Business Outlook 2022

Figure 13: Offshore Energy Investment Outlook Source: Offshore Energies UK, NSTA, Rystad

Hydrogen Production Capital Investment & Operating Expenditure CCS Transport and Storage Capital Investment & Operating Expenditure Offshore Wind Operating Expenditure Offshore Wind Capital Investment Oil and Gas Decommissioning Expenditure Oil and Gas Operational Expenditure Oil and Gas Capital Investment

30

25

20

15

10

5

Offshore Energy Investment (£ Billion - 2021 Money)

0

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

Source: OGUK, OGA, Rystad

scale of opportunities for companies across the sector, this profile will only be delivered against the backdrop of the right investment and business conditions. Offshore Wind The UK has the world’s second largest installed offshore wind capacity (10.5 GW), having seen around £47bn of capital investment to date. Further significant capacity additions will be required, with a target of 40 GW (1 GW of floating) by 2030 and the CCC anticipating the need for 100 GW by 2050. To enable this, it is crucial that the UK continues to develop

a robust pipeline of activity, enabled by a competitive regulatory, delivery and investment environment. The results of two new licence rounds were announced in 2021 which, cumulatively means that more than 60 GW of total offshore wind capacity have now been awarded UKCS licences. Crown Estate released its 4th round of licensing opportunities which awarded 7 GW of new seabed rights in England and ScotWind, the first licensing round in Scotland for over a decade, awarded just under 25 GW of potential with a significant focus on floating projects.

BUSINESS OUTLOOK 2022

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