UK North Sea Transition Deal sets out emissions timetable
The UK oil and gas sector is to receive £16 billion by 2030 to reduce carbon emissions in a transition deal designed to foster clean energy.
The sector deal - the first of its kind by any G7 country - between the UK government and oil and gas industry is designed to support up to 40,000 jobs and the supply chain through this transition by harnessing the industry’s existing capabilities, infrastructure and private investment potential to exploit new and emerging technologies such as hydrogen production, Carbon Capture Usage and Storage, offshore wind and decommissioning.
Key commitments in the North Sea Transition Deal include:
- the sector setting early targets to reduce emissions by 10% by 2025 and 25% by 2027 and committing to cut emissions by 50% by 2030
- joint government and oil and gas sector investment of up to £16 billion by 2030 to reduce carbon emissions. This includes up to £3 billion to replace fossil fuel-based power supplies on oil and gas platforms with renewable energy, up to £3 billion on Carbon Capture Usage and Storage, and up to £10 billion for hydrogen production
- by 2030, the sector will voluntarily commit to ensuring that 50% of its offshore decommissioning and new energy technology projects will be provided by local businesses, helping to anchor jobs to the UK
- the appointment of an Industry Supply Chain Champion who will support the coordination of local growth and job opportunities with other sectors, such as Carbon Capture Usage and Storage and offshore wind
Business and Energy Secretary Kwasi Kwarteng said: "We will not leave oil and gas workers behind in the United Kingdom’s irreversible shift away from fossil fuels. Through this landmark sector deal, we will harness the skills, capabilities and pent-up private investment potential of the oil and gas sector to power the green industrial revolution, turning its focus to the next-generation clean technologies the UK needs to support a green economy."
Chief Executive of the Oil & Gas Authority, Dr Andy Samuel said this deal marks "an exciting new chapter" for the North Sea, confirming energy transition in action.
"As long as oil and gas remain part of the UK’s energy mix, they must be produced more cleanly and in line with net zero. Our role includes monitoring and holding industry to account on its emissions reduction performance," he said, adding it is supporting projects like Acorn, Hynet, Net Zero Teeside and Zero Carbon Humber, along with the Energy Transition Zone and the Global Underwater Hub.
James Allen, Chief Operations Director at energy workforce solutions provider, Airswift, said the engineering talent in the UK is the lifeblood of our vital energy industries and it is critical that we retain and reskill this talent as we accelerate the sector's decarbonisation.
"Now is the time for energy businesses to adjust their outlook when finding the talent to make these ambitions a reality," he said. "The sector needs a skills first, sector second mindset that enables business to look past what industry a candidate has worked in and instead look at where their skills can be applied. This will be key to unlocking a low carbon future for the UK.”
Global Offshore rebrands Enelift and invests in global hubs
Global Offshore has rebranded Enelift and will invest "a seven-figure sum" in establishing new support hubs in Houston, Dubai, Singapore, Perth and the Caspian during the next six months.
The investment will cover oil, gas and renewables, mainly concentrating on manufacturing capability with associated R&D, as well as in stock held in the hubs.
The company’s flagship Hinge Lok technology provides aluminium, non-welded light weight transportation cradle for casing and tubing. Enelift now plans to enhance its offering by augmenting its existing solutions with robotics and remote operational and training technology, which will reduce manpower for handling offshore equipment that is transported and stored using the Hinge Lok system.
Enelift is partnering with "a Japanese robotics company" and the technology will be trialed with "a Norwegian operator on a Norwegian drilling rig", according to a statement.
Operating from its bases in Aberdeen, UK and Esbjerg, Enelift was founded by 35-year industry veteran and Managing Director Paul Brebner 10 years ago to offer the offshore energy industries safe, reliable and efficient storage and transportation of equipment.
The expansion plans are bolstered by the appointment of Jim Clark of the Craigendarroch Group to Chairman, and Adam Maitland to Non-Executive Director. Maitland is the Managing Director of Hutcheon Mearns IF, and brings his wealth of expertise in the field of corporate finance.
Brebner said Enelift may be a new name in the market, but the experience it brings is "industry renowned".
"Our solutions are underpinned by safety that enables inefficiencies and their associated costs to be eradicated – meaning operational personnel can focus doing what they do best, safely. We remain committed to providing the safest storage and transportation solutions for equipment in the sector as we grow our global operations," he said.
Clark said the market is changing and its solutions fully support customers’ economic and safety aspirations.
"We are very well placed to take full advantage of increasing opportunities in the Middle East, Africa, Far East and Americas. Safety is our absolute commitment to our customers and our support hubs will facilitate this. Aligning our identity to our entire offering ensures that we will drive our expansion through new products and global support sites across the rest of this year."