Energy Focus Summer 2021

energyfocus

ISSUE 44 SUMMER 2021

F ROM T H E E N E RGY I N DUST R I E S COU NC I L VIEW FROM THE TOP OP New BCC DG Shevaun n Haviland on empowering ng SME recovery

COVID-19 Turning a crisis into a catalyst for change

ENERGY TRANSITION Companies cautiously capture new energy opportunities

OIL AND GAS Unlocking finance for new tech – why is it so challenging?

Nuclea Nuc learr lea

SM M Rs

Branching out into non-energy As more companies move away from traditional energy sectors, is there cause for concern?

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Contents ISSUE 44 SUMMER 2021

FROM THE EIC

ENERGY TRANSITION

5 Foreword

20 Capturing opportunity in the energy transition

From the Chief Executive

6 View from the top

06

Shevaun Haviland

OIL AND GAS 28 Five tips for digital success Noorddin Taj, Strategy Architecture and Digital Innovation Leader, bp

Sairah Fawcitt, Editor

29 Unlocking finance for net-zero technology

Shevaun Haviland, Director General, British Chambers of Commerce

Ian Cogswell, Member of Financing Technology to Net Zero UK

10 News and events Updates from the EIC

12 Special report: Is diversification a cause for concern?

12

As more companies diversify into non-energy sectors, Tom Wadlow asks: should we be worried?

16 A catalyst for change Jonathan Dyble asks: has COVID-19 been a catalyst for change for energy businesses?

30 Digital twins for cybersecurity Brad Bonnette, Technical Director for Applied Intelligence, Wood

Branching into non-energy

RENEWABLES 25 Winds of change Sairah Fawcitt, Editor

16

POWER 32 Innovating to net zero

COVID-19: Catalyst for change

34 My business

Reenst Lesemann, CEO, C-Power

Andrew Bennion, Managing Director, AIS

20

25

NUCLEAR 33 Hydrogen revolution offers huge opportunities in nuclear

New energies attract attention

Tim Yeo, Chairman, New Nuclear Watch Institute

Opportunities in offshore wind

The Energy Industries Council 89 Albert Embankment, London SE1 7TP Tel +44 (0)20 7091 8600 Email info@the-eic.com Chief executive: Stuart Broadley Should you wish to send your views, please email: info@redactive.co.uk

Editors Sairah Fawcitt +44(0)20 7880 6200 sairah.fawcitt@redactive.co.uk Mark Risley +44(0)20 7091 8600 mark.risley@the-eic.com Account director Dan Butcher Production director Jane Easterman Senior designer Gene Cornelius Picture editor Akin Falope Content sub-editor Kate Bennett

Sales and advertising Richard Hanney +44(0)20 7324 2763 richard.hanney@redactive.co.uk Energy Focus is online at energyfocus.the-eic.com ISSN 0957 4883 © 2021 The Energy Industries Council

Energy Focus is the official magazine of the Energy Industries Council (EIC). Views expressed by contributors or advertisers are not necessarily those of the EIC or the editorial team. The EIC will accept no responsibility for any loss occasioned to any person acting or refraining from action as a result of the material included in this publication.

Publisher Redactive Media Group, Level 5, 78 Chamber Street, London E1 8BL Tel: +44(0)20 7880 6200 www.redactive.co.uk

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www.the-eic.com | energyfocus

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Foreword Stuart Broadley CEO

From the Chief Executive: In this edition we pick out some of the key growth strategies energy supply chain companies are using, and not using, to survive and thrive in a crisis, as well as looking ahead to an action-packed end to the year

The UK recently passed the remarkable achievement of more than 75% of the adult population receiving their second dose of the COVID-19 vaccine. The vaccine has been touted from the start as the way out, and the world is now watching the UK closely as it looks at a return to ‘normal’, with most restrictions lifted. The key question remains – will our high vaccination rate keep deaths and hospitalisations down, even with increased case numbers and new variants?

This is the question that must be answered if we want to see the global energy conference season return to our calendars. It’s still hard to imagine a world where travel and global events return to their 2019 state, but perhaps the greatest test in the energy space so far will be ADIPEC, taking place in Abu Dhabi this November. We are delighted to be returning as the UK Pavilion hosts, and we can’t wait to meet our exhibitors once again on the show floor in a safe and secure environment.

ADIPEC will also be an interesting case study in other ways. Energy transition has been the buzzword for several years now, but more recently we’re seeing new clean technology becoming more than just a buzzword. Operators and developers are announcing more and more groundbreaking projects in the hydrogen, CCUS and floating offshore wind sectors, and supply chain companies are matching that ambition with investment of their own to explore these markets. Will oil and gas still dominate the talk on the floor at ADIPEC, as energy transition penetrates this key event, too? Will we see new clean technology changes on display, or will

there be more of a focus on softer leadership, such as diversity, sustainability and skills transition?

The shift in the energy industry as a whole can be a cause of concern to the supply chain – particularly those who have stuck with oil and gas through thick and thin. In July, EIC issued the fifth annual Survive and Thrive Insight Report, which studied the growth strategies used by energy supply chain companies in a market crisis. The report had some outcomes that surprised us, and which are perhaps worrying for the sector.

For the fifth year running, establishing new export markets was supply chain companies’ least-used strategy; indeed, it is generally considered to be the hardest. Export-shyness is growing in the UK, and we believe that government and industry intervention will be needed to reverse this worrying trend.

Innovation of new products, services and technologies was also down for the fifth straight year. Only 30% of companies are innovating their way out of a crisis, versus 73% in 2016. With digitalisation hard to sell and scale, and relatively low margins, is new technology development also on the decline, due to little confidence in the future of markets such as oil and gas and little clarity on newer markets such as hydrogen and CCUS? Perhaps less surprisingly, diversification was the most popular growth strategy, as companies looked to de-risk their portfolios and spread their revenues across multiple sectors. But did you know that 75% of diversifying companies are looking outside of the energy sector entirely? Throughout this edition of Energy Focus we explore some of

these growth strategies in more detail, and we were delighted to speak to some of the participating Survive and Thrive companies for their added insight and success stories.

There is not long to go until the longawaited COP26 opens its doors in Glasgow.

This is believed by many (including ourselves at EIC) to be a key milestone for the energy sector – but which policies will shine through?

Will we just hear soundbites and a lack of ambition by governments, or will it be a turning point and bring the world together as we look to achieve net zero by 2050?

With so much complexity and uncertainty, it’s hard for energy supply chain concerns to be heard. This is why EIC helped set up the UK Energy Supply Chain Taskforce, co-chaired with DIT Exports Minister Graham Stuart and BEIS Energy Minister Anne-Marie Trevelyan.

This brand new government and industry initiative will amplify the supply chain voice, shape relevant UK policy, and take action to enable the energy transition and enhance exports and internationalisation.

We are excited to be a part of this coalition for change, and with two great co-chairs and a fantastic array of participating taskforce members, representing all areas of the UK and all key energy sectors, we believe now is the time to get started on this exciting journey.

Stuart Broadley Chief Executive Officer, Energy Industries Council stuart.broadley @the-eic.com www.the-eic.com | energyfocus

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From the EIC Shevaun Haviland, BCC Director General

View from the top Shevaun Haviland BCC Director General

As the economy reopens, there will be great opportunities for UK businesses

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Q&A BCC Director General, Shevaun Haviland: From the EIC

IMAGE: PHILIP J.A BENTON

The new Director General at BCC, Shevaun Haviland, talks with Energy Focus about her new role, post-COVID-19 recovery, COP26 and empowering SMEs to stake their place in the green economy Congratulations on being appointed the BCC’s new Director General. What are your strategic and operational priorities?

It’s a privilege to be asked to lead one of the UK’s most influential business representative organisations, and to see firsthand the brilliant work carried out by our network of 53 accredited chambers in the UK and 74 affiliated organisations across the world. I am passionate about business as a force for good. Having run a number of companies, I know employment and prosperity is crucial to drive aspiration, achievement and mutual support for whole communities, across different generations.

My most important functions are first, to help accredited chambers’ members rebuild from the pandemic, establish new trading relationships and tackle the climate crisis; and secondly, to make sure our members’ voice is heard on every crucial issue across the UK and beyond, particularly on trade, climate and levelling up. Our roots are local, but our reach is global, and my role is to make sure we bring those two elements together at a national level.

How is Brexit impacting UK businesses, in terms of both positive and negative outcomes?

There has been a reduction in exports to the EU. There are different ways of measuring the change, but there is a consistent picture that some companies have given up exporting to the EU, or are exporting less. Our own survey work has showed that half of UK exporters were having difficulties adapting to changes. The biggest issue is the cost of Brexit red tape, in terms of sending goods from Great Britain to the EU and from Great Britain to Northern Ireland. With the introduction of new VAT rules on EU exports, e-commerce has been even more complex and frustrating for smaller businesses.

I think there will be more impacts, not only as we see UKCA marking become mandatory more widely and more controls on imports into the UK from the EU, but also as business travel opens up.

As COVID-19 restrictions ease and trade opens up, do the lack of logistics and freight capacity internationally, and skyrocketing shipping rates, concern you?

We are concerned by rising raw material and shipping costs, which are creating clear inflationary pressures. We hear this directly from our chambers across the country. Shipping is an international marketplace for container hire – but more needs to be done, particularly by the largest trading nations, to address soaring costs for businesses and lack of capacity.

On haulage, we are seeing shortages in HGV driver availability, caused by Brexit and the pandemic. The UK government should work closely with business and the haulage industry to deal with this. One solution is to tap international markets where there are available drivers by expanding the Shortage Occupation List.

