A long-running dispute between Orsted and BP regarding two projects with overlapping territory has been resolved, paving the way for both projects to proceed.

The planned projects in question include the 2.6-gigawatt Hornsea 4 windfarm of Orsted and the Endurance carbon capture venture, which is led by bp, the parent company of lubricant and coolant maker Castrol. The UK Government previously approved both projects under the assumption that just over a hundred square kilometres of overlap would not cause unresolvable problems for the two projects.

An issue arose, however, about the boats that will be used to detect carbon leaks potentially striking Orsted’s fixed-bottom wind turbines, with potential solutions impacting the commercial prospects of one or the other of the projects. More specifically, this would mean Orsted giving up the disputed territory, thereby losing generation capacity, or BP using a more expensive leak-monitoring system without boats.

In a letter published on a UK Government planning website, the two companies said that they had reached a commercial agreement. A spokesperson for Orsted said the company had collaborated with:

“…BP, the Crown Estate and other stakeholders for over two years to find a pragmatic solution that will secure the future of both projects. Now that an agreement has been reached, we await the determination from the secretary of state on planning consent which is expected on July 12.”

The spokesperson added that future projects with overlapping locations will benefit from developing a long-term solution for resolving such disputes.