Energy Focus Winter 2024 by Energy Industries Council

energyfocus

ISSUE 53 WINTER 2024

F ROM T H E E N E RGY I N DUST R I E S COU NC I L VIEW FROM THE TOP Jacques Besnainou, CCO, Westinghouse Electric Company

ENERGY TRANSITION Australia, Europe and US lead the way in hydrogen and carbon capture

Where is the money in energy? Which sectors are thriving and where are the opportunities going in 2024?

OIL AND GAS LNG takes centre stage in the global energy transition

NUCLEAR Nuclear power drive picks up in Asia, Europe and North America

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Contents ISSUE 53 WINTER 2024

View from the top: Jacques Besnainou

FROM THE EIC

ENERGY TRANSITION

5 Foreword

20 Slow burn, bright prospects: opportunities on the horizon for hydrogen Projects and carbon reaching the capture supply chain

From the Chief Executive

OIL AND GAS 28 All eyes on LNG: Key to tackling energy security and climate goals

6 View from the top

Jacques Besnainou, Chief Commercial Officer, Westinghouse Electric Company

Fernando Vieira, Energy Consultant, EIC

10 News and events Updates from EIC

12 The big question

How bullish are members going into 2024?

NUCLEAR

16 Special report

32 A world of global nuclear opportunities on the rise

Sara Verbruggen finds out which projects are reaching the energy supply chain

34 My business

RENEWABLES

24 Unlocking opportunities in global wind energy

Sodexo Energy & Resources

Fernando Vieira, Energy Consultant, EIC

Global offshore wind

Fernando Vieira, Energy Consultant, EIC

All eyes on LNG

Who is building nuclear reactors?

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

Editors Sairah Fawcitt +44(0)20 7880 6200 sairah.fawcitt@redactive.co.uk Lucas Machado +55 21 3265 7402 lucas.machado@the-eic.com Account director Tiffany van der Sande Production director Jane Easterman Senior designer Gene Cornelius Picture editor Akin Falope Content sub-editor Kate Bennett

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

Publisher Redactive Media Group, Fora, 9 Dallington Street, London EC1V 0LN www.redactive.co.uk

www.the-eic.com | energyfocus 3

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Foreword

Stuart Broadley CEO

From the Chief Executive: The recent COP28 has been called the ‘nuclear COP’ by some, and in this issue we take a look at the plentiful opportunities to be found in the nuclear sector – as well as those in energy transition, renewables and oil and gas Looking back on COP28, it can perhaps be marked as the nuclear COP, with commitments to triple nuclear capacity by 2050 – alongside other commitments, such as tripling renewable capacity by 2030. Somehow the renewable target seems much harder in such a short time, particularly with so many supply, grid and cost challenges. The nuclear goals seem more logical, achievable and sustainable in the long term, with clean, mega-baseload power as the outcome. With COP28 shining the spotlight on nuclear, it’s timely that we welcome Jacques Besnainou for this edition’s View from the Top. As Executive Vice President, Global Markets and Chief Commercial Officer at Westinghouse Electric Company, one of the world’s largest nuclear services businesses, Besnainou shares the organisation’s perspective on the rise of new nuclear. Throughout 2023, EIC’s final investment decision (FID) data has highlighted that nuclear projects are more likely to reach FID than any other energy sector globally, by a factor of two or more. It’s pleasing to see energy ministries at large jumping on the nuclear bandwagon, and we predict that 2024 will be another year of strong nuclear progress, investment and rhetoric. Like many others, we have been reflecting on 2023. It was a momentous year for the industry, with booming markets and strong demand, but clouded by challenging barriers for governments and industry to be able to take maximum advantage. With only 5% of the world’s offshore wind projects currently having reached FID, eyes are turning to sustainable aviation fuel (SAF) as an alluring clean market opportunity, and this is a confounding new opportunity, with far more demand than supply in the feedstock. This might lead to 2024 being a year of massive SAF investments to grow feedstock.

