Energy Transition Outlook 2021

ENERGY TRANSITION OUTLOOK 2021

CCUS and abatement for high-emitting sectors

CCUS and redefining the oil and gas supply chain The oil and gas service sector is worth over £26 billion to the UK economy and will be key to realising the new industrial energy sectors such as floating wind, CCUS and hydrogen. Nearly half of the revenue to UK service companies comes from export markets. 21 Many of the disciplines required by these emerging sectors are similar to the competencies within our own supply chain, which sells these services in the UK and across the world. New energy systems have features that are familiar to oil and gas contractors, as well as new niche elements. Some value chains are not yet mature and more detailed mapping and analysis is needed to assess the key opportunities for the UK in terms of technologies and high-value jobs. The traditional breakdown for oil and gas supply chain is understood in terms of the activities below. Expenditure is split relatively evenly between these categories and it estimated that together they provide over 100,000 jobs when support for other sectors is also included.

Refinery & petrochemicals

Steel

CCS sector abatement opportunities

Power generation

Blue hydrogen

Cement

In the UK, the initial focus will be on applying CCUS to power generation and industrial sectors. Power generation with CCUS will provide a flexible source to support the greater emphasis on electricity that will be required in a low carbon energy mix. The other main application will be in industrial sectors located at or close to cluster locations. Finally, CCUS will support the expansion of the hydrogen economy, in particular blue hydrogen.

21 https://assets.ey.com/content/dam/ey-sites/ey-com/en_uk/topics/energy-resources/ how-accelerating-energy-transition-will-shape-the-industry/ ey-uk-energy-services-overview.pdf

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