EIC Net Zero Jeopardy Report

Net Zero Jeopardy Report

This inaugural EIC "Global Net Zero Jeopardy Report" examines the global energy sector's pursuit of achieving net zero as a tangible goal, focusing on the varying interpretations and strategies employed by the energy industry to achieve this objective.

The report stems from the Energy Industry Council's (EIC) conviction, supported by data and interviews with industry leaders, that net zero targets are at risk. Surveying 38 energy industry leaders from 29 EIC member companies worldwide, the report provides insights into the perspectives and challenges concerning net zero issues.

Key findings include a prevalent scepticism regarding the attainment of 2030 climate

targets, with only 11% of interviewed participants believing these will be met globally, while optimism is higher for 2050 targets, at 45%. Major hurdles in achieving net zero include policy inconsistency, economic and financial constraints, as well as capacity and infrastructural limitations.

The report highlights the need for robust government policies, global cooperation, significant investment, and overcoming capacity challenges to achieve sustainability targets. Stakeholders from governments, industries, and consumers are urged to play active roles in this period of transition to net zero. The report emphasises the imperative to address these challenges to ensure a sustainable, net zerocompliant future.

Any enquiries about this report should be directed to: Stuart Broadley, CEO of the EIC stuart.broadley@the-eic.com

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Introduction

The pursuit of net-zero emissions in the energy sector is no longer just a lofty goal; it has become a central focus for industry leaders worldwide. However, the interpretation of net zero and the strategies employed to achieve it vary significantly among energy sector leaders, largely due to the diverse nature of the industry and the regional policy differences.

In our 7th annual Survive and Thrive report in 2023, we presented compelling evidence (see Table 1), indicating that oil and gas projects have significantly higher Final Investment Decision

(FID) rates compared to cleantech projects. This trend was observed globally and continues into 2024.

Yet, despite evident concerns, governments worldwide continue to overlook the fact that, at the current pace of project deployment, enforcement of climate policies and legislation, and the rate of financing, achieving these targets is unrealistic – our findings on the industry’s thoughts around achieving domestic and global targets are laid out in the section titled: ‘Perceptions on Achieving Climate Targets –2030 and 2050’.

The genesis of this report stems from our belief – based on hard data and numerous conversations with industry leaders around the globe – that net zero targets are in jeopardy. In the final two months of 2023, we spoke with 38 energy industry leaders, executives, and experts from 29 of our member companies operating across the globe. They come from 13 countries in South America, North America, Europe, Asia, and Australia. Our aim was straightforward: to understand the perspectives of the global energy supply chain regarding net zero issues and, in their view, how we can achieve net zero targets and what obstacles stand in the way.

The result is EIC’s inaugural Net Zero Jeopardy Report. We aim to continue producing this report annually, to amplify the voice of the energy supply chain in this matter, and hopefully to contribute to reversing net zero jeopardy.

Companies surveyed in this report represent a diverse range of business sectors. Most of these companies are actively engaged in the renewable energy sector (79%), emission reduction sector (79%), and energy transition sector (84%). Other significant categories include the sustainability sector (74%), decarbonisation sector (76%),

The genesis of this report stems from our belief – based on hard data and numerous conversations with industry leaders around the globe – that net zero targets are in jeopardy.

electrification sector (58%), and nuclear energy sector (45%). Twenty of these companies primarily provide services, including engineering and consulting, while the remaining nine focus on manufacturing and construction.

Perceptions on Achieving Climate Targets – 2030 and 2050

We set out by asking participants about their opinions on whether interim and long-term net zero targets, in their own countries and globally, are achievable. There is noticeable scepticism among participants regarding the achievement of the 2030 targets, with a mere 16% of interviewees believing they will be met. This scepticism intensifies at the global level, where an even smaller percentage (11%) are confident in reaching the 2030 global targets.

Conversely, there is a markedly higher level of optimism about the 2050 targets. A majority of the interviewees (66%) believe that national targets for 2050 are attainable, and 45% think the global targets for 2050 can be achieved. Some cite the belief that there is more time

to surmount current obstacles and that advancements in technology and policy might evolve sufficiently to meet these long-term goals. Others believe that over time we will simply get better and more efficient at reducing emissions.

Percentage

But it needs to be noted here that the disparity in optimism for the 2030 and 2050 targets, particularly on a global scale, may be influenced by the geographical distribution of the interviewees. With many based in developed countries, there could be a perception that these nations are better positioned to make significant progress towards sustainability over a longer term.

Percentage of participants who believe that we can get back on track to achieve net zero targets, if appropriate action is taken (domestically and globally)

Optimism increases when participants are queried about meeting the targets if desired actions and policies are implemented immediately. In this scenario, a notable proportion of respondents (29% for 2030 and 76% for 2050) express belief that, with immediate concerted efforts, it is feasible to realign with these targets. This suggests an underlying recognition of the potential to overcome current barriers through collaborative endeavours, technological innovation, and stronger policy frameworks.

Even though respondents are more positive here, the answers suggest that there is an inherent bias born out of the belief that, because it is still far in the future, we will manage to achieve the targets. This optimism may stem from having more time, the anticipation that technology and its application will become more widespread and cheaper, or the emergence of new technologies and events.

However, it may also reflect a sense of not wanting to admit defeat, or not wanting to be the one that says all is lost. We must be wary of complacency; we are fast approaching 2030, and a few years ago, interviewees sounded more positive about achieving 2030 goals, but how that has changed.

UK Perspective on 2030 / 2050

But why are people pessimistic about 2030?

Consider the UK, where 45% of the interviews took place, as a case in point. UK-based participants believe the 2030 goals are impeded by uncertain intermediate targets and a sluggish pace in critical projects like carbon capture and storage (CCS), wind energy and nuclear, as well as broader challenges such as supply chain bottlenecks, a perceived lack of governmental ambition, and funding shortfalls.

Taking wind as an example, the UK aims to reach a target of 50 GW in offshore wind capacity by 2030. Currently, there is 13.6 GW of capacity operational, with around 29 GW anticipated to be commissioned by 2030. However, the projection of 29 GW assumes that projects will progress smoothly and meet all milestones without any hindrances.

At present, only 9.2 GW of projects are either under construction or have achieved Final Investment Decision (FID). In nuclear projects, the completion of the Hinkley Point C nuclear plant in the UK has been delayed by up to four years, with the final cost potentially reaching £46bn. The plant, which was originally scheduled to start producing electricity in June 2027, may not be ready until 2031.

Furthermore, recent years have seen significant political instability in the UK, with three different Prime Ministers at 10 Downing Street within a year. This rapid leadership turnover has led to unclear and constantly

changing policies, adversely affecting environmental and energy policy.

The frequent changes in leadership are identified as a major obstacle to the UK’s energy transition. The current political and regulatory climate is seen as a barrier to diversification, with numerous companies stating that it impedes their ability to adapt to new energy strategies. This instability can lead to short-term political processes overshadowing long-term strategic planning, particularly detrimental in sectors like energy that require sustained, consistent policies.

Added to that, some interviewees pointed out the lack of cooperation between the Scottish and UK governments as posing significant challenges to achieving net-zero targets for the UK as a whole. The Scottish government has set its net-zero targets for 2045 compared to 2050 for the UK. The absence of cooperation and alignment in climate policies between the two governments

Global Outlook

The global outlook for 2030 is even more doubtful, as indicated by the aforementioned percentages.

A common thread in the responses is the ambitious and perhaps unrealistic nature of these targets globally, compounded by unclear policy direction and significant disparities in capabilities and priorities of different nations. Many high-growth economies, especially major players like China and India, face unique challenges that require them to continue to generate emissions that are yet to peak.

Regarding the 2050 targets, some respondents exhibit cautious optimism – especially for developed economies such as Australia, France, the UK, and the US – buoyed by the legally binding targets and potential technological advancements.

However, others remain sceptical, citing persistent issues such as a shortage of skilled professionals, weak enforcement mechanisms, and limited government funding. Globally, sentiments are similarly split. Some participants believe that the world will only rise up to the challenge of climate change if a major catastrophe takes place, forcing everyone to act immediately, which is far too often the case when it comes to the innovation of policy.

Otherwise, the only sure route to achieving net zero is if governments enforce action in that direction and have clear, actionable,

specific plans toward achieving net zero targets. Optimists harbour hope for future technological breakthroughs and possible shifts in political and societal will, while sceptics voice concerns about the ongoing global dependency on fossil fuels, lack of coordinated policy efforts, and the daunting challenges faced by key nations.

In short, despite these challenges, there is a noticeable difference in the perceived feasibility of course correction between the two target years. For 2030, the prevailing consensus is that it might be already too late for significant changes to meet the targets. However, for 2050, the outlook is more hopeful, with several respondents believing that there is still time to implement the necessary changes, albeit requiring a global, concerted effort.

Regarding the 2050 targets, some respondents exhibit cautious optimism...

The Trio Challenges of Meeting Net Zero Targets

To begin, let us take a look into three overarching areas that respondents identified as key hurdles to achieve climate targets.

Economic and Financial Constraints

Sixty-one percent of participants believe that investment and other forms of financial support, facilities, tax breaks, and funding schemes. are needed to get more net zero projects off the ground. Participants underline the fundamental need for profitability to ensure survival and growth. The high cost of transitioning to greener technologies, coupled with a lack of sufficient investment in renewable energy sources, is repeatedly cited as a major obstacle for companies aiming to adapt swiftly to more sustainable practices.

The participants reflect a deep concern over the economic uncertainty surrounding green investments. Companies are wary of the stability of profit margins in green investments, which they believe could hinder the rapid shift required to meet the 2030 sustainability targets. This concern is not just about the initial investment but also about the long-term viability and

profitability of these green projects.

Many interviewees spoke of the importance of investment and financial incentives provided by both the private and public sectors as being pivotal in achieving the net zero targets for 2030 and beyond. They stressed that these incentives – which include funding programmes, tax credits, tax breaks from government and capital investments from the industry – could significantly lower the financial barriers associated with transitioning to sustainable practices. However, they also pointed out the necessity of a solid business case for these investments. This involves ensuring that there is a market (offtake) for the products or services generated by these projects and that the projects can generate affordable margins. Such margins are crucial not only for undertaking these projects but also for ensuring sustainable operations in the long term.

