In focus: Bit by bit, energy transition takes a more solid shape

The energy transition is taking a more concrete shape with each passing day as witnessed in a week behind us that was full of announcements favoring the net-zero future coming from governments, across investment banks, all the way to private offshore energy companies.

Starting with the most important cog in the energy transition wheel – the oil and gas sector – we have seen an increase in electrification efforts across the industry over the recent period, all aimed at cutting emissions associated with fossil fuels.

Once such announcement was made this week as well by Norwegian oil and gas giant Equinor and its partners who submitted a plan for development and operation for the Oseberg field in the northern part of the North Sea, which also includes electrification measures aimed at reducing emissions.

“If the world is to reach its net-zero emission goal, we must remove emission sources, also on the Norwegian continental shelf. Electrification is an effective climate action as it involves large and swift emission cuts.

“The solution adopted gives a cut in emissions of about 50% from the Oseberg field centre and the Oseberg South platform”, said Geir Sørtveit, Equinor’s senior vice president for exploration and production west.

Aside from electrification, offshore oil and gas platform owners are increasingly looking to offshore wind in their decarbonisation strategies.

Most recently, an unnamed owner of oil and gas platforms in the North Adriatic Concession area contracted renewable energy consultancy Megajoule to support the assessment of potential wind energy in the area, as part of the company’s low-carbon development strategy.

This is one of the initial steps taken to unlock the offshore wind potential in the Adriatic Sea, along the recent announcement of Italy’s Ministry of Ecological Transition stating it received 64 expressions of interest for the construction of floating offshore wind farms off the country’s coast, with more than 10 located in the Adriatic Sea.

Croatian energy company INA, the owner and operator of the Northern Adriatic and Marica gas fields, is reportedly also looking into developing offshore wind projects off Croatia’s Adriatic Sea coast.

Energy transition is being encouraged in associated industries as well, as seen in the European Investment Bank’s loan of €200 million granted to French power cable manufacturer Nexans to support its role in the net-zero future.

“This financing facility will allow us to lead the energy transition of Europe in a sustainable way by strengthening our innovations and ability to reduce carbon emissions in our operations”, said Christopher Guérin, CEO of Nexans.

The promising new clean energy industries, bound to make a significant contribution to net-zero, are also starting to receive a concrete government support in policy and finance.

Namely, the UK government has this week unveiled it would invest £20 million per year in tidal stream electricity as part of its flagship renewable energy auction scheme.

This is expected to kickstart a brand-new chapter for the marine energy industry, giving the sector a chance to develop the technology and lower costs in a similar way to the UK’s world-leading offshore wind industry.

The funding could potentially enable the deployment of up to 60MW of tidal stream capacity by 2027.

Steady and predictable, yet versatile in its nature – tidal power can also be used for the production of green hydrogen.

This is another energy transition front where the UK government could take the lead as in tidal, according to RenewableUK – the country’s trade association of renewable energies.

The association has, therefore, called the government to give green hydrogen, instead of blue, the opportunity to flourish and get to zero emissions faster.

RenewableUK urged ministers to set a target of 5GW of electrolyser capacity to produce green hydrogen by 2030, announcing also setting up a new working group of industry leaders to ramp up the roll-out of green hydrogen as a clean fuel for sectors such as shipping.

When it comes to shipping, Finland-based company Langh Ship has ordered three muti-fuel multipurpose (MPP) dry cargo vessels that will be equipped with dual-fuel engines which can run on multiple fuels and thus be adjusted for future next-generation propellants.

Set to sail between Finland and continental Europe, the vessels are designed to meet the sustainability targets of the steel manufacturer that will use them, by minimizing emissions and complying with all known upcoming environmental regulations.

“Both companies have the joint target to make the vessels as energy efficient, environmentally friendly and as flexible as possible. The future will bring alternative fuels, shore power and battery technologies, which these vessels are already equipped for”, said Eero Pajunen, CEO of Langh Ship.