Highlands and Islands an ‘ideal’ place for a green freeport
Two bids are expected from the Highlands and Islands: one from Orkney and another from Opportunity Cromarty Firth.
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The study focuses primarily on oil and gas floating assets including FPSO platforms, MODUs and semisubmersible platforms, which could present a niche decommissioning opportunity for Scottish sites.
It was commissioned by Highlands and Island Enterprise (HIE), Scottish Enterprise (SE) and Scottish Government through the government’s Decommissioning Challenge Fund (DCF). It was carried out by Westwood Energy Group
Outlined within the study is the potential size and outlook of this specific market, onshore disposal site requirements, decommissioning processes for floating assets and opportunities that exist for the Scottish supply chain.
Publication of the report follows the announcement last week, that six projects across Scotland will be offered a share of £1.5m in the second round of the DCF. The DCF supports infrastructure improvements and innovation to deliver decommissioning of North Sea oil and gas structures.
The Buchan Alpha platform, currently being decommissioned at Dales Voe in Lerwick, is one of only two floating production assets to select Scotland as their decommissioning location. The report emphasises however that market activity in this area may ramp up in the coming years.
Included in the report is also an analysis on the decommissioning market for offshore support vessels (OSV). This largely untapped market in Europe presents opportunities nationally.
Gavin MacKay, head of energy industries at HIE, said: “In Scotland we have some world class facilities in our ports and harbours, coupled with significant decommissioning capabilities in the supporting supply chain.
“This report highlights very effectively the sizeable market which exists in the decommissioning of oil and gas floating structures and OSVs. It also illustrates the pipeline of potential projects that could come to Scottish sites.
“As such the report will be used to promote early engagement between the floating asset owners and suitable sites in Scotland that could accommodate their ultimate decommissioning.”
The Offshore Floating Asset Decommissioning Market Study is available online.
Two bids are expected from the Highlands and Islands: one from Orkney and another from Opportunity Cromarty Firth.
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