Energy Focus Summer 2023

FROM THE EIC

5 Foreword

From the Chief Executive

6 View from the top Andrew Cuniah, Chair, EIC and Supply Chain Manager, Bechtel Limited

10 News and events

Updates from EIC

14 Happy 80th Anniversary EIC!

EIC staff help celebrate eight decades of EIC

16 The big question

How are members using EIC membership to export, diversify and grow?

20 Special report

Jonathan Dyble reports on the awarding of the King’s Award for Enterprise to EIC

42 My business

Filipe Bonaldo, Managing Director for Infrastructure and Capital Projects, Alvarez & Marsal

ENERGY TRANSITION

24 Oman, Saudi Arabia and UAE lead GCC clean energy investments

Wan Afiq, Middle East and North Africa Energy Analyst, EIC

RENEWABLES

28 Brazil braces for offshore wind Gabriel Loio, Project Coordinator, and Julieta Verleun, Senior Adviser, Energy and Ocean Economy Secretariat, Government of the State of Rio de Janeiro

EIC

24 Clean energy investments in

29 Opportunities abound in the Americas offshore wind market

Pietro Ferreira, Americas Senior Regional Analyst, and Lucas Mitidieri, Research Intern, EIC

OIL AND GAS

34 Look beyond traditional markets for growth

Hirzi Iskandar, APAC Senior Energy Analyst, Muhammad Arif Syafiq, Sub-Saharan Senior Energy Analyst, and Lucas Ramos, Americas Energy Analyst, EIC

POWER

38 Changing power demand in Asia Pacific Dr Madana Nallappan, APAC Regional Analyst, EIC

NUCLEAR

40 Nuclear power roars back in Central Europe

Aadam Sufi, UK and Europe Energy Analyst, EIC

Editors Sairah Fawcitt +44(0)20 7880 6200 sairah.fawcitt@redactive.co.uk

Lucas Machado +55 21 3265 7402 lucas.machado@the-eic.com

Account director Tiffany van der Sande

Sales and advertising Richard Hanney +44(0)20 7324 2763 richard.hanney@redactive.co.uk

Energy Focus is online at energyfocus.the-eic.com

Chief executive: Stuart Broadley

Should you wish to send your views, please email: info@redactive.co.uk

Production director Jane Easterman

Senior designer Gene Cornelius

Picture editor Akin Falope

Content sub-editor Kate Bennett

ISSN 0957 4883

© 2023 The Energy Industries Council

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

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the GCC

achieves top accolade

EEC’s purpose is to deliver on two primary objectives. The first is to bring together the world’s prominent project decisionmakers, covering all energy sectors, under one roof. This makes it easier for the UK supply chain to learn about promising opportunities worldwide and directly meet and network with the people responsible for them, facilitating business relationships and friendships. This shortcuts and turbocharges UK investments into new international export markets, and reverses the common view that developing new export markets takes too long and is too risky, expensive and difficult.

The second objective is to showcase the UK’s energy supply chain capabilities. Through our continued research in EICSupplyMap, we now know that the UK has one of the largest groups of supply chain companies of any energy hub in the world in terms of both quantity and capability, having more than 3,500 companies (with a threshold of more than £1m revenues). We take pride in seeing EEC become an unparalleled platform to show off the UK’s deeply innovative, competitive and easy-to-work-with energy supply chain.

Throughout the event I was privileged to spend time with decision-makers and thought leaders, and was struck by two themes that clearly resonated with everybody at the event. First, the groundswell of opinion from organisations across the value chain that UK policymakers’ 2050 net-zero ambitions (indeed, the 2045 ambitions in Scotland) are in real danger of being missed.

This opinion is growing because companies have increasingly been measuring net zero based on their direct involvement in renewable and transition technologies, rather than on what they hear

from policymakers. They are looking at factors such as the quantity and consistency of renewable opportunities available to bid on, their respective levels of order intake, how much profitability they’re seeing in them, and how many delays and challenges these projects now clearly face.

These delays originate from many problems, including planning and licensing, grid and port capacity under-investment, cost inflation, and delayed financial investment decisions. All of these are contributing to the energy community’s depressing, but important, conclusion that the UK’s net-zero legally binding commitments are unlikely to be achieved.

If industry no longer believes in policymakers’ net-zero ambitions, companies will invest elsewhere to grow their businesses, generate profits, and develop technologies and solutions. Efforts won’t be focused on net zero, where policymakers hope and need the industry to be. This will further delay the energy transition; to a certain extent, it already has.

Furthermore, it’s worrying that policymakers have to toe the party line –to talk about net zero as if it’s on track. They say delays can be addressed through acceleration plans, but the clear lack of plans turning into funded actions is leading the wider energy community to conclude that policymakers are out of touch with reality. It’s never good when there is a growing gap between what the policymakers want and what the industry knows, and this divide is growing every day.

The second key factor discussed was the return of oil and gas, not only as a dominant force in global energy but also as a success factor for businesses in the energy market that want to pursue growth, profitability, innovation, transition and international reach. No other energy market provides the

Stuart Broadley CEO

genuine scale and recession-proof levels of sustained business opportunity that oil and gas does. I left the event feeling again that there was a huge divergence between oil and gas policy and oil and gas reality.

There is one supply chain – the integrated energy supply chain. Policymakers talk as if the green supply chain is different, but this is misleading and poorly informed. The green supply chain is the same as the hydrocarbon supply chain. EICSupplyMap data clearly shows this – 85% of the 3,500 companies on the UK energy supply chain are reliant on oil and gas, with 30% of the total being active in renewable technology and 25% in nuclear. The majority of companies active in renewables and nuclear are also highly active in, and reliant on, oil and gas for growth and profits. EEC 2024 is sure to move the conversation forward in these and other important policy areas.

Finally, I’d like to thank our organising and supporting partners, sponsors, exhibitors, international delegations, engineering, procurement and construction contractors, speakers, supply chain representatives, and delegates for being part of another insightful and impactful EEC. We will follow up on the key talking points with policymakers, seeking further input and evidence from our members, to further amplify the energy supply chain’s voice. Certainly, as you will find in this edition, the King’s Award for Enterprise recently received by EIC is testament to our commitment to taking such issues further.

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

From the Chief Executive: This edition comes fresh on the back of the EIC’s largest ever Energy Exports Conference (EEC). The event was held on 6 and 7 June, once again at P&J Live, where we were pleased to welcome more than 1,700 attendees and 800 registered companies to this key energy event in the Aberdeen calendar

View from the top

Andrew Cuniah, EIC Chair and Supply Chain Manager, Bechtel Limited

Often it is industry that drives the netzero agenda, and so governments need to work closely with businesses around the world to find zero-carbon solutions and implement them

Andrew Cuniah

Energy Focus talks with new EIC Chair

Andrew Cuniah

Congratulations on being appointed EIC’s new Chair. What role do you see yourself and EIC playing, going forward, in a rapidly changing energy landscape?

EIC has a critical mission and has grown significantly in the past few years as the energy supply chain has become more important than ever. Receiving the King’s Award for Enterprise: International Trade this year was a fantastic achievement for EIC and its team. I look forward to working with CEO Stuart Broadley and the board to build on the successes of our previous chair and board. This means continuing to grow EIC and creating opportunities for member companies in the UK and elsewhere. In particular, my goal is to help member companies export, diversify and grow at a time when focus has shifted to energy transition and achieving net-zero carbon emissions around the world.

What are you most looking forward to, and what do you see as the biggest challenges in your role?

I am excited about the opportunities EIC has to help ensure the energy supply chain remains strong and successful as the energy market changes. One of the biggest challenges for companies in the supply chain is the time it takes for new energy transition projects to move from the front-end engineering and design phase to the engineering, procurement and construction stage. The UK supply chain, for example, is well positioned to deliver the planned projects for the country, but we need more attention on resources and execution strategies to deliver multiple projects simultaneously. In the global market we continue to see positive growth which again increases the demand for EIC guidance.

What is the lasting legacy of your predecessor Hugh Saville?

I’m honoured to be Hugh’s successor. Hugh oversaw EIC’s transformation and paved the way for the Council to become an industry leader in its field. His hard work helped EIC advance the energy industry’s supply chain interests and support its members. Hugh’s leadership was vital to ensuring that the Council was able to navigate uncertainties, from the COVID-19

pandemic to supply chain disruptions, allowing it to continue its crucial work.

EIC opened up to international members six years ago, after 74 years of only allowing UK members. How has that decision played out, and what comes next?

During the past decade, EIC has grown not only its membership but also its place in the global energy conversation. Over its long history it has broadened its scope to include new areas such as renewables, hydrogen and carbon capture, and provided access to the latest knowledge in these areas. All members have continued to benefit from digital EIC tools and collaborations that have helped them identify opportunities around the world and be successful.

EIC recently held its fifth Energy Exports Conference. How important is such an event in facilitating the supply chain and international trade?

The Energy Exports Conference is key to exploring the opportunities the industry has to offer as it brings together international operators, developers, contractors, government and export advisers, ambassadors and trade experts from across the globe. It helps attendees understand global supply chain strategies from key companies across the entire energy sector and gives access to important players, including in newer markets such as hydrogen and carbon capture. After a few years of being held virtually, it was also great to see it return to its original in-person format and bring all the market leaders together in one place.

Should EIC have a louder voice as an advocate for the energy industry?

By working closely with the energy supply chain and UK government, EIC is in a special position to understand the opportunities and challenges that present themselves to the industry. As a result, it is well positioned to advocate for the energy sector – it ensures that the companies are not just ready for today’s markets but future markets as well. So yes – the louder the voice, the better!

About Andrew Cuniah

Andrew Cuniah has worked in the energy industry since 1988 and at Bechtel since 1996. As London Supply Chain Operations Manager for Bechtel Energy, he oversees projects and proposals in Europe, Africa, the Middle East and Southwest Asia and leads supply chain energy transition strategies for the UK. Andrew has always been a vocal advocate for the UK supply chain. He has been an EIC Non-Executive Board Director since 2017 and was elected Chair in 2023.

about his passion for energy, EIC’s bold ambitions, and being ready for tomorrow’s markets

Are governments around the world doing enough to drive net zero?

EIC is pleased to have seen governments come together at global climate summits to agree on how to tackle climate change, one of the world’s biggest challenges. We welcome the net-zero carbon emission targets that many governments and companies have set themselves. But there is, of course, always more work to do to make sure net-zero becomes a reality. Often it is industry that drives the net-zero agenda, and so governments need to work closely with businesses around the world to find zero-carbon solutions and implement them.

You have a senior role at Bechtel; how is Bechtel adapting to the changing global trading and energy landscape?

Bechtel has helped customers navigate shifts in energy consumption, technological change and financing challenges for much of its 125-year history. We recently updated Bechtel’s vision statement, backed by a new set of values. Our first value is “we live for a challenge,” and the energy transition is the greatest challenge of our lifetime.

Today, we’re engaged across our business in helping to advance the energy transition. Our customers are accelerating efforts to reduce carbon emissions, so the focus is on cleaner energy solutions and sustainable alternatives. We are, for example, making

existing assets more energy-efficient or converting them to cleaner power sources. We also work on carbon capture, hydrogen and circular economy solutions, including bioenergy. And we have a dedicated Energy Technology and Solutions team that focuses on applying proven and emerging technologies to lower carbon emissions.