The government has stopped financing overseas fossil fuel projects. Do you think SMEs will be disadvantaged by its removal of oil and gas support in the UK? Businesses need certainty from government, and much more detail about how our domestic and exporter energy sectors will be expected to trade. Without that knowledge, it’s extremely difficult for businesses of all sizes.

Fewer than 10% of British companies export overseas – do you think enough is being done to address this export shyness?

We’ve set an ambition for government to work with business to double the number of firms, particularly smaller companies, that export. With the right incentives, reduced red tape, a strong strategy and excellent marketing for our goods and services, I’m confident we can supercharge our pandemic recovery through export-led growth. It needs an integrated approach to get the most out of our current and growing market access overseas. Our 74 international chambers will be a huge asset. If we can achieve this, the boost to our economy would be immense.

Do you think government and businesses are doing enough to deliver on the UK’s commitment to reach net zero by 2050?

Our research has consistently shown that chamber member businesses are taking measures to reduce energy consumption, either by cutting energy usage in offices and premises, or reducing travel. They cite concern about the environment as the key motivating factor.

About Shevaun Haviland Shevaun Haviland started as Director General of the British Chambers of Commerce in April this year, joining from the Cabinet Office, where she led on Business Partnerships and the Inclusive Economy Partnership.

Shevaun started her consultancy career in London and New York.

She moved to a strategic planning role at the Walt Disney Company before joining Disneyland Paris, opening the second theme park. After this she ran global accounts for Millward Brown, Mindshare and WPP, before becoming a partner in start-up digital innovation agency and venture builder Independents United, and an adviser for the Danson Foundation.

More recently, she was the New Ventures Director for Avado, building new businesses in Edtech and founding the Academy of Digital Business Leaders.

www.the-eic.com | energyfocus

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From the EIC: Q&A BCC Director General, Shevaun Haviland (Left) In her new role as BCC DG, Shevaun Haviland spent her first few months meeting chambers and businesses across the UK. Here, she tries her hand at hallmarking during a recent visit to the Birmingham Assay Office.

Allowance to include training. Firms also need access to business support that helps them understand their skills gaps and achieve a return on their investment in training.

We need to make the skills system more agile and responsive to business’s needs.

I am encouraged by the further education white paper and the Skills Bill, which will enable employers and training providers to work more closely to tackle skills shortages, and boost productivity and growth.

However, many small businesses, especially those that have been in distress due to COVID-19, need direct support. The cost of transition is a primary barrier. The discussion about net zero needs to be more tangible to smaller firms – they need support getting the right information. That’s why we have teamed up with O2 to launch our Net Zero Hub. Businesses will also need financial incentives to overcome the costs of changing processes or investing in new products and services.

To what extent will you be involved in COP26, and what are the policy announcements that will have the most significant impact at the event?

We are planning a network-wide campaign that will make the most of our global reach.

I want to flag the issues of future compliance needs, and the hurdles businesses will face and how to overcome these.

I think more needs to be made of the opportunities for trade in green goods and services, both at COP26 and through other UK government and World Trade Organization policy actions this year. That’s one reason why the BCC is making 2021 a Year of Trade.

Within the UK, significant positive change will only be delivered by finding the right balance between stretching overall targets and credible and achievable industry plans, with the focus on ‘carrot’ support rather than ‘stick’ measures. At global level, the clear challenge is to find the right amount of multilateralism without having to water down core ambitions.

Are you expecting green finance to grow fast in the coming years, and what impact will this have on businesses?

I think the future of finance in the UK is likely to look much greener as lenders, investors and businesses continue to adjust their risk

appetite towards low-carbon products, with increased guidance and signposting to drive positive environmental change. However, the pace of change means many firms will need support in the transition to cleaner technologies. That means more collaboration between government, financial service providers and businesses to develop credible and detailed plans that stand the test of time.

What are your thoughts on the Apprenticeship Levy? Why is so much of it going unused? What needs to happen to unlock British investment in people skills?

Apprenticeships, although highly valued, are not the answer to all training needs, and many of our members want to see the levy reformed to make it easier for employers to upskill and reskill people. Over time, we’d like to see it evolve into a more general ‘training levy’ that can be used for all forms of accredited training.

Employers understand that they have to invest more in training – both for young people starting out and for adults already in the workplace. The government can support firms to invest more by using the tax system – for example by extending the Annual Investment

The discussion about net zero needs to be more tangible to smaller firms – they need support getting the right information

Although the pandemic has accelerated the digital transformation of SMEs, many have yet to take the plunge. As the founder of Digital Business Leaders, what advice can you give to SMEs to cure their fear of digital transformation?

The pandemic has pressed many SMEs to become more tech savvy. Think about it the same way as you would any other change – look at the options, understand your own business needs and opportunities, be realistic, weigh up the pros and cons, and don’t be bamboozled by jargon. If an ‘expert’ can’t put something in plain English, they usually aren’t an expert!

As the pandemic hopefully recedes, what do you predict in terms of a return to normal?

In April, when we asked businesses their longer-term plans, we found quite high levels of optimism – but more than a third (38%) said concern around further lockdowns was a barrier to re-opening. We have now reached stage 4 of the roadmap, and businesses have been given a lot more autonomy – but not enough guidance – on how to operate safely and build customer and employee confidence.

This could slow the speed of the recovery.

In terms of the world of work, I think some things will probably go back to how they were – history shows this is often the case. Other changes that were already happening, such as the predominance of online food retailing, have been catalysed but may revert a bit; others, where the pandemic created change, will be sustained.

The balance of those three categories will shape how we work in the future. It’s impossible to know how they will play out, but we believe that as the economy reopens, there will be great opportunities for UK businesses, and accredited chamber members will have our network by their side.

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U P DAT E S F RO M T H E E N E RGY I N D U S T R I E S C O U N C I L

news&events Upcoming EIC Connect events in 2021

About the EIC Established in 1943, the EIC is the leading trade association for companies working in the global energy industries.

Our member companies, who supply goods and services across the oil and gas, power, nuclear and renewables sectors, have the experience and expertise that operators and contractors require.

As a not-for-profit organisation with offices in key international locations, the EIC’s role is to help members maximise commercial opportunities worldwide.

EIC Connect Energy USA 2.0

Events

EIC LIVE e-vents

When: 28 September 2021 Why attend? Our first live EIC Connect event since the COVID-19 pandemic struck is planned for 28 September in Houston, US. Bringing key supply chain players, operators, developers and major contractors across the entire energy spectrum together, offering their perspectives on decarbonisation, how they leverage their capabilities to meet carbon reduction targets, and their views on how the energy transition journey will shape up in the coming years.

Visit www.the-eic.com/Events/ EICConnect/EnergyUSA

Over the next few months, we have some exciting virtual events and conferences to look forward to, many of which are free to attend for EIC members, including EIC Connect Energy USA 2.0 in September and EIC Connect Qatar in October.

Plus, don’t miss the Road to COP26 events we have planned in partnership with DNV in the lead up to the UN climate conference that is taking place in Glasgow this November.

To find out more and book onto our latest events, visit www.the-eic.com/ Events/Calendar

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From the EIC News and events

Discover energy supply chain opportunities in Qatar

Reports EIC Survive and Thrive V Insight Report 2021

EIC Connect Qatar 2021 When: 5 October 2021 Why attend? We are delighted to announce the inaugural EIC Connect Qatar event which will take place on 5 October and comprise a series of key pre-recorded presentations and panel sessions that will simultaneously be released for you to review at your leisure.

A live webinar will be held on 5 October to officially open the event, providing valuable insight from key players.

This event will bring together leading national operators, EPC contractors, developers and OEMs to highlight opportunities across the entire energy sector in Qatar. We will also cover areas for those who are new to the market or looking to export there for the first time, allowing you to navigate through the various steps required for you to do business in the country.

Visit www.the-eic.com/Events/ EICConnect/Qatar

EIC’s Road to COP26 Ahead of COP26, the EIC has partnered with DNV on a live series of events, with the aim of promoting industry awareness and addressing the key factors surrounding the future of the global energy sector and the work the industry must continue to do to lower carbon emissions.

Tuesday 10 August: Is the Future Hydrogen?

Tuesday 14 September: The Race to NetZero Wednesday 29 September: The Fastest-Growing Renewable Sources Thursday 21 October: Megatrends Shaping the World of Energy Thursday 25 November: Outcomes of COP26 Visit the EIC website to find out more: www.the-eic.com/Events/Calendar

Now in its fifth year, the highly acclaimed EIC Survive and Thrive Insight Report surveyed more than 60 energy supply chain businesses and confirmed that, for the second year running, the most popular growth strategy in challenging markets was to move away from oil and gas and into other areas in order to ‘survive’.

With governments globally pursuing net-zero policies, but little being done to help the energy sector diversify into green energy markets, the report once again showed that three-quarters of companies that have diversified have preferred to move out of energy completely.

Read the inspiring case studies of all 61 participating EIC member companies and learn about the growth strategies used to survive and thrive in the challenging market conditions of 2020. Key findings and outcomes for industry and government can be found in the report, with a focus on how to increase exports, while also capitalising on the opportunities within the energy transition.

We also deep dive on key topics and issues from the past 12 months, including: whether COVID-19 was a catalyst for permanent change in the energy sector; resilience being the name of the game for supply chain companies; what energy transition means; and the truth behind diversification when it comes to organisations’ core business.

N REPEW RT OUO NOWT

To buy or download your copy of these reports please visit: www.the-eic.com/MediaCentre/ Publications/SurviveandThrive www.the-eic.com | energyfocus

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Special report Diversification

Is diversification

a cause for

concern?

Nuclear

SMRs

Realigning expertise is a recurring theme of the latest EIC Survive & Thrive report, with many companies turning away from traditional segments

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such as oil and gas to pursue new opportunities, some outside of the energy sector altogether. Tom Wadlow asks: should we be worried?

