Power of Scotland

Power of

Wednesday June 27 2012

Scotland

On course for growth Maersk Oil gears up to double production

Corridor of power Energetica opens up new avenues of opportunity in the North East

Wednesday June 27 2012 | the times

2

cOMMercIal rePOrt: aKer SOlUtIONS

Positioning for our customers’ growth

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nternational oil service group Aker Solutions has in recent weeks made some bold announcements with regards its growth ambitions and its commitment to supporting the company’s UK-based customers.

The news that the company is to create 500 new jobs in Aberdeen, in addition to the 350 positions already filled since August 2011, demonstrates the organisation’s belief that Scotland has the competence and passion to meet such ambitious growth plans.

A second announcement that Aker Solutions has committed to a long term lease in London with the ambition of adding 1,500 jobs across its engineering, subsea, drilling and well intervention businesses, further demonstrated the company’s belief in the strength of the energy industry and its commitment to the UK as a strategic part of its long term ambition.

Already one of the largest employers in the north-east, this commitment to significant future growth has garnered support across both the industry and political spectrums.

Prime Minister David Cameron said: “It is a vote of confidence in the skill, expertise and professionalism of our engineering sector. Aker Solutions expansion here is testament to the increasing depth and strength of our partnership with Norway across the spectrum of energy issues which helps to ensure that we keep household energy bills as affordable as possible for families across the country.”

Announcing the job creation, First Minister Alex Salmond said: “Aker Solutions is one of Norway’s flagship companies, with extensive global operations and already a huge presence in Scotland. I was greatly encouraged by their ongoing commitment to Aberdeen.

“I am delighted that they now plan further investment and job creation in the city, delivering a great boost for the north east and wider Scottish economy. Our oil and gas sector remains a vitally important part of the economy, generating jobs and prosperity.”

Focused on the upstream oil and gas industry, Aker Solutions provides oilfield products, systems and services for customers in the oil and gas industry world-wide. The company’s knowledge and technologies span from reservoir to production and through the life of a field.

Aker Solutions and its predecessors have been operational in Scotland for over 30 years. It now employs 2,700 people from offshore technicians, detailed design and system engineers, project managers and supply chain professionals.

The business in Aberdeen is represented by four business streams, three of which that are headquartered at the company’s “Aker Village” at Kirkhill, Dyce, just beside the city’s airport.

having the difficult conversation where we cannot always meet their needs, but in the long run this honesty is appreciated.”

Demand from energy companies is rapidly growing, and Aker Solutions’ role is to ensure it has the resources to deliver according to the customers’ requirements and expectations. To do this it has embarked on an ambitious recruitment campaign targeting all parts of the business, as well as focusing its technology development on reliability and configurable systems.

“Aberdeen continues to provide the skilled resource that the upstream industry needs, despite the many opportunities that exist within the industry,” added Corbin.

“We continue to be successful in attracting quality people to our business as well as growing our own talent through apprenticeships, graduate training and an extensive career development programme across all disciplines.”

MMO Maintenance, modifications and operations (MMO) represent a growing market for Aker Solutions as existing offshore and land-based installations mature.

Increased oil recovery/enhanced oil recovery, tie ins and other modification activities like life extension of existing fields and facilities are key offerings from the company which provides front end studies, technology services, modifications contracts, portfolio contracts, frame agreements and decommissioning activities to a range of clients across the North Sea and beyond.

Employing around 880 people in Aberdeen, the business recently announced it was to invest £4million in strengthening the operational support it offers its customers in the UK in line with predicted year-on-year growth within the international MMO market into 2015 and beyond.

Investment will be made in strengthening the organisation and supporting processes and systems. Increased investments will also be made within the core projects, concepts and technology segments, enabling the company to offer improved as well as a broader range of solutions to its North Sea customer base.

Mike Forbes, UK managing director of MMO said: “Industry analysts are forecasting investment growth rates between 15-23% in the next few years across new build, brownfield modifications, operations and maintenance and engineering and construction activities.

“We want to capitalise on this, and the best way to do so is through ramping up the support we offer our customers here. As part of this we expect to increase our engineering base significantly in the next three years.”

Subsea

Drilling technologies

The subsea business employs over 900 people in Aberdeen and surrounding areas, and is predominantly focused on subsea control systems and subsea wellheads that help control the flow of hydrocarbons from the reservoir. Aberdeen is the global Centre of Excellence for these products and exports approximately 50% of its production. Like the rest of the industry it is experiencing rising demand for its services, and along with the growth opportunities it brings its challenges.

Matt Corbin, UK managing director for the subsea business said: “We have a great tradition at Aker Solutions, and always endeavour to operate in accordance with our core values. One of these values is to always have open and honest dialogue – both internally and with our customers.

“In the current market this sometimes means

Aker Solutions has been successfully delivering and supporting complete drilling solutions to clients active in the UK North Sea for more than 25 years.

The drilling technologies business has a portfolio ranging from full drilling packages with integrated equipment systems to single equipment deliveries and provides comprehensive support over the lifetime of all deliveries.

From Aberdeen, the business offers new equipment, engineering and in-situ service support, onshore maintenance and the overhaul and provision of spare parts. UK clients which manage international activity from Aberdeen are supported from local resources and from the major global network Aker Solutions has available.

Matt corbin, Mike Forbes and Mike Griffin Michael Griffin, UK managing director for the drilling technologies business, said: “Along with other areas, there is high demand for support to the drilling sector, offering strong potential for business development and opportunity for people with competence, commitment and the ability to communicate effectively with clients and colleagues to forge a career in exciting, solutionsfocussed organisation.

“Such people are vital to achieving and sustaining the substantial growth in Aberdeen that is part of our strategy for the UK as a key location in our international development.”

Well Intervention Services Combining technologies, services and knowhow to evaluate, plan, design and execute solutions across the life of the field, the well intervention services business provides solutions across all working platforms, both onshore and offshore – from shallow to ultra-deep waters.

Well intervention represents a growing market within the industry: “As the number of subsea wells grow, the need for well intervention is also increasing rapidly,” said Garry Michie, managing director of Well Intervention Services, a subsidiary of Aker Solutions which employs upwards of 650 people in Aberdeen.

“Investment in our people and services is facilitating our growth into new international

markets. Our operation in London was recently selected as the international hub to deliver the global well intervention service business’ ambitious five-year growth plan.

“It’s remit is to spearhead entry plans into new countries and regions as well as contribute towards continuous development of Aker Solutions’ current international well service markets.”

The oil and gas industry constantly reinvents itself and Aker Solutions continues to position itself at the forefront. Whether it be high specification drilling rigs, steel tube umbilical’s or subsea compression facilities Aker Solutions provides a comprehensive suite of products and services.

In the UK, focus has turned to new challenging frontiers, subsea tiebacks and enhanced recovery (EOR) opportunities which have led to a marked increase in activity. By continuing to grow with its customers as well as developing its service portfolio, Aker Solutions has big plans for its UK operations and the role that its Scottish workforce will play in it.

the times | Wednesday June 27 2012

3

Power of Scotland

Welcome

Oil and gas critical to stability Welcome to the latest edition of The Times Business Insight, this month focusing on the key issue of oil and gas, both central to the future of the Scottish and UK economy.

We look at the technology and innovation that will determine whether this country remains a market leader in the face of diminishing reserves.

Peter Jones assesses the impact of US shale oil developments, and we chart the remarkable rise of Maersk Oil, now a major player on the international scene. North Sea Oil is likely to be at the centre of the political debate in the run-up to a referendum on Scottish independence in 2014.

But whether the industry is managed well, and what its prospects are in the face of fluctuating world prices is just as critical for the future stability of the country.

Inside ...

Commentary

Peter Jones on America’s rediscovered status as an energy exporter Page 4

Thinking out of the box

Why research & development is crucial in a sector facing diminishing reserves Page 5

Cover story

Maersk Oil transforms itself from new kid on the block to a major player Page 8

Special report

Energetica creates a corridor of power in the North East Page 10

Glass Bubbles are used in numerous products across a variety of sectors from subsea and marine to the automative and aerospace industries

Tiny spheres of influence at the heart of a revolution Technology transfer is the key to innovation, and Glass Bubbles are now a central part of a host of industrial applications, writes Lee Roan

T

echnology and innovation are words that trip easily off the tongue when talking about high-tech solutions devised to meet the challenges of the fast-changing oil and gas market. What is easy to forget when talking about these, and many other, new technologies is that every one of them is the result of a creative process involving an individual or more likely, a team of people.

Coming up with new products or looking at how to use existing products in new ways, is something that happens on a daily basis at 3M. We spend more on research than most other companies — 8 per cent of gross revenue — and we are currently ranked the third most innovative company in the world. This is reflected in our ever-growing catalogue of 55,000 products. What is fascinating about many of these products is how they change and evolve over time. Our technology transfer knows no bounds, rather like imagination and the human capacity for invention and reinvention.

This was recognised by William Mc Knight, chairman of the 3M board from 1949-1966, who introduced the 15 per cent rule, whereby anyone in the company with a fully technical job can use 15 per cent of their time each week to pursue projects of their own choosing.

What’s more they can save up the time to give themselves a couple of weeks’ worth of creative thinking and they

Around 32 per cent of our revenue comes from products that didn’t exist five years ago

can apply to a central fund for any equip ment, materials or transport they might need. Many of our technicians choose to visit our customers and see how they work and may come up with something as simple as reducing the number of process steps to improve productivity and efficiency in a particular area.

Other technicians go on to discover new uses for existing products. 3M™ Glass Bubbles™ are a perfect example.

Originally made as glass spheres that were used in various reflective applications including road and pavement markings, glass bubbles were developed and first used in the 1960s in drywall seam sealers, furniture and even to vary the weight of bowling balls.