What is the key role of a leader in today’s hybrid world? Today we have many forms of energy production, ranging from traditional

sources, such as oil, to transitional ones, namely natural gas, and cutting-edge ones, including floating offshore wind power. All of these have benefits and faults. Leaders play a key role in guiding their organisations and influencing the industry to mitigate faults and capture and share the benefits. EIC plays a pivotal role as it will help leaders guide their companies through the energy transition movement.

Many talk of a skills gap in the world’s energy market; what needs to be done to close this gap? Investing in our future means investing in people. Across the energy sector, there has been an increased demand for people with niche skillsets and training. Many of our members are also investing in and developing a skilled workforce. For instance, at Bechtel, we just pledged US$500,000 to educational institutions along the Texas Gulf Coast that are preparing people for careers in the construction sector. These tools will enable the institutions to help meet the skill demand in the region and give people a foundation for launching their careers. We are looking at similar programmes in the UK.

Is energy still a great place to work; if so, why?

The energy sector has always been and continues to be a great place to work. By its nature, the work we do improves the lives of millions. Many people in this industry feel a great sense of pride knowing that they bring light, power and a higher standard of living to thousands of communities. To be at the forefront of the energy transition and produce cleaner and greener energy will make working in this sector even more rewarding. The sector has also embraced and invested in improving employees’ wellbeing, from employee health and safety to overall physical and mental wellness.

What advice would you give EIC’s CEO, as the organisation’s incoming Chair?

Stuart and his team have been very successful with their innovative approach, bringing in new tools and mechanisms to support our members and the industry at large. So, my advice would be: “Keep moving forward and keep innovating!”

The UK supply chain is well positioned to deliver the planned projects for the country, but we need more attention on resources and execution strategies to deliver multiple projects simultaneously

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news&events

Energy ConferenceExportsdelivers global opportunitiesnetworking and industry insights

The Energy Exports Conference (EEC23), held on 6–7 June at P&J Live in Aberdeen, was a highly successful event that brought together major energy operators, country delegations and industry leaders from around the world.

About the EIC

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

Our member companies, who supply goods and services across the oil and gas, power, nuclear and renewables sectors, have the experience and expertise that operators and contractors require. As a not-for-profit organisation with offices in key international locations, the EIC’s role is to help members maximise commercial opportunities worldwide.

Events

EIC LIVE events

We are halfway through the year, and we are expecting the months ahead to be just as exciting! This is a special year for EIC, and we cannot wait to see where next in the world we will be celebrating our 80th anniversary with members (old and new) and industry peers. Among the events we are heading to soon are Offshore Europe in Aberdeen, Gastech in Singapore and Energy Connect USA in Houston – we hope to see you there!

To discover other upcoming events, including webinars, and stay updated on our upcoming Oak Jubilee celebrations, check out our calendar at www.the-eic.com/events/calendar.

EEC23 attracted 1,000 delegates from around the world, fostering a vibrant exchange of ideas within the supply chain. With 330 productive one-to-one meetings, the conference was a catalyst for fruitful business connections between supply chain companies and operators, particularly Aramco and ADNOC.

The event also included 80 influential speakers representing various energy sectors and 50 exhibitors from across the supply chain. Participants created a significant social media buzz around the event, especially on LinkedIn, sharing insights and business interactions.

The event showcased the collaborative efforts of EIC and its partners in creating a dynamic platform for delegates and exhibitors from across the world in Aberdeen. It provided an opportunity for them to exchange knowledge, foster connections and engage in fruitful collaborations.

Sessions covered global export opportunities, supply chain issues, offshore wind, hydrogen, nuclear power, decarbonisation and more. Notably, participants spoke of the immense potential of renewable energy sources and reaffirmed their role in the energy transition. It was made clear that the deployment of renewable projects such as wind farms in the UK should be carefully paced to not only ensure the sustainability of the supply chain but also promote its healthy growth.

UPDATES FROM THE ENERGY INDUSTRIES COUNCIL

A keynote speech by Ahmed Alkhunaini, President & CEO of Aramco Overseas Company, revealed the company’s historic US$50bn capital investment, with a focus on incorporating sustainable materials and establishing long-term partnerships with suppliers.

Another key highlight was the session on wind power. Panellists spoke of the importance of clear targets, a robust policy framework, increased support for the supply chain, and collaborative partnerships within the industry to drive innovation and sustainable development.

Other sessions explored topics such as hydrogen production, carbon capture and the future of the energy transition.

Conferences from EIC coming up in 2023

Offshore Europe 2023

Date: 5–8 September 2023

Location: Aberdeen, UK

Why attend? Join the EIC Pavilion at Offshore Europe 2023 and be part of a show that brings together exhibitors and visitors to meet the demands of the industry’s core areas of interest and development. The 50th anniversary event will create a space for collaboration and learning to drive the oil and gas sector forward, bringing together the

entire energy value chain back to business face-to-face.

If you are interested in joining the EIC Pavilion or booking a stand, contact the team for more information by sending an email to internationaltrade@the-eic. com or visit www.the-eic.com/Events/ Exhibitions/OffshoreEurope2023

Gastech 2023

Date: 5–8 September 2023

Location: Singapore

Why attend? The largest exhibition of its kind, Gastech brings together more than 750 exhibiting companies, showcasing the value they can bring to the industry and demonstrating the latest innovations in natural gas and LNG, hydrogen, lowcarbon gases and climate technologies.

If you are interested in joining the UK & EIC Pavilion or booking your stand, contact the team for more information by emailing internationaltrade@the-eic. com or visit www.the-eic.com/Events/ Exhibitions/OffshoreEurope2023

Energy Connect USA

Date: 14 September 2023

Location: Houston, US

Why attend? EIC Connect Energy USA takes place in an encouraging year. The US$369bn Inflation Reduction Act was a watershed moment for renewable energy in the US and boosted the competitiveness of its clean energy sector. The tax incentives extended not only to wind and solar but also to hydrogen, nuclear, and carbon capture and storage have placed the US at the forefront of clean energy.

The oil and gas sector, meanwhile, has received reassuring signs from the Biden administration as Bureau of Ocean Energy Management oil and gas leases resume and drilling permits are approved. EICDataStream is tracking more than 1,650 projects across all sectors in the US, with a CAPEX exceeding US$1.5trn.

A meeting place for developers, oil companies and contractors from across the energy spectrum, EIC Connect Energy USA 2023 is the ideal platform for the supply chain to engage, discuss and identify business opportunities and trends in the US energy market.

Book at www.the-eic.com/Events/ EICConnect/EnergyUSA

Reports

EIC Country Report: Philippines

In this detailed report, you will read about the Philippines’ ambitious plans to steer towards a sustainable energy future as it ramps up the adoption of renewable energy.

According to its Department of Energy, the country aims to increase the renewable share in its power matrix to 35% by 20230 and 50% by 2040. The government is taking significant steps towards this goal, including developing the country’s largest wind farm with 160MW capacity and opening the sector to foreign ownership.

The report also highlights the main findings in each energy sector, including oil and gas, offshore wind, power, hydropower, energy storage and more.

EIC Insight Report: UK Operational

NEW REPORTS OUT NOW

Geopolitical and economic events in 2022 produced turmoil and uncertainty in the UK energy markets over the past year. These factors have revealed vulnerabilities in UK energy security, which has become a focus for the government – as demonstrated by the release of the British Energy Security Strategy.

The UK is highly dependent on natural gas, nuclear capacity is dwindling as reactors reach the end of their lifespan, and it has failed to install the renewable capacity required to prevent consumer bills skyrocketing. However, based on the data gathered by EIC teams, the UK has a strong project pipeline, both planned and under development, across multiple renewables and new technology sectors. The challenge is to ensure the barriers to growth and innovation are removed and measures are put in place to maximise investment in the wider UK energy market.

Discover the latest insights and expert analysis by reading the full report.

EIC wins King’s Award for International Trade

EIC has been awarded the UK’s most prestigious official recognition for business excellence, the King’s Award for Enterprise: International Trade.

Since its launch in 1965, the award has been given to businesses demonstrating outstanding achievement in international trade, innovation and sustainable development. One of 148 businesses to reach this milestone, EIC will receive the award during a ceremony later in the year.

EIC is thrilled to receive this award in the international trade category as it is a testament to the hard work and dedication of our members, partners and staff in promoting the UK’s energy industry abroad.

For more than 80 years, EIC has worked to support energy supply chain companies in their efforts to grow their businesses, diversify into new activities and export their products and services around the world.

Stuart Broadley, Chief Executive of EIC, explains, “Founded in 1943 by 13 British

Reports (cont.)

EIC Insight Report: Solar

Clean energy capacity is growing as more countries adopt renewable energy, with solar PV a popular choice. More than 30% of utility-scale renewable projects – including onshore and offshore wind, solar CSP and hydroelectricity – that have come into operation between 2013 and 2023 are solar PV, accounting for capacity of over 154GW of utility-scale PV capacity, according to EICDataStream and EICAssetMap.

Countries are increasingly committing to net-zero targets, and private sector companies are aiming for environmental, social and governance targets, contributing to solar PV adoption. The technology is versatile and can be used in various environments, including rural areas. This report explores insights on key regional markets and leading operator and contractor trends, highlighting sector growth.

EIC Insight Report: Global OPEX

petroleum equipment manufacturers, EIC’s original goal was to increase the UK market share in oil and gas projects domestically and internationally. This was achieved within our first decade, and over time we expanded our coverage to include the entire energy industry and became fully energy agnostic in 1981. Today, EIC has over 900 members working in diverse markets.”

EIC is the only trade association in the world to offer data, insights, events, awards, country pavilions, delegations and influencing across all energy sectors, on a truly global basis and all in-house. Our success can be attributed to connecting members with accurate project data and key project decision-makers, collaborators and influencers, informing business development decisions and de-risking international growth and diversification. With the mission ‘To be the go-to energy supply chain trade association, globally’, EIC will continue to invest heavily in high-quality people, data, events and networks to achieve this, step by step, around the world.

EICAssetMap added an Americas package to the database in January 2023, concluding a global coverage of more than 40,000 assets across 130 countries. The expanded database now enables EIC to provide a further in-depth look at trends.

The report highlights a total of 14.3GW added in the North Sea since January 2018 across 31 new offshore wind farms. The largest capacity addition by asset type in 2022 came from solar, with 159 projects online in 2022 – adding 25.7GW to the grid. In the North Sea, 20 upstream developments were commissioned in 2022 across the Norwegian Continental Shelf and Southern North Sea.

Discover the latest insights and expert analysis by reading the full report and learning more about global energy trends.

Find out more about these and other publications and how to access them at www.the-eic.com/MediaCentre/ Publications.

The EIC is thrilled to receive this award as it is a testament to the hard work and dedication of our members, partners and staff in promoting the UK’s energy industry abroad

BOOKING NOW

Happy 80th Anniversary EIC!

