Subsea UK Encouraging Businesses to Diversify into Offshore Wind

Business & Finance

With global offshore wind expenditure expected to reach GBP 210 billion over the next ten years, Subsea UK is encouraging companies to expand into the renewables sector to sustain long-term growth.

Illustration (Photo: alpha ventus/ archive)

Neil Gordon, chief executive of Subsea UK, said: “While oil and gas remains the dominant energy industry in the UK, companies are quickly beginning to realise the vital role that offshore renewables will play in the future energy mix.

“Offshore wind is a growing market which presents exciting new business opportunities for the UK supply chain. This event, along with a number of ongoing initiatives are intended to help companies realise these opportunities and help them mitigate some of the challenges they are currently facing as a result of the lower for longer oil price.

“Providing a platform for the industry to come together and collaborate is essential in order to drive the prolonged life of developments both in the UK and further afield. If we can help companies to access the offshore wind market ahead of the predicted £210 billion global deployment boom, exporting their wealth of skills, innovation and experience, the rewards will be huge.”

Scottish Enterprise recently launched a ‘Seize the Opportunity’ report to help guide companies though the steps required to break into the offshore wind industry, highlighting the entry routes, most promising regions and the opportunities most accessible to the UK supply chain.

Seonaid Vass, director of renewable energy and low carbon technologies at Scottish Enterprise said: “Scotland and the rest of the UK, together with Germany and Denmark are currently at the forefront of offshore wind development, accounting for around 90% of global offshore wind deployment to date. These countries along with the Netherlands and Belgium are forecast to build approximately 25GW of offshore wind by the end of the decade, worth an estimated £60 billion in capital and operational expenditure over the next five years.

“With a realisation that cost reduction will be critical to achieving these forecasts and maintaining offshore wind’s growth in the longer-term, incorporating best practice from other sectors will be key.

“There are already many firms from an oil and gas background that are now successfully operating within the offshore wind space, proving that cross-sector expertise is of great value to the growing renewables market.

“Subsea companies can support the development of the offshore renewables sector in a number of ways, from project management and installation support to maintenance and inspection services.”

The industry body, in partnership with Scottish Enterprise, will be running an event in Aberdeen on 2nd August to examine why harnessing a range of renewable resources is essential if the industry is to ensure security and longevity of the UK’s energy supply. The event will explore the opportunities in offshore wind, as well as provide practical help and advice on market entry in a bid to reduce dependency on the cyclical oil and gas industry.