It was during one member of staff’s ‘15 per cent time’ that they wondered what would happen if the glass spheres were bubbles instead and the Glass Bubble was born. Glass Bubbles are completely invisible to the naked eye and there are millions of these hollow balls of glass in a cubic cm. They are formed by being heated quickly with an ingredient that forms the bubble from the inside out.

Over the past 25 years, these lightweight, low density Glass Bubbles have been put to use in a variety of applications from cosmetics to bait for carp. They are very popular in the aerospace industry where it costs money to move weight. For instance, their use in handrails on planes can save around 12.6 per cent in weight, which totals a tremendous saving in fuel over the lifetime of the plane, and they were used recently as void fillers on the latest Airbus 380.

Equally at the other end of the spectrum, Glass Bubbles have been transforming processes subsea. Added to drilling and completion fluids, these tiny spheres can improve productivity and drilling performance, which in turn saves time and money for operators. Their unique composition makes them extremely effective in

overcoming many of the difficulties that can be faced when drilling in the mature formations found in the North Sea as well as new fields being developed in much deeper waters.

When it comes to deep water applications Glass Bubbles are robust strength to weight ratio products that will stand the test of time. They are used as an insulation coating on underwater pipes to keep them warm for as long as possible, ensuring oil flow doesn’t cool down and thicken.

Another benefit of Glass Bubbles is that they can withstand high pressure at the bottom of the ocean, even in deep water conditions many thousands of metres deep. And because they are lighter than water they can provide subsea buoyancy and are often added to polymer or wax systems attached to assets subsea in order to hold them in position above the sea floor. For instance, the weight of a pipeline going from the wellhead to the seabed can be a few thousand tonnes but by attaching buoyancy units to the pipe, it offsets a lot of the weight.

Glass Bubbles are just one of the 5,000 plus products manufactured by 3M that are currently used by the oil and gas industry. They are also just one example of the technology transfer process that takes one particular product and applies it across different markets, driving forward growth at the company.

At the moment around 32 per cent of our revenue comes from products that didn’t exist five years ago and our aim is to increase this figure to 40 per cent by 2016. This says a lot about our ambition, but also about the amount of innovation that is likely to be needed in the future, not just with the 15 per cent time that allows our employees to come up with new products, but increasingly through technology transfer to discover additional applications for one of our thousands of existing products.

Lee Roan is Business Manager for 3M’s Energy Markets Division

Wednesday June 27 2012 | the times

4

Power of Scotland

Peter Jones

Strength of gas guzzling US poses new threat to North Sea reducing the demand for its oil.

Even if OPEC does get its act together, a new factor is interfering with its ability to control prices: America.

The US has been getting into the messy business of fracking shale oil, as indeed has Canada. US oil production, which bottomed out at 6.7 million barrels daily in 2008, rose to 7.8 million barrels daily in 2011, and is forecast to carry on rising.

Last year, an extraordinary milestone was passed when in 2011 the US exported more petroleum products than it imported for the first time since 1949.

It is a remarkable turnaround for the world’s biggest single gas guzzler, consuming a fifth of the world’s oil products.

The unconventional oil being dragged out of the Bakken shales in now booming North Dakota and elsewhere had an extraordinary effect on the world oil market. For the first time in decades, oil prices are no longer global. Since the start of 2011, the price of the benchmark North American crude — west Texas intermediate — has sunk below the benchmark European Brent crude price (see chart). At times the differential has been as much as $28 per barrel.

Rising US supply has met with falling demand. Vehicle engines with better fuel

150 North Sea Brent Spot Price West Texas Intermediate Spot Price (US$/Barrel)

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igh oil prices, many people think, are here to stay. By historical standards, they are right. The days of crude oil at less than $20 per barrel are long gone. But prices might not remain as high as many people imagine, for the oil market is also afflicted by some distinct wackiness which could well have profound consequences for the North Sea. This month in Vienna, the Organisation of Petroleum Exporting Countries (OPEC) proclaimed their intention to pump no more than 30 million barrels of oil a day so that the oil price should stay at about $100 per barrel. The cartel is important — it controls between 45-50 per cent of oil production — but its record of fulfilling its aims is patchy.

But some members have their own goals which often break the selfimposed ceiling. Libya desperately needs to ramp up production to earn money for reconstruction after the revolution against Col Gaddafi. Saudi Arabia seems to be torn between two conflicting problems — earning enough to lavish money on its people so it doesn’t join the Arab spring, and keeping the oil price low enough so that it does not add to the recessionary pressures on its customers,

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90

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May 2010

Apr 2011

economy plus a switching of trucking fleets to engines that run on much cheaper gas has seen US consumption of oil fall from 19.6 million barrels daily in 2001 to 18.8 million barrels daily in 2011.

The new shale oil is also effectively landlocked and, for the most part, unexportable. This will change this summer with the reversal of flows in one pipeline which will enable refiners on the southern Gulf coast to process shale oil, replacing imports of more expensive crudes from the Middle East and west Africa.

US demand for Middle East and African oil will therefore fall, and so will

May 2012

SOURCE: US ENERGY INFORMATION ADMINISTRATION

For the first time in decades, oil prices are no longer global

w fe ds st en , la er rry Off 30 Hu ys. une da J

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Sep 2011

the price of refined products in the US. As far as America is concerned, this will be a welcome shot in its economic arm.

But it should also have the same effect in Europe, as the same supply and demand trends are visible this side of the Atlantic.

Rising demand from China and the rest of the developing world puts a brake on falling prices but China is as aware of the risks of being too dependent on imported oil as anyone. It is interested in better vehicle fuel economy and is also buying western automotive expertise, such as bankrupt Saab, to develop even more economical hybrid vehicles.

You can go on positing upside price risks, such as OPEC cutting production or political events around Iran disrupting Middle East exports. But it seems to me that there are, on balance, more downside price possibilities. Oil prices staying below $100 per barrel in the short to medium term is probable and even lower prices of $70 per barrel possible.

This has big implications for the North Sea where the marginal costs of exploiting new oilfields are between $80-100 per barrel. At a $90 price, Alex Kemp, professor of petroleum economics at Aberdeen University, reckons that between 20-23 billion barrels of oil will be produced over the next 30 years, but at $70 per barrel, production falls to between 14-18 billion barrels.

The lesson? The North Sea is not just past its peak, but at the expensive end of the world producing spectrum. It makes it vulnerable to price downturns which looked impossible a couple of years go, but which now seem quite possible.

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the times | Wednesday June 27 2012

5

Power of Scotland

R&D is key before the tank runs dry Oil and gas reserves will diminish so innovative research and development is crucial to the sector’s future, writes Andrew Collier

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here willl be a day in the future — perhaps, if we are lucky, a good number of decades from now — when the oil in the North Sea reservoirs finally runs out.

By then, the industry will have had a good run of it, but it will finally signal the end of an era of production — and, of course, a hugely lucrative revenue stream.

The oil and gas sector has long recognised that the key to securing the North East of Scotland’s position as a global centre of excellence after the wells finally run dry lies in innovation and Research and Development. Only by constantly developing new products, techniques and services can it maintain its existing reputation as a technology pioneer.

“To ensure our future, we have to get better at what we do, and we can only do that through innovation. It is

critical to our future,” says Alan Spence, Co-founder of Aberdeen based Accord Energy Solutions.

Like others in the sector, Spence points to two ways in which R&D is vital to the industry: firstly, to assist in maximising the recovery of existing reserves; and secondly, to keep Scotland at the cutting edge of research needed to efficiently and economically exploit the deep water fields in hostile terrain which are increasingly being tapped globally.

“Technology is vital,” Spence adds. “For instance, enhanced oil recovery techniques can increase production by one or two per cent and make a big difference financially.”

One area where further work is needed, he says, is in understanding and mapping complex reservoirs in deep water. “There are also challenges in renewables. We have a huge skills base of engineering and project management expertise in the oil and gas sector and consequently obvious potential for skills transfer.”

One of the innovation challenges which needs to be conquered is that of getting the right people into the industry at the right time. “There’s still a lot of competition for good people and the oil and gas sector has to compete with a range of other industries.”

In the past, R&D and innovation within the sector has been hindered by a largely unsympathetic UK tax regime. But this is now changing and there are big fiscal advantages in channeling money into development programmes.

Ian Williams, chairman and head

of the Aberdeen office of the Scottish accountancy firm Campbell Dallas, explains: “Historically, we’ve been pretty good in the UK at inventing things and then watching the Intellectual Property move abroad.

“The Government has worked pretty hard at addressing this in terms of tax legislation and ensuring that innovation now receives tax breaks. It’s a strategy that has been very successful.”

In the past, he points out, government policy was to provide tax incentives, largely on the purchase of equipment, which did not on the whole encourage innovation.

Now, though, there has been a dramatic change. “The Government has introduced some R&D tax credits which have been particularly good at providing an extra large tax write-off. It’s the case now that for every pound spent on this, companies can get £2.25 worth of tax relief. That’s a very big incentive for business to go out and invent things.”

Another helpful move by the government, he says, is the introduction of so-called Patent Box legislation — a major Treasury concession which will be phased in over a five-year period.

This allows companies which innovate and then sell products deriving from this work to pay an effective Corporation Tax rate of just 10 per cent. This lower rate will apply to the profits of any company generating income attributable to the rights from the ownership of a patent or an exclusive licence to a patent granted by the UK or European parent offices.

To keep pace with the demands of industry and transport, inventive solutions are vital

The lower tax regime could encourage more collaboration between universities and SMEs

View our interactive edition online

Revenues from worldwide royalties, license fees, product sales and patent sales taxed in the UK will be allowed this concessionary rate. If the patent is revoked, there is no clawback.

