In focus: Challenge accepted by oil major while Norway answers offshore wind calls

As the energy transition is unravelling, the industry is paving the way to net-zero by pushing for further emission cuts in addition to new fuels and vessel types that are emerging in response to the urgency of the climate change crisis.

This week, an exciting piece of news emerged in the offshore wind market as the Norwegian government announced it would open up new areas for the development of offshore wind projects as a response to the demands from the local industry.

Last year, Norway opened two areas for offshore wind with a combined capacity of up to 4.5 GW. Now, the government will start the process of identifying new areas for offshore wind production and conduct an impact assessment of these areas.

“The starting point for shaping our policy is that offshore wind is an industrial opportunity for Norway. We need to diversify our industrial base and we need to create new jobs”, Norway’s Minister of Petroleum and Energy, Tina Bru, said. 

According to the minister, the projects are expected to be delivered without the need for government subsidies.

While the Norwegian government this week also launched this year’s oil and gas licensing round, calling for exploration bids in the mature areas offshore Norway, the major highlight from the fossil energy market when it comes to the energy transition would actually be a pledge by oil major Shell to speed up its emission cuts through ‘bold but measured’ steps.

This is following a recent ruling by a Dutch court ordering the company to speed up its energy transition efforts.

Voicing his disappointment, Shell CEO Ben van Beurden questioned the court’s decision to single out an energy company to reduce its carbon emissions as he believes the ruling does not help reduce global CO2 emissions. 

Nevertheless, van Beurden said that he felt a determination to rise to the challenge.

Soon after it was urged to capitalize on the energy transition to meet the change of pace required, the subsea sector, which is a supplier to both fossil fuels and renewable industries, this week saw its first player set an ambitious target to reach net-zero.

Namely, the UK’s Sonardyne has set a goal to reach net-zero by the end of 2025, becoming the first company of its type in the UK subsea industry to set such a target. 

Sonardyne’s goal covers direct and indirect emissions, including those associated with manufacturing, as well as supply chain activities, from its UK sites and operations.

“We all have a role to play in recognising and supporting the need for sustainable use of energy to mitigate climate change”, Sonardyne’s managing director, Graham Brown, said. 

Over in the marine energy sector, twelve marine energy research and development projects have been awarded $2.4 million in funding from the U.S. Department of Energy.

The funding is a part of the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs run by the Office of Energy Efficiency and Renewable Energy.

These small business projects were selected from nine different states, based on their proposals and ability to impact the future of marine energy.

Ammonia as an alternative marine fuel has been getting more and more attention in the clean fuels and shipping sectors lately with the latest development being a joint study between energy major TotalEnergies and 22 companies across diverse industries, including energy, chemical, terminal, shipping, shipbuilding, and bunkering.

The study will explore ammonia, which is seen as a promising alternative fuel for large vessels and deep-sea shipping to significantly reduce ghg emissions within the shipping industry.

Green ammonia, produced from green hydrogen using renewable electricity, water and air, could play a major role in enabling the industry to meet the International Maritime Organization’s carbon emission reduction targets by 2050.

Nuclear power also has a role to play in the energy transition and efforts to reduce or altogether avoid emissions in the shipping sector will also be backed by the development of nuclear-powered vessels. South Korean shipbuilder Samsung Heavy Industries is looking into ways to develop this type of vessel through a partnership with Korea Atomic Energy Research Institute (KAERI).

The partnership will focus on developing floating nuclear power plants based on molten salt reactors (MSR), the technology which has been emerging as a “zero-carbon energy source” able to respond to the climate crisis.

The dredging sector also has something in store when it comes to zero-emission vessels as Rohr-Idreco Dredge Systems has just introduced its 100 per cent electric driven, high-end workboat named the iBoat.

“Zero-emission, maximum energy efficiency, and reduced noise pollution are critical issues in environmentally sensitive (mining) areas as well as metropolitan centres”, the company said. 

The workboat is developed in collaboration with Groeneveldt Marine Construction and built in the Netherlands.