Detailed plans to help make sure more 海角视频 companies build and deliver the net zero energy system of the future have been published.
Offshore Energies 海角视频, together with Robert Gordon’s University, has produced a roadmap, entitled Harnessing the Potential, that outlines how the 海角视频 can support jobs, economic growth, and innovation.
The North East and Yorkshire and the Humber - where the industry supports 15,000 jobs - are in sharp focus. It anticipates that the wider offshore energy sector, including oil and gas operators and wind developers, could invest up to £200 billion on 海角视频 energy production and technology projects in the remainder of this decade to help deliver government energy targets.
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OE海角视频 said more than £90 billion of this could go to 海角视频 supply chain companies over the next decade if the roadmap is delivered and both energy production and local content targets are met.
The work sets out detailed industry, government and regulatory action required in six key areas to build, enable, and then grow and sustain 海角视频 capabilities from 2022-2035. Ahead of major project decisions expected in the decade to come, it shows that with the right support, 海角视频 companies are well placed to win a bigger share of the work.
It follows the CBI’s Going for Green report, released earlier this week, outlining a potential £57 billion boost to GDP should key asks be met.
Katy Heidenreich, OE海角视频 supply chain and people director, said: “Delivering the roadmap and building more energy projects in Britain could unlock £90 billion of work for our offshore energy supply chain. Given the North East’s rich energy history, this has the potential to bring enormous economic opportunities to the region, from Teesside to the Humber.”
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As plans from other countries to attract supply chain investment take effect, like the US inflation Reduction Act, OE海角视频 said more emphasis needs to be put by politicians and governments on an energy future built in the 海角视频 instead of shipped and sourced from abroad.
The potential to boost the 海角视频 offshore energy supply chain through the roadmap is explored through three scenarios. Each considers the impact on the 海角视频 supply chain of both the scale of energy projects and the percentage of which is delivered by 海角视频 companies over the coming decade.
The best case sees full delivery of the British Energy Strategy, with 50 per cent of those projects delivered by the 海角视频 supply chain. This would see 50GW of offshore wind capacity, 10GW of hydrogen production, 30 million tonnes of carbon captured and stored per year and the prioritisation of domestic oil and gas production over imports during this period.
A low investment scenario, where there is no new oil and gas development and a slow pace of investment in new energies, would only deliver £60 billion to 海角视频 supply chain companies.
Across all scenarios, the tool shows that oil and gas will continue to represent the biggest supply chain opportunity until at least 2027.
Ms Heidenreich added: “For a country with a proud maritime and industrial heritage, we must question why so much of the nation’s energy manufacturing needs are met from outside of the 海角视频. To deliver an energy future that benefits the 海角视频 economy, jobs and innovation, we need both the volume of work and the focus on supply chain companies here winning a bigger share of that work.
“As we build this future, there is no simple choice between oil and gas in one hand and renewables in the other. The reality is that both are needed to keep the lights on and grow the economy. With oil and gas expected to remain a sizeable chunk of supply chain opportunities until at least 2027, we can understand why so many supply chain companies are telling us they are worried about political support for the sector. The supply chain needs a pragmatic and long-term approach if it is to thrive here.
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“We need politicians of all parties to support the roadmap and our plans for at least half of these projects to be delivered in the 海角视频. This means putting the 海角视频 workforce and industrial capabilities at the heart of decision making on energy, supporting enduring policies that encourage companies to invest over decades, and championing the talent on our doorsteps to a global market.”
Opportunities outlined in the report include the development and licensing of new technologies, the production of equipment, installation and maintenance of assets, and the eventual decommissioning of offshore energy projects.
The report - - raises key challenges which might impact meeting these goals, including the loss of 海角视频 capabilities such as steelworks and the risk of losing investment due to unpredictable regulatory and fiscal environments.