In focus: Industries, governments start walking the energy transition walk

The ‘transition’ part of the energy transition is starting to show a more defined shape, and what the world’s path towards being net-zero one day entails, as concrete plans and initiatives increasingly emerge across the energy and transportation sectors.

Judging by our headlines this week, in the years to come we will see a lot of offshore oil and gas assets (both existing and those yet to be commissioned) being powered by electricity produced from renewable energy sources, while the use of alternative fuels increases across the transportation sector, most notably in the shipping realm.

The UK and Norway are shaping up to be leaders in electrifying oil and gas assets, with a push in that direction being made from both the governmental chairs and industry’s planning desks.

The UK government and the oil and gas sector have already put their signatures down on deals through which they are committing to reducing emissions from oil and gas operations and investing billions of pounds to replace fossil fuel-based power supplies on oil and gas platforms with renewable energy.

While the UK – where a massive proposal using floating wind to power oil and gas infrastructure was recently unveiled – is ready to walk the walk, Norway is set to soon go through offshore wind proposals incorporating oil and gas asset electrification as it reviews bids for two of its areas opened last year.

At the beginning of this week, British oil major BP was reported as joining a consortium that is preparing an offshore wind bid in Norway, with a plan to also explore opportunities to power offshore oil and gas facilities with clean electricity. A few days later, Dutch oil and gas giant Shell was revealed as having similar plans together with two Norwegian hydropower producers.

The country, where a project powering oil and gas platforms with electricity from (floating) offshore wind is already under construction by Equinor, has also decided to start the process of identifying new areas for offshore wind. Future Norwegian offshore wind tenders might also see electrification segments in the submitted proposals as the industry has so far advocated for various hybrid projects.

A Norwegian project looking to set up a carbon-neutral ammonia plant in Hammerfest has also come to spotlight this week as Horisont Energi selected Saipem and Technip Energies to conduct two studies for the conceptual design of the plant.

The Barents Blue plant is planned to be Europe’s first large-scale factory for the production of “blue” ammonia from natural gas. If everything goes according to plan, the construction work on Barents Blue would start in 2023 and the plant would be put into operation in 2025.

The UK and Norway do not only share the abstract link of similar oil and gas decarbonisation plans, but a physical one as well. Namely, the 720-kilometre North Sea Link interconnector, which will enable the exchange of electricity between the two countries, has just been completed.

The testing of the power link is set to begin in the coming days and trial operation will start on 1 October. When testing kicks off, the grid operators will begin by sending 700 MW along the cable both ways, before ramping up to full voltage and its full capacity of 1.4 GW by September.

“This is an important collaboration between the UK and Norway to get the most out of our total renewable energy resources that provide benefits in both countries“, said Nigel Williams, project director at National Grid.

The UK is tapping into its offshore renewable energy potential using multiple technologies, with Scotland being at the forefront with its latest marine energy developments. After the world’s most powerful tidal turbine was recently launched from the Port of Dundee and sent on its way to Orkney, Scottish company Mocean Energy started testing its Blue X wave energy prototype at Orkney’s European Marine Energy Centre (EMEC).

Mocean Energy said its wave energy technology was ideally suited for a number of offshore operations, where it could directly contribute to net-zero goals. Next year, the company plans to connect the device to a subsea battery which will be used to power a remotely operated autonomous underwater vehicle (AUV) – with potential applications offshore.

While projects decarbonising oil and gas assets and powering marine vehicles and smaller vessels with renewable energy continue to emerge primarily across the energy sector itself – the maritime industry is continuing to take concrete steps in using alternative fuels.

Maersk has entered discussions with equipment suppliers and yards on the order of a methanol-powered containership, after the company announced plans to order the world’s first container vessel that can operate on carbon-neutral methanol in February. Under the plan, Maersk plans to launch the carbon-neutral liner vessel in 2023.

The containership heavyweight has also been reported to had signed a contract for the construction of three methanol-powered boxships with South Korean Hyundai Mipo Dockyard.

In a response to Offshore Energy – Green Marine, Maersk did not confirm this, but the company did say it was continuously reviewing the fleet composition to ensure it matches current and future operational requirements. “This includes reviews and evaluation of the opportunities to charter from 3rd parties, purchase or sell vessels, as well as ordering of newbuildings”, Maersk said in a statement.