All but abandoned for two decades, the UK’s largest dry dock is primed to become a decommissioning hub and centre of excellence. Despite recent setbacks, Mike Dixon, Managing Director of Atlas Decommissioning, remains convinced the need for such a project remains promising, if long overdue. Report by Colin Chinery and Andy Probert.
Inchgreen Dry Dock is a former Scottish shipyard that knows the majesty and the misery. The dry dock where the QE2 was fitted out in 1966 has lain idle for the last two decades; its cranes lost to the Clydeside skyline.
One of the largest dry docks in Britain is poised for regeneration as a global ranking, end-of-life decommissioning hub for vessels and marine infrastructure. But even that journey has not been without its frustrations.
“Our vision is to grow Inchgreen to become a centre of decommissioning excellence,” said Mike Dixon, Managing Director of Atlas Decommissioning. This Teesside company secured a long lease contract from Inchgreen Dry Dock’s owners, Peel Ports.
As well as the operating dry dock, the 25-acre facility in Port Glasgow includes an adjoining repair quay and direct access to very deep water. “I’d go as far to say it is unique in the UK; a fully functioning
dry dock with a great in and out access that will enable us to ship 30,000-tonne coasters to the Far East, for example,” said Mr Dixon.
Acknowledging Inchgreen as “a jewel in Scotland’s crown”, Peel Ports says it remains committed to bringing it back to full industrial use and sees the new project as a “game changer.”
Mr Dixon is keen to assuage ‘Scotland’s largest scrapyard’ misapprehensions.
“What we are doing here is essentially shipbuilding in reverse, requiring much of the same engineering excellence and expertise, with some transferable skills, often involving complex operations. The process is a lot cleaner when compared with shipbuilding processes.”
business was forced to let several workers go. This was further compounded in August with its biggest setback when the potential to decommission the Foinaven FPSO went to Denmark.
Mr Dixon commented: “We’re bitterly disappointed as we were engaged in that process for around 12 months. And to be engaged on that for so long and not be given the opportunity to showcase what we can do was deeply frustrating.”
He added: “Despite this, we are still actively pursuing oil and gas and smaller commercial vessels projects. We are also in the process of having our EU accreditation rubber-stamped. That’s another step forward.
Turning the tide
of
frustration However, no path in business is straight and true. 2022 has proved frustrating for Atlas Decom, part of Atlas Commodities. In March, without having secured work, the
“We are working closely with specific organisations with strong ESG policies to champion environmental solutions to dispose of these assets responsibly. We remain convinced Inchgreen is one of significant untapped potential, and we invite clients and partners to consider what we have to offer.
“We will turn the tide of frustration that we have experienced into one of positivity. Atlas Decommissioning remains alive to market opportunities.”
What Atlas Decom brings to the table is a partnership of niche engineering skills, processing, and the commodities market. “Our leaders are experts in shipping, metal processing, and commodities; a combination that is helping us to close the loop and maximise our market potential,” he added.
Offshore decommissioning has increased significantly over the last decade and is estimated to reach $8 billion by 2027, a projected 7.4% CAGR. The UK is poised to lead the way as operators increase spending on North Sea decommissioning work, according to research company Rystad Energy.
“It’s a huge opportunity for the future,” said Mr Dixon. “But with a lot of the a ctivity and work on the engineering side –ensuring wells are plugged and abandoned,
“However, if we can maximise our capacity across different sites, and with our unique combination of both the shipping and commodities experience on board, we expect to be one of the front runners.”
Responsible and sustainable Efficient decommissioning is long overdue for a global industry where a disregard for basic worker safety and shameless exploitation have attracted odium. More than 70% of end-of-life vessels end up in South Asia, where they are broken down under rudimentary conditions on the beaches of Alang- Sosiya in India.
for example, the end-of-life structure processing we undertake is only a small fraction of the money being spent.
The ship recycling industry has also long been under pressure to reform health and safety. Slow progress is finally being made to reduce deaths and serious
Our leaders are experts in shipping, metal processing, and commodities; a combination that is helping us to close the loop and maximise our market potential
“ “
injuries, with Atlas Decom placed to become a leading example.
Metals are well suited for reuse and remanufacturing and are almost infinitely recyclable. China, the world’s biggest metal user, plans to boost steel scrap usage by 23% in the next five years.
The UK Research and Innovation, a non-departmental public body, also aims to make the UK fully circulate all its steel and aluminium, minimising or eliminating the extraction of raw materials and waste production.
“People now increasingly realise the importance of having an endless supply of steel – an opportunity to
recycle numerous times,” said Mr Dixon. “This will dictate where we send our materials, which will largely be mainland Europe or the Far East in the short to medium term.”
He added: “Inchgreen offers an excellent opportunity to bring the industry back to an area with a great shipbuilding tradition, maximise the site, and regenerate it as a centre of excellence. I don’t use that term lightly.
“We want to create a facility that allows end users and clients to want to bring their vessels and structures in for end-of-life disposal and bring economic regeneration to the area.”
Inverclyde’s economic woes are welldocumented: its 5.2% unemployment rate is a bleak counterpoint to its long, proud shipbuilding tradition. If the FPSO had come through, Atlas Decom had plans to create 60 local jobs.
In concluding, Mr Dixon confidently asserted: “Atlas Decom remains focused on responsible and sustainable decommissioning. We are at Inchgreen not just as a quick fix, but as a long-term solution over the next decade and beyond. Our ambition is to create a legacy. It’s what we intend to do and what we will be pushing for.”
n www.atlasdecom.co.uk