Our conversations also reveal a call for more strategic and targeted financial support. This includes the need for subsidies, tax incentives, and other forms of financial aid that specifically address the unique challenges of transitioning to green technology and practices. Companies express a desire for financial mechanisms that not only ease the initial burden of investing in green technologies but also ensure their economic feasibility over time.

Policy and Regulatory Hurdles

Forty-five percent of participants point out policy as another major constraint. They highlight inconsistent and unclear policies as a substantial barrier. They argue that without strong, consistent, and supportive government policies and regulations at both national and global levels, achieving ambitious sustainability targets will be exceedingly challenging. There are specific calls for stricter regulations and closer monitoring of the carbon markets, indicating a shift towards a “stick” rather than “carrot” approach. This sentiment is echoed across various responses, where the lack of regulatory certainty and commitment is seen as a major impediment to advancing sustainable practices and technologies.

Furthermore, there is a pronounced need for global cooperation and coordinated policy efforts, particularly for the 2050 targets. This is due to

the varying levels of commitment and available resources among different countries, creating a fragmented landscape for companies trying to navigate the transition to net zero. Interviewees highlight the necessity for an international consensus and alignment on sustainability goals, stressing that isolated efforts may not be sufficient to address global environmental challenges. After all, greenhouse gases know no atmospheric borders.

Additionally, companies are looking for more than just regulatory compliance; they seek active policy support that makes sustainable investments more attractive and viable. This includes financial incentives, tax benefits, and subsidies that can help offset the high initial costs associated with transitioning to more sustainable operations.

Capacity and Infrastructural Limitations

Twenty-two percent of participants believe that supply chain-related issues (11% supply chain expertise and 11% qualified people and infrastructure issues) stand in the way of executing more net zero projects. In fact, when we asked them whether they agree that net zero is at risk due to lack of supply chain capacity, 61% said yes.

The gap between existing capabilities and what is required for a complete transition to net zero is substantial, necessitating considerable innovation and investment. An interviewee emphasises the lack of systems thinking in the industry, “There is a severe lack of systems thinking. Technology for renewable energy and alternate fuels exists, but to move at pace we need to ensure the supporting infrastructure is there, whether that be a grid connection for an offshore wind farm, somewhere to charge your

car or port facilities to resupply synthetic lowand zero-carbon fuels to the shipping industry.” In addition to these challenges, some companies face issues with the availability of technology and equipment that comply with environmental regulations. One respondent points out that while technology becomes more affordable over time, the initial costs are prohibitively high, impeding quick adoption. This is especially true in developing countries where equipment needs to be imported at very high prices.

While some believe that the current pace of technological advancement is not sufficient to meet the ambitious 2030 targets, others do not view technology as a barrier, considering that many necessary technologies, such as Carbon Capture, Utilisation, and Storage (CCUS), already exist. The challenge lies in scaling up the deployment of these

technologies and making them profitable. Hydrogen electrolysers are pieces of equipment that truly highlight the magnitude of this issue. Despite receiving high levels of attention through multiple policy and funding opportunities worldwide, there is still cause for concern regarding the supply capacity for electrolysers. As of January 2024, the global output is approximately 17 gigawatts per year. Taking into account all declared expansions and new manufacturing facilities,

the global manufacturing output is expected to rise to 46 GW/year by 2030. This represents a significant increase, yet it is still expected to be insufficient to meet the demands of the project pipeline. Current EIC data from our project database EICDataStream shows that between 2026 and 2030, projects coming online are estimated to require an average of 62 GW/year of electrolyser capacity globally. Unless further addressed, these manufacturing bottlenecks will lead to delays in project delivery.

CURRENT GLOBAL ELECTROLYSER MANUFACTURING CAPACITY (MW/YEAR)

The challenge of scaling is further exacerbated by the simultaneous scale-up of multiple sectors. These energy supply chains are not mutually exclusive, with sectors such as CCUS and Hydrogen requiring overlapping equipment, services, and skills. A significant example is compressors, which are required across all energy sectors. Currently, in the UK, there are only four locations that manufacture compressors of any kind. Other key examples include large-diameter piping and pressure vessels.

However, it is worth noting that 39% of other participants, focusing on their own activities rather than industry-wide conditions, do not believe that net-zero is at risk due to supply chain capacity. This viewpoint is particularly prevalent among participants in industries capable of adapting technologies and services to clean energy. They state their readiness to work and expand more

when opportunities arise. They acknowledge the need to address fundamental issues, such as finding skilled engineers and technicians, and adapting existing technology, logistics, and grid systems. Despite these challenges, they believe the supply chain is largely capable of undertaking projects as they arise.

Businesses will naturally adapt and expand, allocating the right resources to make this happen when there is a business case. Companies say that cleantech needs to provide shareholder value in order to be sustainable in the long term. One participant says, “We do a lot of FEEDs for carbon capture projects and sustainable fuel, etc., but they are not executed – we would love to see these projects, we have the capability, but the projects aren’t going into execution due to economic viability which in turn stops us from allocating more resources to net zero projects because there is not enough work.”

Identifying Key Accountability: Who Must Act and How

We asked participants who is most accountable for failing to meet net zero targets. 87% look towards the government as the primary custodian of environmental commitments, placing the onus squarely on policymakers and regulators to steer the ship away from the iceberg.

Participants suggest corrective measures, calling for governmental action such as legislating carbon pricing and removing fossil fuel subsidies. While other stakeholders like industry, COP, and consumers are also acknowledged for their roles, the emphasis is heavily on government policy and regulation. This view is likely based on the belief that effective and ambitious policymaking, regulation, and enforcement by the government are crucial for steering collective efforts towards achieving environmental goals.

One executive says, the government needs to have “mandating targets and to support them with funding. The big part of that is also going to be stability within government departments, having solid cross-party agreements as well as having some kind of tariff or tax or carrot and stick approach similar to what they're doing with the sustainable aviation fuels in the UK where they're making mandated a minimum blend of sustainable

aviation fuel and within the aviation industry by 2025, then increases in 2030 and increases again by 2050. And we see specifically because of that mandate that, those projects are being invested.”

According to a UK government document, the government is introducing a revenue certainty scheme to support the production of Sustainable Aviation Fuel (SAF), with a goal to have at least 5 commercial SAF plants under construction by 2025. This initiative, along with a SAF mandate in 2025, is projected to provide fuel security, stimulate economic growth, and create over 10,000 jobs by 2030, increasing to 60,000 by 2050.

Another participant says, “Governments need to put legislation and proper regulation in place. As of today, we see good legislation and regulation in the EU for companies, even if they work outside Europe. When we walk away from the EU, we see some legislation but no action. The oil and gas industries should be regulated, flaring, etc. We still need those industries, but we need them regulated.”

Which stakeholders are the most accountable for jeopardising net zero targets?

According to 61% of participants, the industry is the second most accountable. The interviews reveal a broad consensus that while governments are crucial in setting targets and creating enabling environments, industries are pivotal in actualising these goals. Industries are at the forefront of innovation, resource utilisation, and emissions. Hence, they are in a unique position to drive substantial change through sustainable practices, technological advancements, and responsible resource management, the participants say. Others say the industry needs to inform the government about what needs to be done, given their practical knowledge. In the words of one participant, "We need to support and inform the government about what's achievable, what skills we need, what we can deliver, what education is required, and what infrastructure is needed for delivery. Industry can tell the government what's possible."

Another participant strikes a positive note, focusing on collaboration and the need for immediate investment decisions in current technologies, "It’s about collaboration across sectors and also investing – the technology is here, it’s about using the technology and investing in it now. If we do that now, 2030 won’t be a big challenge by the time we get to it."

Consumers are not absolved of responsibility,

with 32% acknowledging individual choices and demands play a substantial role in shaping market behaviours and, ultimately, the success or failure of environmental objectives.

Participants who view consumers as the most accountable, or at least one of the most accountable, believe that they should be much more responsible in their consumption habits because their behaviour ultimately shapes business strategies and tactics, which in turn impacts the environment. One participant, who places the blame squarely on consumers, states, "You need food, you need heating, you need water, but do you need 10 pairs of shoes? It's the needs and wants that must be reconsidered."

Sixteen percent view the Conference of the Parties (COP) as the most accountable. The interviews for this report were carried out in November 2023 in the build up to COP28. This reflects the perception that while global forums like COP are important, the real work occurs at the domestic level, through the actions of governments, corporations, and individuals.

Other society sectors, including financial institutions, education systems, and market dynamics, are also perceived as accountable entities, albeit to a lesser extent. Each has a part to play, a lever to pull, in the collective effort to avoid jeopardising the delicate balance needed for a sustainable future.

Top 3 Asks of Main Stakeholders

Industry

Development and enforcement of adequate, encouraging and lasting policy framework

Enable viable funding and facilitate business

Collaboration with stakeholders

Hold itself accountable. Set own targets and monitor and document them

Collaboration with stakeholders

Invest in sustainable technologies and solutions

COP Consumers

Collaborate and take action

Embrace the sustainable lifestyle

Establish more robust mechanisms for monitoring, reporting and verifying the progress towards the net zero commitments

Set penalties for non-compliance

Pay for change

Ranking of Top Asks of Main Stakeholders

Asks of Government

The government is foremost asked to establish and enforce a comprehensive policy framework, with 71% of respondents emphasising the need for this. Additionally, 26% call for viable funding and business operation facilitation, while 18% seek collaboration with stakeholders. The creation of clear, realistic, and steadfast objectives forms the crux of governmental responsibility. These targets

Asks of COP

The primary concern, highlighted by 42% of participants, emphasises the need for increased collaboration among member countries and for taking action on their commitments in the context of COP. Robust mechanisms for monitoring, reporting, and verifying progress are demanded by 32%, while 16% advocate for penalties for non-compliance. COP is expected to foster closer collaboration among nations, provide detailed road maps, and enforce targets. The

should remain consistent, irrespective of political changes. Governments are also urged to foster inter-ministerial collaboration, legislate compliance measures, stabilise politics, and financially support green initiatives. Emphasis is on consistency in plans, clarity in timelines, and a dedicated commitment to renewable energy projects, setting the tone for commercial investments in green technology.

organisation is advised to focus on common goals, minimise internal conflicts, and encourage healthy competition between countries, maintaining a responsible and vocal presence to drive realistic actions. While some call for more specific plans, monitoring, and accountability measures to put real 'teeth' into the COP, others question both its feasibility and utility. Some participants point out that the COP is falling under the influence of corporations and becoming too commercialised. They call for a return to its original form as a purely political forum.

