Saipem exploring nuclear tech as ‘new frontier’ in offshore oil & gas for emission-free energy

In pursuit of its energy transition-motivated technological development program to assist in reaching net zero objectives by 2050, Italy’s engineering, drilling, and construction services provider Saipem is pooling resources with the UK-based newcleo, a nuclear electric power generation player, to throw such technology into the offshore oil and gas operations mix and look into the development of floating nuclear-powered prototypes on a quest to achieve zero-emission energy.

The collaboration agreement enables the duo to pinpoint innovative solutions for the offshore application of newcleo’s nuclear energy technology to produce zero-emission electricity and embark on a feasibility study to develop floating prototypes that will run on clean nuclear power.

Saipem highlights that the main objective of the collaboration is to study the application of the UK-based firm’s small modular lead-cooled fast reactor (SM-LFR) technology to unlock emission-free electricity and process heat to oil and gas offshore installations to improve their sustainability performance.

The deal brings the possibility of extending the use of newcleo’s technology to produce zero-emission electricity through floating nuclear units, connected to the electricity grid on land or other users. The two players will explore a feasibility analysis on the possible prototype development of the British firm’s SM-LFR technology for offshore applications. 

Alessandro Puliti, CEO of Saipem, commented: “The production of zero-emission energy through floating offshore plants equipped with new generation compact reactors could represent a new frontier in the energy transition.

“With this collaboration agreement, we leverage Saipem’s distinct skills in the offshore sector as well as our ability to bring innovation to the world of energy infrastructure, to explore new solutions that can accelerate the path towards decarbonisation.”

Furthermore, newcleo’s solution, which is said to employ one of the most promising technologies in small nuclear fission reactors, leverages passive security systems, such as exploiting natural forces or phenomena without requiring active mechanisms, unique in the marine environment.

The company aims to bring about greater efficiency in extracted uranium compared to other conventional fission reactors, thanks to the reuse of spent nuclear fuel used by other reactors aligned with the principles of the circular economy.

Given that it sees nuclear energy as a source that can efficiently and sustainably support growing power needs and ensure the diversification and security of supply, Saipem intends to evaluate the potential application of the new generation of compact reactors for offshore plants to generate power and heat with very low climate-changing emissions, equal to those of renewable energies, with a high sustainability profile.

Stefano Buono, CEO of newcleo, remarked: “Our next generation reactor technology will not only reduce the environmental impact of offshore oil and gas operations improving energy efficiency and promoting long-term sustainability, but also design offshore power plants that can provide decarbonised electricity onshore, anywhere in the world.

“This is the first agreement between two European companies for the offshore application of our sustainable nuclear technology and we are honoured to work with such a recognised partner. We believe that this synergy can revolutionise the industry, contributing in a concrete and meaningful way to the decarbonisation of the sector and to the global energy transition.”

The collaboration with Saipem comes six months after newcleo teamed up with Viaro Energy to decarbonize oil and gas infrastructure with nuclear technology centered around the future deployment of advanced modular reactors (AMR).

After wrapping up feasibility studies, a joint venture was expected to be established to deploy newcleo’s 200 MWe LFR lead-cooled fast reactor at chosen sites within Viaro’s portfolio, assessing both existing assets and prospective acquisitions in which the UK firm is currently engaged.

These companies are turning to nuclear technology as it is forecast to contribute to net-zero goals by maximizing the benefits of AMRs for cogeneration, combined heat and power, and off-grid application.

Saipem has tucked multiple assignments under its belt, including a new set of contract awards for work at Aramco’s oil and gas fields off the coast of Saudi Arabia.