1.4 million homes and source, with the interests of other sea adaptation projects, including resilience
deliver a reduction in CO2 emissions of up users and the protection of the marine to climate change.
to 2,344,176 tonnes per annum. environment. This will be supported with
This project, along with the other five enabling actions to help us understand
preferred projects, now moves into the and act on a wide range of factors,
environmental assessment known as the including potential impacts on the fishing
Habitats Regulations Assessment (HRA) sector, and to support regions and local
process and, subject to its conclusion, communities maximise the economic
we will look to award rights in 2022. benefit from it.
More detail on Round 4 is provided online
at: thecrownestate.co.uk/Round4
3The Crown Estate
Wales Highlights 2020/21
W A L E S H I G H L I G H T S 2 0 2 0/2 1
In 2018 we introduced our next The programme will gather data and Sharing knowledge
generation Electronic Monitoring evidence to drive forward the sustainable
The Marine Data Exchange (MDE) is a
System (EMS) to the regular UK marine and coordinated expansion of offshore
publicly accessible free data archive for
aggregate dredging fleet. We have been wind to help meet the UK’s commitments
anyone who is interested in the marine
developing this system further to create to low carbon energy transition whilst
space. It stores, manages and shares
a version that is dedicated to the non- supporting clean, healthy, productive and
offshore survey data collected by our
regular contract dredging fleet, aimed biologically diverse seas.
customers. The MDE continued to grow
at one-off coastal adaptation projects
To provide oversight and direction over the past year, and now holds over
such as beach replenishment and capital
we have established a programme 16 terabytes of offshore survey data
dredging. The system has completed
steering group which includes the Welsh collected in Welsh waters from 1956
sea trials and was introduced in late
Government and Natural Resources Wales. to 2020, covering a variety of survey
2020. Its introduction facilitates the
Members provide their expertise and campaigns, including environmental
monitoring of dredgers that operate on
resources to identify, support and deliver monitoring, site investigation and
marine aggregate licences on a temporary,
strategic research and data projects. meteorological data, from sectors such
ad-hoc basis when it is impractical to
Over a five-year period, these projects as offshore wind, tidal stream and marine
fit the regular system, and enables us
will provide essential insights to help the aggregates. 60% of this data is publicly
to ensure all dredging activity in our
sector better understand and address available to access and download for
waters continues to be undertaken in
cumulative environmental impacts free. The database has been recently
a responsible and compliant manner.
and interactions with other industries redeveloped and can be accessed online
Coastal and activities, both around the coast at: thecrownestate.co.uk/MDE
During the period we granted landowners and offshore.
As the offshore sector continues to grow,
rights over the foreshore at Rhyl to We continue to work with the Welsh it is important to ensure that marine
Denbighshire County Council (the Government to support its work on the energy research and knowledge sharing
Coastal Protection Authority) to assist implementation of the Welsh National is coordinated to help build a sustainable
in a 600-metre (£27.5 million) seafront Marine Plan. We are engaging with sector for the long term. Alongside the
flood defence scheme to protect 1,650 this process through participation Welsh Government, Natural Resources
homes in the east of the town. Works are in the Marine Planning Stakeholder Wales and other industry stakeholders,
expected to be completed in 2023. Reference Group. we continue to support the Offshore
We anticipate new aquaculture schemes Renewables Joint Industry Programme
We continue to enjoy a strong relationship
being considered across Wales. During the (ORJIP) for Ocean Energy. This brings
with Natural Resources Wales and work
year enquiries were received in relation together industry, regulators, researchers
in partnership where we have holdings to
to the cultivation of bivalves (e.g. and funders so that the sector’s
ensure that the natural resources of Wales
molluscs such as clams, oysters, mussels, consenting risks can be addressed in a
are sustainably managed for the long term.
scallops etc) and flora including seagrass strategic and coordinated manner.
and seaweed. We also participate in a number of working
and advisory groups. This includes
Working in partnership membership of the Wales Marine Action
Our approach to asset management and Advisory Group (WMAAG), the
in Wales is grounded in a partnership WMAAG Blue Recovery Sub-group, and
approach which sees us work together the Marine Protected Areas Network
with a diverse range of organisations. Management Steering Group to ensure a
This includes collaborating with the Welsh joined up approach and knowledge sharing
Government, understanding its aims and across the marine space.
working with a number of departments on
shared priorities.
The Offshore Wind Evidence and
Change programme formally launched in
December 2020 with a charter signed up
to by 26 organisations. It is a pioneering
programme led by The Crown Estate
in partnership with the Department for
Business, Energy & Industrial Strategy
and Department for Environment,
Food & Rural Affairs.
4The Crown Estate
Wales Highlights 2020/21
Financial highlights (unaudited) The Crown Estate in Wales
Revenue by activity 2020/21
The Crown
The Crown The Crown The Crown The Crown Estate
2 1 Estate Estate Estate Estate Wales The Crown
Wales Wales Total Total Increase/ Estate
Year ended Year ended Year ended Year ended (decrease) Wales
31 March 31 March 31 March 31 March from prior Percentage
2021 2020 2021 2020 year of Total
£m £m £m £m % %
Revenue 8.7 8.8 452.8 476.0 (1.1) 1.9
Gross Surplus 8.5 8.4 341.9 389.4 1.2 2.5
Property value 603.0 96.8 13,696.2 12,522.1 522.9 4.4
Capital Investments 0.1 0.2 78.9 458.5
Capital Receipts – 1.7 148.5 356.5
1 Marine £8.6m The Crown The Crown The Crown The Crown
2 Regional £0.1m Estate Estate Estate Estate
Wales Wales Wales Wales
Total £8.7m Year ended Year ended Year ended Year ended
31 March 31 March 31 March 31 March
2021 2020 2021 2020
Revenue by activity £m £m Property value by activity £m £m
Agriculture 0.1 0.1 Agriculture 2.2 0.6
Property value by activity
as at 31 March 2021 Regional 0.1 0.1 Regional 2.2 0.6
2 1 Cables/pipelines 1.2 1.1 Cables/pipelines 13.5 13.3
Coastal 1.7 1.9 Coastal 17.6 17.5
Minerals 0.7 0.9 Minerals 5.7 5.7
Marine aggregates 1.7 1.4 Marine aggregates 14.9 10.5
Renewables 3.3 3.4 Renewables 549.1 49.2
Marine 8.6 8.7 Marine 600.8 96.2
Total 8.7 8.8 Total 603.0 96.8
1 Marine £600.8m
2 Regional £2.2m
Total £603.0m
London Social media
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1 St James’s Market
LinkedIn: The Crown Estate
London
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T 020 7851 5000
www.thecrownestate.co.uk
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