Diversification: Special report

I

I believe we have enough interest and capability within the UK supply chain to tackle energy related challenges to the point where we’re not only addressing the UK, but the global conversation as well. I’d like to see us become a global leader

t has been an unprecedented year. just as daunting as Safety solutions The energy sector, especially the navigating a core specialist Jo Bird also more traditional segments such as market slump. continues to diversify oil and gas, has faced something of a its offering into new perfect storm.

Opportunities and markets, something it has The unrelenting momentum of challenges outside done for more than three the energy transition drive, combined with of energy decades – but even for this industrial shutdowns caused by the COVID-19 This year’s S&T report is veteran of diversification, pandemic, has forced many companies to take full of diversification venturing into new stock and consider alternative paths to secure stories. International markets is never easy. their long-term futures. design, engineering, “The challenge in any This is a common thread in the Energy science and risk market is ensuring you Industries Council’s 2021 Survive & Thrive management consultancy are speaking to the right (S&T) report, and diversification appears to BMT is one example. people, understanding be the answer for many firms. In 2020, more “We recognise that the their needs and than 61% of S&T participants said their main demand for oil and gas collaborating closely revenue stream came from oil and gas – this will be reduced as other with distributors to fulfil year, that figure has dropped to 55%. sources of energy come them,” comments Sales Once seen as moving from upstream to online, so in addition to Manager Tom England.

David Wilson, Director of Energy at downstream oil and gas, or shifting from oil maintaining our existing “You need to show how Enterprise Transition Zone Ltd and gas to decommissioning, the scope of consultancy services in you can help with time diversification has moved far beyond these energy and its adjacent or cost savings.” traditional boundaries. markets, BMT is also For chemicals supplier Indeed, more and more companies are investing in the technology that we have Aubin, diversification has been necessary to reporting moves into the likes of renewables, developed for the energy sector and applying it futureproof the business against a slowing oil and even segments detached from the energy to other markets,” comments Dale Hastingsand gas sector. A particular avenue of interest industry altogether.

Payne, Senior Sales Manager, Environment has been the water industry, the shift being “Companies will generally go to where the and Infrastructure, UK and Europe. triggered when the company was approached activity is,” says David Wilson, Director of BMT is placing particular focus on by a client that lacked the suitable chemistry Energy at Enterprise Transition Zone Ltd. diversifying its digital data solutions – expertise to propel its innovation plans.

“The oil and gas sector supply chain has these can easily be adapted to help manage tremendous expertise and capability to environmental, defence and coastal What industries are welcoming support growing low-carbon energy areas, infrastructure. energy sector firms? particularly around complex offshore TRS Staffing Solutions is another firm Indeed, water is one of many industrial projects like floating offshore wind, which is seeking to broaden the scope of its sectors welcoming energy industry players hydrogen and CCUS. IT recruitment and with open arms. There are countless “As the energy focus staffing expertise. It has opportunities to cross-pollinate expertise, moves, it’s important identified the tech sector and trade associations are aware of the value for companies to offer as a reassuringly stable that companies with track records in the the same sort of services market to operate in, energy sector can bring. These include over a wider, diverse set although the move has industries facing similar challenges around of industries, whether not occurred without decarbonisation. “To power the fourth it’s in transport, facing difficulties. propulsion revolution, global fleets will need defence, infrastructure, “The principal to be modernised and new energy supply renewables or challenge was the networks established,” says Bob Sanguinetti, elsewhere.” time taken to fully CEO of the UK Chamber of Shipping.

But it is not a case of understand new “There are a range of energy sources out simply flicking a switch. client needs and there including hydrogen, LNG, ammonia For organisations that respond with and batteries. To get these fuels on to ships have historically been so candidates who fit we need new and improved infrastructure reliant on an active oil their requirements,” and a resilient supply chain. There are huge and gas market for the adds Monica De Prada, opportunities for the energy sector to work lion’s share of their Country Manager. in tandem with the shipping industry, but incomes, diversification “Building a quality time is of the essence, and we need to see into the unknown candidate database does private and public sector investment to help Stuart Broadley, CEO, Energy represents a challenge not happen overnight.” reach our climate change goals.”

Wide diversification is good for the survival and the health of the supply chain, but not if governmental policy is forcing companies to do it because of a netzero strategy Industries Council

www.the-eic.com | energyfocus

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Special report: Diversification

Large infrastructure developments also represent fertile ground for energy sector participants. Steve Norris, Council Chairman of the UK’s National Infrastructure Planning Association, explains how a number of major projects are centred around energy generation, be it through offshore wind, nuclear, carbon capture and storage, biomass or other energy-related peripherals.

This is key component of a relatively new planning process for Nationally Significant Infrastructure Projects, which is covering a large array of projects, including the Thames Tideway Tunnel, Heathrow and other airports’ expansion projects, new rail freight terminals and rail extensions.

Aerospace is another sector that is readily tapping into energy sector expertise. “The Ministry of Defence has recently launched its roadmap to becoming more resilient and sustainable in the face of the challenge of climate change, which can offer opportunities to energy sector companies with expertise in sustainability and green manufacturing,” comments Caroline Donaghy, ADS Defence Director.

Should the energy sector be worried?

These examples could suggest that the sector is facing something of an exodus.

However, this would be too simplistic a

26%

conclusion to make. Both BMT and TRS stated their commitments to the energy sector and their core markets in the S&T report, albeit recognising that the shift to a low-carbon world and would impact their involvement with oil and gas. Meanwhile, the latter sector also remains the top market for Jo Bird, while Aubin reported heightening interest in pursuing a transition away from fossil fuels, as opposed to switching off interest in the sector entirely.

The key point is that the energy industry itself is in transition, and companies are adapting to find their place in the new world, with some looking outside of the sector as a means of spreading risk and mitigating uncertainties around just how that new world might look.

For Stuart Broadley, CEO of the Energy Industries Council, the fact companies are moving into other industries leaves the glass both half empty and full. “It’s good and bad, all at the same time,” he says. “It’s good because companies are finally realising that they can’t rely upon one sector, no matter how profitable that sector sometimes is. It’s just not sustainably profitable enough anymore, and even if there is a mini boom coming, they can’t rely upon that happening and being sustained.

“So, after COVID-19 and the last oil crisis, companies accept that they must spread their bets – they have to de-risk and have many more types of customers and markets.”

Source: EIC Survive & Thrive Insight Report 2021

Non-disclosed non-energy sectors

13%

Marine and maritime

10%

6%

Fintech, life sciences and semiconductors

3%

Events and retail

8%

Non-energy sector activity in EIC Survive & Thrive 2021 % of companies operating in non-energy sectors

Construction and infrastructure

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Dale Hastings-Payne, Senior Sales Manager, Environment & Infrastructure, UK & Europe, BMT: “The oil and gas sectors have some reputation issues associated with them due to the global population becoming more environmentally aware. Green energy sources are, however, attracting talent and many of the skills that are used for offshore oil and gas are transferable. Younger generations entering the workplace are putting pressure for companies to not only develop ESG (environmental, social and governance) policies but show demonstratable action.”

Katy Gifford, CEO, Aubin Group: “There are definitely some challenges in oil and gas when it comes to investment, debt funding and perhaps recruitment. We are being pushed to present a more thought-out position on ESG for all of our customers.”

Monica De Prada, Country Manager, TRS Staffing Solutions: “Overall, I think the answer is no. The world will always be hungry for energy. The sector is in a period of energy transition, where new technologies require talent with new skill sets. While we see steady decline in many traditional oil and gas roles, there remain good opportunities for more specialist skills.”

Tom England, Sales Manager, Jo Bird: “Energy as a market is changing – with the growth of renewables, energy is no longer solely associated with fossil fuels. It is a much broader term now. The challenge for SMEs can be reaching the decision makers.”

Chemical and industrial

3%

Certification and ESG

11%

Government, defence and space

Environment and water

13%

Do you believe the energy sector is perceived negatively?

7%

Shipping and rail

What leaves the glass half empty for Broadley is a sense that government policy may be forcing companies’ hands before they are able to properly transition – something Wilson also recognises as a problem.

However, the latter has a foot in the optimists’ camp when looking ahead.

“Oil and gas will be needed by this country and other countries around the world for decades to come, albeit a reducing wedge alongside an increasing wedge from renewables,” Wilson adds. “The important thing for oil and gas right now is to focus on making itself a net-zero industry.”

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Feature COVID-19

A catalyst for

change

The coronavirus pandemic has hit every sector, but the energy industry has seen resilience and innovation come to the fore as businesses remain agile and evolve to the changing environment. Jonathan Dyble asks, so, is it possible that while challenging, COVID-19 has been a catalyst for change for many companies?

I

t is safe to say that the energy industry has experienced a turbulent time since the middle of the last decade.

Owing to a supply glut back in 2016, the price of crude oil plummeted as low as US$26 per barrel – less than 25% of the US$106 that would have been taken back in mid-2014.

In the same year, the Brexit referendum saw the UK commit to leaving the European Union, adding further uncertainty to an already highly volatile cocktail within the energy sector. And that is before we even mention the growing

advocacy of environmentally friendly and sustainable practices that had begun to place pressure on the operating models of many industry stalwarts.

Amid such chaos, however, arguably no single incident has had a greater impact on the energy sector during this period than the COVID-19 pandemic.

The past 18 months may prove pivotal in the sector’s history. Not only did 2020 see oil slip into negative pricing for the first time in its history, but businesses of all shapes and sizes had to rethink, transform, and adapt almost overnight, simply to survive.

Dealing with the difficulties and disruption Indeed, many sector players can reminisce about the challenges they have faced, the EIC’s latest Survive & Thrive report presenting a raft of stories faced by individual enterprises.

