![\"\"](\"https:\/\/www.westwoodenergy.com\/wp-content\/uploads\/2020\/11\/UK-Offshore-Wind-Capacity-Outlook-to-2025-1024x559.png\")
\nFigure\u00a0<\/span><\/span>1<\/span><\/span><\/span>:\u00a0<\/span><\/span>UK\u00a0<\/span><\/span>Offshore Wind Capacity\u00a0<\/span><\/span>Outlook<\/span><\/span> to 2025
\n<\/span><\/span>Source:\u00a0<\/span><\/span>Westwood Energy<\/span><\/span><\/h6>\n
With a significant oil and gas legacy, the UK\u2019s transition will only be successful through collaboration\u00a0<\/span>between existing and new technologies.\u00a0<\/span>The oil & gas and wind sectors to this point have operated in relative isolation from one another d<\/span>espite\u00a0<\/span>10<\/span>GW of offshore wind capacity installed in the UK<\/span>,<\/span>\u00a0and synergies have not been effectively explored<\/span>.<\/span>\u00a0This is starting<\/span>\u00a0to<\/span>\u00a0change through joint initiatives such as the \u2018<\/span>Energy Transition Alliance<\/span>\u2019 set up between t<\/span>he Oil & Gas Technology Centre and Offshore Renewable Energy (ORE) Catapult<\/span>\u00a0in July this year<\/span>.<\/span>\u00a0T<\/span>he\u00a0<\/span>main\u00a0<\/span>commercial driver<\/span>s<\/span>\u00a0for\u00a0<\/span>exploiting\u00a0<\/span>synergies<\/span>\u00a0across these two sectors<\/span>\u00a0<\/span>are\u00a0<\/span>to:<\/span>\u00a0<\/span><\/p>\n W<\/span>hat\u00a0<\/span>are\u00a0<\/span>the potential opportunities\u00a0<\/span>for\u00a0<\/span>collaboration and\u00a0<\/span>synergy<\/span> between the offshore oil & gas and wind sectors<\/span>?\u00a0<\/span><\/p>\n <\/p>\n The IEA\u2019s 2019 Offshore Wind Outlook<\/span>\u00a0<\/span>highlighted an<\/span>\u00a0opportunity\u00a0<\/span>for<\/span>\u00a0<\/span>the oil\u00a0<\/span>&<\/span>\u00a0gas sector\u00a0<\/span>of\u00a0<\/span>up to\u00a0<\/span>US<\/span>$350bn in Europe<\/span>an offshore wind\u00a0<\/span>over the next 20 years<\/span>.\u00a0<\/span>T<\/span>his is based on the calculation that \u201cabout\u00a0<\/span>40% of the full lifetime costs of a standard offshore wind project<\/span>\u201d has \u201c<\/span>significant synergies with the offshore oil and gas sector<\/span>\u201d. Therefore, there will be only certain aspects of\u00a0<\/span>an offshore win<\/span>d<\/span>\u00a0project\u00a0<\/span>where<\/span>\u00a0the oil and gas sector\u00a0<\/span>can<\/span>\u00a0add value<\/span>.\u00a0<\/span>For example, t<\/span>he supply of turbines is a well-established and competitive industry<\/span>, with\u00a0<\/span>little synergy<\/span>\u00a0with the oil\u00a0<\/span>&<\/span>\u00a0gas sector.\u00a0<\/span>\u00a0<\/span><\/p>\n \u00a0<\/span>T<\/span>he oil and gas sector\u2019s experience in offshore infrastructure\u00a0<\/span>will be of most benefit\u00a0<\/span>in offshore wind<\/span>\u00a0whether it be\u00a0<\/span>in\u00a0<\/span>foundations \/ structures,\u00a0<\/span>project management,\u00a0<\/span>vessel operations,\u00a0<\/span>working with moving cables<\/span>, seabed survey \/ investigation, or\u00a0<\/span>Balance of Plant (<\/span>BoP<\/span>)<\/span>\u00a0<\/span>O<\/span>perations and\u00a0<\/span>M<\/span>aintenance<\/span>\u00a0(O&M)<\/span>.