Industry Call to Action

Industry leaders are encouraged to acknowledge their environmental impact, with 61% agreeing on the industry setting its own targets and documenting progress. Collaboration with stakeholders is noted by 37% and investing in sustainable technologies and solutions by 32%. Industries are urged to integrate net zero into their

Consumer Behaviour Change

A significant 53% of consumers are encouraged to adopt a sustainable lifestyle, while 34% need to focus on education about sustainability, and 11% on willingness to pay for change. This involves making conscious decisions aligned with net zero objectives, understanding

Other Stakeholder Investors, Shareholders

Investors and shareholders are called upon to support projects that alter the energy industry's carbon footprint significantly.

Prioritising investments

business models, innovate within their supply chains, and transition to lower carbon footprints. Futureproofing designs and seeking investments in net zero initiatives are also highlighted. There is a strong emphasis on cross-sectoral and international collaboration to efficiently leverage technology and resources.

the environmental impact of their choices, transitioning to cleaner energy sources, and reducing overall consumption. Embracing new technologies and committing to sustainable solutions in daily life are critical aspects of this collective effort.

that are both profitable and sustainable, they are expected to push for innovations aligned with net zero goals.

Getting Net Zero Projects Off the Ground

When asked what needs to be done to effectively deliver on net zero projects, where many announcements are made but few reach the Final Investment Decision (FID) stage, a consensus emerges among participants around five key areas.

Top 5 things that need to be done to effectively deliver on net zero projects as identified by participants

Firstly, adequate financing is paramount, highlighted by 55% of participants. The need for accessible, affordable, and substantial funding recurs. This includes not just government investments but also economic models that attract private investors. Lowering interest rates for capital-intensive projects and ensuring a stable investment environment are vital.

Secondly, appropriate policy is crucial, as pointed out by 42% of participants. This involves regulatory interventions and legislative frameworks providing clear mandates and incentives for investing in net zero initiatives. The importance of a stable political environment and consistent government support is stressed, alongside the need to move beyond greenwashing to genuine, enforceable environmental commitments.

Thirdly, supply chain capacity issues were listed by 22%. Supply chain expertise, mentioned by 11%, is crucial. This underlines the need for a supply chain adept in handling net zero project

demands. Developing infrastructure such as renewable energy grids, electric vehicle charging stations, and low-carbon fuel facilities is key. The supply chain's efficiency directly impacts these projects' feasibility and success. The availability of qualified people and enhanced infrastructure, also at 11%, highlights the need for a skilled workforce and advanced material supply chains. Training and developing a workforce capable of building and maintaining new technologies is critical. Securing raw materials and managing their supply to avoid reliance on unstable international markets is fundamental for ongoing progress.

Fourthly, collaboration between stakeholders, identified by 24%, is essential. This means cooperative efforts among industry players, supply chain partners, and governments. Joint initiatives and investment in technologies, along with capacity building in the supply chain, are necessary for transitioning to net zero. This collaboration also involves aligning corporate social responsibility with environmental goals.

Pressure for Net Zero

As corporate responsibility continues to evolve, we see pressures on companies to be more sustainable and to contribute to net zero targets coming from different directions.

Customers are at the vanguard, representing the most significant force, with 76% urging companies to pursue net zero goals. Following closely, 74% of shareholders recognise the value in sustainable practices and using their influence to advocate for environmental progress.

Generation Z, contribute 58% of the pressure. These younger employees bring a passionate, informed perspective on climate change and sustainability, often more pronounced than their older counterparts.

Funders and banks, contributing 39% of the pressure, and other stakeholders, at 37%, also play crucial roles. Within this 'other' category, government agencies emerge as key influencers. It is also noted that individual elements like friends, family, and company policies, though less significant, contribute to the overall pressure.

Incorporating Sustainability into Tendering Processes

We enquired of the participants what proportion of their customers now incorporate net zero and sustainability criteria into their tendering processes. The responses provide a glimpse into the escalating significance of sustainability and net zero objectives in business operations. It emerges that not an insignificant quantity of companies are presently integrating net zero and sustainability criteria into their tendering procedures.

What percentage of customers now build net zero and/or sustainability requirements into their tender process?

A minority of the participants (5%) report that none of their customers include such criteria. Conversely, the majority of interviewees (42%) indicate that between 1-10% of their customers now incorporate these criteria into their tendering processes. An additional 13% state that 11-30% of their customers have these criteria. Moreover, a substantial proportion of respondents (37%) say that over 30% of their customers now include net zero and/or sustainability criteria in their tendering processes. Three precent did not answer the question.

These figures indicate a growing trend towards greater environmental awareness among businesses.

The fact that not an insignificant number of companies' customers are incorporating sustainability and net zero targets into their tendering processes highlights the growing acknowledgment of the importance of these issues in the industry. It also implies that companies may need to modify their operations and strategies to align with these evolving expectations and requirements.

Profit Margins of Cleantech

When questioned about the affordability of business margins in the various clean technology sectors in which they operate, participants predominantly affirmed that margins were manageable. However, there is a nuanced aspect to this, which will be elaborated on below. It is worth noting that most of the companies involved in the interviews (69%) are in the services, engineering, and consulting sector, as opposed to manufacturing and construction, which make up the rest.

Within the renewable energy sector, encompassing onshore and offshore wind, hydropower, and solar, 13% of participants believe margins are below what is affordable. In the nuclear energy sector, this figure drops to 3%. Nuclear energy continues to be one of the more viable clean technology industries, owing to available funding, project longevity, and well-established technology. Sustainability initiatives, covering a wide array of actions aimed at minimising environmental impact, are

deemed unaffordable by 21% of participants. Decarbonisation efforts, focused on reducing carbon dioxide emissions, are viewed as financially challenging by 16% of interviewees. Similarly, electrification initiatives, which entail transitioning from fossil fuel-based systems to electric power, including supply oil and gas assets with clean power, are considered unaffordable by 13% of companies. The greatest concern lies in emission reduction, where 26% of participants regard the profit

margins for achieving net zero as unattainable. Concurrently, 18% of interviewees whose businesses are involved in the energy transition sector, which involves moving from fossil fuels to renewable energy sources, echo this sentiment.

Many companies find it viable to engage in these projects because clean technology still constitutes a minor segment of their overall business. This indicates that while these initiatives are not leading to financial losses, they are not substantially contributing to the firms’ profits either. Nonetheless, for longterm sustainability, business leaders and managers believe that substantially higher margins are necessary. This is because elevated profit margins would cover costs and also incentivise further investment in clean technology.

However, the attainment of higher profit margins in clean technology projects is not solely the onus of the companies.

regarding inflation and supply chain constraints. Despite increasing difficulties within the industry, the government persistently lowered the strike prices year after year. As a result, with the strike prices set at £44/MWh for fixed-bottom and £116/MWh for floating in the AR5, the lack of bids from developers sent a resounding message to the government and resulted in postponing numerous key projects. Recognising these concerns, the government has adjusted the strike prices for the current round (AR6) to £73/MWh for fixed-bottom and £176/MWh for floating. This has led to the revival of some projects that were previously on hold, allowing developers and tier 1 contractors to restart conversations regarding future plans in the UK.

However, the attainment of higher profit margins in clean technology projects is not solely the onus of the companies. Governments also play a pivotal role. They need to implement policies and practices that boost the profitability of these projects, potentially through financial incentives, reducing regulatory barriers, or investing in research and development to diminish clean technology costs.

A case in hand is the recent UK Contracts for Difference (CfD) Auction Round 5 (AR5) subsidy scheme, which underscores a disconnect between government actions and the industry's challenges, particularly

Regarding the comparison of profit margins in companies’ net zero activities now to two years ago, particularly pre-dating the energy crisis triggered by the Russian conflict in Ukraine, the majority (53%) report unchanged profit margins over this period. A significant proportion (26%) even report increased margins. However, a smaller group (16%) indicate deteriorated profit margins. This data suggests that for most businesses, involvement in net zero activities does not detrimentally affect profit margins and may, in some cases, prove advantageous. It is essential to acknowledge that these outcomes may vary depending on factors like business scale, industry, and specific net zero strategies.

Is Supply Chain Capacity Hindering Net Zero?

In response to the question of whether net zero targets are at risk due to lack of supply chain capacity, 61% of participants identify a lack of supply chain capacity as a major impediment to achieving net zero, placing it at the forefront of challenges within the cleantech sectors. This concern reflects the strain on resources and infrastructure, often dominating discussions about scaling up operations.

When we probed the participants further, asking them to identify barriers that stand in the way of expanding their businesses in the cleantech sector, 21% of respondents cite a shortage of qualified individuals as a critical barrier, revealing a talent gap that hampers innovation and execution within the industry.

Similarly, another 21% point to insufficient market demand as a stumbling block, suggesting a need for stronger consumer and business pull to scale up cleantech solutions. Echoing this, 18% lament the scarcity of financing, vital for catalysing growth and driving technological advancements in this sector. Further exacerbating these issues, 13% express concerns over the lack of affordable solutions, which can hinder the widespread adoption necessary for significant change. Additionally, 11% highlight the absence of clear policies, leading to uncertainty and impeding strategic decision-making.

Despite these concerns, 74% of companies are actively scaling up in preparation for a net zero

future. This figure demonstrates a strong, industrywide proactive approach, indicating that many organisations are not only cognizant of the barriers but are also taking decisive steps to overcome them and advance their cleantech initiatives.

On the other end of the spectrum, a mere 3% have paused their investments in net zero projects, pointing to a scarcity of opportunities. This small percentage suggests that while challenges are acknowledged, they do not dissuade the majority of companies from pursuing their environmental objectives. The overwhelming trend is towards progression and adaptation, rather than retreat or surrender.

Thus, the narrative becomes one of resilience and forward-thinking strategy. Businesses are navigating a landscape fraught with challenges such as the shortage of qualified personnel, insufficient market demand, financial constraints, affordability of solutions, and policy ambiguities. Yet, they are also exhibiting a commendable level of commitment and innovation, pushing through these barriers with their sights set on a sustainable, net zero-compliant future.

Statistics

Percentage of participants who believe targets will be achieved in the country they are based in.

Percentage of participants who believe targets will be achieved globally.

Percentage of participants who believe that we can get back on track to achieve net zero targets, if appropriate action is taken (domestically and globally).

Which

stakeholders are the most accountable for jeopardising net zero targets?