“This really is a world beating arrangement,” says Williams. “Even Ireland, which has a Corporation Tax rate of just 12.5 per cent, cannot match this.”

He sees obtaining funding for development work as a possible challenge in the current climate, though the lower tax regime might stimulate interest from private equity houses. “I think it’s very exciting and will hopefully encourage a lot more collaboration between universities and SMEs in joint ventures.”

Neil Poxon, managing director of the not-for-profit industry oil operator and service company representative organisation ITF, says that another challenge is in reducing development timescales.

“In the industry, the average time from idea through to commercial adoption is 16 years, and that is longer than any other sector apart from space travel.”

Some countries such as Norway, Canada and Brazil have speeded this up by adopting a more co-ordinated approach in areas such as support and funding, he adds.

“Things are now starting to happen here too. Development timescales in the UK are significantly worse than the 16-year average — by comparison, Norway is just eight to 10 years — but the new cohesion will provide an opportunity to deliver technology at a more rapid pace.

I see a real window of opportunity here.”

www.times-energy.co.uk

Wednesday June 27 2012 | the times

6

Power of Scotland commercial report: intertek

Aberdeen-based Intertek is taking an innovative scientific approach which is set to unlock fresh reserves and extend the life of North Sea assets for many years

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his month, Intertek, the FTSE100 global provider of quality services, is opening a £15 million headquarters in Aberdeen for its energy services operation.

The timely move will see seven specialist service lines come together under one roof and sharing one of the biggest commercial laboratories in the UK, which at 41,000 sq ft has cost more than £4.5 million to convert to its current form.

Raymond Pirie, vice president for Intertek’s global upstream business and the man tasked with bringing this centre of excellence to Aberdeen says that integrating their service offering is at the heart of solving many of the challenges being faced by oil and gas operators in the North Sea. “There is growing recognition that technology and a scientific approach are absolutely critical to solving many of the challenges being faced by oil and gas operators to unlock reserves in the UK. Intertek has positioned its energy services to take advantage of the spectrum of opportunities from corrosion management and flow assurance to hydrocarbon allocation engineering in export pipeline systems.”

Intertek launched in Aberdeen in 1978 and has evolved from a few people in a laboratory in the town of Ellon to 160 people at the new energy services hub today. The company employs more than 30,000 people in 100 countries with a history dating back over 100 years. Mr Pirie, who joined the company in 1978, has witnessed the boom time of oil and gas in the 1970s and ’80s through to today’s more challenging North Sea landscape.

“The North Sea offshore industry has changed dramatically and we are now seeing smaller operators taking developing fields which have technical and commercial challenges. Some relate to heavy crude production whilst others are focused on enhanced oil recovery processes to get more from the reservoir. With the ability to tie in smaller fields via subsea manifolds and existing infrastructure; many fields are predicted to have a further three or four decades of life.”

Integrity management is one of the biggest issues facing the United Kingdom Continental Shelf as operators strive to extend the life of assets. Production operations once considered uneconomic and close to decommissioning are being revitalised as operators invest in new technologies and innovative techniques to secure increased production.

Intertek is supporting its clients by helping them take advantage of new technologies such as Microbially Enhanced Oil Recovery, and by investing in research and development to improve the performance of reservoirs.

In the specialised field of hydrocarbon accounting, the use of shared infrastructure and pipelines requires all entrants to systems to be allocated a fair and equita-

raymond pirie, vice president of intertek’s global upstream business, says that with smaller operators many fields will have a further three or four decades of life

new techniques pushing the boundaries of science ble share of the production. Determining the quantity and quality of the crude oil is a crucial part of this role and requires precise measurement and detailed analysis to be able to value each party’s contribution.

Explained Mr Pirie: “As operations go deeper and further, the make-up of the hydrocarbon mix can be much more complex and also there may be more partners involved. They all need to be assured that they are getting their fair share of the value. The shape of the client base is also changing with more asset swaps taking place. Innovation is enabling them to consider the development of marginal fields using more subsea tie-backs and existing infrastructure.”

Science is also playing a major role in tackling environmental and process optimisation issues. On the production platforms, water treatment processes are evolving to allow operators to dispose of separated water safely and without harm to the environment. This process involves separating the water from the oil using chemical and physical means so that it can be discharged overboard or pumped or re-injected to the reservoir.

Flow assurance is another challenge that oil companies face, where the formation of hydrates in pipelines and deposits of asphaltene and wax can lead to costly blockages that inhibit production rates.

Intertek scientists are busy in the lab and in the field to address these issues and minimise production problems.

Thousands of samples are sent to our labs every week and fast turnaround is critical

“This requires process knowledge and an understanding of analytical science,” explains Mr Pirie. “Most of our team have worked offshore and understand the production environment. Back in the labs they use sophisticated analytical instrumentation to provide data that is required to optimise production and make recommendations on the use of chemicals to tackle a variety of production challenges. Thousands of samples are sent in to our labs every week for analysis and fast turnaround times are critical in order to provide solutions to production problems quickly.”

To deal with this pressure for fast sample analysis, Intertek developed an innovative approach which has been adopted by industry in a number of ways.

Using chemometric modelling scientists can predict the chemical and physical properties of a hydrocarbon sample using near infrared spectometery.

The technique can be completed quickly in the lab or on the platform and takes only minutes per sample compared to traditional methods which can take up to five days. This is an evolving technology, and new applications are being developed to cover a wider range of hydrocarbon types and process situations.

Intertek also carries out evaluation of lubricants found in all types of equipment and machinery such as compressors and pumps. Analysis of the contaminants contained in each lubricant can help the scientists to predict the condition of the

machinery and reduce the possibility of failure.

“The feedback given to maintenance departments enables them to minimise downtime and maximise production. Taking a sample of lubricant from an engine is like taking a blood sample from the body, but instead we are looking at the health of the engine. High quantities of metallic fragments in the oil can provide valuable information about the level of wear that is taking place.” said Mr Pirie.

Intertek has experienced an increase in activity around helping clients develop asset integrity management programmes.

This usually involves conducting risk assessments, deciding on appropriate corrosion control and providing corrosion management advice to ensure the ongoing safety and integrity of assets.

“Our analytical science expertise needs to develop at the same rate as developments in the oil and gas production environment which is why there is a constant focus on faster and more accurate data modelling and the development of new techniques to help clients meet the challenges that they face.

“That is why we’ve invested significantly in facilities which allow us to integrate and develop our services, so that we carry on pushing the scientific boundaries.

Thanks to technology and innovative thinking, my prediction is that there will continue to be plenty of development opportunities in the North Sea over the coming years.”

the times | Wednesday June 27 2012

7

Power of Scotland commercial report: Heriot-Watt UniVerSity

leading edge thinking on energy to network operators and renewable energy investors, by providing a sensor system solution that enables improved asset lifetime prediction, and so reducing downtime and maintenance costs.

These intelligent sensor systems utilise pre-existing data and provide additional sensing capabilities to fill information voids wherever they appear.

Heriot-Watt University’s Energy Academy and its research on solar energy and energy-focused materials, will ensure the future looks bright for renewables

energy research areas, such as buildingintegrated photovoltaics, organic and excitonic solar cells, high-efficiency silicon solar cells and solar thermal and spectral conversion, sees it working with a wide range of UK and international companies.

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centre for advanced energy Storage and recovery (caeSar) The Centre for Advanced Energy Storage and Recovery is an interdisciplinary centre for materials research.

CAESAR exploits the unique synergy between engineering and scientific disciplines that exists within the School of Engineering and Physical Sciences and the Institute of Petroleum Engineering.

By bridging traditional disciplines, the centre gains an overview of energy problems and potential solutions which otherwise would have been left unnoticed.

The centre provides a seamless stream of expertise from theoretical modelling, through to materials synthesis and characterisation, device fabrication and systemwide approaches, and implementation in real-world applications.

eriot-Watt University’s Energy Academy and its research on solar energy and energyfocused materials means the future looks bright for renewables. With fossil fuel production set to decline in the coming decades, and population growth around the world continuing to soar, energy research is a critical issue for businesses, the environment and mankind.

A host of political and geological factors affect the security of our future energy sources, but they also offer a unique and invaluable opportunity for Scottish businesses operating in the energy industry to find new ways of harnessing energy technology.

Energy research is a core activity at Heriot-Watt University, which has its main campus in Edinburgh, as well as a major presence elsewhere with campuses in Dubai, Orkney and soon, Malaysia.

Through the pan-university Energy Academy with its international scope, research excellence ranges from solar energy and energy-focused materials through to energy economics, use, modelling, policy and logistics.

Heriot-Watt works closely with industry to ensure our research has real-world applications, and can be taken forward to make an impact in everyday life for future generations.

riccarton eco Village & living laboratory (reall) On the outskirts of Edinburgh, plans are taking shape to develop a radical new approach to investigating energy use in buildings. The Riccarton Eco Village de-

velopment will consist of up to 90 homes for postgraduate students. The homes will all look identical, but each will be constructed differently and using a range of renewable energy technologies and materials. REALL will consist of five pairs of occupied semi-detached houses, with each pair designed to test construction systems including fabric weight, insulation, appliance energy rating, resource use and occupancy according to existing and predicted building standards.

The project brings together experts from the theoretical, physical, social and life sciences, as well as designers from the School of the Built Environment, and will examine how the demand for energy can be controlled and reduced by changing the way houses are built and through people’s behaviour.

Scottish institute for Solar energy research (SiSer) The Scottish Institute for Solar Energy Research is an alliance of leading researchers from Universities all over Scotland. SISER aims to enhance collaboration in the area of solar technologies – both within Scotland and internationally – as well as providing expertise and facilities to support up-and-coming research & development and future commercialisation in the field.