This year marks EIC’s 80th anniversary, and Energy Focus could not be more excited to celebrate all that EIC has accomplished in collaboration with members, partners, employees and friends. It is because of their continued support that EIC has been able to evolve continuously since its founding.

We asked EIC founders, members, staff and partners around the world for their reflections on EIC’s 80th anniversary. To keep the celebrations going, we will share all their kind words and congratulatory messages in each edition of Energy Focus this year.

It’s an incredible feat for an organisation to have been active for so long in such an important and dynamic sector as energy.

Reflecting on EIC’s 80th anniversary, it’s an incredible feat for an organisation to have been active for so long in such an important and dynamic sector as energy – even more so helping and supporting companies all this time to keep ahead of the news in this fast-moving industry.

EIC was founded amid an energy transition when coal was the largest source of electricity generation; 20 years later, the organisation experienced another shift as oil demand surged. Today, EIC is going through another energy transition to cleaner energy.

I am relishing witnessing this critical moment up close, watching EIC in action as it facilitates dialogue and research with important key players during the transition process.

My experience as an intern at the organisation has been very enriching. I have a lot of contact with the energy space, including training, events and conferences. The EIC team has made me feel very welcome, and it’s a great environment to work in. I love working at EIC.

Rebeca Chaves, Events Intern, EIC Brazil. Started in 2022.

I still love working at EIC! We have a fantastic team across the world, with an organisation that keeps growing and improving.

When I joined 23 years ago, EIC was a much smaller organisation. We were still in our office in Notting Hill Gate and the London staff only numbered about 15 (with about another 10 spread across the rest of the world). The online Projects Database (which eventually became EICDataStream) had only been online for about six months and an online version of the Directory (subsequently the Procurement Guide) was in the works. The Rio and Singapore offices had recently opened, in addition to the Houston office – EIC had gone global!

I was the only one involved in IT at that time (I was IT Manager/Developer). Over the years, 20 other people have worked alongside me in developing and maintaining our systems in various capacities, whether operations, development or testing. I remember them all; our systems and products are what

100. Now my Information Systems team is seven-strong. The number of people involved in collecting market intelligence has increased sixfold, with a similar increase in the size of the membership team.

A shout-out to Richard Tappin, our Senior Developer and co-architect of EICDataStream. Richard has been with EIC for 10 years and in that time has contributed majorly to all our systems in one way or another.

Another shout-out must go to Alan Young – IT Operations Manager of eight years – who keeps everything running smoothly day in, day out.

In addition to these stalwarts, I also depend on the other able members of the development team – which has grown by two in recent months. This growth is a measure of our data products’ importance as part of our USP in the marketplace.

I still love working at EIC! We have a fantastic team across the world, with an organisation that keeps growing and improving.

If I am still around at the time of the EIC’s Centennial, I hope for an invite to the party!

Working in the energy sector was never on my bucket list, but you never know where life can lead you. I was completing my studies when I was approached on LinkedIn for an opening at EIC. I had no idea what EIC did, but somehow it felt like I was destined to join the organisation. It turned out to be the right move, and my experience has been awesome!

My colleagues have been supportive, and I have met people whom I can connect with. I know I am where I’m supposed to be.

I am glad to be working under EIC Asia Pacific Director Azman Nasir’s leadership and guidance. I have never worked with such a supportive mentor, who can always make the unimaginable imaginable. I believe that EIC is a good platform for me to grow and expand my horizon in the energy sector and in life.

I have learnt from EIC how a business can survive over the years. With 80 years of history and still standing strong, EIC’s ability to adapt and develop in the ever-changing energy landscape is amazing. I am grateful to be part of the EIC family and look forward to meeting the whole team, visiting other offices and making new friends!

Danial Hakim, APAC Event Coordinator, EIC Malaysia. Started in 2022.

I know I am where I’m supposed to be.

The BIG question

How are you using EIC membership to help you export, diversify and grow?

In the year that EIC celebrates its 80th anniversary and wins the prestigious King’s Award for Enterprise, Energy Focus asks three members: how is EIC membership helping you export products and services around the world, diversify into new activities and grow the business?

Fraser Stewart

Managing Director –International at ASCO

Leveraging our successful operating model and logistics and materials experience in the UK, ASCO has had a strong focus on exporting its services and capabilities during the past 25 years.

We have established new bases in Canada, Australia, Norway, Trinidad and Tobago and more recently in Suriname and Senegal; our Senegalese contingent has added 40 team members to our workforce during the past 18 months.

From using EICDataStream for market intelligence and identifying opportunities, to making connections at worldwide EIC events, to being introduced to government representatives, bodies and other

trade organisations in our new operational locations, the support we have received from EIC during this time has been invaluable.

EIC provides insight across the worldwide energy market, including wind, alternative fuels and carbon capture, utilisation and storage, which supports our diversification strategy. Additionally, EIC Insight reports and Sector Workbooks give us access to important information, such as new opportunities that we can target in the renewables sector as we cement our plans for the energy transition.

We recently benefited from additional training support from EIC for our business development teams to ensure we are making the most of all the EIC resources and tools that are available to grow the organisation.

ASCO is a logistics and materials management company for the global energy industry.

Headquartered in Aberdeen, Scotland, ASCO operates from more than 60 locations worldwide and employs around 1,500 people.

ASCO’s safe, lean, efficient and sustainable end-to-end solutions include logistics projects, transport and freight, supply base management, warehousing and storage, materials management, fuel and bulk provision, marine services, training, lifting and assurance, personnel and environmental services.

ASCO’s processes and systems ensure that it is at the forefront of driving supply chain efficiency, providing sustainable operations and full transparency around the entire logistics process from the vendors to the end users.

The EIC provides insight across the worldwide energy market, which supports our diversification strategy

Martin Green

Head of UK Business Development at Cellnex

Membership of EIC has greatly benefited Cellnex UK, helping us gain insights into the energy industry and network within the sector.

We primarily joined to access EICDataStream, which provides the company with valuable insights on energy-related projects, but we’ve since utilised our membership to network and introduce Cellnex UK to the wider energy community through EIC-hosted events.

We have attended and participated in speedy networking, webinars and seminars, as well as the annual awards dinner. Last year, we won the award for ‘Scale up’ – a fantastic recognition of the expansion of our private networks business.

Private wireless networks are secure, high-performance networks covering 100% of the plant, facility or project site with guaranteed availability. They enable companies operating in the energy industry to boost productivity, meet

environmental targets, improve worker safety and increase cyber security. Our EIC membership allows us to connect with customers, gain further insights into their challenges and demonstrate the value that a private wireless network brings to their organisation.

Cellnex is Europe and the UK’s largest and fastest-growing independent owner and operator of wireless telecoms infrastructure and is integral to the successful roll-out of 5G. With the wireless infrastructure foundation that it delivers across rural and urban areas, Cellnex connects everyone, everywhere. It is a business built on commercial and technical innovation, ambition and sustainable growth. It offers customers the commitment to neutrality and the economic benefits of shared infrastructure.

Mario Cincotta

Executive Vice President East Hemisphere at EthosEnergy

EthosEnergy is an organisation firmly focused on international growth. We’re established as a leading global provider of services and solutions for rotating equipment, and our EIC membership helps us with our strategic growth as we help make energy affordable, available and sustainable.

We’ve been an EIC member since 2020, and during that time we’ve enjoyed many highlights. We’ve spoken at events, joined the EIC Pavilion at ADIPEC with access to a ministerial delegation, set up one-to-one meetings and participated in the annual Survive & Thrive Report.

However, we mainly leverage our membership by tapping into EIC’s extensive energy industry network. We participate in EIC events and programmes, connecting with potential and existing customers, suppliers and partners in key markets around the world. This enables us to strengthen our network and gives us valuable insights into emerging trends and opportunities. Our EIC membership provides the resources and support we need to compete and succeed in a competitive and dynamic market. We look forward to continuing our membership, fully embracing opportunities to engage in new partnerships and explore new markets in the energy sector.

EthosEnergy customers are facing a challenging future and want a flexible and viable partner to support them in a world of changing expectations. The company turns on potential to deliver services and solutions globally for rotating equipment to make energy affordable, available and sustainable. It offers a unique combination of partnership and service quality, backed by a track record of tailored solutions, for the power, oil and gas, industrial and aerospace markets. EthosEnergy operates in more than 100 countries to consistently improve performance across the value chain.

We primarily joined to access EICDataStream, but we’ve since utilised our membership to network within the wider energy community through EIC-hosted events

We participate in EIC events and programmes, connecting with potential and existing customers, suppliers and partners in key markets around the world

Every gamechanging project starts with an idea - Kent Consulting brings that idea to life

When problems are solved with technical ingenuity and risk-based solutions, profit flows faster. But every industry-defining move must be built on a strong foundation... consultancy which reaches beyond the obvious to deliver value across the entire asset lifecycle.

From idea to implementation

We assess, analyse, determine and develop solutions through a structured process – from a clean sheet of paper through to project execution. We define the minutiae of every investment idea and make it a reality – bringing together bespoke digital tools with unmatched engineering capability.

This is how we optimise the full engineering chain: not just through increased productivity, but a focus on cost, risk, productivity, and sustainability and decarbonisation.

We do this across each engineering stage, covering concept and feasibility, FEED and detailed engineering, and O&M and late-life management solutions.

Multi-discipline engineering & consulting services across the full asset lifecycle

We design with the end-in-mind ensuring a seamless and smooth transition through each phase of the project lifecycle from concept to execution and ongoing maintenance across both greenfield and brownfield.

From independent consultancy advice or integrated services, we are with you every step of the way.

Add the industry’s brightest minds to your team

When you find a partner you trust, you feel confident in every technical and execution choice you make. And when you actually enjoy working with them, that’s when you know you’ve got the right people on your side.

A partner who understands you Innovation first

A transformative idea is one thing. Turning it into a commercial success is another.

Bolstered by diverse expertise and a suite of industry-leading tools, we support you to deliver with certainty. We know how to bring carbon-friendly change to your assets and will always do right by you and the planet. And, of course, every recommendation we make is safe, actionable, and cost-effective.

There’s always a challenge to solve, a process to improve, or a new technology to bring to maturity. This need to innovate doesn’t just drive your performance – it builds resilience, and we are investing in automation and improved data insights to make this happen.

It’s also about the role you’ll play in shaping the future of energy. We can’t think of anything more important.

Less cost. More control. Expertise at every phase

Weak processes lead to overspend and lack of clarity. So we developed a structured approach to keep risk in check –and you firmly in control. This is transparency in action. Our clients expect nothing less.

The Kent difference?

We can deliver first-of-a-kind solutions across the entire energy spectrum. And we’re constantly welcoming bright new talent and investing in our digital tools. How could we help to future-proof your operations without doing the same for our own?

Creative thinking, practically applied. This is how we deliver what’s needed today, as well as innovating to transform what’s possible tomorrow. Interested to know more?

Get in touch: bd@kentplc.com

EIC achieves The King’s Award for Enterprise in International Trade

Securing a coveted King’s Award title is not easy, and this renowned accolade is testament to the work that EIC continues to deliver for its members as the go-to energy supply chain trade association. What does it take to earn the King’s Award? Jonathan Dyble looks back at EIC’s rich history and discovers what the organisation hopes to achieve moving forward as it targets another 80 years of success

EIC’s 80th anniversary year has prompted some significant reflection on its history and achievements.