Top 5 things that need to be done to e ectively deliver on net zero projects as identi ed by participants.

Adequate financing

Appropriate policy Collaboration between stakeholders

Supply chain expertise Qualified people and infrastructure

Who pressures companies to deliver on the net zero journey?

Top 5 barriers for companies to scale-up net zero business in addition to supply chain capacity.

Case Studies from EIC Member Companies on Net Zero Activities

ABL Group

DEEP GEOTHERMAL WELLS: TECHNICAL AND COMMERCIAL FEASIBILITY STUDY

Introduction

Geothermal energy, harnessed from the Earth's internal heat, emerges as a sustainable answer to our escalating energy demands while minimising greenhouse gas emissions. At the heart of this energy source are geothermal wells, deep incisions into the Earth's crust that tap into thermal reservoirs to extract hot water or steam,

Project Overview

The Start-up Geothermal Well Development Company embarked on a project to establish a deep geothermal well for hot water or electricity production, aimed at reducing the carbon footprint of an international airport's passenger terminals. ABL Group’s task was to evaluate the technical

Results

Achieved

The ABL Group team conducted a thorough analysis, formulating strategies for the construction of geothermal wells under

utilised for electricity generation or direct heating. While geothermal energy is abundant and promising, its utilisation brings forth distinct challenges and opportunities. The project study aims to dissect these aspects, focusing on geothermal wells' potential and complexities. ABL Group addresses the challenges of resource location, and commercial feasibility of using existing oil and gas drilling technologies to construct a "downhole heat exchanger," linking multilateral well bores with feeder and producer geothermal wells. The client faced challenges due to a lack of in-house expertise, particularly in advanced drilling difficult technical conditions. We identified the most suitable technologies for efficient drilling and developed recommendations

geological uncertainties, high initial costs, potential resource depletion and environmental concerns. Concurrently, it examines the opportunities presented by geothermal wells, such as reliable renewable energy, low emissions, integration into hybrid energy systems, and the scope for innovation and research.

techniques like relief well drilling and electromagnetic ranging. Additionally, they required guidance on commercial and technical aspects such as sidetracking multiple wells from a single bore and navigating the complexities of drilling through challenging geological conditions.

for employing relief well drilling techniques. A detailed costbenefit analysis was performed, alongside a high-level risk

analysis to pinpoint potential project risks. The deliverables included a comprehensive feasibility report, encompassing risk identification, intersection tactics optimisation, technical equipment recommendations, a step-by-step construction process and cost investment outlines. ABL Group’s efforts led to a plan for drilling of a test well, the sourcing of additional project funding and the confirmation of the technical feasibility of using existing drilling technologies. The company also provided recommended efficient drilling technologies, contributing to such a project overall efficiency.

Conclusion and Future Works

The project highlighted the potential of geothermal wells as a sustainable energy solution, particularly for large-scale infrastructure like airports. The technological plan for the well drilling and subsequent findings underscored the feasibility of employing existing drilling technologies in geothermal well construction. Looking forward, the focus will be on further optimising the drilling process, exploring new technologies to enhance efficiency, and expanding the application of geothermal energy in various sectors. Continuous research and development in this field will be pivotal in realising the full potential of geothermal energy, contributing to a more sustainable and environmentally friendly energy landscape.

The company at a glance

Key products and services

ABL Group is a leading independent global consultancy delivering energy, marine, engineering and digital solutions to drive safety and sustainability in energy and oceans. It provides loss prevention, loss management and consulting and engineering services primarily to the renewables, oil and gas and maritime sectors.

ABL Group

Introduction

The imperative for effective Carbon Capture, Storage, and Utilization (CCUS) technology has intensified in the wake of the 2016 Paris Climate Agreement, which set ambitious targets for limiting global temperature increases and achieving net-zero emissions by

Project Overview

The Hydrogen Energy Supply Chain (HESC) consortium, a collaboration of leading Australian and Japanese energy firms, has initiated the world's first comprehensive Blue Hydrogen supply chain project. This revolutionary project is a significant stride toward a sustainable energy future. The project's pilot phase, completed in

Results

Achieved

In response to the challenge posed by the HESC project, AGR was tasked by Sumitomo Corporation to conduct an exhaustive

2050 in various regions. Historically, the oil and gas industry has pioneered CO2 injection techniques since the 1970s, not just for reducing greenhouse gas emissions but also to enhance oil recovery. Today, as climate change becomes an increasingly urgent issue, the role 2022, was crucial in establishing the feasibility of hydrogen gas production from Latrobe Valley coal. This hydrogen is planned to be transported for liquefaction to the Port of Hastings, and subsequently to Japan, using the world’s first purpose-built liquefied hydrogen carrier, the Suiso Frontier. Central to the project’s success is the

of CCUS technologies becomes more critical. The International Energy Agency (IEA) projects that, by 2060, CCUS must contribute 14% of cumulative emission reductions, marking a significant escalation from the current capture rates.

efficient capture and storage of CO2, achieved by storing it in reservoir formations deep beneath the Bass Strait. The Victorian and Commonwealth Governments in Australia have been instrumental in this effort, particularly through the CarbonNet Project, with AGR playing a pivotal role in drilling the project’s first CO2 storage well.

evaluation of the CO2 storage site. This evaluation was a crucial component of the project, given the importance of "safe" and "stable"

sequestration of 125 million tonnes of CO2. AGR’s team undertook a comprehensive analysis, encompassing qualification and

EXPERT DUE DILIGENCE OF CO2 STORAGE SITE ADVANCES WORLD’S FIRST TOTAL BLUE HYDROGEN SUPPLY CHAIN PROJECT

characterisation of the CCS site, geological assessment, tectonic risk analysis, evaluation of dynamic reservoir parameters and the risk of leakage. The outcomes were meticulously documented in a risk register, providing Sumitomo Corporation with detailed, independent guidance. The successful pilot project underscored the commercial viability of producing liquefied hydrogen and its strategic importance for both Australia and Japan, envisaging a reduction of global CO2 emissions and potential job creation in Victoria.

Conclusion and Future Works

The HESC Project exemplifies the transformative potential of integrated CCUS technologies in achieving sustainable energy goals and contributing to global net-zero emission efforts. AGR’s role in this project underlines the importance of expert involvement in managing complex environmental challenges. Moving forward, the focus will be on expanding the project's scale, enhancing its efficiency, and exploring new avenues for reducing carbon footprints on a global scale, thereby driving forward a more sustainable future.

The company at a glance

Key products and services

ABL Group is a leading independent global consultancy delivering energy, marine, engineering and digital solutions to drive safety and sustainability in energy and oceans. It provides loss prevention, loss management and consulting and engineering services primarily to the renewables, oil and gas and maritime sectors.

ABL Group

PIONEERING EXCELLENCE IN OFFSHORE GREENHOUSE GAS (GHG) STORAGE: AGR’S TRIUMPH AT THE PELICAN STORAGE SITE

Introduction

The advancement of Carbon Capture, Storage, and Utilization (CCUS) technologies has been integral in the global effort to combat climate change. Since the 1970s, the oil and gas industry has been at the forefront of CO2 injection, not only to diminish greenhouse gas emissions but also to boost oil production. The 2016

Project Overview

The Pelican storage site, part of Australia’s first offshore Greenhouse Gas (GHG) storage project within the CarbonNet initiative, represents a significant leap in environmental stewardship. Located in the Gippsland Basin, the site presented unique challenges,

Paris Climate Agreement amplified the urgency to address climate change, setting ambitious targets for global temperature control and net zero emissions by 2050. To achieve these goals, the role of CCUS technologies is crucial. However, the implementation of Carbon Capture and Storage (CCS) technology faces unique challenges, including proximity to a popular holiday destination, impacts of the 2019 Victoria bushfires and complex geological conditions.

AGR's Australian Well Management team was engaged by the Victoria government to oversee the drilling operations and conduct comprehensive

requiring a deep understanding of subsurface behavior for CO2 injection and long-term storage, alongside regulatory compliance. AGR, with over two decades of experience across various sectors, emerges as a key player in supporting clients to navigate these challenges and effectively implement CCS technology.

assessments in preparation for the project. The team was tasked with executing a versatile well design, managing a complex coring program and addressing unexpected geological conditions, all while ensuring environmental responsibility and stakeholder satisfaction.

Results

Achieved

AGR's approach led to several notable achievements. The team managed all regulatory

submissions in-house, ensuring a seamless progression of the project. Notably, every campaign

activity was executed successfully and under budget, resulting in significant cost savings for

the client, totaling AU$7m. The logistical coordination involved mobilising equipment from 13 countries without impacting the critical path of operations. The project met all appraisal targets, including retrieving 89 metres of core, conducting an extensive logging campaign, and injecting over 9,000 barrels of drill water. The environmental impact was meticulously managed, with all campaigns executed harmlessly. AGR's stakeholder engagement strategy ensured compliance with regulatory approvals, reinforcing the project's environmental responsibility.

Conclusion and Future Works

AGR’s successful execution at the Pelican Storage Site well drilling establishes a benchmark in responsible and innovative GHG storage. The project demonstrates AGR's commitment to excellence, environmental stewardship and cost efficiency. This accomplishment not only sets a precedent for similar projects worldwide but also reinforces the importance of multidisciplinary expertise in overcoming complex challenges in GHG storage. Looking ahead, the focus will be on leveraging these experiences to advance further GHG storage projects, contributing to the global effort to combat climate change and transition to a more sustainable future. For more information, the Victoria State CarbonNet project webpage provides additional insights.

The company at a glance

Key products and services

ABL Group is a leading independent global consultancy delivering energy, marine, engineering and digital solutions to drive safety and sustainability in energy and oceans. It provides loss prevention, loss management and consulting and engineering services primarily to the renewables, oil and gas and maritime sectors.

Amarinth

A WORLD-LEADING, NET ZERO DESIGNER AND MANUFACTURER OF LOW LIFECYCLE COST CENTRIFUGAL PUMPS AND ASSOCIATED EQUIPMENT.

