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World's Deepest Offshore Wind Turbines Given Green Light

04 July 2006
Talisman Energy (UK) Limited, a wholly-owned subsidiary of Talisman Energy Inc. (TSX:TLM) (NYSE:TLM), has announced that the UK Department of Trade and Industry (DTI) has given its approval for the development of a deepwater wind farm demonstrator project adjacent to the Company's Beatrice oilfield, 25 kilometres off the east coast of Scotland.

The project, a joint venture between Talisman Energy (UK) Limited and Scottish and Southern Energy, will use two of the largest turbines installed anywhere in the world to test the technical and economic feasibility of deepwater wind farms in water depths of about 45 metres. Electricity generated by the demonstrator project will be used to power the Beatrice platform.

"We are delighted that the demonstrator project has received development consent," said Dr. Jim Buckee, President and Chief Executive Officer. "We are now in the final stages of fabrication and assembly and plan to install the turbines within the next few months. During the next few years the results of this project will influence the development of wind turbine technology around the world.

"Many of the skills used in the offshore oil and gas industry are transferable to the renewable energy sector, thereby potentially creating new investment and employment opportunities in the North Sea. The existing infrastructure at Beatrice offers a unique opportunity to test the feasibility of deepwater wind farms."

"The Beatrice Wind Farm Demonstrator Project provides the opportunity to marry economic, community and environmental interests," said the Minister for Energy Malcolm Wicks. "The DTI is pleased to support this innovative test project to determine if large offshore turbines, in deeper water, can be a reliable and cost effective way to generate electricity. If successful, turbines of this type can contribute to the Government's renewable energy targets. In addition, the program will extend the life of the Beatrice platform, helping maximize oil recovery from this field."

The five megawatt turbines, which are approximately 85 metres high, will be sited in the Moray Firth in water depths of about 45 metres. This is a highly significant change from existing offshore developments, which are located in territorial waters close to shore in water depths of less than 10 metres. The siting of wind farms further offshore in deeper water minimises the visual impact associated with some wind farm developments.

The existing Beatrice infrastructure has been modified to use the electricity generated by the demonstrator turbines. The field's production platforms will also provide a base from which to carry out turbine monitoring and maintenance.

The demonstrator project has been incorporated into the pan-European initiative, DOWNVInD (Distant Offshore Wind Farms With No Visual Impact In Deepwater). DOWNVInD has been established as a catalyst for commercializing deepwater wind farm technology and includes 18 different organizations from six European countries. DOWNVInD is Europe's largest renewable energy research and development program.

Funding has been provided through the public and private sectors, with the European Community awarding Euros 6 million, the Scottish Executive Pounds Sterling 3 million and DTI Pounds Sterling 3 million
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