Founded in 1943 by 13 British petroleum equipment manufacturers, the organisation’s original mandate was to increase the UK market share of oil and gas projects both domestically and internationally. Having achieved this in its first decade, EIC’s purpose has gradually expanded over time.

Today, its role is to help members export, diversify and grow through an innovative mix of services and activities. Indeed, EIC is currently the only trade association in the world to offer data, insights, events, awards, country pavilions, delegations and influencing across all energy sectors on a truly global basis, and all exclusively in-house.

EIC’s market intelligence and consulting services help its members to make informed strategic decisions. It works with government globally to ensure the energy industry is regulated in a fair and supportive manner, and hosts 130 annual events and networking opportunities that help to build key industry relationships between decisionmakers and policymakers.

These contributions have been transformative for the energy industry globally – and, as a result, the organisation has achieved the King’s Award for Enterprise in International Trade.

Understanding the King’s Award for Enterprise in International Trade

The King’s Awards for Enterprise recognise outstanding achievements by UK businesses in the categories of innovation, sustainable development, the promotion of opportunity through social mobility, and – in the case of EIC – international trade.

“The King’s Award has taken over a huge mantle of prestige and honour from the Queen’s Award, which was established in 1965,” explains Lesley Batchelor CBE – a champion for international trade, board adviser, CEO of Export Bootcamps, and a judge for the award for 14 years. “It represents the achievements of a business – in our case, in terms of international trade, which aligns with the criteria that is set by the King’s Awards office.”

Indeed, this highly respected and reputed award provides many immediate and long-term business benefits, as outlined by fellow award judge Karim Fatehi MBE – Managing Director at United Corporation and a Board Member at the London Chamber of Commerce and Industry.

“The use of the prestigious King’s Awards Emblem is a recognised Royal endorsement that will get your business noticed above and beyond the competition, both at home and overseas,” he explains. “Successful businesses are permitted to fly the King’s Awards flag at their main office and use the esteemed King’s Awards for Enterprise emblem on their products for the next five years.

“Feedback from previous recipients suggest that an award

I always feel it’s important that we say thank you to great organisations like EIC for extending the reach of the UK, and doing it to such a high standard that our international reputation and commitment to being part of the global economy remains high

Lesley Batchelor CBE, International Trade Award judge and CEO of Export Bootcamps

can benefit businesses in a variety of ways, from excellent marketing opportunities and press coverage to worldwide recognition as an outstanding British company, increased turnover and international trade, and a boost to staff morale, and to partners and stakeholders.”

Why did EIC achieve the award?

With this being the first award of its kind that EIC had put itself forward for, the judges highlighted that the accolade was awarded, in large part, due to EIC’s continued support of the energy supply market through hard times on a global scale.

“Its work, now in 54 countries of the world, bears testament to EIC and its ability to be flexible and change with the times, as it now embraces many green technologies,” Batchelor affirms. “It is rare that a trade association achieves the exacting standards of the King’s Award, and we hope this will shine a light on the sometimes-unsung work that they do.

“I always feel it’s important that we say thank you to great organisations like EIC for extending the reach of the UK, and doing it to such a high standard that our international reputation and commitment to being part of the global economy remains high.”

Participating in the award process has also been a valuable experience for EIC itself, its members and stakeholders taking the time to recognise the accomplishments of the organisation during the past 80 years.

“It’s made us realise that sometimes you need to take the time to stop, reflect and

celebrate,” says EIC CEO Stuart Broadley. “It gives you confidence to go into the future, and a vision of what success should look like for us. And it allows you to take the time to appreciate the people involved.

“We are nothing without the people, relationships and friendships across this industry, so it’s important to celebrate those things – and this award has given us the space to do that.”

Targeting another 80 years of success

Over the past three years, EIC has progressed on the global stage like never before. The number of international members has increased by 680%, while international membership revenue has risen from £151,000 in 2018/19 to £1.177m in 2021/22. From a proportional perspective, international membership accounted for just 4% of the overall membership in 2018/19, and has since expanded to 26% in 2021/22.

Our mission is to be the go-to energy supply chain trade association globally, and we will continue to invest heavily in high-quality people, data, events and networks to achieve this, step by step, around the world

Stuart Broadley, CEO, EIC

(Below) EICDataStream, EIC’s projecttracking database

With its members now having headquarters in 54 countries across the globe, EIC is beginning to truly consolidate its reputation on the international stage – an ambition that will remain front and centre moving forward.

“We are growing quickly,” Broadley adds. “Today, EIC has over 900 members working in diverse markets, including renewables, nuclear, hydrogen, carbon capture, power, and oil and gas, so 1,000 members is a clear target for the next two years. If we can grow faster, our members will benefit faster.”

Growth is only part of the picture, though. Indeed, such ambitions are ultimately underpinned by a desire to impart genuine change and positive impact moving forward. Broadley outlines how EIC aims to do this.

“At present, we are extremely concerned about the growing gap between energy transition ambition and reality,” he says. “In talking to thousands of business leaders, policymakers and thought leaders around the world, we see there is wide awareness

that the likelihood of achieving net zero by 2050 is reducing quickly. And yet we’ve not yet heard a single energy minister from any country raise the flag about this.

“It’s time for the adult discussion about what would it take to achieve this, and to incorporate that into a formal process –continued denial or delay can only be harmful to investment, growth and our ability to achieve a successful transition.

“Our mission is to be the go-to energy supply chain trade association globally, and we will continue to invest heavily in high-quality people, data, events and networks to achieve this, step by step, around the world.

“Now more than ever it’s vital that we amplify the voice of our members on these key issues, and be the voice of the supply chain to have those most difficult of conversations. There is no more important a role for me now, as Chief Executive, than to ensure that EIC continues to prosper for the next 80 years and beyond.”

We are nothing without the people, relationships and friendships across this industry, so it’s important to celebrate those things – and this award has given us the space to do that

Stuart Broadley, CEO, EIC

(Below left, clockwise from top left) Celebrating 80 years of EIC at our Houston office; (L-R) incoming EIC chairman Andy Cuniah, outgoing Chairman Hugh Saville, and Chief Executive Stuart Broadley; Stuart at the EIC National Awards; the National Awards Dinner in 2019.

(Below right) The UK Pavilion at ADIPEC

Oman, Saudi Arabia and UAE

lead GCC clean energy investments

The Gulf Cooperation Council (GCC) economies represent an enormous opportunity for EIC members. As the region pivots from fossil fuels, GCC states are well-positioned to lead the energy transition through clean hydrogen development and strong policy support.

Across the region, the political will to decarbonise at pace is lining up investors. And although ambitions vary among countries, as do market size and readiness, there is a prevailing sense of dynamism. But which markets should you consider exporting to in 2023? Oman, Saudi Arabia and UAE, says Wan Afiq, Energy Analyst for Middle East and North Africa at EIC

Oman

100% foreign ownership

Low-cost loans

No minimum capital requirement for business setup

Significant tax incentives

100% customs duty exemption

In the GCC, Oman is racing ahead with clean energy investment and development. EICDataStream is tracking 10 active and planned projects worth more than US$26bn CAPEX. The country aims to be a leading green hydrogen hub, with over 99% of estimated CAPEX for energy transition projects in the hydrogen sector; the other 1% is invested in energy storage.

Who are the key players?

Major companies active in Oman’s energy transition sector include

In October 2022, Oman joined the UAE and Saudi Arabia in becoming the third GCC country to commit to achieving net-zero emissions by 2050, in alignment with the goals of the Paris Agreement. Following the UAE and Saudi Arabia, which made their net-zero pledges in 2021, and according to EICDataStream, Oman now leads the way with its plans to capitalise on a range of clean energy investments throughout the country.

Estimated CAPEX spend up to 2029

Oman

10 clean energy projects worth US$26.2bn

Saudi Arabia

7 clean energy projects worth US$20.2bn

UAE

12 clean energy projects worth US$4.2bn

OQ (formerly known as Oman Oil Company), Intercontinental Energy, Marubeni Corporation and ACME. During the last 12 months, international contractors that have been successful in Oman in Oman include KBR, DNV GL and Worley.

Future opportunities worth US$140bn

Clean energy is one of the key sectors targeted by Oman Vision 2040 and the Sultanate’s national strategy for energy. Oman launched its Green Hydrogen Strategy in

Saudi Arabia

Competitive corporate tax rates Customs duties exemptions

100% foreign ownership

Flexibility in employing foreign labour Low-cost loans

EICDataStream ranks Saudi Arabia second in the GCC in terms of CAPEX for ongoing and planned clean energy projects, with seven developments worth US$20.2bn currently being tracked. In October 2021, Saudi Arabia announced plans to become the largest producer of low-carbon hydrogen by targeting the production of around 4mtpa of hydrogen by 2030. It also aims to capture carbon of

Saudi Arabia is keen to attract hydrogen and carbon capture projects

October 2022, setting a production target of 1–1.25mtpa by 2030. By 2040 it hopes to be producing up to 3.25–3.75mtpa, rising to 8.5mtpa by 2050. Oman estimates it will require investment of US$140bn by 2050 to reach the hydrogen production goal. It also set up a state-owned company, Hydrogen Oman, to oversee growth of a green hydrogen-based economy.

Why invest?

Oman has a vibrant economy and an open attitude toward

44mtpa by 2035, to achieve net zero emissions by 2060.

Projects to note include the US$8.4bn NEOM green hydrogen plant, to be powered by 4GW of solar and wind energy, and expected to produce 600–650 tonnes of green hydrogen per day. The project secured a financial close with a value of US$8.4bn in May 2023. Also, the US$4.5bn Jubail industrial city carbon capture and storage hub, expected to come online by 2027 – the first phase of the hub will be able to store and utilise 9mtpa of CO2

Who are the key players?

Saudi Arabia is keen to attract hydrogen and carbon capture projects and has partnered with international investors including ADNOC, Brooge Renewable Energy and Masdar. Contractors ThyssenKrupp, ACWA Power, Larsen & Toubro and Baker Hughes have all been successful

in winning contracts during the last year.

Saudi Arabia’s competitive edge

A study conducted by the King Abdullah Petroleum Studies and Research Centre states that the price of green hydrogen in Saudi Arabia could be one of the lowest in the world. While the global hydrogen price range is US$2–7 per kg, according to the research, Saudi Arabia will be able to reach US$1 per kg in the long term due to the country’s low natural gas and renewable energy prices.

Why invest?

Saudi Arabia is developing policies and regulatory instruments to drive technologies in hydrogen development to commercial readiness. The list of incentives released to date covers a wide range of financial and non-financial incentives. These include, but are not limited to, tax incentives, government subsidies, relaxed Saudisation requirements and discounts on government fees. Funding initiatives include the Saudi Industrial Development Fund, the National Infrastructure Fund and the National Development Fund.