Introduction

For two decades, Amarinth has pioneered cutting-edge pumping solutions for oil and gas, process, energy and renewables. A decade ago, Amarinth acknowledged the growing importance of carbon reduction, embarking on a journey to transform into a net zero organisation. Amarinth’s customers, comprising some of the world's largest corporations, had also initiated net zero endeavours, exerting pressure on their supply chain partners, demanding tangible steps toward net zero status. Amarinth firmly rejected the greenwashing tactics observed in some companies, which was a marketing ploy of purporting to be environmentally

Project Overview

Amarinth knew achieving net zero would be neither swift nor straightforward, requiring a comprehensive, long-term approach. Its shareholders and board of directors committed with passion and determination the necessary resources and time, and, simultaneously, staff members integrated the vision into daily activities, fostering a culture that celebrated collective successes. Amarinth began with an environmental management system (EMS), aligned with key performance indicators (KPIs), to enhance environmental performance. Employee ambassadors shaped processes and policies, instilling a culture of environmental responsibility. This led to ISO 14001 certification in 2014, a testament to environmental excellence.

Amarinth turned its attention to identifying a recognised standard. Despite initial frustration with the lack of guidance, the company finally discovered

conscious without any notable sustainability efforts. Instead, it devised a plan for tangible carbon reductions, leveraging them as business benefits aligned with the company's strategy. The goal was not just sustainability but a measurable impact that could withstand rigorous scrutiny. However, the company faced a stark reality. Despite governmental rhetoric, carbon reduction surveys and COP commitments, there was an alarming lack of support and practical advice, especially for smaller businesses. In the absence of any clear guidance though, Amarinth continued to forge a path toward its self-imposed goals.

ISO 14064-1, a framework for measuring greenhouse gas emissions and clarifying carbon footprints. This decision of being independently audited underscored Amarinth's commitment to transparently demonstrate its achievements.

Thorough assessment identified emission sources, leading to a robust monitoring system with three objectives:

1. Achieving a net-zero facility,

2. Manufacturing energy-efficient pumps, and

3. Developing an environmentally sustainable supply chain.

Significant investments were made, aligned with the business strategy, and in 2022, Amarinth achieved ISO 14064-1 Carbon Reduce Certification, showcasing

its commitment to sustainability. Amarinth also encouraged its supply chain to follow suit, emphasising the importance of industry alignment whilst evidencing influence beyond the direct operation.

Results Achieved

Amarinth's commitment to sustainability has yielded substantial benefits, including:

· Carbon neutrality at its UK head office, with its own solar array powering all facilities and recharging its electric and hybrid vehicles.

· Direct connection to a local biomass power station for peak energy requirements, reducing dependence on brown energy.

· State-of-the-art test bay with remote witness testing capabilities, minimising the need for customers to travel long distances.

· Cutting-edge pumps that are among the most efficient in the world, leveraging unrivalled expertise into new solutions for renewables, hydrogen and carbon capture.

· Supply chain alignment, with environmental philosophies a prerequisite for preferred supplier status, promoting efficient use of raw materials, minimising waste and inspiring others to embark on their own net zero journeys.

Furthermore, Amarinth fosters initiatives like cycleto-work incentives, a zero-emission car scheme, a wildflower meadow supporting local bees and active recycling programs.

Conclusion and Future Works

In just ten years, Amarinth has made significant progress. It has not been easy, with many frustrations amid a scarcity of guidance and support. However, the company overcame the challenges, achieving ISO 14064-1 certification, and is more knowledgeable and well-prepared to advance its commitment to net zero in 2024 with ISO 14068. Sustainability is integral to Amarinth's DNA, fostering innovation and efficient products while reducing its carbon footprint. This dual focus benefits the organisation and attracts orders from clients seeking a net zero supply partner. Amarinth’s unwavering commitment to sustainability is not just a journey; it's a testament to transformative leadership in the pursuit of a greener, more responsible future.

The company at a glance

Key products and services

API 610, API 685, and ISO 5199 centrifugal pumps and associated equipment for critical applications in many of the most arduous and hostile environments around the globe.

Main industries served

Offshore oil and gas

Onshore oil and gas

Nuclear

Renewable energy generation

Defence

Desalination

Process and industrial markets

Headquarters

Rendlesham, UK

Company website

www.amarinth.com

Year established

2003 48

Number of employees

Revenue

£8m

AVEVA

DESIGNING A LOW-CARBON FUTURE WITH DIGITAL ENGINEERING

Introduction

Today, green hydrogen is considered an important piece of solving the energy transition puzzle, but building a successful hydrogen economy will require several engineering developments from both the supply and demand side. To start, we will have to do the following:

Supply side:

· Build new clean hydrogen facilities and renewable power generation plants, as well as new grid infrastructure.

· Add carbon capture, usage and storage (CCUS) units to reduce or achieve zero emissions on existing hydrogen facilities (converting gray to blue hydrogen).

· Hydrogen storage and

Project Overview

transportation to deliver clean hydrogen to consumer points.

Demand side:

· Adapt industrial plants and buildings so hydrogen can replace fossil fuels.

· Produce hydrogen fuel cell vehicles and new power stations to ensure hydrogen demand on a larger scale.

Digital solutions in the engineering space are enabling new technology and processes, as well as new ways of working with increased agility, transparency and collaboration. The digital solutions required to accelerate the transition are already available, and companies and people need to explore their full potential and drive changes in the way they work. By adopting a digital unified engineering approach, industrial facilities can be designed (or adapted) and built faster, considering both CAPEX and OPEX at the early stages of a project. Companies need to adopt a data-centric approach that will carry

· Convert hydrogen to green ammonia to be used in the fertilizer industry.

The bad news is that projects are being approved and developed at a much slower pace than required to reach the 2025 net zero goals. Adopting a digital engineering approach could increase these projects’ feasibility and lower project risk.

engineering information from the conceptual design phase through FEED, detailed engineering, all the way to construction, commissioning and startup. With a single source of the truth for all information and easy access for everyone involved (engineering disciplines and partners), engineering cycles are faster and lower risk, enabling process and control strategy optimisation to achieve the most cost-effective design. In the end, a reliable digital package (or digital twin) can be delivered to the owneroperator, which can be connected to real-time data for continuous improvement and optimization.

Aker Carbon Capture provides a good example of digital

engineering in action. The company designs and builds facilities for capturing the carbon dioxide that is produced by industrial processes (such as cement, blue hydrogen and waste power) to combat climate change.

The company has used AVEVATM E3D Design models and AVEVATM Enterprise Resources Management (ERM) in the cloud to combine material management, project planning and fabrication and construction support with 3D model integration. The software added flexibility to the way the teams worked and supported engagement across geographies and time zones. The company optimised and standardised its processes with a modular approach to make it easier to adjust to client needs, as well as ensuring compliance with cyber security standards.

Results

Achieved

With AVEVA’s cloud-based unified engineering approach, Aker Carbon Capture improved collaboration across teams and partners, allowing it to optimise how the company works together. Processes became more transparent and agile, while the teams challenged themselves to think and work differently.

Aker Carbon Capture achieved the required speed and efficiency to respond to market with a material reduction in engineering man hours. As a result, it reduced the cost of the medium-sized carbon capture unit offer by 90% compared to nine years ago.

Conclusion and Future Works

Aker Carbon Capture partners with technology companies like AVEVA to enable negative carbon intensity for industrial processes, which will be critical to achieve the world’s 2050 net zero goals. Now, the company is working to reduce the cost of its larger-sized offering by 50% in the next decade.

The

company at a glance

Key products and services

AVEVA provides industrial software for design, build, operate and optimise with focus of building a sustainable industrial future. It’s a vast portfolio including AVEVA E3D, AVEVA Process Simulation and Unified Engineering; AVEVA System Platform and AVEVA PI System; AVEVA Predictive Analytics; and AVEVA Connect and AVEVA DataHub and more.

Main industries served

Oil, gas and energy Chemicals

Mining and metals

Power and utilities

Manufacturing (CPG, F&B, Life Sciences)

Pulp and paper

Transportation

Marine.

Headquarters

London, UK

Company website

Year established

www.aveva.com 1967

Number of employees

6,500

AVEVA

DRIVING NET ZERO OPERATION THROUGH INDUSTRIAL INTELLIGENCE

Introduction

To move towards a net zero future, we need to ensure the decarbonisation of existing industrial plants. Carbonintensive industries must find solutions to reduce their carbon footprint, whether by adding carbon capture units, reducing energy

Project Overview

Toyota Motor Europe (TME) promotes energy cost and CO2 reduction activities in European manufacturing companies. To do so, it centrally collects, manages and visualises energy data using AVEVA™ PI System™ as TME’s European energy monitoring system (EnMS). TME’s energy distribution came from 49% electricity and 51% gas. While all the electricity consumed was carbon free, 100% of the gas consumed had CO2 emissions impact. With a deeper analysis, it identified the paint shop as its major energy consumer, making it the biggest focus for

and fuel consumption or increasing the renewable power in their energy mix.

The first step is to understand industrial operations and define a strategic roadmap to increase decarbonisation. Organisations must identify the immediate opportunities optimisation.

TME aimed to reinforce operators’ capabilities by giving visibility into hidden influencing factors such as the ramp-up time required. Experts could visualise energy waste, enabling them to act and grasp their impact.

AVEVA PI System supports TME’s daily operations with equipment energy monitoring, enabling TME to achieve its challenging future goals.

The project aimed to allow operators to optimise the energy consumption of paint booths, implement a sustainable continuous improvement

as well as the areas that will require medium and longterm investment. By adding an industrial intelligence layer to operations through digitalisation, most companies find several easy opportunities to explore that could result in fast decarbonisation results.

approach and demonstrate the possibility of reducing abnormal energy consumption. The solution involved:

· Measuring and storing data: connection of processes and energy data in an asset framework data model (PI System Interface and Data Archive).

· Analysing data series by setting up automatic analysis (PI System Asset Analytics).

· Reporting results through real time KPIs through dashboards and weekly reports (AVEVA PI Datalink).

· Notifying in case of abnormalities (Event Frames).

Then, to eliminate energy waste, it used specific guidelines for production and non-production time:

Production time:

· Guarantee quality using the minimum amount of energy.

· Ensure that the process parameters remain within the tolerance ranges.

· Avoid overshooting.

· Detect and inform in the event of an abnormal situation.

Non-production time:

· Use energy only if necessary.

· Follow start/stop operations versus planning.

· Detect and inform in the event of an abnormal situation.

· Set up a Plan-Do-Check-Act (PDCA) cycle.

Results Achieved

TME achieved:

· A 35% reduction in energy consumption (impacting OPEX) and 28% reduction of CO2 impact during non-production time with zero financial investment.

· Better control of equipment.

· Awareness of how energy impacts its processes.

