The role of oil and gas companies in offshore wind energy production

Electricity generation from wind power in the UK has increased by 715% from 2009 to 2020. In 2020, the UK generated 75,610 GWh of electricity from both offshore and onshore wind. This level of growth is very encouraging, with renewable energy becoming more and more dominant both in the UK and across the globe. But what does that mean for companies in the oil and gas sector? And, how can oil and gas companies incorporate the use of renewable energy sources into their own businesses?

When mapping potential and existing offshore wind farm sites, we see that oil and gas sites are often nearby.  They require similar environments, such as shallower waters with stable sea beds.

With recent mapping, there is now more clarity as to where appropriate sites for fixed offshore wind farms are, which is helpful and can help to speed up the process for developers. This used to be determined on an ad hoc basis, which took more time as local governments had to seek approvals and assess locations for each project.

Developments in offshore winds in the UK and globally

Fixed offshore wind farms have been proven to be a reliable mechanism for renewable energy generation at various sites around the world. Currently, turbines, like those on a monopile foundation for example, are driven into the sub surface with a limit of about 60m. Technology for monopiles driven into the sea bed in deeper waters is set to be developed, but will bring with it a higher cost. In areas of 50m+, floating wind farms are often indicated. Most of the North Sea is under 100m in depth, apart from one area along the Norwegian coast which is around 200m deep. This means that in years to come, almost the entire North Sea is likely to be suitable for fixed or floating wind. From an oil and gas perspective it is probably easier and cheaper to install floating wind near an oil and gas platform than a conventional fixed structure especially in the northern North Sea.

There are also plans in Denmark to create artificial islands in the North Sea which will essentially be giant floating transformer stations. This will encourage secure grid connection and cut down on the costs of cables by reducing the number of cables required to go to shore. The Danish energy islands will facilitate interconnectivity while reducing costs in the long term, but may take a number of years to come to fruition.

Globally, the focus on wind energy is also developing. Notably, offshore wind maps now expand to include South America, as Brazil currently has 7-8 projects in the planning stages. Developments are expected from Governments in Uruguay and Chile in the next couple of years as well. As well as this, 3-4 years ago, there were no offshore wind projects in Australia, then one was proposed in the Bass Strait and now the Australian government has announced the countries first 6 offshore wind zones.  

Developing technology to go greener

With the current technology, vast areas of the world aren’t shallow enough for fixed wind farms. Both the entire west coast of the US and the Mediterranean are mostly deep water, as well as the Atlantic coast of Spain and Portugal. These are areas where floating wind farms are likely to be best suited. Floating wind farm technology has become very advanced, with the ability to be installed in very deep water by assembling turbines on land, and floating them out to sea.

The current Scottish Innovation and Targeted Oil and Gas (INTOG) leasing round will allow developers to build offshore wind farms specifically for the purpose of providing low carbon electricity to power oil and gas installations. This is a great opportunity for oil and gas companies to accelerate their transition into renewables. Traditionally, oil and gas platforms used gas turbine generators to produce the electricity required to run their operations, hundreds of megawatts are required for the heating, pumping, and processing. So, the ability to use wind generated power, is a great way for gas and oil companies to be greener. Using mobile offshore wind farms to serve micro-grids in order to power oil and gas projects could be a potential solution for the whole of the North Sea if proven to work. 

Oil and gas companies are experts in building in deep waters, where wind speeds are less volatile enabling wind farms to produce consistent energy.  By using their expertise, they are able to expand any renewable aspect of their company, and find innovative solutions to power their own ongoing projects. INTOG will be followed closely by other hydrocarbon producing countries. If it works in the Scottish North Sea the model is likely to be repeated elsewhere, especially in those offshore hydrocarbon production areas of the world where there are currently no offshore wind farms.

Collaboration for the future

I have mapped energy developments for decades – September 2022 is the 40th anniversary of the publication of my first commercial map. In renewable energy I started by mapping onshore wind farms here in the UK and Europe over 20 years ago, then offshore wind across the world, and I have observed many trends and developments in the sector. All developments are constantly being mapped and updated, to ensure local markets have access to the most up-to-date picture possible. Currently, it’s estimated that more than 18 million homes are powered by wind energy  and with constant developments, this number is set to rise. Ultimately, collaboration between oil and gas companies and renewable energy sources is likely to be a fantastic solution to help them transition.

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