Take the experience of AAL Shipping (AAL).

As a marine transportation services provider, the company’s operations became brutally restricted back in March 2020.

“We witnessed extreme disruption of crew change plans for our seafarers; severe delays in ports worldwide due to elevated safety restrictions and cargo readiness;

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COVID-19: Feature

While COVID-19 caused adversity for many, it equally became a key catalyst for innovation, ingenuity, and fundamentally positive improvements

and a significant reduction in non-renewable energy cargoes being transported, with traditionally busy trade lanes unable to yield sustainable cargo volumes,” explains Felix Schoeller, the company’s General Manager.

Turbine, generator, compressor and transformer service provider EthosEnergy, meanwhile, highlighted its own pandemic-induced obstacles in the form of delayed maintenance activities, its customers having opted to conserve cash and delay projects due to the impact of COVID-19 on energy demand.

At the same time, the company began to grapple with the effects on its team, many having found working from home to be both alien and challenging.

Subsea oilfield serviced company Deep Down also saw its projects grind to a halt in the face of travel restrictions and exacerbated logistical issues, resulting in a 32% drop in 2020 revenues year over year.

“It was a sobering experience,” reveals President, CEO and CFO Charles Njuguna.

“With contracts having to be renegotiated, the company was in a position where it had to reflect and re-strategise.”

Adapting amidst the adversity Njuguna’s mention of re-strategising is noteworthy. While COVID-19 caused adversity for many, it equally became a key catalyst for innovation, ingenuity, and fundamentally positive improvements.

Such is the experience of AAL, EthosEnergy and Deep Down’s experiences, the three companies having adapted to maximise their successes in the new normal. Yet, there are many other similarly inspiring stories.

Hunt Thermal Technologies, for example, found its own silver linings after stumbling upon the benefits of flexible working and data-driven planning.

“We had to think of new ways to ensure third-party inspectors could still provide assurance without needing to visit a site,” explains Managing Director Chris Howard.

“We therefore introduced inspection by video conference, which in the long term should benefit our

customers by reducing costs and time to completion.

“Equally, we’re now more procedural and process driven, utilising data to better understand and communicate project performance.”

Iain Smith, Senior Vice President of controls technology provider Proserv Controls offers a similarly positive outlook, paying tribute to the efforts of the company’s team during a challenging 18-month period. “They have been outstanding, innovating solutions and demonstrating flexibility, yet always meeting targets and deadlines,” he says.

Such solutions include the introduction of remote equipment testing, using live video conferencing to allow Proserv’s customers to see tests take place without needing to visit the site. “This has been so efficient, saving time and travel costs,” Smith adds. “We will continue to offer it moving forwards.”

Shipping, logistics and marine services provider GAC UK adapted by expanding its presence in sustainable energy – a move that has enabled it to capitalise on a wider variety of energy transition opportunities, not only in the UK, but also globally.

An industry energised Amid the hardships, there have thus emerged a number of positives for many organisations.

While the pandemic has arguably made for the toughest period in the histories of many firms, a sizeable number have successfully paved a brighter path by embracing new ideas and opportunities.

As global vaccination efforts gather momentum and societies and economies begin to reopen, many industry players are now in a better position to grow than they were during the early months of 2020.

In many instances, the pandemic has been a catalyst for change, inspiring renewed resilience in operating structures and instilling an enhanced appetite for innovation in products and services that will serve to uplift industry optimism in the long run.

Reimagining the future of work post-COVID-19 The pandemic has forced the adoption of new ways of working. Whatever a company’s workspace looks like in the future, Adrian Wakeling, Senior Policy Adviser at Acas, advises says businesses should to redouble redouble theirtheir efforts effacross orts three acrossareas: three areas: Communication and consultation. It is not It is not justjust employment employment contracts contracts thatthat have been have been reviewed reviewed in recent in recent months; months; the whole the notion whole notion of the psychological of the psychological contract contract has shifted has shifted dramatically. dramatically.

It’s time It’s time to listen to listen to what to what staff staff expect expect andand value value about about work work and life. and life.

Equality and inclusion. The pandemic has had has had an unequal an unequal impact impact on many on many groups, groups, particularly carers and those from black and ethnic and ethnic minority minority communities. communities.

We need We need to rebuild to rebuild fairer fairer workplaces workplaces that that embrace embrace and celebrate and celebrate difference. difference.

Wellbeing. Mental health has been described as a shadow pandemic. It has become a ‘runaway issue’ for many organisations. Now is the time to deliver on the long-promised goal of achieving parity between physical and mental health. Make wellbeing part of every business decision.

He “The adds, worst “The mistake worstwe mistake can make we can is tomake is to impose impose oldold templates templates onto onto evolving evolving working environments. environments,”There he says. are“There signs that are signs technology that technology is creatingisflcreating atter hierarchies flatter hierarchies with quicker with quicker decisiondecisionmaking processes, which is a good sign.

Be bold!”

Melanie Leech, Chief Executive, British Property Federation, says: said: “Offi “Office ce workers underpin our town and city centre ecosystems – many high street businesses, from cafes to gyms, depend on footfall from nearby offices. Data collected by Remit Consulting shows that people are returning to the office in increasing numbers and this trend is likely to continue now that Government government guidance has changed changed,and andonce oncethe theholiday holiday season is over. Whilst While offi offices ceswill willneed needto toadapt adapt to more flexible working patterns patterns,they theywill will remain a vital hub for collaboration, creativity and productivity for the future future,as aswell wellas as playing an important role in allowing people to develop their skills and knowledge through personal interaction with their senior colleagues, peers and mentors.”

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Advertising feature

European water specialist harnesses nature to keep water flowing for large chemical complex

Evides Industriewater has now been working in partnership with one of Europe’s largest chemical production sites for 20 years to introduce water conservation and circular economy concepts. Dow Chemicals at Terneuzen is Dow’s second largest site globally and manufactures essential chemicals such as ethylene, propylene, butadiene and benzene.

The drought in Europe in 2018 was a wake-up call for industry, and water abstraction for cooling was restricted.

Chemical companies are aware of just how important fresh water is to their operations, but targeting growth means more water will be needed. In addition, some

routes to decarbonisation, such as biofuels, hydrogen and lithium batteries, will also increase water consumption.

Lack of water has huge potential to derail the economy, as well as efforts to combat climate change.

At Dow Terneuzen, 10 billion litres of water are used each year for cooling and steam production, and since 2001, the production of the water for these processes has been outsourced to Evides Industriewater with a long-term ambition to reduce the site’s reliance on the region’s freshwater resources, which are also required for public supply and agriculture.

Water reuse The first step introduced at Dow was to analyse the wastewater streams from the site. Evides introduced new wastewater treatment that made it possible to reuse some

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(Left) Dow Chemical site at Terneuzen

IMAGE: CHRIS PLATTEEUW IMAGING

Advertising feature (Right) Evides wetland pilot at Dow Terneuzen

water from wastewater flows, which were otherwise being discharged to the sea. Other on-site water sources were then introduced: condensate from steam production was recovered and treated to be reused again, and rainwater falling on the site was intercepted, cleaned, stored in large tanks and used to re-supply the site.

After all the on-site sources were maximised, a publicprivate partnership was set up between Evides and the municipality of Terneuzen. In this partnership Evides financed a new sewage treatment plant for the city’s urban wastewater. The MBR (membrane bio-reactor) designed, built and operated by Evides produces a much cleaner effluent than traditional wastewater treatments, which makes it possible to take the effluent and reuse it. Project developer at Evides Bas van Eijk explains, “We are treating 20% of the city’s sewage through our MBR and we have a dedicated pipeline to Dow 11km away to transfer the clean effluent. Once it reaches Dow, our treatment plant there produces demineralised water for Dow’s processes.”

Despite these innovations, Dow still requires 4–5 billion litres of fresh water every year from the Biesbosch – one of the last extensive freshwater tidal wetlands in Europe. Now Evides and Dow have committed to expand water reuse on site to reduce this reliance on fresh water to zero. The idea is to replace it with more treated wastewater from the city of Terneuzen, as well as more of its own effluent and rainwater.

Evides circular concept for water treatment and reuse Terneuzen city wastewater

Rainwater collection

Industrial water reuse Constructed wetland

Dow Terneuzen wastewater

Constructed wetland The concept and potential of constructed wetland is illustrated by Colin Robinson: “Whenever water is treated you get two flows, a clean flow and a reject flow. The efficiency of your water treatment is measured by the ratio of clean to reject flows. In order to achieve our and Dow’s goal of 100% water supply from reuse, we need to improve the efficiency of our water treatment. The first step in this project has been to carry out a two-year pilot of using a constructed wetland to pre-filter water before it enters our treatment plant.”

“The wetland does not use energy or chemicals and it actually supports biodiversity in the area. By passing the wastewater through the roots of the wetland, the plants soak up nutrients to benefit their growth. What the plant calls nutrients, we call pollutants, and we would otherwise have to remove these mechanically or chemically to clean the water.

With the water pre-filtered by the wetland, our treatment plant can achieve a much higher efficiency of water treatment, since less water needs to be rejected, more of it is recovered for reuse.”

Following successful deployment of water reuse at Dow Terneuzen, Evides now has a number of other pilot schemes in Europe to reuse industrial and municipal effluent as industrial process water. “These local industrial reuse solutions are much easier to deploy than city-wide water reuse projects, and they have a huge impact on preserving water resources. Every litre of reuse water supplied to industry is a litre preserved in a river or reservoir that can support biodiversity or protect drinking water resources.”