The results were achieved thanks to the strong baseline provided by the operational data management system. AVEVA PI System provided the industrial intelligence to align business and decarbonisation goals.

Conclusion and Future Works

After establishing a robust and reliable data management infrastructure to monitor important indicators and identify the areas for quick improvements, organisations can invest in advanced applications to extract further value from their data with sophisticated algorithms. Typical applications are optimisation systems based on non-linear models and predictive analytics based on machine-learning models.

The company at a glance

Key products and services

AVEVA provides industrial software for design, build, operate and optimise with focus of building a sustainable industrial future. It’s a vast portfolio including AVEVA E3D, AVEVA Process Simulation and Unified Engineering; AVEVA System

Platform and AVEVA PI System; AVEVA

Predictive Analytics; and AVEVA

Connect and AVEVA DataHub and more.

Main industries served

Oil, gas and energy Chemicals

Mining and metals

Power and utilities

Manufacturing (CPG, F&B, Life Sciences)

Pulp and paper

Transportation

Marine.

London, UK

Headquarters Company website

www.aveva.com

Year established

1967

Number of employees

6,500

Belzona

POLYMERIC SOLUTIONS FOR A SUSTAINABLE FUTURE

Introduction

Belzona has seen a great deal of success in the net zero space. For 70 years, the company has helped numerous clients to avoid asset decommissioning and replacement and instead has actively improved their assets using industrial coatings

Project Overview

In addition to the carbon mitigation that can be achieved through investment into Belzona’s protective coatings and composite repair systems, as well as the work we do in the renewables

Results Achieved

Customers have already been looking for repair instead of replacement because of the clear circular economy benefits. For example, over the course of several years, a steel fabricator in the UK’s East Coast managed to save millions of pounds by deploying polymeric repair and protection systems onto more than 2,000 metres of its gas pipeline, including epoxy repair mortars and stainless steel protective coatings.

and repair composites for the long term. In turn, the Belzona solution, facilitated by an impressive network of 140 distributors operating in over 120 countries, supports asset owners across multiple industries in their net zero journeys.

sector, Belzona is also committed to investing in environmentally sustainable practices within the business. This is part of the company’s plan to support a net zero future for the planet.

Belzona has also been supporting a UK-based power distribution company whose assets are subject to SF6 leaks in their switchgear. SF6 is described as the world’s worst greenhouse gas and is 23,500 times more potent than CO2.

In early 2022, Belzona created a tailor-made solution to stop leaks from a high-voltage switchgear owned by an electrical distribution network operator. After several stages of prequalification testing

and real-world trials, the system has now been adopted. With Belzona’s support, the organisation is now achieving large reductions in the amount of SF6 lost to the atmosphere from high-voltage switchgear flange joints.

Belzona is currently working with its own supply chain to determine emissions generated in the production of its polymeric solutions. The idea being to gain visibility, make enhancements

and take its learnings to customers to enable them to make informed decisions about reducing their carbon footprints.

Another important step has been the creation of an internal environmental committee to oversee targets and ensure these are being worked towards. The following examples showcase Belzona’s commitment to decarbonising its upstream operations:

· Products supplied in unit sizes designed to minimise waste: taking into account the product’s usable life and potential applications, the unit size of each product is carefully considered to ensure that minimum waste is created.

· UN cartons with reduced cardboard content and increased strength: thanks to manufacturing technology improvements, Belzona’s cardboard packaging is stronger than previous packaging, but has less fibre weight. In turn, this creates a reduced environmental impact.

· Quarterly site environmental audit: this includes the monitoring of various areas within the business (compliance, site drainage, waste management etc.) to ensure that environmental requirements are being fulfilled.

· Maintenance of equipment to ensure efficiency: regular maintenance is carried out by Original Equipment Manufacturer (OEM) and in-house Plant & Facilities Reliability (PFR) teams to ensure that critical equipment continues to run efficiently, and new equipment is purchased when required.

Conclusion and Future Works

Just as Belzona continues to find ways to extend the lifespan of buildings, structures, machinery and equipment, Belzona as a business is also committed to reducing its impact on the environment. With the ongoing adoption of climate-friendly practices, such as those outlined above, Belzona will continue to make important steps that move the business towards an increasingly environmentally sustainable future. For example, the Belzona Research and Development team is currently in the process of formulating products made from bio-based materials that are produced from sustainable plant-based feedstocks, rather than the traditional fossil-fuel based ingredients.

The company at a glance

Key products and services

Key products and services: Polymeric solutions for industrial maintenance, offering unconventional repair alternatives for end users.

Oil and gas Renewables

Power Nuclear

Energy Transition

Mining, marine, steel, wastewater

BMT

THE FEASIBILITY OF RETROFITTING FERRIES TO USE HYDROGEN PROPULSION AND STORAGE SYSTEMS

Introduction

Pressure to reduce greenhouse gas emissions is increasing across the global maritime sector, with major changes required across nearly all vessel types. Adoption of alternative fuels will be vital to achieving decarbonisation, and existing fuels such as Marine Gas Oil (MGO) and Heavy Fuel Oil (HFO) will need to be replaced by low-carbon alternatives.

Hydrogen is one of the options being explored across ferries and other commercial vessel types. However, for operators, transition pathways to hydrogen adoption

across their fleets are still subject to uncertainties.

Ro-Pax ferries, which are responsible for 37 million tonnes of CO2 emissions annually, are well suited to alternative fuels as they normally have specific and constant route profiles. However, they typically have a 25-year lifetime; therefore, operators are reluctant to acquire new vessels to meet upcoming regulatory emissions targets, and it is difficult to design vessels around fuel storage and propulsion plants.

With the availability set to greatly increase and the creation of clusters, hydrogen is becoming a more attractive solution for operators in the future. However, transition pathways to hydrogen adoption across their fleets are still subject to uncertainties. These include the competitiveness against other emerging fuel options, potential fuel cost reduction trajectories, time-tomaturity of key technologies and development of the required infrastructure.

Project Overview

BMT worked in collaboration with PA Consulting to assess the economic viability of hydrogen power in passenger vessels and investigate the impact of different hydrogen technologies on the design of existing vessels. A real conversion case study was defined, based on an 85 metre Ro-Pax catamaran

vessel. Retrofitting vessels to feature hydrogen technology allows the implementation of decarbonisation initiatives while avoiding the need for new builds, thus reducing the CAPEX costs. Three different retrofit alternatives are explored, varying in complexity, level of hydrogen demand, and retrofit costs.

· The first option utilises compressed hydrogen storage with dual-fuel engines,

· While the other two make use of 100% hydrogen-powered propulsion systems (fuel cells and internal combustion engines), coupled with liquid hydrogen storage.

A Total Cost of Ownership (TCO)

model is created to assess the cost of conversion for these options, which are assessed for three types of hydrogen: grey, blue, and green.

Finally, a sensitivity analysis is performed, exploring the impact of government subsidies and location factors such as hydrogen transport distances.

Results Achieved

BMT delivered a study that provided conclusions in two areas: engineering feasibility and technoeconomic analysis. The TCO model identifies the most competitive option by calculating the fuel OPEX of these variations through to 2045, considering the associated retrofit costs for each, and using the conventional diesel-powered baseline vessel for comparison. The study allows operators to make more informed decisions around their fleets and particular use cases.

Conclusion and Future Works

Hydrogen technology is still considered a novelty in the maritime industry and its further implementation on new and existing vessels will naturally push for the development of dedicated rules for the design and operation of hydrogenpowered ships. As these rules become available and the risks of using hydrogen for marine propulsion continue to be investigated and studied, naval architects and ship operators will eventually be able to further understand the impact of this technology on ship design.

The company at a glance

Key products and services

Maritime design and consultancy, environment and climate solutions, asset monitoring and sustainment, defence and security customer friend.

Main industries served

Maritime

Asset monitoring

Climate solutions

Defence

Government

Security Justice

Headquarters

London, UK

Company website

www.bmt.org

Year established

1985

Number of employees

1,300

Revenue

£157m

Kent

WE DESIGN, BUILD AND MAINTAIN THE ASSETS THAT POWER THE WORLD FOR TODAY AND MAKE IT FUTURE-READY FOR TOMORROW

BOUNDARY DAM INTEGRATED CARBON CAPTURE AND STORAGE DEMONSTRATION PROJECT, CANADA

Introduction

SaskPower operates one of the world’s largest integrated carbon capture and storage demonstration projects at the Boundary Dam Power Station in Estevan, Saskatchewan, Canada, designed and built by Kent. The retrofitted unit is designed to remove CO2 and SO2 emissions from an existing 150MW lignite coal-fired power unit.

Project overview

The scope of work involved the design and construction of a CO2 and SO2 capture plant with integration to defined power plant tie points including a Heat Rejection System and Compression Balance of Plant. The captured CO2 is compressed and injected underground to enhance oil recovery and the

Results Achieved

Kent used state-of-the-art design methods including the implementation of a full 3D CAD project execution plan based on an advanced design

nearby Weyburn oilfield. The plant also includes a 60 t/d sulfuric acid plant to convert the capture of SO2.

Kent provided front-end engineering design (FEED) and full engineering, procurement and construction services for the carbon capture portion of the overall boundary dam project. The

early engineering phase of the project started in 2009 followed by the award of the EPC contract in 2010 and the construction phase beginning in May 2011. When the plant became commercially operational in 2014, it became the first power station in the world to successfully use CCS technology.

platform. By integrating piping and instrumentation diagrams (as well as multi- disciplinary engineering work) directly into the 3D model, it was possible to

complete the project, from endto- end management of front-end engineering, to final construction design, on time and to the client’s satisfaction. The 3D model was also

instrumental in involving SaskPower and its operators at various stages of design review. A novel concrete tower and packing support design approach for the CO2 and SO2 absorbers contributed to a compact plant design, shorter construction schedule and a reduced plant capital cost. Some of the largest commercially available equipment was used in the engineering of this “first of a kind” commercial scale project.

Conclusion and Future Works

This project transformed an aging coalfired power unit into a reliable, long-term producer of base load electricity capable of reducing greenhouse gas emissions by one million tonnes of carbon dioxide (CO2) each year;

SaskPower's Boundary Dam Unit #3 is now producing affordable coal power for more than 100,000 homes and businesses for at least the next three decades and doing so 10 times more cleanly than other coal units and four times cleaner than a comparable natural gas unit.

