Economic Report 2020

ECONOMIC REPORT 2020

Significant commitments continue to be seen across the sector through associations such as DeepWind’s Floating Offshore Wind Subgroup. 22 The group is supported by many OGUK operator and supply chain members and is co-chaired by Fugro, which also provides oilfield services. Scotland’s 50MW Kincardine Offshore Wind project is the largest of its kind in the world, and the first of many such wind farms expected as Scotland strives to become a global hub of floating offshore wind development through support of the subgroup. Alongside investment to help lower emissions from the power sector, significant investment to address emissions from other parts of the economy which are more difficult to decarbonise, such as transport and heat, is required. The Climate Change Committee is clear that technologies such as CCUS and hydrogen will be needed for the UK to meet its net-zero ambitions. Total CCUS capacitymay need to reach up to 175 million tonnes/year by 2050 (equal to half of CO 2 emissions in 2019) and hydrogen consumption may need to expand to 250TWh (displacing the equivalent of almost 30 per cent of total gas consumption last year). There are a number of early-stage projects in these areas being progressed across the UK (all with significant involvement from OGUK members), however the frameworks upon which companies will base final investment decisions remain immature. OGUK is continuing to work on implementation of these frameworks with governments and stakeholders as part of negotiations on the North Sea Transition Deal.

22 DeepWind is the largest offshore wind representative body in Scotland, with over 510 members drawn from industry, public sector and academia including both traditional oil and gas operators and supply chain

18