For more information contact: Colin Robinson Business Manager UK & Ireland M:

+44 (0) 7455 721 799

E: c.robinson@evides.nl

Ultrafiltration Ion exchange

Reverse osmosis

W:

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Energy transition Move to new energy

Capturing opportunity in the energy T transition he energy transition is well underway, and EIC members are diversifying their portfolios to position themselves to thrive in a low-carbon future. This year’s EIC Survive & Thrive Report reveals that 30% of participating companies are moving into the new energy transition space of hydrogen, carbon capture, utilisation and storage (CCUS), energy storage and floating offshore wind.

However, while many companies believe it is an area they should be considering as environmental, social and governance (ESG) metrics become increasingly important to shareholders, clients and employees, investments are relatively low, and energy transition has yet to become a primary growth strategy.

This cautious approach is understandable, especially in a market that is still over-hyped but under-fed. Indeed, data from EICDataStream indicates that assuming all

It’s a small market financially, but there’s lots of activity in the new energy transition markets and businesses are moving cautiously, writes Editor Sairah Fawcitt

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Move to new energy: Energy transition

energy transition projects announced actually reach financial investment decision, they will only account for 3% of global spend by 2026.

IMAGE: CARBON ENGINEERING LTD

Early movers in hydrogen TÜV SÜD National Engineering Laboratory’s initial interest in hydrogen arose through its role as the UK’s Designated Institute for Flow measurement, part of the UK’s National Measurement System, funded by the UK Department for Business, Energy and Industrial Strategy.

The company has worked in the water and oil and gas industries for decades, providing the underlying measurement traceability that backs all fiscal and financial transactions based upon the reading of a flow meter while also conducting sector-wide R&D. “With the emerging hydrogen economy, we could see the same need as being apparent. Hydrogen (and hydrogen carriers such as ammonia) will be used in gaseous or liquid forms, and therefore trade will rely upon accurate, traceable flow meter readings,” explains Martin Hanton, Technical Director of TÜV SÜD National Engineering Laboratory.

The primary challenge for the business, he says, is how to invest in this new area while the hydrogen economy is still embryonic and revenues still primarily come from other sectors.

“The more certainty that government can give industry regarding future direction, the more this challenge is ameliorated,” he says.

Jon Constable, Group Technology and Engineering Director at tpgroup, sees hydrogen as one of the critical paths to bridging the gap between renewable power and decarbonising UK energy consumption by 2050.

With more than 50 years of defence-centric experience in hydrogen production and carbon capture, tpgroup is evolving its hydrogen generation capability to deliver an innovative modular and customisable green energy system that can develop hydrogen safely and efficiently for a range of applications and industries.

“In 2019, we pivoted our gas management system capability, predominantly around life support systems on submarines, into the world of clean, renewable energy,” says Constable.

“Today, the company is engaged in projects across rail, aviation, defence, road, carbon capture and zero-carbon projects, and delivering green energy to remote sites and locations. This includes providing the integrated hydrogen fuel cell solution for the HydroFLEX, the UK’s first hydrogen train.”

The energy transition is well underway, with opportunities to act upon lying in wait

(Below) Project Dreamcatcher is a key step towards Storegga and Carbon Engineering’s ambitions to have a large-scale DAC plant up and running in North East Scotland in 2026. Under a collaborative partnership, Petrofac will undertake all project management and engineering.

Image shows a rendering of a large-scale DAC plant

Shaping the path of carbon capture Identifying the business opportunity in CCUS was relatively

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Energy transition: Move to new energy

straightforward for Crondall Energy as “much of the required technology is already within our core business portfolio,” explains Murray Anderson, Director of Crondall Energy Subsea Ltd. “CCUS schemes will be dependent on subsea pipeline and well infrastructure to access storage sites, and we have the experienced engineering resources to address the associated challenges. CCUS and the challenges of hard-to-abate emissions and direct air capture also offer exciting and motivating opportunities for young engineering staff looking to build a sustainable career,” he adds.

However, Anderson says it is crucial to understand the uncertainties and focus on delivering solutions that help reduce the development risks associated with CCUS. “Many of the risks are business and commercial obstacles rather than technical problems, and an understanding of the CCUS business models and policies is essential.”

Like Hanton, Anderson believes government policy must be clear, consistent and stable to ensure industry has confidence that new business models can be sustained long term.

“The legislative and financial incentives must be maintained to ensure investing in CCUS is sustainable; the market will then open for more of the UK supply chain to transition into CCUS and other energy transition markets.”

Engineering energy transition KBR Project Solutions is another company leveraging its competencies, already successfully deployed in the oil and gas sphere, into energy transition markets.

“There is a great drive in KBR to transition to cleaner energy sectors and complementary areas like CCUS, hydrogen and biofuels, and we are seeing successes in these markets,” says David Cole, Director of Project Solutions International at KBR. “Engineering energy transition is exciting, and we see a great potential across the board, including CCUS, hydrogen offshore wind and even EV charging. There are great synergies in the engineering skills required, and the demands on project management for such large scale, complex and technically challenging projects are the same.”

For energy services company Petrofac, new energy projects accounted for 22% of intake in 2020, and this continues to grow strongly. As well as supporting various

Market opportunities Focus on hydrogen The majority of the 200+ hydrogen projects that exist across the value chain are in Europe, Asia and Australia, with activity in the Americas, the Middle East and North Africa accelerating as well.

If all projects come to fruition, total investments will exceed US$300bn in hydrogen spending through to 2030. Of these announced projects, the largest projects (more than 1GW for renewable and more than 2,000 tonnes per year for low-carbon hydrogen) are in Europe, Australia, the Middle East and Chile.

Europe leads the number of announced hydrogen projects globally, with Australia, Japan, Korea, China and the US following as additional hubs. While Europe is home to 112 production projects, the announced projects cover the entire hydrogen value chain, including midstream and downstream.

In expected major demand centres such as Korea, Japan and Europe, the focus is on industrial usage and transport application projects.

Today, hydrogen is most used in petroleum refining and fertiliser production, but R&D efforts are using hydrogen in fuel cells to generate electricity or power and heat.

Focus on carbon capture There is renewed interest in the carbon capture market, linked to industry emissions capture and blue hydrogen.

The UK leads the way in terms of the number of developments and CAPEX. It has a critical role to play in terms of a drive to net zero and decarbonising industry.

Further developments are being announced around bioenergy carbon capture and storage (BECCS), direct air capture (DAC) and carbon capture and storage (CCS) off the back of LNG liquefaction facilities, notably in the US. CCS is not for every market yet, but more developments bring greater experience, which drives down costs as the sector moves from first-of-a-kind to nth-of-a-kind projects.

Key projects to note Hydrogen

Carbon capture

● Arrowsmith Hydrogen Project, Western Australia

● Acorn CCS Project, UK

● AquaPrimus Green Hydrogen Pilot Project (AquaVentus Phase 1), Germany

● Drax Full Scale Commercial BECCS Plant, UK

● Dolphyn Hydrogen Project, UK

● PORTHOS CCUS Project, The Netherlands

● Linde Leuna Chemical Complex – Green Hydrogen Project, Germany

● Project Dreamcatcher – DAC Facility, UK

● Varennes Green Hydrogen Project – Hydro-Québec, Canada

● Northern Lights CCS Project, Norway

Source: EICDataStream

low-carbon projects, including CCUS, blue and green hydrogen, and waste-to-value, Petrofac is a customer of Europe’s first large-scale direct air capture facility.

Looking ahead, Nick Shorten, Chief Operating Officer for Petrofac Engineering and Production Services, points out that while the UK has created the world’s most active offshore wind market, it has lacked the infrastructure and competitiveness to secure the CAPEX opportunity.

“Learning from that, we must proactively plan what we need in the sunrise industries, develop a globally competitive proposition, and anchor capability to the UK,” he says.

“For the supply chain, it’s about using

market information to plan, evaluate and build our skills base, understand the applicability of vendor products and services, and fill in the gaps.”

From the success stories highlighted in this year’s EIC Survive & Thrive report, it is apparent that industry collaboration and knowledge sharing is key to driving the energy transition, says EIC Energy Analyst Joanne Sivanathan. “With this, costs will be driven down and the markets will grow.

Alongside the part industry can play, governing bodies need to act now to aid the movement. The energy transition is well underway, with opportunities to act upon lying in wait.”

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PROUDLY OFFERING THE COMPLETE RANGE OF CABLE AND WIRE SOLUTIONS FOR THE CLEAN ENERGY.

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Renewables Offshore wind

S

uccess in business, not to mention survival, requires adaptability – and nowhere is this more evident than in the 61 inspiring case studies of transformational change featured in the fifth EIC Survive and Thrive (S&T) Insight report.

Following a tumultuous year for the oil and gas industry – COVID-19, the climate change crisis and collapsing oil prices – this year’s S&T report reveals that diversification is once again the most popular growth strategy for participating member companies in challenging market conditions.

Of the 45% British and 21% international participants that de-risked their revenue sources to rely less on oil and gas going forward, 25% of these companies diversified into renewables.

Move to offshore wind For AIS – an established global leader in the engineering, manufacture and application of insulation and passive fire protection systems, buoyancy, and subsea products for the energy industry – it was the stability of the complementary offshore wind market that proved appealing.

“Although there was a slowdown during COVID-19, activity remained, with windfarm

change projects going ahead and offshore works continuing,” says Andi Cunningham, Business Development Manager for Renewables at AIS. “This makes it an attractive market, and one where we can transfer our existing expertise. The market has massive potential: it is relatively new, and as countries and companies understand the importance of moving away from fossil fuels, the potential growth is huge.”

Indeed, AIS is anticipating that 4% of 2021 revenue will be derived from renewables – up from 0% last year.

Balmoral is another example. Established in 1980, the company’s core business was tied to the subsea oil and gas sector. Today,

Diversification is again the most used growth strategy among EIC members.