This project uses a large “distributed control system” that uses a combination of networked and hardwired communication to allow the new Boundary Dam Carbon Capture Facility and the existing coal fired power plant to operate in unison.

The knowledge and experience Kent gained from the Boundary Dam project gives an unparalleled insight into the challenges of engineering, construction, commissioning, bringing into operation, and problem solving a large commercial scale CCS project.

The

company at a glance

Key products and services

Multi-disciplinary project management and engineering services across the asset lifecycle, from consulting to design, build, commissioning and start-up through to maintenance and decommissioning.

Main industries served

Oil and gas ((including decarbonisation of existing assets)

Low carbon (CCS, hydrogen, fuels and chemicals, including those from waste feedstocks)

Renewables

Process Chemicals

Kent

WE DESIGN, BUILD AND MAINTAIN THE ASSETS THAT POWER THE WORLD FOR TODAY AND MAKE IT FUTURE-READY FOR TOMORROW

SAINT-BRIEUC OFFSHORE WIND FARM, FRANCE

Introduction

The offshore wind project off the coast of the Bay of Saint-Brieuc is the first large-scale offshore wind farm in Brittany and one of the first in France to obtain all the necessary government permits for its construction and operation.

The Saint-Brieuc offshore wind farm, which is scheduled to be commissioned progressively at the end of 2023, will consist of

Project overview

Kent produced the initial design for the jacket substructure during a preliminary design phase and to subsequently develop and refine this design as the project moves through detailed design and certification. Kent's other involvement includes supporting the project with engineering capability through fabrication and installation. Due to the presence across the site

62 Siemens Gamesa Renewable Energy 8MW wind turbines, for a total power of 496MW. The turbines will be distributed over an area of 75km², with the nearest turbine located 16.3km from the Breton coast.

The expected energy production will amount to 1,850GWh, equivalent to the electricity consumption of 835,000

inhabitants, including heating. The 62 wind turbines will be arranged in 7 lines of 3 to 14 turbines, spaced at approximately 1,300 meters apart with an electrical substation located in the centre of the farm.

The site varies between 29m and 42m water depth and has challenging ground conditions.

of particularly stiff rock, the pile installation requires the drilling of a rock-socket and the use of a grouted connection to fix the piles in place. This format of grouted connection is not well covered by the DNV design codes and so Kent has used a mixture of its own expertise (across both offshore wind and from the oil and gas industry) and other existing codes that

provide relevant guidance for this scenario. Despite these challenging ground conditions, the Kent team's exceptional dedication and expertise enabled Kent to navigate these complexities with remarkable efficiency while effectively addressing numerous inquiries to drive a successful project delivery. The final WTG foundations are currently being installed.

The company at a glance

Key products and services

Results Achieved

Kent's involvement demonstrated its ability to deliver comprehensive support from initial design to fabrication and installation, resulting in significant accomplishments including a full jacket foundation design, a three-legged jacket design and the successful implementation of drill and grout pile installation techniques.

Conclusion and Future Works

In early July 2023, the first Saint-Brieuc wind turbines were connected to the French grid, producing clean energy through an offshore wind farm for the first time in Brittany's history. The remaining turbines will gradually be connected to the grid until the 62 wind turbines of the park are fully operational by the end of 2023. This project has cemented the value of effective collaboration, emphasising seamless interaction and coordination among all project stakeholders. The significance of interdisciplinary expertise in addressing intricate design challenges and strict adherence to industry standards positioned Kent to successfully support the project and would be beneficial in addressing issues arising from initial design to fabrication and installation in offshore wind projects.

Main industries served

Oil and gas ((including decarbonisation of existing assets)

Low carbon (CCS, hydrogen, fuels and chemicals, including those from waste feedstocks)

Renewables

Process

Chemicals

Multi-disciplinary project management and engineering services across the asset lifecycle, from consulting to design, build, commissioning and start-up through to maintenance and decommissioning. Headquarters

LCTS

Introduction

Lucke Consulting Technology Services, LLC (LCTS) is very active in supporting clients and projects in the energy sector with the goal to decarbonise the industry and to find efficient and economically viable solutions

Project Overview

LCTS is in discussion with BP Archaea and other companies as potential buyers for the RNG. The first project will receive a solid waste stream from industrial hemp farmers which will be mixed with a cow manure slurry before being fed to the anaerobic digester. LCTS selected a highly efficient and productive digester technology that allows it to

a) convert even hard-to-digest

Results

Achieved

To receive commitment from a potential RNG buyer and funding for the first project, LCTS selected a digester concept that is based on a

for the production of fuels and energy from renewable or low-carbon resources. One of its core initiatives is the use of industrial hemp waste (stalks and leaves) to generate renewable natural gas (RNG) via anaerobic

digestion. This process will generate pipeline quality RNG for industrial or domestic use, a liquid or solid digestate stream for soil enhancement/fertilising, and a high purity CO2 stream for further use and processing.

portions of the plant, e.g. lignin, at a high conversion rate

b) maximize the methane yield from the dry biomass (hemp waste plus cow manure), and

c) utilise equipment that is easy to operate and to maintain. To maximize the RNG output of the facility, LCTS decided to colocate the digester plant with a landfill that is currently installing equipment and facilities to capture landfill gas for

conversion to RNG. The idea is to use a common gas clean-up and compression unit that will inject RNG coming from the landfill and from the digester plant into a local natural gas pipeline. The CO2 from the gas clean-up unit can be either compressed and sent to a potential user or a CO2 pipeline. Alternatively, LCTS has selected technologies that will allow conversion of the CO2 to increase the output of methane.

retention time of 40 days at 104ºF, a methane yield of 86%, resulting in a RNG output of 350 MMBTU per day. This is the output from the

digester plant only. RNG from landfill gas is an additional volume of sales product. LCTS has worked closely with the National Hemp Growers

RNG FROM INDUSTRIAL HEMP

Cooperative to research the use of industrial hemp as an energy crop, and it has published a white paper summarising the results of the research. The company is currently working with hemp growers and laboratories on more detailed analytics of hemp waste to develop more reliable biomethane potential data for its yield model.

Conclusion and Future Works

Based on LCTS’ research and all available data, industrial hemp is an excellent crop for use in the energy generation, specifically for renewable natural gas. It shows a very favourable energy output/input ratio and provides a high potential for conversion to biomethane. The advantages of growing hemp are the potential use of the hemp seeds and its oil to produce cattle feed or high protein food supplements and its benefit as crop for soil remediation and clean-up. The hemp stalks and leaves can be used in the digester plant to generate RNG. Instead of mixing the relatively dry hemp biomass with pure water, LCTS intends to use cow manure slurry to add the biomass and biomethane potential of the cow manure to the energy balance. Once the hemp tests and laboratory results confirm the positive energy balance for hemp, LCTS will move forward with the design and construction of the first digester plant.

The company at a glance

Key products and services

Engineering and consulting services.

Main industries served

Downstream oil and gas Energy

Renewable energy

Gas monetisation

Headquarters

Houston, US

Company website

www.luckeconsulting.com

Year established

2012

Number of employees

Revenue

Revenue from net zero activities

Mohammed Yousuf Akram and Partner Company LLC

EMPOWERING CHANGE: MYA TAILORS HOLISTIC SOLUTIONS, FROM INDIVIDUALS TO GOVERNMENTS, ADVANCING ESG GOALS FOR 2030

Introduction

In this case study, Mohammed Yousuf Akram and Partner Company LLC (MYA) delves into the pivotal role of energy efficiency as the most economical source

Project Overview

Amid the challenges posed by the COVID-19 pandemic, MYA spearheaded a forwardthinking initiative focused on an energy efficiency solution in mid-2021. The integration of MYA's Smart Energy Optimiser into the Coastal Baith Al Nahdha Typical Office Loads of Petroleum Development Oman

Results Achieved

globally. Examining its impact and implementation, it explores the transformative potential it holds in optimizing resource utilisation and fostering sustainable energy

practices. Discover how prioritising energy efficiency not only proves economically viable but also contributes to a resilient and environmentally conscious future.

(PDO) served as a compelling proof of concept (PoC), in line with our joint commitment to decarbonisation goals. Through a collaborative effort with the client, an intricate measurement and verification protocol were meticulously applied, resulting in an impressive over 15% reduction in energy consumption

Savings snapshot of Pilot Installation in PDO

Percentage savings in kWh: 11.63% (Direct comparison without data extrapolate)

Percentage savings in kWh: 15.06% (Comparison with data extrapolate)

alongside enhanced power quality. This achievement stands as a testament to MYA's dedication to delivering cutting-edge solutions, actively contributing to decarbonisation and embodying a transformative approach to sustainable, environmentally conscious energy practices.

Peak reduction in Amps: 17.39%

Average reduction in kW: 11.66%

Peak reduction in kW: 21.92%

Average reduction in kVA: 12.14%

Peak reduction in kVA: 24.11

Conclusion and Future Works

In conclusion, energy efficiency is the world's cheapest source of energy. PDO UIB5 team extends an invitation to MYA for a paid trial to conduct a more in-depth assessment of the technology under IOMVP, facilitating a comprehensive data analysis and comparison exercise. The evaluation of the initial pilot installation's energy savings in PDO showcases significant outcomes with MYA's Smart Energy Optimiser, garnering increased attention from key stakeholders interested in advancing energy efficiency measures. These findings underscore the effectiveness of MYA's solution in realising substantial energy savings and efficient peak load management.

MYA received an invitation from OQ in mid2022 for a pivotal energy efficiency project, positioning it as a blueprint for Oman and other governmental entities to follow, aligning with the outlined roadmap. OQ Alternative Energy extends an invitation to MYA and other energy service companies (ESCOs) to amplify energy efficiency in OQ's Sohar and Mina Al Fahal buildings. The primary scope targets a mandatory 25% energy savings with 6 years payback period across 154 Sohar buildings (280,030m²) and 196 streetlights, encompassing key facilities like Sohar Refineries, Aromatics and Polypropylene Plants, Liwa Plastics' Complex and non-plant area streetlights. The optional scope addresses energy conservation in 10 MAF buildings (17,983m²). The holistic approach includes auditing, detailed analysis, energy usage breakdown, cost analysis, solution design, procurement and installation. The bid is currently under evaluation and MYA eagerly awaits the results.

Additionally, numerous impactful energy audits and energy efficiency projects in Oman and neighbouring countries seek seed capital and CAPEX for growth of green schools, worship places, buildings and roads. MYA actively seeks strategic investments, such as green financing, collects EU tax funds, sustainable projects funds, carbon trading etc., to forge partnerships and collaborate in an unparalleled value chain journey.