In particular, SISER’s aims are to: • Develop solar technologies that are relevant to Northern Europe (such as building integrated photovoltaic systems).

• Collaborate with industry across Scotland, Europe and globally.

• Provide input for solar energy policy development.

SISER’s expertise in a number of solar

condition monitoring As renewable energy technology advances, so do the potential problems inherent in the construction and maintenance of large scale structures, such as windfarms.

Closely monitoring the condition of these assets is becoming an increasingly vital requirement in the renewables industry.

To understand these problems, and ensure value for money over long-term investment, Heriot-Watt University has developed the capacity, expertise and facilities to provide advanced prognostic and diagnostic condition monitoring capabilities. The group has undertaken work relating to sub-sea cable monitoring, wind turbine component monitoring, and grid and substation asset monitoring.

This multi-disciplinary team brings together expertise in reliability, diagnostics, prognostics, sensing, and condition-based maintenance. The aim of the group is to provide optimal return on investment

possible future energy sources are likely to include solar panels mounted on satellites

the riccarton eco Village and living laboratory will employ a radical new approach to energy use in homes

institute of petroleum engineering (ipe) Founded in 1975 and based at HeriotWatt’s Edinburgh campus, IPE undertakes world leading research, training and teaching with an excellent world-wide reputation. With the largest petroleum engineering research programme in the UK, the Institute also has an extensive international presence through its approved learning partnerships and links with the oil and gas industry.

IPE offers a diverse range of services to the oil and gas industry. The organisation boasts world-leading researchers in business critical areas and an impressive reputation in the oil and gas industry. The team at IPE seeks to provide complete solutions to clients and offer a multifaceted service that includes the provision of analysis, research, education, access to specialist equipment and access to unique manufacturing capabilities.

The IPE’s International Centre for Island Technology (ICIT) campus in the Orkney Islands focuses on Renewable Energy research and teaching. This specialist arm of the IPE was established in 1989 to carry out advanced research, postgraduate training and consultancy in marine resource management and related issues, and is still a busy centre for environmental research today.

Heriot-Watt’s industry Day The energy uses, requirements and sources of the future are going to be radically different to those of today – on that, there is much agreement. The disagreement comes when debate starts over which area will provide the major source for energy once fossil fuels are no longer economically viable to mine, or when they run out completely.

The research undertaken at HeriotWatt in the renewable energy sector will help form and develop arguments in this debate, being a major player in thought leadership and strategy development.

To this end, February 2013 will see an Industry Day focusing on the sustainability of the planet as it reaches a potential environmental tipping point. We welcome delegates from across the renewables spectrum to join us for discussions so we can work together for a better future.

For more information on Heriot-Watt University, please visit www.hw.ac.uk or to get in touch about this article or the Industry Day, email res@hw.ac.uk.

Wednesday June 27 2012 | the times

8

Power of Scotland

Cover story

Platforms of success in a challenging environment A relative newcomer to the North Sea, Maersk Oil is now a key player.

Its UK managing director explains the challenges and opportunities to Claire Mackay

B

eginning his career as a well-site offshore engineer in Qatar, Martin Rune Pedersen has risen through the ranks of Maersk Oil, understanding and being part of nearly every aspect of the business.

Now, as managing director of Maersk Oil UK, Pedersen oversees the operation of seven North Sea fields, producing around 40,000 barrels of oil equivalent (boe) each day. “A fantastic, exciting job,” he says.

It’s about to get even more exciting however, as the company gears up to double production over the next five to six years by investing up to £1 billion a year and adding another 200 people to the existing workforce of 700.

The Aberdeen-based company’s news has been welcomed as a significant boost for the city, and for the energy industry as a whole, providing a warm glow for the UK’s chilly economic climate.

Maersk Oil UK was established seven years ago, when Maersk Oil, a subsidiary of the Danish shipping firm AP Moller-Maersk Group, acquired Kerr-McGee’s UK oil and gas interests for just under £2 billion, and it has grown rapidly since. Pedersen has been in the business for 15 years, working offshore in Denmark and Qatar for Maersk Oil, before moving to the UK in 2007 to become director of petroleum engineering.

“We were a late entry here to the North Sea oil industry, but we see this as a platform for growth,” says Pedersen.

“This is a core area, one of the most exciting in the world with good opportunities,

and that’s why we’re making a strong commitment; we want to grow the business here.

“The aim is to increase production to more than 80,000 barrels a day. We’ll be investing almost £1 billion a year, and recruiting more people to help us achieve that.”

However, Pedersen insists that it is the company’s commitment to operating safely, and the progress that has already been made in eradicating incidents, which underpins its ambitions for growth and has been crucial to Maersk Oil’s success thus far. “In terms of hydrocarbon releases, we had 40 incidents in 2007, and in 2011 we had three.” he says. “That’s a reduction of more than 90 per cent. It’s the same with our loss time incidents, which have been reduced by more than 80 per cent.

“This is something we are very proud of. It forms the very fabric of this business, our DNA — safety comes first. We have introduced a programme here called Safe-to-Go, as we believe all incidents are avoidable, and it’s our responsibility to prevent them.”

Martin Rune Pedersen believes the North Sea is a core area in global terms For Pedersen, who knows first-hand the hazards and challenges that are faced daily by offshore workers, safety can never be a side issue, and it remains central to driving the company forward.

Right now, Maersk Oil UK operates seven fields: Gryphon, Tullich, Janice, James, Affleck, Dumbarton and Lochranza and also holds 50 exploration licenses. The way ahead, to some degree, bucking the trend of many other North Sea companies, involves gaining more from existing assets, through technical

expertise and new technologies, increasing efficiency, exploration, and participating in licensing rounds. It will also mean actively pursuing further acquisition opportunities.

Maersk Oil UK underlined its ambitions in May this year, when it signed a definitive agreement with Noble Energy Inc for the purchase of its 30 per cent interest in the Dumbarton and Lochranza fields. This agreement will secure the company 100 per cent control of these assets (and the installation that services them), that together produce around 20,000 barrels of oil equivalent per day.

“We believe we have a very strong base now with our current assets,” says Pedersen. “This purchase gives us more control, and better value. We also have Gryphon, which suffered some storm damage in February 2011, coming back on field in July, and should commence production in third quarter, with more opportunities for further drilling next year.

“We will also be ensuring we have a good pipeline of development projects, with most of these being opportunities that have been achieved through exploration and organic growth. In development in the North Sea are the Culzean gas discovery, the Courageous and FlyndreCawdor oil and gas discoveries — with Flyndre straddling the Norway boundary — and we are investing in the Nexenoperated Golden Eagle field, where first production is planned for late 2014.”

In the newly explored or underdeveloped fields, there can be high temperatures and/or high pressures to be dealt with: HPHT. Maersk Oil’s operation of UK discoveries Culzean and Ockley, and Denmark’s Luke and Gita, together with participating in Jackdaw, Faraday and White Bear wells in the UK, has meant that the wider company as a whole has gained significant expertise in HPHT drilling.

“In Courageous, we’ve had very encouraging results, the Culzean discovery is extremely promising, and we’re assessing development options,” says Pedersen. “A lot of our focus will move from assessment to selection by the end of this year. We were very successful in the 26th licensing round winning eight applications, and have also been very active in the 27th, that closed last month.

“We put in a very strong bid, the largest commitment we have made. There is a lot of competition, but we believe we have a strong position, with the results of that round to come at the end of the year. The

Safety remains key in

A

ndy Edwards, Offshore Installation Manager on Global Producer Three (GPIII), is an excellent example of how well the development programme at Maersk Oil can work for talented people. After more than 20 years in the Royal Navy working on aero-systems, the engineer began his management career at Maersk Oil in safety auditing, becoming an operations engineer, and then installation manager.

“Right place at the right time,” says Edwards, somewhat modestly. As he explains, safety is paramount, as it underpins Maersk Oil’s licence to operate.

“It governs the way we operate,” he says. “One of our key initiatives is our commit-

ment to becoming an incidentfree company.”

“Over the past year all our employees around the world and most of our contractors made this commitment at workshops which underscored that safety is our personal responsibility and empowered everyone working for Maersk Oil to intervene if they believed safety was not paramount.”

“The backbone of the incident-free programme is the belief that incidents are not acceptable and neither are they inevitable. We know that accidents happen, but without such a belief, we have no hope in trying to prevent them.”

Edwards is clearly, and deservedly proud of the progress Maersk Oil UK has made in its safety record over

the times | Wednesday June 27 2012

9

Power of Scotland

Aberdeen at the heart of an innovative workforce As the energy capital of Europe, Aberdeen promises and delivers significant opportunities. However, as Celia Macdonald, Head of HR at Maersk Oil UK (right) explains, the city’s appeal is not only rooted in career potential.

“Aberdeen consistently rates as one of the top places to live in the UK,” she says. “It is a city but is still small enough to easily enjoy the great local amenities, with plenty of pleasant green places, good housing, miles of beautiful coastline and the Highlands on your doorstep.”

“For people in the oil and gas industry, it’s a great place to start. Most of the companies are serving global operations or have global interests. All the big players, one of which Maersk Oil has aspirations to be, are here. Some of the world’s most profitable industry operators are all within a 10-mile radius here.”

Maersk Oil might only have been in the North Sea since 2005, but Macdonald stresses it has made substantial investments in its people, with the workforce quickly increased by almost 50 per cent following the acquisition of Kerr-McGee’s

UK is one of the areas taking the largest part of exploration, and we expect to continue that. We’re building a stronger footprint. We’re also continuously screening for business development opportunities, like we did on the Noble deal.”

With the focus offshore, it can be easy to overlook the hub of this business, back onshore in the Granite City. “We have built a very strong local office,” says Pedersen. “We have an impressive in-house exploration team of 50 people and a strong development team.