Oil and gas, of course, continues to be the go-to market for the world’s energy supply chain, with stable and high commodity prices and massive pipelines of investments already booked. Averaging 20% FID rates across upstream, midstream, liquefied natural gas and downstream, it’s definitely a promising sector, with higher margins than renewables and fewer blockages to projects moving ahead. Persuading business leaders and investors to break away from oil and gas in the short and medium term poses significant challenges. Nonetheless, I am steadfast in my belief that, in the long term, the transition to net zero is inevitable, despite the obstacles highlighted by EIC. We have been instrumental in outlining these challenges and will continue to do so. The success of this transition hinges heavily on the government’s role in driving change – a policy that is now more crucial than ever. The familiar softly-softly approach, with ambitions and ‘carrots’, will not be enough. This year may well have to be the year of more legally binding requirements for industry decarbonisation, for new projects as well as existing assets, more ‘sticks’ to force behaviour change and emphasise resource efficiency, and more aligned standards to drive us all in the same direction. What a time to be in the energy industry, with opportunities abounding, technical challenges to ignite innovators’ creativity, skills shortages and the promise of long-term careers for millions of talented individuals globally. It’s time for us all to get stuck in and stop waiting for others to take the lead. Let’s dive in and make things happen!

Stuart Broadley Chief Executive Officer, Energy Industries Council stuart.broadley @the-eic.com www.the-eic.com | energyfocus 5

From the EIC Q&A Jacques Besnainou

Jacques Besnainou , Chief Commercial Officer, Westinghouse Electric Company

View from the top The pledge to triple nuclear energy capacity by 2050 made at COP28 is recognition that nuclear energy must play a significant role in the future 6 energyfocus | www.the-eic.com

Q&A Jacques Besnainou: From the EIC

Jacques Besnainou talks to Energy Focus about next-generation small modular reactors, renewable integration, and navigating global energy trends In terms of scalability, how does Westinghouse foresee small modular reactors and advanced modular reactors contributing to the overall capacity and flexibility of the company’s energy generation portfolio? With the launch of our AP300 small modular reactor in 2023, Westinghouse now has a suite of nuclear technologies that can meet the diverse energy needs of communities and industries around the world. Countries focusing on rapidly achieving decarbonisation and increasing energy security are interested in our AP1000 large modular reactor. Poland is in this category, currently deploying three AP1000s. China has four operating and eight under construction. Bulgaria has selected two. In the US, one is operating and a second will come online soon. These are truly transformative projects on a grand scale, which will deliver benefits for 80 to 100 years. Our AP300 SMR, which provides 300MWe, features a lower upfront capital cost, which makes it more accessible to utility customers and industry for a variety of applications beyond electricity, such as process heat. Also, in areas where the grid can’t support a large-scale reactor, the AP300 SMR allows these customers to have clean, reliable and cost-effective electricity and district heating as well. Our eVinci microreactor is a 5MWe transportable nuclear battery that is primarily targeted for remote or off-grid communities that now rely on transported diesel fuel for power and heating. This heat-pipe based technology can operate for eight-plus years without refueling, requires no water and has almost no moving parts, which is why we call it a battery. We have our first Canadian customer for eVinci and expect this technology to be a game-changer, even with space applications.

How does Westinghouse perceive the competitive landscape between nuclear and other renewable technologies? It is clear that we need both nuclear and renewables to replace fossil fuels in the electricity sector. They are actually complementary. In fact, Westinghouse is part-owned by Brookfield Renewable, one of the largest renewable asset managers in the world. There are constraints to the amount of renewables that a grid can accommodate, and the intermittency must be firmed by other resources, which has been mostly natural gas to this point. The pledge to triple nuclear energy capacity by 2050 made at COP28 is, again, recognition that nuclear energy must play a significant role in the future. How does the company balance its commitment to innovation and sustainability with the financial realities imposed by the higher cost of capital, especially in the context of long-term, capitalintensive projects? Westinghouse has been a leader in the nuclear energy industry for more than 70 years because of our ability to adapt to changing circumstances, as well as our core competencies of innovation and sustainability. The development of the AP300 SMR is a prime example. We based it on the already licensed and proven AP1000 technology, which greatly reduces first-of-a-kind risks for customers and takes advantage of the mature supply chain developed for the AP1000 reactor by essentially utilising the same components and modular construction techniques. Here we applied innovation to reduce costs, not develop novel technologies the regulators have never seen before. This is

About Jacques Besnainou Jacques Besnainou is the Chief Commercial Officer at Westinghouse. In his role, he leads the company’s global commercial strategy to deliver integrated enterprisewide solutions and deepen customer relationships. He joined Westinghouse and was appointed to this role in July 2022. Jacques has more than 30 years of experience in the nuclear and energy industries and has held executive leadership roles in France and the US. He holds a bachelor’s degree in mathematics and engineering from École Polytechnique, along with a masters in engineering and public policy from École des Mines de Paris, both in France.