With oil and companies moving into the resilient renewable energy market, Editor Sairah Fawcitt looks at the shift to offshore wind

IMAGE: ISTOCK

The renewable energy industry can take advantage of the expertise evolved from years of oil and gas operations in the North Sea Emma Harrick, Energy Transition and Supply Chain Manager at Scottish Renewables

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Renewables: Offshore wind

The UK and Europe are currently leading in operational capacity, with the 30MW Hywind project in Scotland and Portugal’s 25MW Windfloat Atlantic project successfully deployed. New proposals are rising in France, Norway, Spain, Greece, Italy and Sweden, and analysis by WindEurope estimates that up to 7GW could be installed by 2030.

There is also movement in the US, Japanese and Korean markets, with predictions currently indicating that by 2050 up to 50% of floating capacity will be produced in the Asia-Pacific

however, the company is enjoying considerable success in offshore renewable energy. Having been awarded three new contracts within the offshore wind sector, its order intake from diversified sectors is expected to increase from £700,000 in 2020 to £7m in 2021.

Its success is undoubtedly thanks to its quick and agile responses to the clean energy transition, a sound long-term strategy, and the natural evolution of its existing product range.

“Our established solutions are all heavily used in offshore wind,” says Steve Gibb, Public Relations Manager at Balmoral.

“However, oil and gas products are traditionally designed to suit deepwater operations, when compared to renewables cables that are deployed in relatively shallow waters, in terms of both strength and subsea movement. We had to re-imagine our product portfolio to harness our oil and gas experience but operate within the parameters of offshore renewables, ensuring the evolved range addressed the new demands at optimum price and performance.”

Seize the potential For companies looking to enter the renewable energy sector, one emerging market that is continuing to progress towards commercialisation is floating offshore wind (FOW), says EIC Energy Analyst Sharanya Kumaramurthy.

“The oil and gas sector (O&G) is uniquely placed to profit from its synergies with FOW, due to its logistical and commercial experience with offshore developments – in particular oilfield support systems, supply-chain relationships, marine duediligence, contracting, and asset

region alone. DNV estimates that, in that time, global capacities will increase from 100MW to 250GW, and costs will reduce by 70%.

There are significant barriers to commercialisation, including supply chain development, shipyard availability and quayside space, financing and regulation.

Policymakers need to help mobilise the supply chain and technology companies through subsidies and other supportive legislative mechanisms. Nevertheless, with interest and growth seen in the last year alone, FOW is forecasted to become a leading future energy production source.

maintenance and operations. Offshore platform electrification with FOW can also further reduce costs and emissions, giving players a stronger foothold in the energy transition,” says Kumaramurthy.

Although FOW is still in its infancy, energy developers have shown increasing interest. Examples include Equinor and Saipem, with Total also joining France’s EolMed project, the UK Erebus project, and entering the South Korean market with a 2.3GW portfolio acquisition.

“Entering at a relatively early stage allows companies to become active players in the future FOW supply chain,” Kumaramurthy goes on.

Towards a net-zero future For oil and gas supply chain businesses that have been impacted by the energy transition journey, “the renewable energy sector offers the opportunity to transfer high-level skills and experience to develop and grow the renewable energy workforce we will need to meet our net-zero ambition,” says Emma Harrick, Energy Transition and Supply Chain Manager at Scottish Renewables.

“Our industry can take advantage of the expertise which has evolved from years of oil and gas operations in the North Sea, specifically around complex technical project management techniques, a familiarity with harsh environments, decades of precision engineering and robust commercial know-how,” she adds.

“These skills will also be a great export opportunity and can improve our economy as more countries across the globe work to decarbonise their energy systems.”

By Sairah Fawcitt, Editor, Energy Focus

What advice can you offer companies thinking about moving into renewables?

Emma Harrick, Energy Transition and Supply Chain Manager, Scottish Renewables: “The ScotWind Leasing process will mean a significant expansion of offshore wind capacity, while the repowering of our existing onshore wind fleet, alongside the development of new projects, opens up the playing field for supply chain businesses to compete. Renewable heat, green hydrogen, as well as developing technologies like wave energy and those on the cusp of commercialisation, like tidal power, also offer extensive diversification possibilities for the supply chain.”

Andi Cunningham, Business Development Manager, Renewables, AIS: “It is important to spend time to understand the market. I think it is important to realise that it is not the same as oil and gas. From a technological perspective, the shallow water, highly dynamic environment seen in offshore wind is both demanding and unique.

Legacy oil and gas technologies are not always sufficient to meet the challenge.”

Steve Gibb, Public Relations Manager, Balmoral: “The industry is developing very quickly, and if you sit on the sidelines, you will be overtaken. Look at your current offerings and consider if and how they might be adapted to suit this and other sectors. When you are confident you have a product or solution that is fit for purpose, let everyone know about it. Join industry organisations and associations to help you reach potential clients and sign up to government international trade missions where appropriate.”

IMAGE: MICHAL WACHUCIK/EQUINOR

Global opportunities in floating offshore wind

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Creates Industry First Solution for High Pressure Topside Application ½” 20,000psi Manual Gate Valve for Topside Applications Completes API 6A 21st Edition Appendix F PR2 Qualification The recently qualified Oliver Valves ½” Bore Topside Manual Gate Valve has provided our client and end user a solution for use in an industry first high-pressure development in the Gulf of Mexico.

The Challenge: The project required 20ksi DBB Isolation for vents, drains and chemical injection points around the TUTA (Topside Umbilical Termination Assembly), Boarding Valves and Production Manifold. Process operating pressures were expected to be around 16,500psi. A fully rated API 20k valve was required by the customers specifications. Small bore instrumentation needle or ball valves were available to the customer at working pressures of 20,000psi but a full through bore gate valve, such as the one above, was a new market requirement: • Fully rated PR2 Tested API 20,000psi • Fire Safe & NACE Compliant • Process Connection - Compact Flanged • Instrument Connection – Cone & Thread • High Alloy Construction • ½” Bore • Gate Isolation with Needle Vent because ball deflection had been noted as an issue by the customer with high pressure ball valves.

Our Challenge: As the supplier of choice, Oliver’s were required to design and build a valve very quickly to meet the stringent application and also the project time-line. All of the considerations below had to be met: • Conceptual Design and Engineering Calculations • Arrangement Drawings • Size & Weight Considerations • Detailed Bill of Materials • FEA Analysis • PR2 Testing • Fire Testing • 3rd Party Witness testing • Customer approval of all test documentation, procedures and FEA • Prototype; Procurement of materials, Machining, Assembly, Development • Only a complete, fully tested, and qualified valve would allow

production to begin. Any miscalculation could delay delivery of the valves and causes serious project impacts.

This was roughly 12-months from start to finish.

• Design that would meet BSEE requirements • Customer confidence Solution: Oliver Valves and their master distributor, AWC Inc, have been a long-time trusted supplier to this customer. They have demonstrated experience in project execution, quality, and specifically the desired technology to meet the requirements of this project. The Oliver team were able to meet and exceed all of the customers’ requirements. Collaboration with the customer from an early stage in the project resulted in a mutually beneficial solution.

The Result: Oliver Valves will be supplying multiple ½” Manual Gate Valve DBB’s to a Gulf of Mexico Project. In this project application the ½” Gate Valve DBB will be used to drain the 20,000psi rated pipework surrounding the large boarding valves on a semi-submersible floating production unit. First oil is anticipated 2024.

The high-pressure rating of this design allows our clients and end users alike to access other high pressure resource opportunities across the industry.

• • • • • •

Working Pressure:20,000psi (1379 bar) API 6A 21st Edition Appendix F PR2 Compliant Independently Witnessed and Approved Qualification Qualified Temperature Range -29oC to 121oC operable ½ Turn Manual Operation Can be offered in single isolate or DBB format utilising a 20Ksi OS&Y Vent • Qualified in ASTM A182 F55 with UNS N07718 & N06625 Trim • Fire Tested In accordance with API 6FA 5th Edition

Contact Oliver Valves Ltd on www.valves.co.uk or sales@valves.co.uk for further information.

Our business is trusted globally by all the major Oil & Gas operators for our Reliability Under Pressure and our It CAN Be Done approach to client challenges.

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Oil and Gas Innovation

This year’s EIC Survive & Thrive report reveals that only 31% of participating companies deployed innovation as a growth strategy in 2021. Previously the most-used growth strategy by companies, this represents a considerable drop from the 73% of companies that turned to innovation in 2017. And while most businesses appreciate the importance of digital agility, progress remains incredibly slow. So, why are companies innovating less, and why do digital strategies fail?

The financing challenges for deploying new clean technology are significant, says Ian Cogswell, member of Financing Technology to Net Zero UK, in his article on breaking down investment barriers on page 29. Here, Noorddin Taj, Strategy Architecture and Digital Innovation leader at bp, shares his five steps to digital success.

Five tips for

digital success Strategy, capability, culture, and technology all need to align to work towards a successful digital transformation, says Noorddin Taj at bp

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nergy transition is rooted in digital transformation, so it is critical for organisations to reinvent and restructure their business as catalysts for innovation. However, going digital is not easy. Indeed, various reports have revealed that although companies want to transform digitally, 70% of digital transformation initiatives do not reach their goals. Here are five ways to improve the odds of success.

Five steps to help drive a successful digital transformation 1. Align your technology and business strategies It is paramount that you have the right technology strategy aligned with your business strategy when starting your digital journey as market preferences, technological capabilities, and regulations change frequently.

Successful businesses anticipate that they will go through cycles of maturation that demand systematic transition. The company’s vision and business strategy need to be adaptable to fit with market demands, and your digital strategy needs to be flexible to evolve with market conditions.