“There is a technical team in Copenhagen, and we can use the experience that is available in the wider company, but we run our projects out of Aberdeen. We feel there is a bright future here, and we have a commitment to the UK, to Scotland, and to Aberdeen.”

Two months ago, as Maersk Oil UK announced details of its strategy for growth, and the creation of those additional jobs, Pedersen took the opportunity to underline the degree of the company’s commitment to its base in Aberdeen.

Describing the city as “one of the most important oil and gas-producing regions in the world”, Pedersen says, “with long-term confidence in the future of offshore operations, the city continues to be acknowledged as the energy capital of Europe”.

However, he also acknowledges the challenges that exist, and that are still to come. “Fiscal stability is certainly one of the challenges,” agrees Pedersen. “Yet there was encouragement from the budget, and it shows the government are listening to the industry and engaging positively.

“We are highly capital intensive and it can take eight years to bring a field to production with large investments needed.

We take a long-term view when it comes to investment, and the economic climate can clearly have a significant impact.

“Another challenge is ensuring we have the right skills and can recruit the people necessary for our growth, although this is a challenge for the oil and gas industry as a whole.

“However, we believe our success so far continues to be crucial to this. We have such a strong portfolio of exciting projects and what we have been able to achieve in terms of safety is something to be very proud of.

“What we bring to the table in terms of partnership and technical proficiency is also significant. A core value of Maersk

the Maersk Oil UK’s Janice Alpha Floating Production Unit

a hazardous industry the past few years. Since 2009, the team has cut the number of incidents that have led to an employee taking time off by 80 per cent and cut the number of hydrocarbon leaks — which always have the potential to flare up into a serious incident — by more than 90 per cent.

“We work in an industry

The backbone of the programme is that incidents are not acceptable or inevitable

that comes face to face with hazards and the potential for incidents every day. We must do everything in our power, through robust systems, to prevent incidents and key to this are engaged and empowered people. There is also a strong focus on teamwork and learning from our mistakes. Everyone makes mistakes, but if someone is able to highlight them and people are willing to learn then escalation can be stopped at an early stage.”

“I think we’ve dispelled the myth that focusing on safety affects production. GPIII is now our top-performing installation; the guys have done a good job and we’ve come a long way. But we always maintain a sense of vulnerability and are constantly looking to improve.”

assets in the UK. “On top of being a fabulous working environment we’re committed to giving our staff a good salary, superb career opportunities and benefits.

For example, with our pension, we are an industry leader in terms of competitiveness. “ Martin Urquhart, head of development engineering sums this up nicely; “As an engineer, I couldn’t think of a better place to be at the moment. We have an extremely active portfolio of projects in the shaping phases of Assess and Select, meaning that individuals can really influence outcomes,” “Our current activities include several new field developments such as the Culzean, Courageous and Flyndre fields that incorporate a wide range of development concepts including both NP/NT (normal pressure/normal temperature) and HP/HT (high pressure/high tem-

perature) with fixed platforms, floating facilities and subsea solutions as well as new business opportunities and existing hub expansion.”

“It is also an exciting time for our subsurface teams who are working on a wide array of reservoirs from deep water turbidites and injectites to new plays within the Jurassic and Cretaeous. We’re busy and our work is fascinating. It’s a great place to find yourself.”

Macdonald explains that Maersk Oil’s business strength is rooted in a strong set of values, and a very important focus on safety.

“It’s not an option,” she says. “We have a bottom-up behavioural system, Safe-to-Go, and we’re determined to be an incident-free company”.

“We are committed to adding 200 people in the near future, and we are very interested in attracting on and offshore staff. There is an excellent leadership ladder, and you don’t need to stop your specialty in order to progress. We also have a development programme with the sole purpose of cultivating and nurturing talent.

Oil is the belief that two heads are better than one and we work with 40 different partners who are key to our success. We don’t know everything, and we’re keen to pool expertise into joint ventures.”

“We’re doing some pretty amazing things here. We were pioneers in the 1980s, with horizontal drilling, and also in Qatar,

the

with extremely long well drilling and completion, which was a huge technical success.

“Now we’re building a strong team here in Aberdeen, which will be core to the continued delivery of such success. It’s all about investment, and people are our most important assets, they really are.”

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First Class conference facilities the location in the heartAt Theof Edinburgh Royal Society of Edinburgh we can offer timeless elegance

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combined with modern audio-visual facilities in stunning spaces, flexible First Class conference facilities enough to suit any event. Why don’t you come and see for yourself ?

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The Conference Centre Team e: Society rooms@royalsoced.org.uk ofinformation Edinburgh To organise a tour of our rooms,The orRoyal for more contact: 22-26 George Street, Edinburgh EH2 2PQ UK w: www.edinburghconferences.org.uk e: rooms@royalsoced.org.uk t: 44 (0) 131 240 5034 w: The Conference Centre Team t: 44www.edinburghconferences.org.uk (0) 131 240 5034 The Royal Society of Edinburgh Conference Centre is managed by The Royal Society of Edinburgh The RSE Scotland Foundation, Scottish Charity No SC024636 22-26 George Street, Edinburgh EH2 2PQ UK The Royal Society of Edinburgh Conference Centre is managed by The RSE Scotland Foundation, Scottish Charity No SC024636

Wednesday June 27 2012 | the times

10

commercial report: rotaWaVe Biocoal

revolutionary technology could transform biomass industry

B

iomass is set for a revolution following the development of pioneering technology which creates commercially viable biofuels by Scottish company, Rotawave Biocoal, part of the Energy Environmental Group

(EEG).

Set up in 2003 by Bob Rooney and Peter Scholes, EEG specialises in the manufacture and development of environmental products for the energy industry, employs over 80 people in Aberdeen and the Isle of Wight and comprises four companies; Rotawave Biocoal, Rotawave Oil and Gas, Vikoma and Screw Conveyer.

Developed over the last four years, the microwave processing technology was transferred from use to biomass.

Mr Rooney said: “In 2009 we acquired patented technology which led to the creation of Rotawave Oil & Gas to capitalise on the growing need for the proper disposal of drill cuttings. Rotawave’s microwave technology cost-effectively extracts water and petroleum products from drill cuttings allowing for environmentally friendly removal.”

It is this technology’s transfer into renewable energy markets which has captured the attention of the worldwide biomass industry. Rotawave Biocoal recently signed a multi-million dollar deal with Cate Street Capital, a US investment company which focuses on green technologies, to exclusively manufacture the technology and market it in the US and Canada.

The unique patented microwave based process allows for the extraction of water, petroleum products and organic oils at very low cost from various resources including oil drill cuttings, refinery and food waste streams. This technology has now been adapted to turn biomass into biocoal.

The Targeted Intelligent Energy System (TIES), developed at the behest of a major UK utility, is a biocoal producDense pellets tion system that uses microwave technology to produce energy dense pellets from wood that can be used in coalfired power stations.

The technology system gets its name from its main features: n Targeted - the selective nature of microwaves target energy into biomass individually heating particles the required amount. n Intelligent - the microwave control system allows users to continuously monitor the energy inputs at the speed of light, in turn the computer system minimising the energy consumption n Energy - the process transfers energy, not heat overcoming the typically insulating properties of biomass. n System – it is a safe, low energy, integrated system Furthermore the technology is based on the advanced simultaneous use of electromagnetic frequencies in combination with a unique continuous phase separation drum. This maximizes heat and mass transfer within the system hence reducing plant size, material hold up and operating costs.

A flexible system using microwave energy, unlike standard thermal processes, allows a wider range of feedstock types/sizes to be processed, this

Bob rooney

gives the operator flexibility to choose the most economic plant inputs.

As the thermal heat used within the process is generated from sustainable biomass sources it creates a renewable process. The system is very energy efficient with the biocoal containing over 80 per cent of all process energy inputs.

The resulting high density black pellets from the TIE system have similar properties to coal allowing for outdoor storage, and direct use by coal powered stations, but without the CO2 release.

This energy dense form of renewable energy allows savings in transport and storage costs.

The idea to build plants where the trees are has offered an opportunity to not only create a sustainable material source but to reduce the impact of transport costs.

It is the first application of microwave technology in biofuel production to continuously create low carbon fuel from organic matter. The microwaves within the patented continuous drum system form part of an integrated process which generates more thermal energy than it consumes.

Mr Rooney explained: “This game-changing technology could revolutionise the use of biocoal on a worldwide scale and help biomass take a step closer to becoming the fourth power source.

As the UK moves towards reduced emissions targets, our torrefaction units offer a true alternative for coal-fired power stations. The end product pellets look and act like coal but are low in carbon, offering a low-cost conversion option.”

Biocoal is a sustainable and practical energy source which offers an inexpensive way of converting power stations to meet the European Large Combustion Plant Directive and GHG sustainability targets, as biocoal is low sulphur and low CO2, being 88 per cent lower that EU coal in GHG emissions from forest to furnace.

Many UK and European coal fired powers stations will have to close as they cannot currently meet emissions targets. However, by co-firing biocoal with coal or converting to 100 per cent biocoal electricity generation large operators can meet these targets.

Co-firing can therefore allow us to recycle coalfired power stations and their associated power infrastructure and also offer a better solution for the design and build of new low-carbon power stations, potentially saving hundreds of millions in capital costs across the UK. The UK Government has recently cited bioenergy as having a major role to play in its 2050 pathways work with the potential to provide about 30 per cent of the UK’s 2020 target.

The only other naturally occurring energy containing a carbon resource that is large enough to be used as a substitute for fossil fuels, biomass could play a key role in the future energy mix and security of supply.

