In focus: Energy system transformation gathers pace with government-backed innovations

The start of a new era of ‘energy renaissance’ has brought to the forefront numerous energy transition initiatives, featuring innovative net-zero and decarbonization solutions across all industries. Standing out, however, are the moves enacted by governments which truly do have the power to bring about the long-overdue upgrade to our energy landscape.

The meaning of the word ‘innovation’ is defined as the practical implementation of ideas that result in the introduction of new goods or services or improvement in offering goods or services.

The latter part of the definition can be applied to the latest move by the Scottish government made in line with its net-zero targets, which could be deemed as one of the initial steps towards full decarbonization of the North Sea.

As one of major oil and gas producing zones, the North Sea area might not see the capping of its fossil fuels production levels any time soon. Nevertheless, the process will become more climate friendly thanks to the Scottish government which plans to use offshore wind turbines instead of diesel and gas generators to provide electrification solutions for oil and gas installations.

Namely, the Crown Estate Scotland – the government’s public corporation – unveiled details of a new leasing opportunity whose objective is to maximize the role of offshore wind in reducing emissions from the oil and gas production and achieving targeted installed capacity in a way that delivers the best value for Scotland and supply chain opportunity in alignment with just transition principles.

Across the North Sea, an offshore wind technology solution is already being prepared that could, among other uses, help in temporary electrification of oil and gas installations in harsh environments.

The Norwegian company Odfjell Oceanwind plans to order the first batch of Mobile Offshore Wind Units (MOWUs) later in 2022 that are intended for use in oil and gas installations.

DNV has previously verified that MOWUs may contribute with up to 60-70% reduced emissions compared to power generation from gas turbine generators alone.

To achieve the sustainable energy mix of the new age, innovation is required in more than just energy production part of the chain. With the rise of renewables – especially offshore wind – which represents an intermittent renewable power source, the demand to efficiently store excess energy has been on the rise as well.

In that regard, the UK Government has awarded nearly £7 million to 24 projects related to the development of various energy storage systems.

For the offshore energy sector, the most notable was the grant of nearly £500,000 million awarded to Subsea 7 and technology partner FLASC who will jointly be developing an innovative offshore energy storage system.

The United States is not falling behind Europe either, with the country’s Department of Energy (DOE) announcing an investment of $150 million in research projects focused on clean energy technologies.

The open funding call is meant specifically for research projects focused on increasing efficiency and curbing carbon emissions from energy technologies and manufacturing.

It will support research projects related to hydrogen, long duration storage, and carbon capture and sequestration – all representing major pillars of the energy transition.

The changing energy landscape requires the adaption of workforce and their skillsets in order to ensure the successful transition.

The shipping sector is not falling behind in that regard, as witnessed by the move of Swiss-based marine engine technology developer WinGD which expanded its global training network to deliver coaching to prepare crews for the new future-fuel ready vessels.

Partnering with DCS Power in Singapore, the training will cover the full portfolio of engines, as well as the operational aspects of the future fuel landscape, prioritizing safety and engine optimization.

Starting early seems to be the way to go for other sectors as well, including the still-emerging industry of marine renewable energy. Two industry associations in Canada – Marine Renewables Canada and Electricity Human Resources Canada (EHRC) – have teamed up to to support organizations in the marine renewable energy sector interested in providing employment opportunities for youth.

They will be offering funding to member organizations to develop skills and technical knowledge for participants through internships and on-the-job training. The program could help the companies remain resilient to changes in energy sector, while also ensuring the employment for young people in clean energy sectors through subsidized work placement.

Despite skills shortages, policies, and supply chain issues, the energy transition is accelerating faster than ever, according to a latest report by the classification society DNV, which analyzed the views of more than 1,000 senior energy professionals.

Ditlev Engel, CEO of energy systems at DNV, said: “We see an optimistic energy industry: confident about growth, boosting investment, and making critical strategic decisions in the energy transition.

“But we also see significant concerns about barriers to progress – from a skills shortage to policies, financing, supply chains, and permitting – as the enormous task of transforming the energy system gathers pace.

“We see complexities in timing the transition, and in matching the scaling down of fossil fuels with the scaling up of clean energy – in terms of raw total energy, but also in its affordability and reliability. The solution is to scale up clean energy much, much faster.”