MAJOR PROJECTS TO WATCH

Saudi Arabia

Green Hydrogen

Production Facility

– NEOM and ACWA

Power

Value: US$8.4bn

Start up: 2026

Stage: Engineering, procurement and construction (EPC)

Status: Contract awarded

Operators: NEOM, ACWA Power, Air Products & Chemicals

Jubail Industrial City Carbon Capture & Storage Hub

Value: US$4.5bn

Start up: 2027

Stage: Feasibility study

Status: Memorandum of Understanding (MoU)

Operators: Saudi Aramco, Linde, Schlumberger

Green Hydrogen – PIF, Samsung C&T & POSCO

Value: US$6.5bn

Startup: 2029

Stage: Feasibility study

Status: MoU

Operators: Samsung C&T, Posco, Korean Southern

Oman

Green Energy Oman

Value: US$10bn

Start up: 2028

Stage: Feasibility study

Status: Contract awarded

Operators: Intercontinental Energy, OQ, EnerTech, Shell

Duqm Green Ammonia & Hydrogen Project – Acme

Value: US$3.5bn

Start up: 2025

Stage: EPC

Status: Contract awarded

Operators: Tatweer Petroleum, ACME Solar

SalalaH2 Green Hydrogen & Ammonia Project

Value: US$1bn

Start up: 2028

foreign investment. The government is making the country more attractive to foreign investors by improving infrastructure and creating new laws that will simplify investment procedures, reduce bureaucratic hurdles and provide various tax exemptions and incentives.

The establishment of a US$5.2bn investment fund, called the Oman Future Fund, is set to be a catalyst for foreign direct investment and will be under the management of the Oman Investment Authority.

Stage: Feasibility study

Status: Planning

Operators: OQ, Marubeni Corporation, Linde Group, Dutco

SOURCE OF PROJECT INFORMATION: EICDATASTREAM

Oman aims to become one of the world’s leading green hydrogen hubs

MAJOR PROJECTS TO WATCH

United Arab Emirates

Up to 100% foreign ownership in free zones 100% foreign

No minimum capital requirement for business setup Competitive financing costs

With 12 active and planned clean energy projects representing a total potential investment value of US$4.2bn, the UAE ranks third in the GCC in terms of capital expenditure.

The country launched its Hydrogen Leadership Roadmap during COP26 in 2021, setting a target to capture a quarter of the world’s clean hydrogen market by 2030. To explore the opportunities of the hydrogen sector, the UAE has formed the Abu Dhabi Hydrogen Alliance, which consists of Mubadala Investment Company, ADQ, ADNOC and the Ministry of Energy and Infrastructure.

As well as actively pursuing clean energy strategic partnerships with countries including Brazil, the Netherlands, the UK and the US, the UAE has formed partnerships with countries such as Japan, India and Germany to export hydrogen. It also formed a partnership with South Korea for the ADNOC blue ammonia production, a facility joint research and a demonstration project located in Ruwais. To test its capabilities as a hydrogen exporter, the UAE sold four test cargoes of blue ammonia in 2021 to Itochu, Idemitsu and INPEX, all based in Japan.

The UAE is also the home of the Al Reyadah Carbon Capture, Utilisation and Storage (CCUS) Plant, the Middle East’s first commercial-scale CCUS plant, which currently captures 0.8mtpa of CO2. As part of its US$15bn to advance an array of projects across its diversified value chain by 2030,

ADNOC plans to expand the plant’s capacity by over 500%, reaching 5mtpa of CO2 by 2030.

Who are the key players?

Major companies active in UAE’s energy transition sector include ADNOC, Brooge Renewable Energy, bp, Helios Industry, Masdar and TotalEnergies. During the past 12 months, contractors

winning contracts in the hydrogen and carbon capture sectors included KBR, ThyssenKrupp, Tecnimont and Wood.

A global leader in hydrogen?

The UAE is positioning itself as a leader in hydrogen technology as part of its economic and energy diversification strategies. It is working with international partners and fostering collaborations among public and private sector stakeholders, locally and globally, to break down the barriers to the hydrogen economy in line with the UAE Energy Strategy 2050 and the UAE Net Zero by 2050 Strategic Initiative.

Why invest?

The UAE has created a modern investment environment and set policies that facilitate and speed up the establishment of companies through electronic platforms. The UAE also offers various funding options and incentive programmes for foreign businesses. Industrial investors, innovators and entrepreneurs can receive significant financial and advisory support from the Emirates Development Bank via the UAE’s Make it in the Emirates initiative. The UAE has also introduced initiatives including the Technology Transformation Programme and the Emirates Research and Development Council to stimulate the development of enabling technologies that will help scale hydrogen technology.

UAE

Habshan 5 Gas Plant

Carbon Capture Project

Value: US$500m

Start up: 2026

Stage: EPC

Status: Tendering & bidding

Operators: ADNOC

Brooge Renewable Energy

Green Hydrogen & Green

Ammonia Plant

Value: US$300m

Start up: 2026

Stage: Feasibility study

Status: Contract awarded

Operators: Brooge

Renewable Energy

ADNOC Blue Ammonia

Production Facility –

Ruwais

Value: US$200m

Start up: 2025

Stage: EPC

Status: Contract awarded

Operators: ADNOC, Fertiglobe, Mitsui & Co, GS Energy

SOURCE OF PROJECT INFORMATION: EICDATASTREAM

Thinking of doing business in the GCC? EIC has the tools and services to help your business grow. Get help from EIC Dubai: dubai@ the-eic.com

All eyes are on the UAE this year as it prepares to host COP28 in November

ownership across 13 sectors

100% profit repatriation

SupplyMap

EICSupplyMap maps the capabilities of supply chain companies that operate in the wider energy industry. These industries cover renewables, upstream, midstream, downstream, power, nuclear, energy storage and the potential and proven capabilities in carbon capture and hydrogen. After successfully mapping the UK market, EICSupplyMap now covers the United Arab Emirates, Malaysia, Texas/US and Brazil.

• Identify the supply chain local to your region, giving you the opportunity to engage with potential new clients.

• Find the supply chain capability in five regions, now covering the UK, UAE, Malaysia, Texas/US and Brazil.

• An in-depth look at profiles of more than 6,000 energy sector supply chain companies.

• Make smarter decisions by targeting your offering to international developers/operators and contractors matching your capability with international energy projects.

To learn more about EICSupplyMap visit www.the-eic.com/MarketIntelligence/EICSupplyMap

RIO DE JANEIRO

HOUSTON

LONDON

DUBAI

KUALA LUMPUR

A long coastline and strong winds make Brazil an attractive location for the development of offshore wind farms, with significant potential for growth, say Project Coordinator Gabriel Loio and Senior Adviser Julieta Verleun at the Energy and Ocean Economy Secretariat, Government of the State of Rio de Janeiro

Brazil braces for offshore wind A

s the world embraces renewable energy, offshore wind has emerged as a promising sector. And with its vast coastline and wind potential, Brazil presents a lucrative opportunity for investors seeking to expand their portfolios.

The country boasts an extensive coastline that stretches over 4,600 miles and is endowed with strong and consistent winds. Its favourable climate conditions create the ideal environment for offshore wind farms. According to estimates, Brazil’s offshore wind capacity potential is 700GW, presenting a vast untapped resource waiting to be harnessed.

A firm commitment to renewable energy

Brazil’s renewable energy market has shown a strong commitment to renewable energy, with a diversified energy mix comprising hydroelectric, biomass and wind power. The government aims to

increase the share of renewables in the energy matrix, opening up avenues for significant investment in offshore wind.

Investors can benefit from Brazil’s supportive regulatory framework, tax incentives, human capacity and long-term power purchase agreements, which provide stability and attractive returns on investment.

Good foundations

Brazil’s onshore wind industry is well developed, with the basic technologies needed for generation already established in the country. Naturally, it is a notable starting point from which to evolve, and serves as a significant foundation for further development in the offshore sector. Brazil’s onshore wind sector already possesses a well-prepared regulatory

framework, including specific auctions and schedules, which can be used to implement new offshore wind projects.

The commissioning of more than 185GW of disclosed offshore wind projects is expected to lead to significant job creation and economic growth in the region as Brazil’s energy landscape undergoes rapid change. It is worth noting that the country already possesses a workforce that is skilled in renewable energy generation, distribution and management, as well as having high levels of expertise in maritime and naval services, which are already used in the oil exploration and production industry. This existing expertise can be effectively transferred to the renewable maritime sectors – particularly in the State of

Brazil’s offshore wind capacity potential is 700GW, presenting a vast untapped resource waiting to be harnessed

Rio de Janeiro, which is the country’s largest producer of oil and natural gas.

More specifically, Rio de Janeiro State has a competitive advantage due to its location and its existing infrastructure: it has 395 miles of coastline with a strong and constant wind resource; it is a centre of energy consumption and consumer market proximity; it has more than 50 years of offshore services experience, with a well-established energy industry, workforce labour and established maritime and port infrastructure; and it is integrated with the national interconnected system, with established transmission and distribution lines.

A prime destination for investment

Brazil’s vast coastline, abundant wind resources, skilled workforce and supportive renewable energy policies position it as a prime destination for UK investors seeking offshore wind opportunities. By leveraging their expertise, investors can contribute to Brazil’s energy transition while reaping the benefits of a maturing industry, attractive incentives and the potential for long-term returns on investment.

Estimated CAPEX spend up to 2033 Brazil

abound in the Americas

Opportunities offshore wind market

Offshore wind in the Americas is still in its infancy but Brazil, Colombia and the US hold huge potential for partnerships, say Americas Senior Regional Analyst Pietro Ferreira and Research Intern Lucas Mitidieri of the EIC

Brazil

Tax incentives

Supportive regulatory framework

Tax benefits in certain free trade zones

Long-term power purchase agreements

Offshore wind is set to become Brazil’s next major business opportunity in the energy sector. Its Energy Research Office estimates that the country has offshore wind potential of 700GW in water depths of up to 50 metres, making it an attractive destination for fixed-bottom developments. Brazil’s offshore wind potential falls in three key areas: Ceará and Rio Grande do Norte in the North-East, Rio de Janeiro and Espírito Santo in the South East and Rio Grande do Sul in the South.

Who are the key players?

Developers are keen to tap into Brazil’s offshore wind potential.

There are currently 75 projects under evaluation by the federal environmental regulator Ibama, with a combined capacity of approximately 185GW. The companies behind these projects vary from established renewable energy players such as Iberdrola and BlueFloat Energy, to IOCs such as Equinor, Shell and TotalEnergies.

Some offshore wind projects under evaluation are associated with clean hydrogen, another emerging segment in Brazil. However, not all initiatives will proceed to the development stage, as the country’s own installed

75 offshore wind projects worth US$455.7bn

Colombia 12 offshore wind projects worth US$16.3bn

US 51 offshore wind projects worth US$18.4bn

capacity currently stands at 192GW. Nonetheless, the growing number of projects under environmental evaluation prove developers’ strong interest in investing in this market.