The company at a glance

Key products and services

Smart energy optimisation, sustainable water management, carbon footprint reduction services, renewable energy integration, ESG consultancy, green supply chain solutions, circular economy implementation, environmental monitoring systems, renewable resource assessments, climate change adaptation services.

Main industries served

Oil and gas Energy

Water

STEM education

Muscat, Oman

Headquarters Company website

www.yousufakram.com

Year established

2021

Number of employees

Revenue

Sonardyne

SONARDYNE ENGINEERING THE FUTURE OF UNDERWATER TECHNOLOGY: NAVIGATION, WIRELESS COMMUNICATIONS AND PERCEPTION SYSTEMS

Introduction

Back in 2021, Sonardyne set itself the target of becoming carbon neutral by the end of 2025, covering direct and indirect emissions, including those associated with

Project Overview

The plan developed from the vision of founder John Partridge, who started the underwater acoustics company in 1971. He aimed to make working underwater safer, efficient and more sustainable. Today, the most visible signs of the drive for sustainability are 1,300 solar panels at the company’s headquarters on Blackbushe Business Park. In the future, the company hopes to add canopies fitted with solar panels in its car park. These would generate more carbon-free energy while also protecting vehicles from the weather.

manufacturing as well as supply chain activities, from all of its UK sites and operations.

It cements Sonardyne’s long-term commitment to being an environmentally

responsible and sustainable business, with a clear goal towards supporting the Paris Agreement on climate change to limit global warming to below 1.5°C.

Solar panels are just part of the company’s plan to reduce its carbon footprint. In recent years, the company has implemented a range of initiatives from a transition to LED lighting to installation of a sophisticated building management system which controls all heating and cooling at its main sites. The latest investment has been in voltage stabilisation equipment, which stabilises the power supply into buildings, ensuring electrical plant runs at peak efficiency, thus reducing consumption and emissions.

The company has also been

working through the three ‘Scopes’ of emissions as defined by the Greenhouse Gas (GHG) Protocol and has successfully calculated emissions of all applicable scopes and sub-categories for 2022. Methodologies and calculation processes have been developed and refined to enable this very complex activity to be a little less challenging going forward. Sonardyne intends to get independent verification of carbon neutrality by being audited against the requirements of PAS 2060 in 2026 to cover 2025 emissions.

Results Achieved

The solar installation generates half a megawatt of electricity each year and saves about 120 tonnes of carbon. Installers originally estimated the panels would reduce Sonardyne’s annual electricity bill by a few tens of thousands of pounds, but in today’s energy market it’s saving something like 32% of its previous electricity costs.

Sonardyne’s calculations determined that its Scope 3 emissions, particularly in the purchased goods and services category, accounted for, by far, the most emissions generated by the company (circa 8,000 tCO2e), which must be eliminated or offset through a certified offsetting programme. The company has already begun offsetting carbon it can’t eliminate.

This process has also caused Sonardyne to put sustainability at the heart of its business operations, from considering how staff travel, through the operation of its building management system to the purchase of new capital plant. Doing the right thing and committing to it properly has also really helped to attract new employees, key to sustaining innovation and, in turn, the company.

Conclusion and Future Works

The PAS 2060 route is not easy, but it does give a clear idea of what is needed to become a carbonneutral company. Sonardyne is now extending this approach to its smaller regional companies and engaging with businesses in the supply chain about how it can work with them to reduce their carbon emissions and to ensure that carbon is offset as close to source as possible. It’s an ongoing process but, as Sonardyne continues to grow, it can be confident its carbon footprint is shrinking with every passing year.

Key products and services

Subsea acoustic, inertial, optical and sonar technologies.

Headquarters

Yateley, UK

Company website

www.sonardyne.com

Year established

Number of employees Revenue

STATS Group

WORLD’S FIRST LEAK-TIGHT DOUBLE BLOCK AND BLEED ISOLATION OF A HIGH-PRESSURE CO2 PIPELINE SYSTEM

Introduction

The project, on behalf of Kinder Morgan, required hot tapping and line plugging operation on a high-pressure 30” carbon dioxide (CO2) pipeline extending over 500 miles from south-western Colorado to Denver City in the

Project Overview

STATS Group is a pioneer of fail-safe double block and bleed isolation of pipelines using its patented BISEP® technology. The BISEP provides leak-tight isolation, dramatically increases safety over traditional line-stop technology and doesn’t require any additional hot tap vents or bleed ports. The BISEP contains dual energised seals and the annulus zero-energy zone proves and monitors the seal integrity before and during intervention work.

All equipment used on the project was designed, manufactured, assembled and tested at STATS Group’s facility in Houston, Texas. While the pipeline operated under normal conditions, the site

US and operating at 148 bar. The purpose of this project, which took place as part of a larger initiative to convert a nonpiggable pipeline into a piggable pipeline, was to install full bore inline valves and retrofit pigging

launchers and receivers into the pipeline system. The installation of a 24” bypass pipeline around the isolated section allowed continuous production and avoided system downtime during maintenance activities.

contractor excavated the pipeline and welded on split tee fittings, based on qualified and approved in-service welding procedures. Two 30” fittings provided access for the BISEPs, enabling mid-line isolation, and two additional 24” fittings allowed production to continue around the isolated section through a bypass line.

High pressure slab valves, supplied by STATS were installed on each fitting and STATS technicians subsequently leak-tested and hot tapped the pipeline at each location, successfully breaking containment and retrieving the pipeline coupons.

The 24” bypass line was then installed, purged and leak-tested

allowing the slab valves to be opened and flow to pass into the bypass line. The BISEPs were then installed onto the 30” fittings and the upstream BISEP was deployed into the flowing pipeline. The downstream BISEP was then deployed and set in the pipeline creating a mid-line isolation and diverting the flow through the 24” bypass line. The section of pipeline between the BISEPs was then vented in a controlled manner to a safe location allowing the BISEP seals to be tested and verified. Both primary and secondary seals were pressure tested with full pipeline pressure in the correct direction and the annulus between the seals was vented to ambient.

After secondary and primary seal tests, the isolation certificate was issued. The BISEP annulus provides a zero-energy zone between the seals which is monitored for the duration of the isolation.

Results Achieved

Steve Rawlinson, Vice President, Americas said:

“Hot tapping and isolating liquid and gas pipelines has a long and successful track record globally. However, this is the first time the isolation of high-pressure CO2 pipelines has been attempted due to a number of challenges which we have successfully overcome.”

With the maintenance work successfully completed and the isolation no longer required, pressure was equalised between the BISEPs and the tools were hydraulically unset and recovered into the launchers and the slab valves closed.

Conclusion and Future Works

To date, STATS has carried out isolations at four sites along the CO2 pipeline operating at around 138 bar and have completed in excess of 160 days of individual BISEP isolation, whilst avoiding system downtime during critical maintenance activities. Throughout the isolations, there has been no degradation of the seals or leaks past the primary barrier, allowing the critical launcher and receiver upgrades to occur safely and without any uncontrolled release of pipeline product.

The BISEP isolation capabilities has once again proven to offer compelling advantages over traditional line-stop technology for achieving provable, testable and monitorable double block and bleed pipeline isolation.

The company at a glance

Key products and services

Pressurised pipeline isolation, hot tapping and line plugging services.

Main industries served

and gas Hydrogen

Headquarters Company website

Kintore, UK www.statsgroup.com

Year established

1998

Number of employees

380

Revenue

£70m

Vysus Group

Introduction

Scope 3 accounts for up to 95% of a major oil and gas operator’s emissions, but it’s proving problematic to capture. Reporting encompasses 15 categories across upstream and downstream activities. It involves complex

Project Overview

The Databox pilot project was designed to demonstrate the capability of the Databox to meet the industry’s challenge to digitally gather scope 1, 2 and 3 emissions data for an oil and gas supply chain company and maintain audit rigour that would meet the requirements of an audit equivalent to UK ETS standards.

The project was carried out with the support of Tendeka’s QHSE department and the wider Saudi TAQA organisation. The initial stages of the project established the boundaries for reporting emissions based upon ISO 14064 materiality

supply chains through to the end use of sold products. It is currently based on disparate data sources and manual processes, making it impossible to control versions and verify emissions information. There is little proof of where the data criteria, then proceeded to obtain the material activity data associated with those emissions prior to developing the template for automation. Activity data from the defined source locations was built into a template and uploaded into the Databox for throughput for emissions calculations and storage of linked supporting documentation such as invoices, calibrations and assumptions. In the initial pilot, the data was aligned for future rest API integration on completion of the pilot on proof of the security, validity and auditability of the pilot process.

came from, how it was calculated and by whom, and inadequate security when sharing information. In short, it is difficult for industry to accurately measure emissions and decarbonise, but increasingly easier to be penalised by regulators.

The activity data, supporting documentation and emissions factors applied along with materiality assessment process and records was stored on the underlying Siccar distributed ledger technology platform running beneath the Databox application. This underlying platform provides tamperproof transactions, creating a single source of truth and a verifiable chain of custody for all activities. Auditing of the emissions output was conducted to validate those outputs for completeness, accuracy and achieve UK ETS level requirements.

VYSUS GROUP AND SICCAR COMPLETE SUCCESSFUL EMISSIONS MANAGEMENT PILOT

The company at a glance

Key products and services

Technical and regulatory consultancy across energy, renewables, energy transition and complex infrastructure.

Results Achieved

The output emissions presented an auditable figure for the Tendeka global operation and a structure to fully integrate the emissions reporting via rest APIs to the Tendeka data sources without incurring significant workload on the Tendeka employees.

Conclusion and Future Works

The Databox platform integrates fragmented data sources and digitises the acquisition process, allowing clients to plug directly into their systems and increase efficiency. By embedding the engineering and environmental management expertise of Vysus with the Siccar data platform, the complexity and challenge of reporting complex scope 3 emissions can be met with a digital solution.

The next steps following the pilot is the live integration of the Databox into the Tendeka databases that will provide continually auditable emissions data to be used for reporting and optimisation.

Main industries served

Oil and gas Renewables

Energy transition

Grid

Infrastructure & complex process

Aberdeen, UK

Headquarters Company website

www.vysusgroup.com

Year established

2020

Number of employees

300

Revenue

£56m

Revenue from energy transition activities

~£36m