Biomass has a wealth of advantages as a fuel source, widely available whilst being able to provide heat, electricity and fuels; it also offers an opportunity for carbon sequestration - by 2050 sustainable sources could be enough to supply the world with 10 - 20 per cent of primary energy requirements.

Whilst many argue that biocoal is an unsustainable energy source sustainable sourcing is a key aspect to the future commercialisation of biofuel and the application of microwaves has allowed for less specific organic matter to be used.

Managed forests in North America are already sustainable as many were used to supply materials to other sustainable industries. Recently, paper mills and dimensional lumber industries have declined in these areas, so this new technology will give the forests and workers a new future.

As a result, Rotawave Biocoal’s business has gone from strength to strength with the North

American roll out initiated and a site purchased in the USA. A 100,000 tonnes per year plant is scheduled for commissioning processor later this year with a commitment for a further nine plants to be built by 2017.

The market potential for this technology runs to over 200 plants by 2030 reflecting the growing requirement for bioenergy, the EU alone has projected a doubling of the use of biofuels over the next few years.

Rising global energy needs and rapid climate change require a low greenhouse gas solution, a more environmentally friendly source of power must be found. Power generators will use this type of biomass char to reduce emissions, earn carbon credits and maintain operations into the future.

Given the increasing demand for power around the world, use of biocoal will grow exponentially and this low carbon process offers just the solution.

Mr Rooney added: “With Rotawave we are leading the transformation of the nascent biomass industry and, with the interest from major utilities all over the world; we are truly excited about the potential of our technology’s ability to make biocoal a compelling, commercial commodity.”

the times | Wednesday June 27 2012

11

Power of Scotland

Special report: Energetica

Wealth of prospects on the coast of opportunity Scotland’s visionary All-Energy corridor is beginning to deliver on ambitious investment hopes.

Rob Stokes reports

I i p

N

orth East Scotland has prospered from Aberdeen’s status as the engineering and logistics hub of North Sea oil and gas production. Scotland’s economy has been underpinned for more than 40 years by this activity. Yet the North East goes quietly about its business, seldom taking time out to self-promote. Those who mattered in oil and gas already knew: so why boast about it?

The 2007 unveiling of Energetica — a grand plan to secure the region’s future in all energy businesses and to create a low carbon environment — was little more than a one-day wonder to media elsewhere.

Five years on though, Energetica is proving a honey pot for investment including: the development of 600 acres of new business space; master-planning for new villages, offshore renewable projects such as the European Offshore Wind Deployment Centre (EOWDC); and port, land and other developments at Peterhead, Energetica’s ‘Northern Gateway’.

Some background first. Energetica is a private sector vision developed from interviewing some 1,600 businesses accounting for maybe 75 per cent of the local workforce. It is being pursued by a private public sector partnership, Aberdeen City and Shire Economic Future (ACSEF) which comprises Aberdeen City Council, Aberdeenshire Council, Scottish Enterprise, Aberdeen & Grampian Chamber of Commerce, Skills Development Scotland and Visit Scotland.

It runs 32 miles in length from Aberdeen to Peterhead, and stretching inland to the airport from the North Sea, the Energetica corridor is the focus of plans to create a globally significant All Energy cluster of excellence.

The aim is to build on existing skills, attract new industries, and to develop sustainable, low-carbon communities making it an attractive place to live, work and invest.

ACSEF’s sights are set on the new age of energy, which will include continued oil and gas activity supported by enhanced recovery techniques, decommissioning of North Sea oil and gas infrastructure, the proposed use of depleted oil and gas reservoirs for carbon capture and storage (CCS), and installation of

The business parks will help attract investment in high-quality, low emission, energy efficient buildings

Sara Budge, project director, Energetica

Wednesday June 27 2012 | the times

12

Power of Scotland

We can bring together a significant package of technology and R&D funding, with a massive network of contacts offshore renewables such as wind farms.

The region’s global competitive advantages in marine and subsea engineering and project management are adaptable to the new opportunities.

ACSEF predicts £750 million in investment within 10 years, with potential to drive another £500 million of Gross Value Added annually.

Energetica claims that some 30 per cent by value of that £750 million is now in train across what it calls the business heart of the plan — and Southern and Northern ‘Gateways’.

We report separately on investment in the Aberdeen Energy Park and Aberdeen Innovation Park at the Southern Gateway, Aberdeen’s Bridge of Don suburb.

Also at Bridge of Don though, work starts soon on infrastructure for the provisionally named Berryhill Low Carbon Technology Park, a 100-acre business campus with 1.5 million sq ft of development opportunities.

The developers are Yorkshire based

Generate Land Ltd, specialists in low and zero carbon construction, and their joint venture partners, London based Mountgrange Real Estate Opportunity Fund.

The first phase will cost £15 million, with a completion value of £50 million, said Tony Brooks, chief executive at Generate Land. He predicted that over the next eight years, upwards of more than £200 million in additional value will follow.

Servicing of the 100 acres will be carbon neutral. Combined Heat and Power (CHP) planned for the site will be fuelled from renewable sources. All buildings will be Building Research Establishment Environmental Assessment Method (BREEAM) ‘Excellent’ or ‘Outstanding’ standard.

“We searched over the entire UK for this opportunity,” said Brooks. “This site grabbed our attention not least because of the continuing focus on energy and renewables that’s emerging in Aberdeen.”

Energetica’s Eco Hub runs from a development zone by Aberdeen’s Dyce airport and heliport to the Aberdeen Energy Park and Aberdeen Technology Park which are home to the UK’s largest cluster of energy companies.

BAA, Aberdeen Airport’s owners, recently announced a £100 million upgrade of over the next 30 years. Initial site clearing and services work at the 54 acre ABZ Business Park being developed by a local developer next to the airport is due for completion this summer.

“It has very good links to the airport and addresses the need for large sites there,” said Lewis Anderson, the Scottish Enterprise manager overseeing the agen-

Aberdeen Energy Park’s Enterprise Centre reflects the optimism about the region’s future

cy’s property assets within Energetica.

“The business parks are the catalysts to unlocking Energetica’s overall aspiration,” said Sara Budge, project director of Energetica. “They will help attract business investment in high quality, low emission, energy efficient buildings.”

Recent headline investments by Ocean Installer and Intertek at the Aberdeen Energy Park speak of long-term commitment and optimism in the region’s energy future.

This park is still being marketed but

there a second phase — 15 acres of serviced land — has plots ready to develop if needed.

“I would advise companies to grab the advantage of being on the park now, but that back-up land means there is scope to talk if they miss the immediate boat,” “There are serviced plots available to develop now, with expansion land available in the near future” Budge said.

Energetica is also looking at developing new office and workshop R&D facilities close to Aberdeen Energy Park for

Putting the building blocks in place Scottish Enterprise focuses on putting the building blocks in place to create a world-class business environment which delivers the right conditions for Scottish companies to prosper.

Our support is targeted at developing high quality infrastructure projects which enhance Scotland’s existing competitive advantage and ensure we’re seen as a leading international location for investment.

The credentials for delivering this ambitious vision are impressive. We have done it before. We can do it again. By attracting new investment and new talent into Scotland, we provide our businesses with the tools they need to help them realise their ambitions.

A prime example is Energetica, an ACSEF (Aberdeen City and Shire Economic Future) flagship project led

by Aberdeenshire Council, Aberdeen City Council and Scottish Enterprise.

Our infrastructure projects also ensure sectors such as renewable tourism, life sciences, creative industries and advanced technologies grow faster and can compete on an international scale.

As our energy industry develops and we move to the next age of energy, Energetica will lead the way, creating a global hub of knowledge, technology and commercial know-how in a superb lifestyle and leisure environment.

With our support and the backing of our partners, Scotland’s reputation as a premier location for globally competitive businesses is continuing to grow.

www.energetica.uk.com

www.scottish-enterprise.com

Contact us for more information: Scottish Enterprise, 27 Albyn Place, Aberdeen, AB10 1DB Tel: 0845 607 8787 enquires@scotent.co.uk

the times | Wednesday June 27 2012

13

Power of Scotland

small, incubator companies. “So we are pitching to the whole spectrum from large corporates to small R&D companies,” Budge said.

Targets include leading-edge science, technology and research businesses, largely but not exclusively focused on energy.

“We can bring together a significant package of technology and R&D related funding,” Budge said. “We also have a massive network of contacts for assistance and development. So we would be very interested in having conversations with interested companies.”

She cited the hypothetical example of a business aspiring to a low carbon building with a BREEAM ‘Excellent’ or ‘Outstanding’ rating. “If there’s a gap between what the private sector can bring to the table and what is needed, we can look at addressing the associated market failure on a case by case basis.”

Because of the build performance of business units, and the servicing, it is anticipated that there will be an absolute minimum of 30 per cent savings in buildings operating costs for companies on the park.

“Clearly, a 30 per cent reduction in operating costs is something that you would factor in alongside proximity to clients and research and the backdrop of an environment where teams will be happy to locate because of the right housing, environment and lifestyle,” Budge said.

“Ultimately, the private sector will deliver Energetica, but we’re the glue that keeps the bits together,” said Alistair Reid of Aberdeenshire Council, who is Energetica’s business opportunities manager.

Business commits to Southern Gateway Bridge of Don in the north of Aberdeen is seeing a wave of interest and long-term commitment from companies locating at Energetica’s Southern Gateway.

The Aberdeen Energy Park and nearby Aberdeen Innovation Park host more than 80 companies, from start-ups to global headquarters in oil and gas and latterly in renewables.

The key to recent investment has been a public-private partnership between Edinburgh based developer Buccleuch Property and Scottish Enterprise, the development agency that owns the parks.

This created a formal strategy for effective marketing through two agents, Knight Frank, and Ryden.

