New proposals by the UK North Sea regulator on emissions and electrification are likely to impact future exploration and decommissioning plans across the basin, according to analysts.
The backers of the Green Volt floating wind farm off Peterhead have submitted a key marine application ahead of a licensing award, as they look to deliver the project by the middle of the decade.
The head of the UK’s offshore regulator said he would “name and shame” North Sea operators who are not making sufficient progress on emissions reduction.
A study by the Net Zero Technology Centre (NZTC) has found high capex costs remain a barrier to electrifying North Sea assets, but rising carbon taxes and net zero targets may yet spur development.
Equinor (OSLO:EQNR) and its Rosebank partners expect to spend around £80 million on modifications to the Knarr FPSO which will ready the vessel to run on low-carbon power.
The Dutch Ministry of Economic Affairs and Climate has granted ONE-Dyas permission to develop the N05-A gas field in the North Sea, in a move that could unlock further small fields in the region.
Harbour Energy’s chief executive Linda Cook said carbon capture and storage (CCS) offers greater impact for reaching net zero goals, as the regulator announces plans for its first carbon storage licensing round.
Neptune Energy has secured new renewable electricity supplies for its operated assets in Germany, as it works towards its goal of going “beyond Net Zero” by 2030.
Offshore Energies UK (OEUK) will host key operators and the North Sea Transition Authority (NSTA) at an upcoming event examining how the North Sea can reduce emissions through the electrification of offshore platforms.
Analysis by consultancy Xodus Group suggests £3.5-5 billion in capital expenditure will be needed to realise the electrification projects required to lower offshore emissions under the UK’s North Sea Transition Deal (NSTD).
New proposals would see the two develop the Green Volt offshore wind farm – the world’s largest floating wind array – to provide power to the Buzzard field and the National Grid.