Scotland’s Knowledge in O&G Sector to Reduce Offshore Wind Costs

The knowledge and expertise developed in Scotland’s world-leading oil and gas sector could reduced offshore wind costs by at least 20 per cent according to a guide published by Scottish Enterprise.

The Guide to Offshore Wind and Oil and Gas Capability highlights the benefits of the oil and gas sector getting involved in offshore wind developement. It is estimated that the oil and gas sector could deliver £330 million of saving over the life cycle of a generic offshore wind farm.

Crossovers between the two sectors – including installation, personnel transfer and operational and maintenance activity – are key areas where existing skills, knowledge and expertise would deliver benefits to the offshore wind sector.

As delegates from around the world gather for the second Scottish Low Carbon Investment Conference to discuss and debate the move towards a low carbon economy.

The UK is forecast to be the largest offshore wind market during 2011 to 2015 with a potential 10GW capacity installed in Scotland by 2020 alone.

Welcoming the publication of the guide, Scotland’s First Minister Alex Salmond said:

“Inward investment announcements over the last year have underlined Scotland’s position as a leading location for the development of offshore renewable technology, building on our competitive advantage gained through decades of offshore engineering expertise from our oil and gas industry. The summit that proposed this Guide was itself a result of discussions at last year’s inaugural Scottish Low Carbon Investment conference.

“As the conference returns this week, there will be further debate about how public and private sectors can work together to seize the opportunities of the burgeoning global offshore renewables industry while tackling the challenges, including driving down costs. The Guide can provide an important contribution to those discussions.”

Aberdeen-based energy engineering consultancy Xodus Group feature in the guide as an example of the benefits of diversifying. The company attributes £2 million of its turnover to the sector, predicting this figure will rise to £10 million by 2015.

Colin Manson, CEO of the Xodus Group, said:

“The opportunities in the low carbon market and specifically the offshore wind sector, for oil and gas companies are vast and we anticipate our turnover to increase significantly over the next four years through greater collaboration with developers, academia and the finance sector.”

 Scottish Enterprise’s Adrian Gillespie added:

“With the UK offshore wind market set to grow rapidly over the next four years, and the Scottish Governments ambitious renewable energy generation targets, we must ensure Scotland is best placed to capitalise on these opportunities.

“Scotland has over 40 years experience in the oil and gas sector, which could greatly benefit the offshore wind sector. By encouraging greater collaboration and knowledge sharing between these two important sectors, we will create a lasting and positive effect on the Scottish economy.”

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Source: sdi, January 30, 2012