Offshore Energies Magazine - Issue 55 Spring 2023


Crown Estate Scotland has offered exclusivity agreements to 13 of the 19 companies that originally applied in December for seabed licences. This is the second stage of its first-of-a kind Innovation & Targeted Oil & Gas (INTOG) offshore wind round, it said March 24. The original entrants were split roughly equally between the two categories: oil and gas infrastructure projects accounted for nine and would enable the decarbonisation of hydrocarbon production. The other ten were for innovative wind projects of up to 100 MW each. Of the 13 offers that have been made, however, eight are for oil and gas related projects. If all 13 progress to maturity, Scotland will earn around £262mn in applicant fees, with more to come from rent payments. Crown Estate Scotland said: "Today’s results for this very distinctive and targeted leasing round are extremely encouraging. INTOG provides a range of practical ways to support innovation, reduce North Sea carbon emissions and encourage technical and commercial innovation in the offshore renewables market." Reacting, OEUK said: "The projects selected in today’s announcement will play a big part in the transformation of the North Sea – providing low carbon electricity to power oil and gas installations and help decarbonise the sector." The 13 companies include such big hitters as BP (in the IN category) and Harbour Energy, Caerulean Wind and Flotation Energy (in the TOG category). The more advanced scheme, ScotWind, has 20 projects totalling 27.6 GW of capacity. As of last November, Scottish spending commitments add up to £28.8bn, indicating an average investment in Scotland of £1.4bn/project built and £1bn/GW of capacity built. But there are threats to the total achievable. These include bottlenecks in both construction and the transmission needed to carry the power south. Scotland offers 13 INTOG licences

Scottish National Party picks Yousaf as head

recognised the need to rapidly scale up renewable electricity, strengthen Scotland’s energy security, and ensure we support our brilliant skilled workforce to reap the benefits of an expanding and competitive offshore energy sector. "As we build that future there is no simple choice between oil and gas or renewables. To keep the lights on and grow our economy, we need both. "By the mid 2030s, oil and gas will still provide for 50% of our energy needs. This is why the Scottish Government’s final energy strategy must acknowledge the continuing role of oil and gas in Scotland’s economy and encourage investment in the homegrown production needed to avoid costlier, less secure, and higher carbon imports. This will support the infrastructure we need to make cleaner, more affordable energy in Scotland in a way that retains the economic contribution, jobs and expertise here." In his address to parliament April 18, Mr Yousaf confirmed his support for the draft Energy Strategy, for Scotland's 'just transition' to net zero emissions and for business growth.

The Scottish National Party (SNP) narrowly selected Humza Yousaf as its new head in late March, following Nicola Sturgeon's resignation announcement February 15. The later years of her premiership had been dominated by Brexit, the Covid-19 pandemic, the mounting cost of living crisis and a series of bids to hold a referendum on Scottish independence. The choice between the two front runners, Mr Yousaf and Kate Forbes, was as narrow as a few thousand votes, with a 70% turnout. Defeated, Ms Forbes turned down Mr Yousaf's offer of a cabinet position, preferring instead to retire to the back benches. OUEK's director for external relations Jenny Stanning had already met Mr Yousaf, catching up with him on the campaign trail with a visit to Wartsila's premises in Aberdeen ( see image ). Following the meeting, OEUK welcomed the engagement and restated the offer to all candidates as well as Scotland’s political parties to come and meet with the companies driving Scotland’s offshore energy ambitions. Ms Stanning commented afterwards: ""We’re pleased Humza Yousaf

Humza Yousaf and Jenny Stanning, flanked by Wartsila's Jim Duncan, Sales; and Tim Burnett, Innovation (Oil & Gas) .

1 0 | O E U K M a g a z i n e | S p r i n g 2 0 2 3

Made with FlippingBook Learn more on our blog