2. Set up scalable, modular innovation platforms A modular, fit for purpose, reusable, API-driven, scalable and secure technology platform is fundamental for success in your digital transformation journey. As technology evolves rapidly, the platform should support evolving business requirements and emerging technologies.

The innovation platform should incorporate APIs (application programming interfaces), microservices and have serverless features that can ramp up and down and have the flexibility to add or remove features based on rapid changes in market demand and evolving technology ecosystem.

3. Invest in talent and capability Promote a self-leadership and connector manager to help the team access resources to fulfil skill gaps and realise interdependencies of work, especially in larger organisations.

The manager’s role is to create and cultivate a digital culture – a purpose-driven, open and transparent environment for team development.

People are the biggest asset of an organisation.

Invest in talent so your organisation can survive and thrive in these rapidly changing environments.

4. Create a digital culture with committed senior leadership Successful digital transformation thrives on committed, empathetic leadership.

A digital-savvy leader drives innovation by empowering cross-functional teams. They support collaboration, create channels for ideation with good business understanding, and provide platforms to experiment.

Agility is the backbone of a digital culture. In its true sense, agility is not just a process. It is a way to quickly try new ideas in a rapidly changing technological ecosystem – fail fast, learn from the failure, and use the experience and feedback to improve and continue the innovation cycle until it is successful.

5. Embed cybersecurity into your technology strategy The transition to digital creates huge innovation opportunities. However, it also creates a high risk of malicious attack from external elements. Digital assets, including data, must be secured with proper application and a data security strategy. Organisations need to enhance their customer experience as they digitise their business by finding the balance between the customer convenience and cybersecurity risks.

Integrating digital security is a fundamental part of the digital journey; as you accelerate digital, ensure the proper security measures are in place – right from the start of building an innovation platform.

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Oil and Gas Innovation

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ttracting capital to finance the projects and technologies needed to realise the UK’s 2050 net-zero emissions goals will require coordinated action across the public and private sectors. Financing Technology to Net Zero UK is assessing the challenges of financing and deploying new technology, and has identified the key factors limiting development and commercialisation of new technologies.

Five barriers to financing net-zero innovation 1. Hesitancy of operators to provide equity for the development of the newest technologies On the UK Continental Shelf, international energy organisations have made progress toward reducing their carbon footprint, with numerous carbon capture, utilisation and storage, plus blue and green hydrogen projects, under development. However, the risk-averse nature of oil and gas operators is slowing new technology deployment. Operators are usually the ideal partner to foster development of these technologies, as they can leverage their engineering excellence and industry expertise to unlock potential opportunities that the developer (on their own) cannot.

2. The assumption that someone else is solving the problem The notion that if the technology is good enough, it will be developed, can lead to the abandonment of the commercialisation of enabling technologies – not because they are not the right solutions, but because the developer has run out of money.

3. Mismatch between type of capital needed and type available

IMAGE: ISTOCK

It is not a question of the amount of capital available, but the mix of capital (for example debt, equity, grants) and whether its allocation is efficient and impactful.

Conventional debt financing can rarely support new technology development, as it requires proof that the technology works before funds are

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Unlocking finance for

net-zero technology

Ian Cogswell, member of the Financing Technology to Net Zero UK group, looks at the key factors impeding financing and deployment of new technology in oil and gas released. The pool of private equity willing to take this risk is negligible; as a result, many technologies that have shown promise and hold huge potential have been left stranded.

4. Ongoing shift to sustainable assets and ESG considerations in the financial sector Banks are under significant pressure to stop supporting the fossil fuel sector, but fossil fuel organisations will be critical to developing net-zero technologies. The financial sector needs to create a path for helping oil and gas companies with their energy transition.

5. Disconnect between stakeholders Energy transition success hinges on collective efforts of several stakeholders, including government, technology developers, operators and financiers. However, these parties often have different interests and goals. They also hold different views about what their role is in bringing new technologies to market.

Delivering net zero The financing challenges for the deployment of new clean technology are significant. The Net Zero Technology Centre (formerly OGTC) estimates that creating an integrated North Sea energy system will require investment of around £430bn. But investment is needed now to develop and accelerate deployment of the crucial technologies, including offshore

electrification, methane leak detection and flaring mitigation, that are required to make net-zero a reality.

Following the same approach that government, investors, and the private sector have always adopted will almost certainly fail.

A drastic culture change is needed to turn this around and frame investment discussions around what must be done to work back from a net-zero world in 2050, not towards it.

By Ian Cogswell, Member of Financing Technology to Net Zero UK, Senior Adviser at Portland Advisers and Co-founder of CCC Training

The EIC is proud to be a member of Financing Technology to Net Zero UK The group is a multi-organisational network of industry experts who have come together to develop a white paper that assesses the challenges associated with financing and deploying technology and provides solutions that can be adapted by financial institutions and technology providers alike.

www.the-eic.com | energyfocus

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16/08/2021 12:38

Oil and Gas Innovation

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Three pillars of cybersecurity Cybersecurity can be broken down into three main pillars: people, processes, and technology. You may have the technology to prevent or detect a compromise, but if you do not have proper processes and procedures in place and your staff – your front-line defence – are not adequately trained to use this technology, you are creating vulnerabilities.

Modern facilities in the digital age are critically dependent on computer-based systems to operate and protect equipment and processes. But how often do we stop to consider the following question: How do I safely shut down the facility if I cannot use the computer-based control system to do so?

Get ahead with a digital twin This is where a digital twin may be helpful as a training tool, equipping operators and engineers to recognise symptoms of a control system compromise and respond accordingly.

Digital twins are being used to augment the cyber-resilience of facilities by companies using operating training simulators.

A digital twin may be used to simulate a security breach and develop decisionmaking and mitigative responses to the

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Digital twins for cybersecurity The six-day Colonial Pipeline shutdown was the most disruptive cyberattack on record. The incident highlighted the vulnerability of the energy industry to such attacks. But what can companies actively do about it? Improve digital safety using virtual twin simulations, says Brad Bonnette at Wood simulated cyberattack. Developers can incorporate several scenarios to test and refine operator recognition of system compromises and their response to secure the process safely.

However, while common live attacks and malware with overt symptoms (such as remote access Trojans, CryptoLocker and denial of service Trojans) can be simulated in a digital twin, highly engineered covert attacks such as Stuxnet may not have symptoms apparent to an operator.

A digital twin can provide a real-time, responsive environment for simulating various types of control system compromise.

It can train and test operators on the diagnostic process for identifying the extent of the compromise and the level of availability and integrity of the control and safety systems, as well as how to take appropriate actions to respond to a loss of control.

A digital twin is a valuable tool in developing decision-making trees to determine the extent of the threat and the appropriate response. This approach mimics the aerospace industry’s use of simulators to simulate systemic failures, enabling the development, evaluation and application of viable troubleshooting and decision-making procedures in real-time virtual environments.

The objective is to train front-line operational personnel to recognise indicators of control system compromise, declare an emergency, initiate decision-making criteria to determine the extent of compromise of control, implement actions to shut down, and secure the facility to mitigate the physical (people, environment, asset) consequences of such incidents.

By Brad Bonnette, Technical Director for Applied Intelligence, Wood IMAGE: ISTOCK

igitisation can bring its own risks, as converting production on running facilities is complex, and new cybersecurity risks present a real and growing threat. In today’s world of cyber-vulnerable control systems, we need to ask the right questions, including: How can I recognise signs that my control system may have been compromised? How should I respond?

In most cases, avoiding catastrophic outcomes has been more good luck rather than the result of actual training and preparedness. In the Ukrainian power facility attack, operators noticed that their control system computers were being manipulated without their input but were unable to mitigate the attack. More recently, in the Oldsmar Florida water treatment attack, an operator noticed that his control system operational display was having setpoint changes made without his input. Fortunately, the water treatment operator was able to mitigate the impact of the changes being made on the control system and prevent water quality from being compromised.

16/08/2021 16:35

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03/08/2021 08:51

Power Offshore electrification (Right) C-Power’s wer’s ’ dent SeaRAY resident cept system concept

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Autonomous offshore power However, that is changing rapidly. New companies – including many startups, such as ourselves at C-Power – are developing innovative solutions to electrify offshore operations. For example, our SeaRAY autonomous offshore power system (AOPS) converts reliable, renewable wave energy into electricity, or other fuels such as hydrogen, that can power a wide range of marine equipment.

AOPS help support autonomy for resident underwater vehicles, to extend the range and efficiency of unmanned surface vessels, and to bring the Cloud to the sea for real-time transmission and analysis of environmental and operational data.

These are systems that will be part of the ‘Internet of Ocean Things’ that can monitor underwater carbon capture and sequestration sites or retired offshore oil and gas fields, detect underwater security threats,

Innovating to net-zero Offshore electrification is critical to realising a net-zero North Sea, but support for technological innovation is key, says Reenst Lesemann, CEO of C-Power or collect the data needed for critical research on climate change and the environment.

Crossing the innovation chasm Startups, however, cannot launch a new way of doing business in the blue economy on their own. Industry transformation requires the entire value chain to buy-in – government stakeholders, early-stage technology investors, operators and suppliers willing to take risks and help bring promising technologies to the market.

To cross the innovation chasm, it takes all parties 2 sharing a common goal to secure funding, support and partnering for new technologies – and to get those technologies on the development road maps for large, established companies.

