A balanced approach to our future energy strategy
George Rafferty, Chief Executive, NOF Energy
IT is no secret that the wind industry is the fastest growing renewable energy source. According to the British Wind Energy Association, the UK has more projects installed, in planning or under construction than any other country.
The UK’s offshore wind industry, now well into Round Two, is a burgeoning part of this, with UK waters now hosting 13 wind farms (436 turbines). Another 44 farms are in the pipeline for Round One and Two extensions and Round Three. Offshore wind energy provides a host of opportunities for the energy industry supply chain. This country’s oil and gas expertise is world-renowned and the products, skills and services which are exported around the globe are transferable to the renewables markets.
The knowledge and skills honed in the oil and gas industry are a valuable resource because they are equally applicable to the new energy markets as they are in traditional sectors. It is important that companies recognise and utilise this ready-made advantage when seeking contracts in new fields.
However, although the offshore wind industry is gaining momentum, it is still an emerging entity. While offshore wind is definitely a long-term proposition, and while companies wait for future contract opportunities to arise, they should focus on positioning themselves in the market to be best placed to take advantage when they do come on line.
It is also important to look at establishing long-term networks and contacts with the aim of building mutually beneficial relationships. Forming and maintaining a strong network is essential for companies aiming to achieve a robust position in the energy sector supply chains.
A defining factor in the oil and gas industry is the strong network that was founded throughout all areas of the industry; individuals, corporations, specialists, contractors and sub-contractors. This reciprocal network appears to have been renewed with the birth of the renewables industry and those seeking a place in the offshore wind energy sector should not underestimate it.
This can already be seen in action in the work of NOF Energy. This organisation is one of the foremost, formalised networks with extensive experience of working closely with its members to assist them in their business development endeavours in the oil, gas, nuclear and offshore wind sectors.
What must be remembered is that this sector should not be the sole focus of our industry right now. Although we are moving into a new era for energy generation and supply, it is unrealistic to turn our back on oil and gas at this stage.
While offshore wind has a long lead time, in the interim it is prudent to continue to look for opportunities in oil and gas, alongside preparing for offshore wind. There are still considerable untapped oil and gas reserves in fields around the world, from our own North Sea to the South Atlantic off the coast of Brazil. It is important for the planet to make the best use of its existing resources as we explore and develop those of the future to the full.
A balanced future where we utilise hydrocarbon fuel and energy from nuclear and renewable sources is most beneficial in the wise management of reserves as part of the global energy strategy, and also for our industry’s supply chain, because it will help secure its economic future and the UK’s position in the global energy market.
Establishing a market presence across a range of the energy sectors should be a key commitment for every link in the supply chain to ensure that over the next few decades, the supply chain can benefit from the growth of the emerging sectors as well as maintaining their role in the exploitation of hydrocarbon resources.
So too should be the application of traditional engineering skills to the emerging energy sectors, particularly offshore wind.
A number of companies in the North East are successfully diversifying into renewable strands while continuing to pursue contracts in oil and gas. The use of transferable skills was particularly apparent in the creation of the Wave Hub project. JDR Cables from Hartlepool and CTC Marine of Darlington and Middlesbrough, both experts in the oil and gas sector, worked on this high-profile renewables project. TAG Energy Solutions of Haverton Hill, will draw on over 25 years of experience in the oil and gas industry to bid for contracts to build the foundations for offshore wind turbines. For newer companies, looking to enter the industry for the first time, these examples are a good business model.
Those which start in the oil and gas sector gain vital credibility which facilitates the move into offshore wind.
The heritage of the oil and gas industry is a major factor in the success of those bidding for, and winning, offshore wind contracts.
