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Norfolk Vanguard Offshore Wind gains MR Fund option

UK ministers have approved a change to the Norfolk Vanguard Offshore Wind Farm consent that introduces a more flexible route to deliver habitat compensation off the Norfolk coast. The Norfolk Vanguard Offshore Wind Farm (Amendment) (No. 3) Order 2025 was made on 18 December 2025 and came into force on 19 December 2025, according to UK legislation. It allows contributions to the Marine Recovery Fund to stand in for parts of the seabed debris removal originally required inside the Haisborough, Hammond and Winterton Special Area of Conservation (HHW SAC).

Under the Order, if the required area of marine debris cannot be cleared in whole or in part, the undertaker-now defined as Norfolk Vanguard West Limited-may apply to the Secretary of State to make a Marine Recovery Fund Payment as an adaptive management measure. The sum is to be agreed with the Department for Environment, Food and Rural Affairs (Defra) or any organisation operating the fund established under section 292 of the Energy Act 2023 for strategic marine compensation. That moves a portion of site‑specific clearance into a centrally managed offset, with pricing confirmed by government.

Importantly for programme planning, the Order removes the previous wording that prevented cable installation works within the HHW SAC from starting until a specified area of marine debris had been cleared. Instead, any switch to the Marine Recovery Fund route must be accepted in principle by the Secretary of State, with an implementation and monitoring plan approved before cable works can proceed in the SAC and with the relevant marine regulators consulted. The rigid ‘no clearance, no works’ gate is replaced by a conditional pathway tied to approvals and payment.

Once the Marine Recovery Fund route is approved, the undertaker can be discharged from further delivery of the physical compensation measures either by paying the full agreed amount or by entering into an instalment contract and making the first payment. That discharge is limited: the Order requires continued compliance with the payment schedule and any contract conditions, and it keeps monitoring obligations in place so the environmental outcome remains trackable over time.

For project directors, this turns a difficult, weather‑sensitive clearance operation into a priced obligation that can be sequenced alongside vessel campaigns. It reduces the risk of missing a narrow cable‑lay window because debris removal runs long, and it can avoid locking in marine spreads on standby while route engineering chases workable corridors. Schedule risk on the cable corridor is lowered, even if a new cash line appears in its place.

Finance teams will recognise the options value. Developers can keep pursuing efficient clearance but switch to a payment once diminishing returns set in. While the quantum is agreed with Defra rather than pre‑set, the ability to contract and pay in instalments supports liquidity planning and debt covenants. Lenders are likely to see a clearer, verifiable compliance route compared with an open‑ended fieldwork scope subject to weather and seabed conditions.

The amendment also deals with the shared cable corridor with the neighbouring Norfolk Boreas project. Any application must set out the proportion of the original compensation that properly sits with Norfolk Vanguard where impacts are shared, allowing the Secretary of State to approve the exact share eligible for substitution. That should improve cost allocation across zone companies and contractors working across overlapping worksites.

Environmental governance is tightened rather than relaxed. The Order defines a Benthic Implementation and Monitoring Plan, overseen by a Benthic Steering Group, with results to be submitted at least annually to the Secretary of State, the Marine Management Organisation and the relevant statutory nature conservation body. If monitoring shows measures are ineffective, new proposals must be submitted and then implemented as approved. A completion report must also be filed within 12 months of finishing the required activities, anchoring the project to a documented finish line.

Commercially, the immediate work is preparation. Developers will want implementation and monitoring plans ready for approval, early dialogue with Defra on valuation assumptions, and a clear decision framework that sets thresholds for when a payment becomes more efficient than additional clearance. For the supply chain, it may shift the mix of work-fewer deep‑clearance campaigns and more emphasis on survey, design optimisation and assured execution windows for cable‑lay.

The broader signal is that UK policy is pivoting to strategic, centrally managed compensation via the Marine Recovery Fund while maintaining stringent oversight at project level. For a maturing offshore wind fleet, this blend of deliverability and environmental accountability could become standard practice-helping projects stay on timetable without stepping back from measurable ecological gain.

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