Wireline Issue 47 Spring 2020

The St Fergus Gas Terminal Credit: Shell

The Alliance brings together industry, academia and government to provide collective support for the Scottish energy transition. Pale Blue Dot is among the founding members, and Sam adds: “It’s a great example of how a coalition of the willing can be formed to achieve net-zero goals.” More broadly, Sam says there has been sustained support and encouragement from the Scottish and UK governments, Scottish Enterprise and Opportunity North East (ONE), among other bodies. That support in part recognises the potential economic gains: initial estimates from the Centre for Energy Policy at the University of Strathclyde suggest that by 2030 anywhere between 7,000 and 45,000 UK jobs would be associated with Scotland securing 40% of the carbon storage element of a European CO 2 management market. Scaling up The opportunities for players in the oil and gas sector to capitalise on the transition are also diverse, says Sam. “For operators, it depends on their future strategy, but the Acorn plans will offer a net-zero route to market for natural gas,” he adds. As operator of the St Fergus Terminal, Shell will

also play a key role in Acorn, as well as project partner Total. Commenting on the project, a Shell spokesperson told Wireline : “Shell has been working with partners to shape the basic concept and are providing our input and expertise through a Technical Development Service Agreement. The next steps depend on progress in developing the policy and regulatory frameworks required to support CCS at scale in the UK and the outcome of the current work scope.” On the supply chain side, larger contractors are already exploring the opportunities both in terms of supporting hydrogen production and helping deliver CCS solutions. While this new sector won’t arrive overnight, the groundwork could be laid now for the facilities and skills that will come to the fore over the next decade. “There aren’t big opportunities today but the key for supply companies is perhaps to start skilling up and addressing any technology gaps, so they’ll be in a position to capitalise on hydrogen developments as they arise,” he continues. Onshore,thosepossibilitiesencompassdevelopments such as the chemical processing facilities for hydrogen production, which would offer opportunities for EPC companies and specialist vendors.

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