Green infrastructure developer Cerulean Winds has revealed an ambitious £10bn plan to decarbonise oil and gas assets in the North Sea via a 200-turbine floating wind and hydrogen development.
The company, led by oil and gas industry entrepreneurs Dan Jackson and Mark Dixon, said it has submitted a request for seabed leases to Marine Scotland for projects west of Shetland and in the central North Sea.
Cerulean claims the project would have the ability to electrify the majority of current UKCS assets as well as future production potential from 2024 to reduce emissions ahead of abatement targets.
The turbines would also offer 100% availability of green power to offshore platforms at a price below current gas turbine generation through a self-sustained scheme with no upfront cost to operators, claims the developer.
No subsidies or CfD is required and hundreds of millions of pounds would go to government revenue via leases and taxation through to 2030, added Cerulean.
Cerulean claims it has undertaken the necessary infrastructure planning for the scheme to ensure the required level of project readiness, targeting financial close in Q1 2022.
Construction could start soon after with energisation commencing in 2024.
An Infrastructure Project Finance model, commonly used for major capital projects is being adopted. Société Générale is advising with Piper Sandler involved on corporate finance advice.
The venture is now calling on UK and Scottish governments to make an ‘exceptional’ case to deliver an ‘extraordinary’ outcome for the economy and the environment
“The UK is progressing the energy transition, but a sense of urgency and joined-up approach is required to enable rapid decarbonisation of oil and gas assets or there is a risk of earlier decommissioning and significant job losses,” said Jackson (pictured, right).
“Emissions are quite rightly no longer acceptable, but with emissions penalties and taxes coming, the UK oil and gas industry’s role in homegrown energy security during the transition could be threatened unless current decarbonisation efforts can be greatly speeded up.
“The consequences of not moving quickly enough will be catastrophic for the economy and the environment.”