DNV GL combines Oil & Gas, Power & Renewables to create Energy Systems

Assurance and risk management company DNV GL has decided to combine its current Oil & Gas and Power & Renewables businesses into one new business area called Energy Systems.

DNV GL said on Tuesday that the move would better reflect the emerging energy future, which will see renewables take a greater share of the energy mix and decarbonization to become a major focus.

Energy Systems, which will start operating from 1 February 2021, will provide certification, advisory, and digital monitoring services to the entire energy value chain.

Ditlev Engel, CEO of the current Energy business area since 2016, will lead the new business area, which will consist of approximately 4,000 energy experts, making it the world’s leading resource of independent energy experts and certification body.

Remi Eriksen, group president and CEO of DNV GL, said: “The creation of Energy Systems is our response to a rapidly changing energy market in search for deeper decarbonization. We want to enable our customers to tackle the energy transition – faster.

“By combining our expertise, we will better serve customers operating in, and entering the energy market. This new structure will help us serve all players in the energy market”.

While renewable energy is increasing market share, the company will continue to work with the oil and gas sector as it refocuses on decarbonization.

DNV GL believes that the sector will play an essential role in the energy transition with natural gas set to become the single largest energy source by the middle of the decade, while hydrogen, ammonia, and carbon capture and storage will be important tools in the low carbon toolkit for the hard to abate sectors.

Ditlev Engel, CEO of Energy Systems, said: “Joining forces in Energy Systems gives DNV GL the size to work with the key industry players to help scale green energy technology and optimize safety from production to consumption.

“There is no hiding from the fact that we are on course for damaging global warming, but we have the technology to transition faster. I see a greater willingness amongst policymakers and companies to speed up the decarbonization of the sector and we at DNV GL are ready to play our part so that we can tackle the needed energy transformation much faster”.

In a separate announcement on Tuesday, DNV GL said that it acquired U.S.-based engineering consultancy Energy and Resource Solutions (ERS), as part of a strategy to grow in key markets. Consisting of around 80 experts, ERS, like DNV GL, helps customers to manage and reduce energy costs through program design, outreach, implementation, and evaluation services. ERS will be an integrated part of DNV GL.

On the acquisition of ERS, Eriksen said: “Given the speed of the energy transition, it is natural that we look outside our organization for acquisition opportunities. The domain expertise and digital-first approach demonstrated by ERS is aligned with our vision and services, and I am sure our customers in North America and beyond will be delighted we have even more experts in our ranks”.

The decision to create the Energy Systems business area was taken after a strategic review of DNV GL’s business, which also led to the renaming of the company to DNV from 1 March 2021.

DNV GL also released its latest report this week. Namely, in the new report named ‘Turmoil and Transformation: The outlook for the oil and gas industry in 2021’, DNV GL claimed that a record two-thirds (66 per cent) of senior oil and gas professionals report that their organization is actively adapting to a less carbon-intensive energy mix in 2021.