Regulatory framework takes shape

Brazil’s regulatory framework for offshore wind development is still in the early stages. Although Ibama has already released terms of reference for environmental licensing of prospective projects, regulations covering the leasing of offshore wind areas are still pending. A draft bill addressing this gap was proposed by former senator and current Petrobras CEO Jean Paul Prates, and is currently awaiting approval by the Chamber of Deputies. Developers hope the bill will be passed in 2023, with the first auction for offshore wind areas expected to take place in the second half of 2024.

Why invest?

The Brazilian government actively encourages and promotes foreign investment to introduce greater innovation into the country’s economy and generate economic growth. Investment incentives include tax exemptions and low-cost financing, with no distinction made between domestic and foreign investors.

Colombia

Tax benefits, simplified regulations and improved infrastructure in free trade zones

Renewable energy incentives R&D incentives

Low-cost loans, grants and subsidies

Colombia, heavily reliant on hydropower, is eyeing offshore wind as its next major business opportunity and the centrepiece of its energy transition. A recent World Bank study revealed that the country could generate up to 50GW of offshore wind power in water depths of up to 70 metres. Moreover, it will likely lead the race for South America’s first offshore wind tender.

Colombia races ahead

Following its ambitious commitments to the energy transition, the Colombian government plans to organise the first offshore wind tender in the second half of 2023. With its abundant wind resources, the Caribbean coastline will be the primary focus of offshore wind investments. Energy Minister Irene Vélez has stated that the Atlántico department in the Caribbean zone has already been

subdivided into six energy areas. The Bolívar department is also expected to be in the tender. Offshore wind development is strategically important for Colombia’s plans to become a regional green hydrogen leader. It intends to use some electricity generated through offshore wind facilities to produce green hydrogen for export to Europe.

Who are the key players?

EICDataStream currently tracks 12 offshore wind projects under evaluation in the country, with a combined capacity of 5GW. The companies involved in these projects are BlueFloat Energy and Copenhagen Infrastructure Partners (CIP), two major European players. BlueFloat is currently working on the Vientos Alisios project, which received pre-feasibility status in January 2021 and secured a guarantee for a 200MW connection to the

national electricity grid. Meanwhile, CIP signed a memorandum of understanding with the city of Barranquilla in January 2022 for the Barranquilla offshore wind farm.

Grounds for optimism

Despite the potential for offshore wind energy in Colombia, the sector is still in its early stage. The country needs to more government support and more transmission constraints solved if it is to live up to its offshore wind promise. However, there is reason for optimism. With the right level of investment and support, the World Bank predicts that Colombia could generate up to 1GW of offshore wind energy by 2030, 3GW by 2040 and 9GW by 2050.

Why invest?

The Colombian government has implemented a series of initiatives, including the development of an offshore wind roadmap and hydrogen roadmap, among many others. These initiatives offer opportunities for UK companies with expertise in these areas.

To support and encourage foreign investment, Colombia offers free trade zone benefits, customs duty reductions or exemptions, VAT exclusions and incentives to invest in technology and innovation.

The Brazilian government actively encourages and promotes foreign investment to introduce greater innovation

US

Tax benefits

Sustainability incentives

R&D incentives

Cash grants and subsidies

Utility rate reductions

As the only country in the Americas with an operational offshore wind farm, the US is a leading market in this sector. The local offshore wind industry enjoys strong support from federal and state governments, and the country has seen consistent growth in the number of projects under development.

EICDataStream currently tracks 51 offshore wind projects in the US, with a combined capacity of 55GW. As an increasing number of projects enter the development stage, the US moves closer to the bold target announced by the Biden administration to achieve 30GW of offshore wind capacity by 2030.

Who are the key players?

The key players in the US offshore wind market include major European players such as Ørsted, Equinor, Avangrid and TotalEnergies. Vineyard Wind –an Avangrid-CIP partnership – is building the 800MW Vineyard Wind farm off the coast of Massachusetts, which is expected to start operations in 2024. Ørsted, meanwhile, is slated to begin operations at the 132MW South Fork wind farm in New York by the end of 2023.

In total, EICDataStream is tracking 35GW of projects with potential start-ups by the end of the decade, with the majority located across the Eastern Seaboard.

Regular Bureau of Ocean Energy Management lease sales have been instrumental in developing the US offshore wind sector. Recent auctions have enabled developers to acquire leases off the coasts of New York, North and South Carolina and California. Future auctions will target areas in the Gulf of Mexico, Central Atlantic, Oregon and the Gulf of Maine.

California goes deep with floating wind

California is particularly significant for US offshore wind. In 2022 the California Energy Commission expanded the state’s offshore wind target to 5GW by 2030. Looking beyond the fixed-bottom developments on the East Coast, the Golden State offers massive opportunities in the floating wind segment with lease areas in water depths of up to 1,300 metres. Equinor, Invenergy, Ocean Winds, CIP and RWE were the winning bidders of lease areas in the Morro Bay and Humboldt areas, which are expected to host 8.1GW of combined installed capacity.

Why invest?

The federal, state and local governments provide various credits and incentives to encourage business investment. These are designed to support businesses in investment, job creation, expansion efforts, and the establishment of new facilities. Some of the most common credits and incentives include cash grants, property and sales tax abatements, utility rate reductions and other tax benefits, such as credits and tax holidays.

Brazil

Ventos do Sul Offshore

Wind Farm Power

Value: US$16.2bn

Start up: 2030

Stage: Feasibility

Status: Planning consent applied

Operator: Ocean Winds

Alpha Offshore Wind Farm

Value: US$15bn

Start up: 2032

Stage: Feasibility

Status: Planning consent applied

Operator: Veritas Grupo

Farol Wind Power Offshore

Wind Farm

Value: US$14.2bn

Start up: 2030

Stage: Feasibility

Status: Planning consent applied

Operator: Bravo Vento

Colombia

Barlovento Floating Offshore Wind Farm

Value: US$2.5bn

Capacity: 825MW

Bergantin Floating Offshore Wind Farm

Value: US$2.5bn

Capacity: 825MW

Astrolabio Floating Offshore

Wind Farm

Value: US$2.5bn

Capacity: 825MW

Start up: 2032

Stage: Feasibility

Status: Planning Consent Applied

Operator: BlueFloat Energy US

Olympic Offshore Wind Farm

Value: US$12bn

Start up: 2032

Stage: Feasibility

Status: Feasibility

Operator: Trident Winds

Coastal Virginia Offshore Wind Value: US$9.8bn

Start up: 2026

Stage: Engineering, procurement and construction

Status: Contract awarded

Operator: Dominion Energy

Community Offshore Wind Farm

Value: US$9bn

Start up: 2030

Stage: Feasibility

Status: Planning

Operators: Community

Offshore Wind (RWE Renewables, National Grid)

Thinking of doing business in the Americas? EIC has the tools and services to help your business grow. EIC North & Central America: houston@the-eic.com EIC South America: rio@the-eic.com

INTROFLO Reimagining valve technology

The energy world is changing – and every business must react. Introflo brings together KOSO Kent Introl (KKI) and Oxford Flow, two of the world’s leading valve manufacturers, to support the transition to sustainable energy production.

Our valves have been at the heart of fossil fuel power for decades- ensuring reliable service and safe operation. While we continue to serve the oil and gas sectors, we’ve shifted our focus from fossil fuels to renewables.

IntroFlo combines our intellectual property, engineering expertise, and insights to change how we work and live. We continue to deliver for existing clients while developing new productions and solutions to support emerging innovators in the sustainable energy industry. It’s critical to our futureand the planet.

IntroFlo is reimagining valve technology and transforming the energy sector.

TRANSFORMING THE ENERGY SECTOR

KKI is one of the world’s leading valve manufacturers, with over 55 years’ of experience designing, manufacturing, installing, and servicing valves in the most demanding environments. Every day, our products provide peace of mind and protection for energy producers in the oil, gas, and sustainable power industries.

Partnering with Oxford Flow enables us to offer energy producers more. IntroFlo combines Oxford Flow’s hydrogenready gas regulators and emissions-eliminating axial valves with KKI’s industry knowledge, valve heritage, and manufacturing expertise to deliver a single solution for leaders in the energy industry.

Together, we’re focusing on the future and developing new products demanded by the rapidly growing sustainable energy sector. Customers are already benefitting from our future-focused partnership.

SUPPORTING YOUR JOURNEY TO SUSTAINABILITY

Every business is engaged in a journey to sustainability, and IntroFlo is here to support you.

We provide global energy producers access to industryleading valve solutions to support your journey toward more reliable, leak-free operations. Our technology, expertise, and insights give you the capabilities and confidence to future-proof systems as you transition to sustainable energy production.

Every IntroFlo customer benefits from the combined expertise of KKI and Oxford Flow’s engineers, designers, and support team.

THE RIGHT PARTNER

IntroFlo is developing innovative valve solutions to inspire the next generation of cleantech.

Our team brings together leading academics, engineers, and manufacturers working in partnership to design and build the world’s most precise and accurate flow control valves and gas regulators to power sustainable energy production.

We’re collaborating with industry leaders and exciting startups, listening to them and learning about their ambitions, challenges, and opportunities. These insights are powering innovations in valve design, engineering, and performance.

Introflo is committed to creating the transformative technologies you need today and tomorrow. Fossil fuels have powered our societies and industries for generations –but the time to change is now.

IntroFlo is the right partner for your journey to a more sustainable future.

Join the clean tech revolution with our expert valve engineering solutions. Contact us today to power your sustainable future.

INTROFLO – WORLD-LEADING VALVE TECHNOLOGY

IntroFlo valves are at the heart of oil, gas, and sustainable energy solutions worldwide.

Our pressure regulators and flow control valves are precise, reliable, emissions-free, and a fraction of the weight of conventional products. They are built to the highest standards and from premium quality materials to minimise maintenance.

ES AXIAL FLOW VALVE

IntroFlo’s ES Series actuated valve delivers world-class performance and reliability for process control applications. The ES Series valve uses our direct hydraulic actuation technology to replace the traditional mechanical actuator and drivetrain. This game-changing technology reduces emissions, size and weight and minimises maintenance.

FREE DESIGN

GAS REGULATORS

IntroFlo’s range of gas regulators delivers industry-leading performance. Robust design and precision manufacture ensure total reliability and confidence even in the most demanding operating conditions.

LIQUID REGULATORS

We’ve developed a world-leading range of pressure regulators designed specifically for liquid applications. They provide total control in pressure-reducing and back pressure/sustaining configurations.

PORTABLE REGULATORS

Our portable regulators are smaller and lighter than our competitors while delivering superior performance. They’re simple to install, easy to maintain and guaranteed to deliver a step-change in performance.

markets for growth

Namibia

Tax incentives

Tax holidays

Customs and duties exemptions/ reductions

Investment allowances

Subsidised loans and grants

Namibia has emerged as a major player in global oil exploration after TotalEnergies and Shell made significant discoveries in 2022. While exploration has yielded few results in the past several decades, Shell’s Graff and TotalEnergies’ Venus discoveries are expected to propel the country to the head of Africa’s upstream future. Both discoveries are being appraised, with first flow expected in 2026. Dubbed the ‘new Guyana’, estimates suggest Namibia could have up to 11bn barrels of crude.

The momentum in Namibia’s upstream exploration has gained significant traction in 2023, with EICDataStream tracking six oil and gas projects worth US$19.6bn.