\u00a0<\/span>The oilfield support \/ services sector also has transferable\u00a0<\/span>assets and\u00a0<\/span>skills<\/span>, such as in the provision of tugs, mooring systems, heavy lifting vessels and cabling.\u00a0<\/span>I<\/span>t is likely\u00a0<\/span>the\u00a0<\/span>most synergies will be realised in floating wind, as this will require a set of capabilities that many offshore wind players do not have<\/span>.<\/span>\u00a0<\/span><\/p>\n \u00a0<\/span>To access the market effectively, i<\/span>t will be important\u00a0<\/span>for the oil & gas sector\u00a0<\/span>to understand the difference<\/span>s in how the offshore wind market functions \u2013 including different tender processes, contracting terms, supplier relationships, the focus on innovation<\/span>\u00a0together with cost reduction<\/span>\u00a0etc.\u00a0<\/span>\u00a0<\/span><\/p>\n <\/p>\n T<\/span>here is potential for<\/span>\u00a0collaboration of the two sectors<\/span>\u00a0<\/span>through<\/span>\u00a0o<\/span>il\u00a0<\/span>and<\/span>\u00a0<\/span>g<\/span>as\u00a0<\/span>p<\/span>latform electrification<\/span>\u00a0and the r<\/span>epurposing existing infrastructure<\/span>.<\/span>\u00a0<\/span><\/p>\n P<\/span>latform electrification\u00a0<\/span>can create<\/span>\u00a0demand for the\u00a0<\/span>renewable electricity generated by\u00a0<\/span>a (fixed or floating)\u00a0<\/span>offshore<\/span>\u00a0<\/span>w<\/span>ind farm<\/span>\u00a0that is in close proximity<\/span>\u00a0<\/span>and\u00a0<\/span>displac<\/span>e<\/span>\u00a0gas and \/ or diesel\u00a0<\/span>power\u00a0<\/span>generation. This\u00a0<\/span>can<\/span>\u00a0reduce emissions from the platform<\/span>\u00a0and\u00a0<\/span>make available fuel that once would have been burnt on the platform<\/span>, extending the field\u2019s life<\/span>.<\/span>\u00a0<\/span>O<\/span>n average\u00a0<\/span>~<\/span>5% of production is used offshore to power platform<\/span>s<\/span>.\u00a0<\/span>This\u00a0<\/span>combination\u00a0<\/span>alone may justify the investment cost<\/span>, but<\/span>\u00a0there are several technical challenges that need to be overcome<\/span>.\u00a0<\/span>\u00a0<\/span>O<\/span>ffshore wind<\/span>\u00a0generated electricity is<\/span>\u00a0variable \u2013 therefore requiring backup, potentially in the form of batteries<\/span>,\u00a0<\/span>hydrogen fuel cells\u00a0<\/span>or<\/span>\u00a0connection to the main grid<\/span>.<\/span>\u00a0<\/span>Equinor\u2019s 88MW Hywind\u00a0<\/span>Tampen<\/span>\u00a0floating wind project\u00a0<\/span>will only provide 35% of the annual power demand of the 5 platforms<\/span>,\u00a0<\/span>illustrating\u00a0<\/span>some of the constraints of 100% variable power supply<\/span>.\u00a0<\/span>A<\/span>\u00a0<\/span>balance needs to be struck between the benefit of platform electrification and the cost of achieving this. Platforms that are nearer to land\u00a0<\/span>could\u00a0<\/span>\n
Transfer of knowledge and capability<\/span><\/b><\/h3>\n
Joint commercialisation\u00a0<\/span><\/b>\u00a0<\/span><\/h3>\n
![\"\"](\"https:\/\/www.westwoodenergy.com\/wp-content\/uploads\/2020\/11\/UKCS-Infrastructure-836x1024.png\")
\nFigure 2: UKCS Infrastructure
\nSource: Westwood Energy, OGA<\/h6>\n