Many forces in the UK are working to push offshore

Electrification could cut CO emissions from UK North Sea oil and gas operations by 2–3m tonnes per year by 2030

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electrification technologies across the chasm. The Net Zero Technology Centre is leading efforts to decarbonise the North Sea and is a strong advocate for early-stage electrification technologies. The industryled Oil and Gas Climate Initiative is a key cog pushing the commercial adoption of new emissions-reducing technologies through pilot projects and global implementation. Meanwhile, Scottish Enterprise has supported our Scottish subsidiary with a SMART:SCOTLAND grant to study the SeaRAY’s capabilities to support resident systems with clean power in remote locations.

Seize the opportunity The UK is keenly positioned to lead on offshore electrification, not only to fulfill a moral imperative to protect the environment and climate but also to seize the multibillion-pound economic opportunity that awaits those who unlock a wave of ocean innovation through electrification.

By Reenst Lesemann, CEO, C-Power

IMAGE: C-POWER

he journey to electrification iss well underway in the UK, with h technologies such as electric cars and heat pumps playing a key role in helping the countryy reach net zero. But offshore, the push for electrification is just beginning.

The oil and gas industry has pledged to halve its greenhouse gas emissions by 2030, and given that power accounts for 70% of all offshore production emissions, electrification of offshore facilities is likely to prove critical.

However, the potential for electrification to both lower emissions and unlock new capabilities in not only oil and gas but also shipping, scientific research, defence and security has largely gone untapped.

Despite the growth in offshore wind, the sea remains an unsuitable power source for the vast majority of offshore applications due to location and power needs, especially for lower power and non-permanent operations. These and other constraints have stifled momentum to decarbonise this part of the market.

16/08/2021 12:38

Nuclear Hydrogen

Hydrogen revolution

offers huge opportunities in nuclear The potential for a nuclear and hydrogen partnership is a natural fit and worthy of future investments, says Tim Yeo at New Nuclear Watch Institute

E

arlier this year, Dr Fatih Birol, Executive Director of the International Energy Agency, declared that for the world to have any chance of limiting the rise in average surface temperature below 2˚C, a massive expansion in hydrogen production is essential.

Dr Birol suggested that a 90-fold increase in global hydrogen production capacity is needed by 2030. Achieving growth of that scale in little more than eight years will require a revolution – one that offers the nuclear energy industry an exciting opportunity.

At present, the easiest and cheapest way to manufacture hydrogen involves using natural gas. While the CO2 emissions caused by this process are only a fraction of the emissions avoided if the hydrogen produced this way is used to replace diesel in lorries and buses, the race is now on to develop new low-carbon hydrogen production technologies.

The nuclear option One of the most promising technologies is methane pyrolysis, which harnesses the heat and steam produced by nuclear plants to produce hydrogen. This process could have the significant advantage of enabling nuclear plants to run at full capacity even when a surplus of cheap wind and solar-generated electricity would otherwise cut demand for nuclear energy.

Looking ahead, Generation IV nuclear reactors will operate at very high temperatures, and this further increases the potential for

nuclear to be a source of cost-effective hydrogen production.

In the US, historically low natural gas prices mean that many older nuclear plants face an uncertain future despite their very low running costs. Seizing the hydrogen opportunity could facilitate more years of profitable operation for these plants. The necessary technology could be available by the middle of this decade.

Experts estimate that a 1GW nuclear reactor could produce 200,000 tonnes of hydrogen a year. By themselves, 10 such reactors could provide one-fifth of all the hydrogen currently used in the US.

Establishing a hydrogen economy In the UK, the Climate Change Committee has suggested that 225TWh of low-carbon hydrogen will be needed by 2050 to complete the decarbonisation of the power sector.

Earlier this year, the Nuclear Industry Council agreed its Hydrogen Roadmap, which outlines how nuclear can be a major player, alongside renewables, in a green hydrogen future. In Europe, the likely impact of the EU Taxonomy on the hydrogen market is not yet clear, though it seems likely to favour green hydrogen.

The speed with which the potential revolution in hydrogen production is rolled out will depend on the right regulatory framework and positive market signals. The increasing use of carbon pricing and the big rise in the price of EU carbon allowances provide an encouraging background.

A 1GW nuclear reactor could produce 200,000 tonnes of hydrogen a year

Nevertheless, government interventions are needed if the benefits of hydrogen are to be exploited as quickly as the fight against climate change requires. Land use planning regulations must be tweaked to favour hydrogen-related developments, right down to the level of a rapid rollout of hydrogen fuelling infrastructure to accelerate the switch from diesel to hydrogen as a transport fuel.

Fiscal support and well-resourced research programmes are also important.

UK must act now Getting started now could give the UK a chance to be a world leader in the forthcoming hydrogen revolution – a position that it enjoyed 60 years ago in the nuclear industry.

This status could unlock economic benefits in the form of supply chain opportunities, many of which could be centred around energy clusters in the North West of England, close to Boris Johnson’s cherished ‘Red Wall’ seats.

If the prime minister wants to make his mark at COP26 in November, he should secure a positive pro-nuclear statement from the Conference and commit the UK to the rapid expansion of hydrogen production and use. In a post-Brexit world, these actions might also push the European Commission towards a less equivocal attitude to both nuclear and hydrogen.

By Tim Yeo, Chairman, New Nuclear Watch Institute www.the-eic.com | energyfocus

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EIC Member Focus AIS

MY BUSINESS

Andrew Bennion AIS Tell us about a day in the life of AIS? As you would expect, no two days are the same. Despite growing significantly, we are still structured to eenable us to react quickly to support suppo our customers in solving their thei challenges or hasn’t changed issues – this h COVID-19. because of CO adapted our traditional We have adapt way of working – regular internal between production, meetings betwe projects and sales now occur by We have adapted video call. W patterns in our shift patter manufacturing facilities, manufa and to support our site teams who may not team be aable to travel to installation sites, we in insta developed a series of have dev All these measures training animations. A ensure impact to projects projec and our customers is minimal.

What does AIS do?

AIS is an award-winning supplier of insulation, passive fire protection, buoyancy, and cable protection systems.

Since 2007, our advanced materials have delivered mission-critical solutions for the energy, industrial, automotive, chemical, and marine sectors.

Tell us about the recent company rebrand?

Until recently, people may have known us as Advanced Insulation Systems, AI or AIS. To simplify what we are called and better reflect the changes in our solution and product offering, we have changed our name to Advanced Innergy Solutions and will be known simply as AIS.

During the last three years, AIS has significantly increased its market share in new energy markets, including offshore wind and, more recently, automotive.

The original name and logo helped the company establish itself as a leading fire protection and insulation provider for the oil and gas sector for more than 20 years; the new name and branding simplify and consolidate our offering and will enable us to continue with our diversification plans.

AIS has always provided advanced solutions for our customers, and the addition of the word ‘Innergy’ captures the innovative nature of our products and solutions for the energy sector. We are also aligning company acquisitions by adding AIS to Covertherm, Manuplas and Bardot, further strengthening the ties and increasing the combined efforts of the team.

How was the transition into the offshore wind and automotive markets?

The engineering capability and understanding of the issues faced in the offshore oil and gas sector has enabled us to identify and develop solutions using our existing technologies for the offshore wind sector. We have worked with a leading technology centre for offshore wind to gain traction and prove our technology is effective while building relationships. The exponential growth in the use of electric vehicles and our recognised expertise in fire protection resulted in us being approached to develop a solution for the management of thermal runway in electric vehicles.

Why was the rebrand important for your company?

As an organisation, we have developed services beyond insulation and wanted a name that reflected this. Through our brand we want to stay close to our heritage but modernise the way we are represented to our network of customers and suppliers in the energy and marine sectors.

Bringing together all our products and solutions under one corporate name will make it easier for us to showcase all of our solutions and products under one umbrella brand.

What sectors and markets are next for AIS? As an innovative materials provider, we could provide effective solutions for many industries. However, our development team has identified applications in defence and nuclear that are ideally suited to our skillset and technologies, and we are currently developing these further.

Managing Director Andrew Bennion takes Energy Focus behind the scenes at AIS

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UKESC Amplifying your voice, shaping policy, taking action Introducing the UK Energy Supply Chain Taskforce, Government and Industry working together to maximise opportunities and mitigate challenges

Amplified voice Industry and government coming together to form the UKESC Taskforce with the dedicated focus on amplifying the voice of the UK energy supply chain.

Shaping policy Forming more direct links between businesses of all types, sizes and strategies across the supply chain with policy makers to inform policy formulation.

Enabling energy transition Putting British supply chain businesses at the heart of energy transition in the UK, in line with the government’s 2050 net zero targets.

Increasing exports and internationalisation Putting the UK’s world class competitive products and services on the international map, delivering step change growth in exports and internationalisation.

All UK regions Working in support of government initiatives such as Building Back Better and Levelling Up to strengthen the supply chain across the whole of the UK.

All energy sectors Key representatives from all major energy sectors working together, recognising that there is a role for all sectors in the transition, behaving in an energy agnostic way.

Seeding, rooting, and growing UK content and capability Nurturing critical UK capabilities, technologies and manufacturing capacity crucial to successful energy transition, competitiveness, scale-up, and maximising UK content.

Sharing and collaborating, not duplicating Sharing best practices and collaborating on tangible actions, being careful not to duplicate but to complement existing regional and sector initiatives.

Surveys and sub-groups, reaching deep into the supply chain Administering surveys and working sub-groups to ensure that the needs, challenges, and opportunities of the entire supply chain are collected, understood and incorporated.

Delivering outcomes Working hard to implement real actions with timely and measurable outcomes, always with focus exclusively on benefitting the UK energy supply chain.

To find out more about the UKESC Taskforce and to learn how you can get involved, contact us at stuart.broadley@the-eic.com or visit the EIC website at www.the-eic.com/about/UKESC.

Secretariat:

Co-chairs:

Taskforce Members:

Graham Stuart MP Minister for Exports Anne-Marie Trevelyan MP Energy Minister

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