Who are the key players?

TotalEnergies has allocated a substantial portion of its global exploration budget for the year to confirm the presence of a multi-billion-barrel discovery in Block 2913B and Block 2912. In March 2023, Shell, in collaboration with QatarEnergy

(Left) Gas exploration drilling using helicopter-conveyed rigs, upstream of Hepa, Papua New Guinea jungle, 2014

Papua New Guinea

Tax exemptions, deductions, and reduced tax rates

Duty exemptions

Special economic zones offer tax exemptions, simplified regulatory procedures and infrastructure support

Papua New Guinea is benefiting from recent gas projects and the global rise in liquefied natural gas (LNG) prices, which are boosting the country’s economic prospects. To capitalise on these opportunities, it aims to double its LNG exports by 2032.

The first LNG production began in April 2014 with the PNG LNG project. Worth US$19bn and with a capacity of 6.9m tonnes per annum (Mtpa) of LNG, the project has exceeded export expectations.

Papua New Guinea is currently shifting its focus to two main LNG projects, Kumul LNG and Papua LNG, which are in the development phase. When completed, these will have a combined capacity of 5Mtpa.

Who are the key players?

Papua New Guinea’s national oil company Kumul

Petroleum plays a vital role in developing the country’s oil and gas industry. It operates several major blocks, including PRL 9, PRL 8, PRL 38 and PRL 10. Other notable operators include ExxonMobil, Horizon Oil, Oil Search, TotalEnergies, Twinza Oil Limited and Arran Energy Pty Ltd.

EICDataStream is tracking 23 active and future projects. In the last year, significant contracts have been awarded to notable projects. The joint venture (JV) between Hyundai Engineering & Construction and Japan

Gasoline Corporation secured the front-end engineering design (FEED) contract for Papua LNG. Furthermore, two FEED contracts for the Elk-Antelope Gas field were awarded to a JV between Clough Limited and TechnipFMC, as well as a JV between Daewoo Engineering & Construction, Saipem and PT Tripatra.

Papua New Guinea also aims to attract more oil exploration activity as it changes its fiscal regime for upstream projects in 2025.

Why invest?

Papua New Guinea presents compelling investment opportunities in the oil and gas sector. It is aspiring to build a liberal investment environment and encourages foreign investment with relatively few restrictions. It is rich in natural resources and has a proven track record of successful operations, making it attractive for international investors.

The country offers attractive incentives, including tax benefits, duty exemptions and access to financing options. The government also provides stability through transparent and consistent legal and regulatory systems.

MAJOR PROJECTS TO WATCH

Papua New Guinea

Elk-Antelope Gas Field

Operator: TotalEnergies

Value: US$1.5bn

Stage: FEED

Status: Contract awarded

Elk-Antelope LNG Liquefaction Project (Papua LNG)

Operator: ExxonMobil

Value: US$9bn

Stage: FEED

Status: Contract awarded

Kikori LNG Project (Kumul LNG)

Operator: Kumul Petroleum Holdings Limited (KPHL)TotalEnergies

Value: US$1.5bn

Stage: Feasibility

Status: Contract awarded

Namibia

Block 2913B Venus-1X Oil

Discovery

Value: US$500m

Startup: 2026

Project stage: Exploration

Project status: Drilling and appraisal

Operator: TotalEnergies

Block 2913A Graff Oil Field

Value: US$200m

Startup: 2026

Stage: Exploration

Status: Drilling and appraisal

Operator: Shell

Jonker-1X Oil Discovery

Value: US$200m

Startup: 2026

Stage: Exploration

Status: Drilling and appraisal

Operator: Shell

and the National Petroleum Corporation of Namibia, made a notable oil discovery in the Orange Basin offshore Namibia. The Jonker-1X well, situated about 270km offshore, is a substantial find that could potentially yield more than 1bn barrels of recoverable oil. Shell has achieved a 100% success rate with the three exploration wells drilled in Block 2913A.

Namibia has drawn other oil majors including Chevron, who acquired an 80% stake in PEL 90

in the Orange Basin through a transaction with Trago Energy. Similarly, Woodside Energy has secured an exclusive option with Pancontinental to gain a 56% participation interest in PEL 87.

Why invest?

Namibia offers a favourable investment climate, welcoming

foreign investors and providing a solid foundation of stable governance and infrastructure. Its legal, regulatory and accounting systems are transparent and aligned with international standards. Namibia’s financial system offers comprehensive services to support investors. The country’s competitive incentive and fiscal regime include the Foreign Investment Act, as well as special incentives for manufacturers and exporters.

(Left) Oil production vessels and supply ships at the port of Walvis Bay, Namibia

Guyana

Tax incentives

Accelerated depreciation rates

Full and unrestricted repatriation of capital, profits and dividends

Exemptions on import duties for equipment and materials

MAJOR PROJECTS TO WATCH

Guyana

Uaru Oil Field (Errea Wittu FPSO)

Value: US$12.7bn

Startup: 2026

Stage: EPC

Status: Contract awarded

Operator: ExxonMobil

Yellowtail Oil Field (One Guyana FPSO)

Value: US$10bn

Startup: 2025

Stage: EPC

Status: Contract awarded

Operator: ExxonMobil

Payara Oil Field (Prosperity FPSO)

Value: US$9bn

Startup: 2023

Stage: EPC

Status: Contract awarded

Operator: ExxonMobil

In recent years, Guyana has emerged as a major hotspot of the offshore oil and gas industry, attracting international oil companies and independent players keen on tapping the oil-rich Guyana-Suriname basin.

EICDatastream is currently tracking 13 oil and gas projects with a combined investment of US$61.9bn, including various field developments at Guyana’s resource-rich Stabroek Block.

Who are the key players?

ExxonMobil, Guyana’s first and largest oil producer, is advancing its fifth project on the Stabroek block. The Liza field currently has two floating production storage and offloading (FPSO) vessels producing 360,000 barrels per day (bbl/d). Oil production at the block is expected to increase to 1.2m bbl/d by 2027, when at least four new FPSOs, with a combined investment of more US$40bn, will be operating.

The block is estimated to hold 11–12bn barrels of oil equivalent in recoverable reserves, development of which could require the installation of 10 FPSOs.

SBM Offshore is the FPSO supplier for the Prosperity (third phase, Payara development)

and the OneGuyana (fourth phase, Yellowtail development) production units; Modec is the engineering, procurement and construction (EPC)contractor for the Errea Wittu FPSO (fifth phase at Uaru).

TechnipFMC and Saipem have been chosen to supply the subsea production systems/subsea umbilicals, risers and flowlines for the Payara and Yellowtail projects, respectively. Exploration work at Stabroek is supported by equipment supplied by Stena Drilling and Noble Corporation.

Expanding horizons

The Stabroek block has made more than 30 significant discoveries since 2015, including 2023’s Lancetfish discovery. As drilling contracts continue, additional discoveries are anticipated.

Guyana will carry out its 2022 Licensing Round later this year, offering 14 oil and gas blocks in the Guyana-Suriname basin for exploration. This includes three blocks in deepwater depths and eleven in shallow waters, presenting new opportunities beyond the Stabroek block.

The country is also pursuing the Gas-to-Energy project, which involves generating

power from associated gas produced offshore in the Liza field. This initiative includes a gas pipeline, a natural gas processing unit, and a combined cycle thermal power plant. Subsea7 and Van Oord are expected to begin laying the pipeline infrastructure on the seabed mid-2023.

Local content requirements

Guyana has implemented local content requirements. The Local Content Act, approved in December 2021, promotes the involvement of local businesses in the oil and gas industry. It includes 40 items with varying local content requirements, and operators and contractors are expected to submit annual plans outlining strategies to comply with these regulations.

Why invest?

Guyana is working hard to modernise its legal and regulatory framework to reflect current and future developments in the economy. A realistic legal framework is anticipated to improve transparency and accountability in the sector, maximise economic gains, and curtail any associated risk.

Thinking of doing business in Papua New Guinea, Guyana

Namibia?

(Left) A ship creates an artificial island by extracting offshore sand to create a coastal port for offshore oil production at the mouth of the Demerara River in Georgetown, Guyana in April 2023. Guyana is poised to become the world’s fourth-largest offshore oil producer, placing it ahead of Qatar, the US, Mexico and Norway

Estimated CAPEX spend up to 2030

Vietnam

41 conventional power projects worth US$88.96bn

The Philippines

13conventional power projects worth US$12.63bn

Indonesia

26 Conventional power projects worth US$21.8bn

Changing power demand

in Asia Pacific

Although there is growing pressure on the global power sector to decarbonise, coal remains one of Asia Pacific’s cheapest new-build power generation options. With the region’s electricity demand growth expected to be double the rate of the rest of the world this decade, EIC Regional Analyst for Asia Pacific Dr Madana Nallappan looks at Vietnam, the Philippines and Indonesia and the opportunities on offer amid their energy conundrum

Vietnam

Energy demand is surging in Vietnam due to its rising prosperity and expanding commercial activities. It has one of Asia’s fastest power consumption growth rates, with 10%–12% growth expected yearly through 2030. As of 2020, installed power-

generation capacity stood at around 69GW. According to the Power Development Plan 8 (PDP8) capacity is expected to exceed 150GW by 2030.

Net-zero target

In 2020, coal accounted for most of Vietnam’s total power

generation. Despite its coal dependence, Vietnam announced at COP26 that it would aim to be net zero by 2050, and also made a commitment nthat it would not build any new coal power capacity, barring projects that were already underway.

According to PDP8, Vietnam will completely phase out all coal-fired power plants by 2050

in line with its climate commitments. However, the combined capacity of coal-fired power plants will increase to 30.1GW by 2030, from 21.4GW at the end of 2020, in a bid to strengthen energy security.

Large coal pipeline

Vietnam’s coal consumption is expected to rise from 94–97 million tonnes (Mt) in 2025 to

(Below) View of Hai Phong coal-fire thermal power plants, Hai Phong city, North Vietnam

a peak of 125–127Mt in 2030, before declining to 73–76Mt by 2045. There are currently 6.13GW of coal power plants under construction, including Na Duong II, An Khanh –Bac Giang, Vung Ang I, Quang Trach I, Van Phong I and Long Phu. Another 7.22GW worth of projects are behind schedule due to financial difficulties, including Thanh President, Nam Dinh I, Quang Tri, Vinh Tan III and Song Hau II.

PDP8 states that the Ministry of Industry and Trade will work with investors to get lagging projects mobilised by June 2024. If its efforts fail, they will be considered for termination.

Leading up to 2050, all coal power plants will either be decommissioned or converted to use biomass or ammonia as fuel.

Gas to be new primary source

PDP8 highlights that power plants using locally sourced gas and imported liquefied natural gas (LNG) will be the key power source by 2030. The plan for the gas sector includes prioritising the Block B Ca Voi Xanh gas power project, which will contribute 6.90GW of gas power. This project involves plants such as O Mon II, III and IV (totalling 3.15GW), Central I and II, and Dung Quat I, II and III (totalling 3.75GW). Additionally, O Mon I (0.66GW) will be converted to use Block B gas.