The two-year old partnership ring-fenced £10 million for new

developments and growth alongside refurbishment and upgrading of services for multi-let buildings.

“We are seeing the benefits through increased occupancy as existing occupiers commit to longer leases,” said Steph Dorward, senior surveyor at Buccleuch Property.

Buccleuch Property recently celebrated practical completion at Aberdeen Energy Park of The Hub, a 15,000 sq ft office and amenity block, the first new building under the partnership. Aberdeen and Grampian Chamber of Commerce has taken 5,000 sq ft.

Norwegian subsea firm Ocean Installer has established a UK division at the Innovation Centre on the Aberdeen Energy Park, taking a 10 year lease on 10,400 square feet

“Energetica can put the framework in place and make it as easy as possible.”

Keeping and attracting key skills, individuals and families is addressed in housing and leisure elements inspired by The Woodlands communities near Houston (Texas, USA) which are acknowledged to have helped sustain that energy hub.

‘The Green Heart’ of Energetica — an area of outstanding natural beauty, between Newburgh on the coast and Ellon inland — will host modest-scale, new communities in landscaped settings with highly energy-efficient homes. New

developed by Buccleuch Property and Scottish Enterprise. Other tenants showing the range at Aberdeen Energy Park include oil services company Weatherford UK, subsea firm Flexlife Ltd, and software house ExxonMobil Corporate. Intertek, a global technical services company, is investing £15 million in its new Aberdeen headquarters there.

“This all shows optimism that the Aberdeen market will continue to be as robust as it is,” Dorward commented. “We’re looking at other sectors as well to meet market demand for light industrial-style accommodation,” she said. “One strength of the partnership is that, as developers, we can deliver whole schemes for people rather than just selling plots or existing space.”

forest will provide biomass feedstock for renewable energy production.

Ellon based Scotia Homes is seeking planning permission for a high quality, low carbon community near Cromleybank, Ellon. Scotia works closely with The Prince’s Foundation for Building Community, an educational charity promoting ecological planning, design and building.

The Blackdog Project just north of Aberdeen, the brainchild of local farmer and developer Colin Tawse, proposes state-of-the-art homes with a new school, a park-and-ride for Aberdeen airport 10

minutes away by road, and a large Global Food Hall selling regional food and drink to consumers.

Ambitious plans have also been proposed for high quality housing, leisure and commercial developments that could double the size of the population of Bridge of Don to 45,000 by 2030.

The Ellon, Blackdog and Bridge of Don proposals make play of being close to the Aberdeen Western Peripheral Route (AWPR), the new road to improve travel in and around Aberdeen and Northeast Scotland.

Approved by the Scottish Government, AWPR has been delayed by a legal challenge which has finally moved on to the UK Supreme Court, where the latest appeal is due a first hearing in July.

“We really can’t overstate how crucial it is,” said Alistair Reid. “Even a simple announcement that it is going ahead would give companies confidence in their decision making.”

The AWPR would certainly boost the attraction of Peterhead to companies who see its advantages as a services base for offshore work. As Reid stresses though, it can be almost as quick to get to Peterhead from Westhill — a centre of subsea engineering excellence just to the west of Aberdeen — as it is to travel from Westhill to Aberdeen Harbour through the city itself.

The Green Heart of Energetica is well endowed for leisure, with sports and outdoor activities such as walking and bird watching particularly popular. A worldclass championship golf course, the Trump International Golf Links devel-

commercial rePort: aBerDeeN eNerGY & iNNoVatioN ParKS

Business Parks by another name

B

y definition a ‘Business Park’ is an area of land accommodating multiple commercial organisations. To those unfamiliar with the Aberdeen Energy & Innovation Parks, they fall firmly within this category. However, these two Parks demonstrate that unlike other ‘Business Parks’ they are much more than bricks and mortar for commercial occupation.

Scottish Enterprise established these two Parks, spanning 170 acres in Bridge of Don north of Aberdeen city centre, throughout the 1980s and 1990s. This included the procurement of 8 multi-let office and workshop buildings totalling 155,000 sq ft, granting ground leases across 30 acres to allow the development of a further 18 buildings and a total of 55 acres available for future development. With the economic support of Scottish Enterprise, the Aberdeen Science Parks, as they were previously known, became centres of excellence for the development and commercial implementation of research in the technology and energy sectors.

These sectors have shaped the property market throughout the region. Scottish Enterprise recognised the necessity to guarantee the Parks’ endurance and attractiveness in this commercial environment and after seeking a suitable partner and following an extensive selection process, the £15 million joint venture between Buccleuch Property and Scottish Enterprise was formed in July 2010.

The JV has a clear objective to ensure the Parks are fit for purpose and in a position to compete favourably with other business park locations, particularly to the west and south of Aberdeen City as well as a commitment to invest in new buildings and infrastructure. In the 24 months

since the joint venture was established, a number of initiatives to achieve these objectives have been implemented.

The first of these was a comprehensive asset management review to understand what services and amenities existing tenants required and establish how the existing assets on the Parks would better facilitate these needs. £1.5 million has since been invested in the upgrading of facilities across the two Parks, including the refurbishment of common areas within the multi-let buildings and the replacement of inefficient heating and cooling systems.

What has been the result to date of this new investment and asset management combined with the rebranding of the Parks?

Happier tenants; better looking and functioning buildings and the highest occupancy levels at the Parks in the last 4 years; add to this, over 55 acres of available development land and a £10 million recyclable pledged fund from the joint owners to deliver speculative development and service additional expansion land, the Aberdeen Energy & Innovation Parks are well placed to reposition themselves in the commercial property and business markets of the north east.

Whilst providing an attractive, efficient, physical environment is achievable through investment and good management, creating the immeasurably valuable culture of a business community relies on more than a financial injection.

The nurturing of a community of ambitious and innovative businesses is invaluably aided by the dedicated on-site Park management team. A programme of networking events for the benefit of all Park occupiers and quarterly seminars covering a range of business support and wider economic topics are just one area that actively

encourages cross-selling between companies and promotes a business community atmosphere.

Scottish Enterprise’s economic support services and the Parks’ access to wider Aberdeen City and Shire initiatives, such as Energetica, combined with Buccleuch Property’s experience as asset manager and developer make for an enviable team working for the benefit of the Parks and the organisations located there.

The community of the Parks will be epitomised

by The Hub, a newly constructed £2.4 million, 15,000 sq ft office and café facility on the Aberdeen Energy Park. The decision by the partners to speculatively deliver The Hub highlights that continuous and well placed investment is necessary to ensure the retention of existing occupiers

and to attract new businesses. Up to 7,000 sq ft of office accommodation is available to lease at first floor and notably, the Aberdeen & Grampian Chamber of Commerce will take occupation of 4,780 sq ft at ground floor level in July. In addition to this local high profile occupier, it is the café and meeting room facilities at ground floor level which will provide a much needed amenity to the Parks and add to the prosperity of the business community on the Parks.

The Aberdeen Energy & Innovation Parks are demonstrating that there is more to a successful business park than bricks and mortar. Nurturing the culture is just as valid in the objective of sustainably expanding a business park as a physical location and concept.

Wednesday June 27 2012 | the times

14

Power of Scotland

oped for US magnate Donald Trump, was opened recently.

Energetica’s environmental targets — 80% lower carbon emissions by 2050 and an ecological impact reduction of 66% for new developments — have been chosen as role model levels for the UK. Tenders have meanwhile been issued for research into the feasibility of using geothermal and hydrogen for CHP for buildings within Energetica.

This could also pave the way for the country’s first ‘hydrogen highway’ and an Energetica Smart Grid System using

intelligent sensors, metering and monitoring for better balancing of power supply and demand.

The level of detail includes talking to vehicle manufacturers and agencies to see what types of electric and hydrogen cars and buses may be in the pipeline, and when, Budge said.

One idea is for power generated by the £235 million European Offshore Wind Deployment Centre (EOWDC) — an 11-turbine offshore wind farm proposed for Aberdeen Bay — to be distributed through the smart grid

Stephen Paterson at Peterhead says the renewables industry realises that subsea skills are applicable

while pump storage could store surplus electricity from wind generation, and from other research facilities, to supply low carbon commercial and industrial accommodation.

EOWDC will be: a test site for new turbine and foundation designs and electrical grid connection; a centre of excellence in training and emergency response; a research hub from which to disseminate best practice; a site of longterm environmental monitoring; and a small commercial wind farm generating electricity equivalent to two thirds of Aberdeen’s domestic demand.

Currently awaiting governmental consent, with the expectation that this will be forthcoming in October, EOWDC is a joint venture between Swedish utilities group Vattenfall, and Aberdeen Renewable Energy Group (AREG), a privatepublic partnership seeking to converting upstream oil and gas expertise to offshore renewables. French energy services giant Technip collaborates through Technip Offshore Wind Ltd. “EOWDC is essential for Scotland,” Budge said. “It’s the first of its kind and should inform the types of turbines that go out in the Round Three wind farms (in deeper water). “It’s an absolutely integral part of Scotland’s competitive advantage.”

Turbine manufacturers from Europe and beyond have already shown interest.

Offshore wind could also fill the sails of Peterhead, the UK’s largest whitefish port, which is a hub for servicing North Sea oil and gas, not least as the main base of oilfield services company ASCO. Opportunities at and around the port

stem from its current or potential use as: a base for continued North Sea oil and gas exploration and production; a location for decommissioning North Sea oil and gas equipment and infrastructure; a logistics and business hub for offshore wind farms; a possible test bed for a CCS demonstrator project as proposed by utilities company SSE for its Peterhead power station; a potential reception point for ships carrying compressed carbon gases that could be processed and forwarded to depleted North Sea oil and gas reservoirs such as Shell’s Goldeneye; and as the landfall end for subsea power cables to Norway, the Moray Firth, and northeast England.

