IoD Winter 2012 issue_Layout 1 26/11/2012 15:52 Page 21
OrbisEnergy is a national innovation centre for offshore renewables based in Lowestoft, owned by Suffolk County Council and managed by enterprise specialists NWES. They hold a database of over 9000 businesses based in Norfolk and Suffolk. Around 1700 of those companies have existing or potential capability to be a direct part of the energy supply chain, providing services, equipment and materials used in manufacturing, engineering, construction and operation of energy-related projects. That’s around one-fifth of all the businesses operating in the two counties. Then there’s a huge range of supporting services to the supply chain, from legal advice through to catering and hotels, so the actual proportion of companies that could benefit is much higher than 20 per cent.
Size of the offshore wind opportunity
> Essex, Suffolk and Norfolk – £30bn > UK – £271bn > Europe – £647bn
Power Transmission Nuclear New Build Offshore Wind Upstream Oil & Gas Transport Infrastructure
Source: NSEA Energy Supply Chain Strategy for Norfolk and Suffolk
Onshore Wind Port Infrastructure Biomass/Biofuel Generation
UK offshore wind £138bn
CCGT Power Generation CCGT/CHP Power Generation Wave & Tidal Generation Coal Generation
Reynolds has been involved in delivering the EEEGR Supply Chain Roadshows across the region in the last few months. These roadshows are raising awareness about the energy sector opportunities – the major contract opportunities over the next twenty years, both from offshore renewables and from oil and gas, decommissioning, the new nuclear build programme and a range of other energy sector-related opportunities. He’s also part of the team providing follow-on business development advice and support to companies in three different groups.
The established companies The first group of companies is already successful in the energy sector, winning contracts and providing business for their own supply chains. Seajacks is a good example of this type of company, says Reynolds. They own and operate jack-up installation vessels, both for oil and gas and for offshore wind. Just six years since their start-up, with support from NWES and
OrbisEnergy, they’ve grown into a global company operating all over the world in major markets, both oil and gas, and offshore wind. “It’s one of the companies that has really listened to what customers want and has responded to the changing market conditions very well. It’s been able to spread its portfolio, not just in offshore wind; it’s looking at oil and gas; and the technology that it uses on their vessels caters for a number of different markets.” These established companies make it a priority to keep up with the rapidly evolving energy market. New technologies and new players are coming in at all levels of the supply chain. For example, the Frenchowned company Areva visited OrbisEnergy last month, exploring the scope for involvement in the East Anglian Offshore Windfarm project. Areva is a major turbine manufacturer in Europe (they’ve just announced plans for a factory in Scotland) and what draws them to our region is the opportunity for long-term operation and maintenance contracts on a huge scale.
New entrants to the supply chain Secondly, there are the companies that have the right capability and an awareness of these opportunities but perhaps need support to win a major contract, position themselves with the right kind of customer, or obtain investment in specific areas to realise their growth potential. “We’re seeing a lot of those sorts of companies attending EEEGR’s supply chain roadshow series. They want to learn a bit more, understand some of the issues and barriers and challenges that the market and the industry is facing, and how they can realise their growth opportunities over the next few years – but recognising that this is a rapidly changing industry,” Reynolds says. This second group is made up of every type of company that could be imagined, regardless of whether they are already working with the offshore industry - not just the technical services, manufacturing and engineering.
IoD suffolk | winter 2012 | 21