The total capacity of gas power production, including LNG, is expected to exceed 37GW by 2030. The plan also calls for the synchronised development of LNG power plants and LNG import infrastructure. By 2030, the maximum total capacity of LNG power sources is expected to reach 22.40GW. By 2050, the majority of Vietnam’s gas power plants are projected to transition to hydrogen.

The Philippines generates most of its power from fossil fuels, with coal and gas accounting for 58% and 18% of capacity generated in 2021. This was followed by geothermal (10%) and hydropower (9%).

While coal accounts for a large portion of the country’s power generation, new coal project development came to a halt after the nation declared a moratorium on proposals to build new coal-fired power plants in October 2020. Six coal-fired power plant projects are currently underway, approved before October 2020. These projects have a cumulative

capacity of 4.6GW and are in various stages of development.

Cleaner coal

Philippines Indonesia

In response to concerns around coal’s environmental impact, clean coal technologies are being implemented. The Philippines commissioned its first 500MW supercritical coal plant, by San Buenaventura Power Ltd. Co, in September 2019. The second, by GNPower Dinginin Ltd Co, is expected to be in operation by the end of 2023. With the coal moratorium, the growth of conventional power generation is expected to shift to gas-fired power plants.

Move to gas

The Philippines currently has six operating gas-fired power plants, mostly in the Batangas province. It is expected to add around 4GW of additional capacity by 2040. With the declining reserves of the Malampaya gas field (the Philippines’ only source of gas supply), the Department of Energy aims to secure LNG imports in the future for its existing and upcoming gas-to-power projects, approving the development of seven LNG import terminals. Recent power projects announced include the 1.1GW Batangas LNG Power Plant by ACE Enexor Inc and Gen X Energy, with construction works to begin in 2023 with completion expected in H2 2026.

Indonesia is shifting towards using more renewable energy, although coal still accounts for 64% of power generation capacity as of 2022. This is followed by gas, which represented 15% of electricity generation. Renewables made up 20%, led by hydropower, geothermal and biofuels.

New coal on ice

There are 19 coal power projects in planning and development, with capacity of over 10GW; 10 are in the engineering, procurement and construction stage and will mostly come online by 2027. The rest are in the early stages, and are likely to face difficulties due to the

deteriorating investment climate for coal power and the Just Energy Transition Partnership (JETP) agreement Indonesia signed in November 2022.

The agreement, signed with a group of developed countries led by the US and Japan, entails the provision of US$20bn in support for Indonesia’s energy transition, mainly targeting coal-fired power plants. It is expected to speed up the phase-out of coal-fired output in the medium-to-long term, and involves putting coal-fired plant projects on ice.

Diesel-to-gas conversion

There are currently 21 gasfired projects in the pipeline with total generation capacity of

Regional opportunities

4.52GW, all to startup by 2027. Gas-fired projects could move at an accelerated pace as Indonesian officials see gas as a quick fix to cutting emissions. The nation plans to convert its diesel fuel-fired power plants to gas-fired power plants starting this year as a part of its energy transition programme.

The Indonesian government hopes that the gas conversion project could be funded by the JETP. There are currently 5,200 diesel power plants in 2,130 locations throughout Indonesia; the plan is to convert at least 52 into gas plants, with the first stage of the plan seeing the conversion of 33 plants. The project is reportedly still at the auction stage and is expected to commence this year.

Vietnam, the Philippines and Indonesia are expected to build coal-fired power plants throughout the 2020s. Opportunities will primarily stem from existing and planned plants, many of which will be operational until 2050. Carbon capture, utilisation and storage is anticipated to grow strongly in the region, although implementation will vary. Another key opportunity will be the deployment of digital technologies to increase the operational efficiency of legacy assets – maximising power generation, minimising emissions and reducing unplanned downtime. Finally, for regions closing their plants, there will be significant decommissioning opportunities.

Nuclear power roars back in Central Europe

As Europe transitions to a more sustainable future, the development and deployment of small modular reactors (SMRs) present exciting opportunities for the nuclear energy supply chain. With plans to develop and put the first SMRs into operation, EIC energy analyst Aadam Sufi looks at why Poland, the Czech Republic and Romania should be on your radar

Poland

Tax

One of few countries in Central Europe with no operational nuclear reactors for power generation, Poland is emerging as a potentially lucrative nuclear market. Having traditionally relied on domestic coal power generation for its energy needs, supplemented by Russian oil and gas, it now plans to have nuclear power from about 2033.

EICDataStream is currently tracking eight SMR projects requiring a combined investment of US$8bn, and a number still in very early stages.

Estimated CAPEX spend up to 2039

Poland

8 SMR projects worth US$8bn

Czech Republic

3 SMR projects worth US$1.5bn

Romania

1 SMR project worth US$1bn

SMR plant, with a further 13 to be decided.

Other players include KGHM, working with NuScale to build the first 462MW VOYGR-6 SMR in Poland by 2029. Rolls-Royce SMR has signed a memorandum of intent with state-owned Industria to collaborate on three SMRs to power its Central Hydrogen Cluster.

Who are the key players?

Polish companies PKN Orlen and Synthos Green Energy have formed a joint venture (JV), Orlen Synthos Green Energy, that will commercialise SMR construction in Poland. The JV will use GE Hitachi’s BWRX-300 reactor – a 300MW SMR that could power 300,000–350,000 households for 60–90 years.

The ambitions are far-reaching: 79 reactors to be built by 2038, the first by 2030. Seven sites have been announced for preliminary studies to assess suitability for an

US backing

US, Canadian and Polish companies including BWXT, OPG and Tennessee Valley Authority are cooperating to roll out GEH’s design, and all three countries’ nuclear regulatory agencies are working together. The US is looking to back Polish projects with up to US$4bn in financing via the Export-Import Bank and US International Development Finance Corporation.

Why invest?

Given the non-existent current market, opportunities are rife for

early-stage contracts. These include environmental and geological studies for site surveying and shortlisting of potential sites, with construction work likely available in a few years. Poland will also be looking to improve its nuclear skills and expertise, so technical support from other countries, especially Western countries with whom Poland has good relations, will be crucial. The Polish government is funding various initiatives, including training activities, international promotion and policy development.

Given the non-existent current market, opportunities are rife for early-stage contracts

Czech Republic

Corporate income tax relief Tax exemptions

Direct cash grants

Job creation, training and retraining R&D tax allowance

The Czech Republic has a strong nuclear heritage, with six reactors currently generating about 37% of its electricity. It plans to extend the operating lives of existing plants and use decommissioned coal plants to introduce SMRs. The government has started working on an SMR roadmap, due in April 2023 but yet to materialise. EICDataStream is

tracking three SMR projects worth a total value of US$1.5bn. In September 2022, national power company ČEZ and the South Bohemian Governor signed a contract to construct the first SMR at the Temelín nuclear power plant site by 2032. An initial geological survey has been completed. Except for this, plans for SMRs are in the early stages.

Who are the key players?

ČEZ has identified two coal-fired power plants at Detmarovice and Tusimice for two SMRs expected to be operational by the late 2030s. The state energy company is also exploring Prunérov, Ledvice and Melník as further potential SMR sites.

The Czech Republic has signed letters of intent for the construction of SMRs with Rolls-Royce, Holtec, the Korean KHNP agency, NuScale, EDF, GE Hitachi and Westinghouse, and there is a cooperation agreement with Ontario Power Generation in the field of nuclear energy with a specific focus on SMRs.

Why invest?

SMR nuclear opportunities include early-stage environmental assessments, feasibility contracts

SMR nuclear opportunities are likely to be focused on early-stage contracts

and other preliminary studies. The Czech government actively supports foreign investment and export activities through various initiatives, grants and incentives. Organisations including CzechInvest and CzechTrade offer valuable resources, expertise, and support to foreign businesses looking to enter or expand in the Czech market.

Romania could become the first country in Europe to deploy an SMR power plant. The Doicesti SMR project, sited at a former coal power plant, has moved to front-end engineering and design (FEED) works, and the plant is expected to come online by 2029. Headed by Nuclearelectrica, Romania’s partly state-owned nuclear energy company, the project will feature the NuScale VOYGR-6, producing 462MW of energy. The design is one of the most advanced in the world, with US approval gained in 2020.

The first simulator of the NuScale VOYGR SMR plant control room in Europe has opened at the University Politehnica of Bucharest in Romania to support the project.

US backing

The US Trade and Development Agency awarded a US$1.2m grant to identify and evaluate potential sites and US$14m for FEED. In May 2023, another tranche of funding was announced, led by the US and several multinational public-private partners from

Japan, South Korea and the UAE. A total of US$275m was reported, including US$99m from the US Export-Import (EXIM) Bank. The EXIM Bank and the US International Development Finance Corporation also issued letters of interest for “potential financial support of up to US$3bn and US$1bn, respectively, for project deployment”.

Who are the key players?

Nuclearelectrica has signed a memorandum of understanding with E-INFRA, Nova Power & Gas, Fluor Enterprises, Samsung C&T Corporation and NuScale Power to collaborate to implement NuScale SMR plants in Romania and across Central and Eastern Europe.

Why invest?

Supply chain opportunities include environmental assessments and geotechnical investigations for phase 1, and materials and equipment supply

and engineering contracts for phase 2. Financial incentives for foreign investors include tax breaks, cheap loans and free public utility access. A new agency for investment and foreign trade will launch soon, incorporating InvestRomania.

Romania could become the first country in Europe to deploy an SMR power plant

Filipe Bonaldo Alvarez & Marsal

is followed by the monitoring of the project with many tools, depending on specific challenges, in a way that guarantees that its goals and intended returns will be fulfilled.

What’s your typical day like?

As one of the partners of our Capital Projects segment, I have the responsibility of making sure that our clients have the best experience possible with the result of our work and that our employees have A&M’s values in their DNA.

What are your daily challenges?

Managing our team is a daily challenge. Dedicating time to people is a key element for our sustainable growth.

, Managing Director for Infrastructure and Capital Projects, takes Energy Focus behind the scenes at Alvarez & Marsal

Can you tell us a little bit about Alvarez & Marsal?

A&M is a consulting company specialising in the resolution of complex issues. We offer support in processes such as mergers and acquisitions, business performance enhancement, company restructuring, and capital-intensive project advisory. Founded in 1983, today the company has more than 80 offices on five continents.

Can you tell us more about the Capital Projects team?

Our Capital Projects practice assists our clients in defining the best initiatives for the allocation of their investments. This

What’s your favourite part in working at Alvarez & Marsal?

Fun is one of our values, so working in a collaborative environment with highly qualified professionals and having fun along the way is my main motivation.

What has been your greatest achievement as an employee of Alvarez & Marsal?

For me, helping to build and implement our Capital Projects practice and seeing its quick development in different regions of the world is a source of great pride.

What has changed since your first day at Alvarez & Marsal?

It’s hard to say! It might be easier to answer what hasn’t changed. We’re in constant evolution. Every day is a different day with new challenges, so when we look back, we realise that almost everything has changed.

Filipe Bonaldo

“For me, helping to build and implement our Capital Projects practice and seeing its quick development in different regions of the world is a source of great pride”