SBM Offshore takes slice of Ocean-Power ownership pie

On a mission to boost its decarbonization arsenal, Netherlands-based SBM Offshore, a provider of the design, construction, installation, and operation of offshore floating facilities, has become the owner of a minority stake in Norway’s Ocean-Power, which spotlights the concept of ‘Blue Power Hub’ to generate electricity using gas turbines with carbon capture and storage (CCS) thrown into the mix to ensure significantly lower CO2 emissions.

After inking a memorandum of understanding (MoU) with Ocean-Power in June 2024, SBM Offshore decided to make an initial equity investment, which enables it to hold a minority ownership in the Norwegian firm. Thanks to this, the Dutch player has appointed one director, who has joined the company’s board.

According to SBM Offshore, the investment presents the opportunity to assess the application of its carbon capture expertise in the power market, leveraging what it describes as a market-ready solution to support low-carbon electricity generation. This aligns with the firm’s strategic priority to offer solutions in the decarbonization space and broaden its client portfolio.

Olivier Icyk, Chief Business Officer at SBM Offshore, commented: “This investment underlines SBM’s willingness to invest in solutions which support global decarbonization efforts in our industry. With Norway currently being the prime market for these solutions, we see value in teaming up with a local partner in an effort to penetrate the market. This is why we decided to partner with Ocean-Power, a reputable and well-established business in the Norwegian market.”

Ocean-Power’s ‘Blue Power Hub’ is designed to supply power both to offshore assets and the national grids, enabling the electrification of the Norwegian Continental Shelf (NCS) and the United Kingdom Continental Shelf (UKCS), with minimal or even positive impact on the national grid. In addition, the hub is said to allow for the balancing of renewable energy sources, such as wind power.

Erling Ronglan, CEO at Ocean-Power, underlined: “This partnership with SBM Offshore represents a significant milestone for Ocean-Power. SBM’s investment is a strong vote of confidence in our concept and vision for sustainable energy production. Together, we can accelerate the development of solutions that not only reduce carbon emissions but also create value for the energy market and society as such.”

While balancing ocean protection with progress, the Dutch giant is determined to deliver cleaner, more efficient energy production. SBM Offshore told Offshore Energy that around 40 floating production, storage, and offloading (FPSO) opportunities would spring up during a three-year period, with 16 of those within its target domain.

These new FPSO orders are expected to flood the market because of the increase in global energy demand within the offshore oil and gas ecosystem. The Dutch player believes the sale and operate model will become more than half of its future business.

SBM Offshore has been working on its emissionZERO program since 2020 to pursue near-zero emissions through a near-zero FPSO, which it sees as the first milestone and a key pillar of the emission-zero road map. The Dutch firm has been progressing its concept to have a solution ready for the market in 2025.