Scottish Enterprise nearly doubled the scale of its Energetica Industry Park at Peterhead to 55 acres earlier this year and hopes to start initial servicing of the site in the current financial year.

There is full planning consent for access to the park, which is less than a mile and only a few minutes from the port and has good access, so large pieces of equipment can get in and out easily.

With outline planning consent for general industrial storage and office use, Energetica Industry Park will be pitched to all types of energy firms — renewables as well as oil and gas. A tender for new agents to market the location is expected to go out later this year.

“Interest has been positive,” said Lewis Anderson at Scottish Enterprise. “It’s ranged from local companies looking to expand to large organisations looking to come in to the area, but all energy related.”

commerciAl report: eNerGeticA

A sustainable lifestyle most can only dream of

G

lorious beaches, coastal routes, fantastic wildlife, fishing, surfing, rambling, historical sites and some of the world’s best golf courses – Energetica has a lifestyle most can only dream of.

The 30-mile development corridor, between Bridge of Don and Peterhead in Scotland’s North-east, houses a new generation community based on low carbon living and working.

Energetica is a world-class destination looking to attract innovative energy businesses and highly skilled people. The development features high quality, energy efficient housing, commercial and leisure facilities in an outstanding natural environment. All the benefits of life in a countryside idyll are on hand whilst residents can easily access a major city and nearby international airport.

With an average of 28.4hours of sunshine per week, more than anywhere else in Scotland, there is ample time to tackle some of the most enjoyable and challenging golf courses in the world or visit the numerous castles and historical sites. If waves are more your thing, excellent surfing opportunities are plentiful on the miles of golden beaches.

Coastal paths spanning 91-miles are being linked to provide access to the fine scenery and wildlife. Whether it is watching hundreds of seals lazing by the River Ythan, dolphins in the sea by Aberdeen, thousands of pink footed geese taking off from Loch of Strathbeg or terns in the Forvie Nature Reserve dunes – Energetica brings people close to nature.

Two strategic environmental targets have been adopted by Energetica: an 80% reduction of carbon emissions by 2050 and an ecological impact reduction of 66% for new developments.

A study to bridge the gap between cutting-edge green construction techniques and current housebuilding methods has been carried out. The results are leading to new approaches in housing design, ensuring compelling living spaces combine with energy efficiency and affordability.

Schools within the area are rated amongst the highest in the country. Ellon Academy was a finalist in the Scottish Education Awards 2012, while three in Aberdeen and Aberdeenshire were in Scotland’s top 11 for exam passes at Higher during 2011.

Two of the country’s finest further education institutions, the University of Aberdeen and Robert Gordon University, are based in the city.

To the north, Banff and Buchan College offers courses in renewables, business, nautical and marine training.

A variety of routes into Aberdeen makes commuting easy and keeps with the sustainable environment principal. Two park and ride facilities sit upon the city’s outskirts and cycle paths run throughout the region, from Formartine and Buchan to Aberdeen, enabling those staying out of town to pedal to work. And plans are underway for hydrogen powered buses to operate within the corridor.

Aberdeen is integrated on the rail network with regular connections to other UK cities.

Further improvements are planned to the road system with a city bypass in the pipeline to enable faster transit to and from the north.

This all takes place in an area ranked sixth in the UK for gross disposable household income.

Between 2006 and 2010 Aberdeen City and Shire accounted for 14% of Britain’s oil and gas industry’s capital expenditure – worth approximately £850million. The industry supports nearly 440,000 jobs across the UK, with around 1,000

related companies based in the North-east.

Energetica is expected to generate investment of £750million in its first ten years and a further study aims to place Aberdeen City and Shire at the forefront of digital connectivity with super fast broadband.

What always was a must see corner of Scotland has in recent years become a must stay location.

Energetica provides a beautiful landscape, from its beaches to the hills, with a huge variety of outdoor pursuits and exciting employment opportunities in the energy sector.

the times | Wednesday June 27 2012

15

Power of Scotland

With the region’s world-class strengths and capacity in subsea engineering and logistics, Peterhead should be the port and place of choice for the industry, said Alistair Reid, whose remit includes fostering supply chain development.

“There’s deep water, 24-hour access, and it’s unheard of for the port to close due to weather, so crew changes can get in and out quickly.”

The £33.5 million Smith Quay has 10 metres of water depth, is sheltered, has heavy lift, and boasts 16,000 sq metres of ground next to it so the port can handle more and larger projects than before.

Repairs, component manufacturing, fabrication and project mobilisation can be done on the quayside rather than having to transfer work off site. A phase II development could add another 60,000 sq m “There’s no congestion, which saves millions of pounds for companies,” said Carolyn Maniukiewicz, spokeswoman for Peterhead Port Authority.

Some small scale decommissioning work has already been handled at Smith Quay and 27 articulated lorries can line up side-by-side simultaneously.

“We’ve been seeing dramatic growth in serving the subsea sector and Smith Quay has already been very successful in bringing a lot of business to the port,” said Stephen Paterson, chief financial officer at Peterhead Port Authority.

Peterhead Decommissioning — a joint venture between companies with up to 40 years of experience in oil and gas — is targeting future North Sea decommissioning work. Though larger decommissioning projects are some years off,

Peterhead has already handled smaller scale ‘cut and burn’ jobs.

“What we’re also seeing is that as existing oil and gas platforms come to the end of their planned life but companies see there is another 10 or so years of profit there, then they are having to change out parts of platforms, and that is bringing work to the port,” Paterson said.

“The renewables industry has also come to recognise that the subsea skills in the region are applicable, particularly to deeper water wind farms that are planned. With our experience, there is no point in them reinventing the wheel.”

While Peterhead does not aspire to manufacture large turbines for offshore renewables, it promotes itself as being ideally placed for vessel handling for offshore construction, operations and maintenance for wind farms planned off the east coast of Scotland, as well as for related business activity.

Maniukiewicz added: “What we’re now hoping for is a major subsea company to come to Peterhead to join the businesses already here and to be the catalyst for more inward investment.”

Energetica is a positive association for Peterhead as it links the town specifically to Aberdeen and Westhill, helping to dispel any perception that Peterhead is somehow remote from the region’s wider skills base, Paterson said.

As described elsewhere in this feature, the Peterhead Energy Hub provides a forum through which public and private sector interests co-operate over skills development, business opportunities and promoting the port and wider selling points.

Peterhead unites to bang its drum When the Peterhead Energy Hub (PEH) forum presents to a business audience in Aberdeen this week it will stress how co-operation is paying off for its private and public sector partipants.

Though Peterhead has welcomed additional exposure as Energetica’s ‘Northern Gateway’, its port, infrastructure and energy businesses long pre-date Energetica: they just did not shout much about it.

So while some locations stress what they could do in future for offshore renewables firms, Peterhead is already doing it or can do so almost at the drop of a hat.

PEH’s founding partners — Peterhead Port Authority and oil services company ASCO — launched the forum last year to build on the town’s 40-year record as a support base for North Sea oil and gas and to further its ambition to service offshore renewables, oil and gas decommissioning, and subsea industries.

PEH lists Energetica and Scottish Enterprise as stakeholders. It has links with other local and regional companies: Falck Nutec, Dales Engineering, Score Group, Aquatic Engineering & Construction, Enviroco Peterhead and Peterhead Decommissioning — as well as with educational institutions Banff &

The port at Peterhead is a centre of excellence for subsea skills Buchan College and Robert Gordon University Aberdeen “All are extremely successful businesses with international clients and invest much in the area,” said Carolyn Maniukiewicz, spokeswoman for PEH. PEH fosters knowledge exchange and has led to cross selling and cross-marketing opportunities. “It’s generating business, spreading best practice and speeding things up,” Maniukiewicz said. “It’s also spreading awareness of Peterhead’s

importance in subsea skills. For (major subsea) companies such as Subsea 7, it is the port of choice.”

The port’s strengths are detailed in our main report, but the key question for companies committing to PEH was, ‘where do we get skilled labour?’

They now work with Banff & Buchan College to ensure that courses — in marine engineering, for example — are appropriate. Banff & Buchan College is collaborating with Falck Nutec on a £20 million virtual training centre for offshore wind skills.

What can we do for your business?

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Highlands and Islands of Scotland – the home of

OFFSHORE RENEWABLE ENERGY Highlands and Islands of Scotland – the home of

OFFSHORE RENEWABLE ENERGY The Highlands and Islands, a region covering the north and north-west of Scotland, has arguably the world's best combination of renewable energy resources, technology development, testing and deployment infrastructure, skills and expertise.

Home to around a quarter of Europe's natural wind and tidal resources and 10% of the wave resource, The Highlands and placed Islands,toaaremain region at covering the region is ideally the forefront The Highlands and Islands, region covering the north and north-west of Scotland, has of the fast-emerging offshore sector. the north and north-west of renewables Scotland, has arguably the world's best combination of renewable arguably the world's best combination of renewable energy resources, resources, technology technology development, development, testing testing energy and deployment infrastructure, skills and expertise. and deployment infrastructure, skills and expertise.

Home to to around around aa quarter quarter of of Europe's Europe's natural natural wind wind Home and tidal resources and 10% of the wave resource, and tidal resources and 10% of the wave resource, the region region is is ideally ideally placed placed to to remain remain at at the the forefront forefront the of the the fast-emerging fast-emerging offshore offshore renewables renewables sector. sector. of

Highlands and Islands Enterprise Cowan House, Inverness Retail and Business Park, Inverness, IV2 7GF, Scotland Tel: +44 (0)1463 234171 email: info@hi-energy.org.uk | www.hie.co.uk | www.hi-energy.org.uk

Ambitious for energy