www.the-eic.com | energyfocus 7

From the EIC: Q&A Jacques Besnainou

How do you view Germany’s decision to phase out nuclear power influencing the broader global energy landscape? Each country must address the challenges of climate change and energy security in a way that makes sense for them and is in the best interests of their people. Right now, far more countries are choosing to pursue nuclear energy than are opposing it, and we view that as the right path forward. There was a lot of pain in the development of the AP1000 reactor, with many lessons learned. But now we have a complete design and a mature supply chain that we can take to Poland, to Bulgaria, to the UK, to many other countries and grow the fleet of AP1000s – minus the first-of-a-kind growing pains that any new reactor technology will face. So, for countries that don’t have a current nuclear programme, or even those that have an existing programme, there is no better time to grow and expand. The days of unique nuclear reactor designs for each site are over, at least for Westinghouse, and that will help to facilitate deployment of new nuclear. We are already seeing this happen in China.

Westinghouse AP1000 reactors at Plant Vogtle in Georgia, US

We have our first Canadian customer for our eVinci microreactor – a 5MWe transportable nuclear battery for remote or off-grid communities. We expect this technology to be a game-changer, even with space applications What is your view on the UK energy market, and what key factors distinguish it from the other markets in which Westinghouse operates? Generally, one of the criticisms of the nuclear industry is that it is slow to act, but we are seeing the opposite with Great British Nuclear, to its credit. It is moving

swiftly on technology selection, with our AP300 SMR in the race. This is a nuclearmature country with a mature regulator, bi-partisan support for commercial nuclear energy and a mature supply chain – so a lot of opportunity. The UK knows Westinghouse very well through our long-standing partnership providing world-class nuclear fuel from our Springfields facility. We are ready to support the next phase of nuclear energy in Great Britain. Globally, what supply chain gaps has Westinghouse identified, and how do these gaps impact the company’s operations and projects? We see no gaps because of the work we have done over the past decade or so to strengthen the supply chain for our AP1000 reactor, which has also provided benefits to our other technologies. There are many opportunities to strike a balance between schedule confidence and local content. Westinghouse has a ‘buy where we build’ mantra, so we are continuing to seek local suppliers to build this impressive network of companies that will help the UK and others to transition to a net-zero energy mix. How is Westinghouse adapting its approach to skills development to meet the changing demands of the nuclear industry? Westinghouse is, at its heart, a skills-based company. We rely on the skills, knowledge and innovative spirit of our people to remain at the forefront of the nuclear energy industry. Two areas where those attributes have helped us continue to lead are fabrication and modularisation, building on the heritage of the AP1000. We are evolving fabrication skills to develop the specialised heat pipes that will be used in our eVinci microreactor. A new, larger facility will open next year where that work will take place. Our work in modularisation will be crucial in the design and construction of our AP300 SMR. So, we will continue to be on the leading edge of training programmes that support those areas. Given the growing emphasis on decarbonisation and the rise of clean energy technologies, how is Westinghouse

8 energyfocus | www.the-eic.com

GEORGIA POWER COMPANY

a customer-centric approach that makes nuclear technology more cost-competitive with alternatives.

Q&A Jacques Besnainou: From the EIC Artist’s rendering of the Westinghouse AP300 small modular reactor

adapting to the integration of renewable energy sources? We believe that the fastest way to reach net zero is to have nuclear and renewables working together, generating clean electricity simultaneously – not one displacing the other. Nuclear provides the baseload because of its ability to be ‘always on’, and renewables complete the portfolio. That said, our AP1000 technology has an impressive agility to load follow, at 1 MWe per second, if necessary. The value of nuclear is steady, predictable, reliable, clean electricity. Because of that, countries can build industrial bases and manufacturing hubs that create jobs and grow their economies. How will the agreements and initiatives that have emerged from COP 28 influence Westinghouse’s investment priorities, innovation strategies, and partnerships in the clean energy space? COP28 is already being labelled the ‘nuclear COP’, and for good reason. The overall agreement to reduce fossil fuel use includes nuclear energy, which may have been unthinkable a few years ago. And 24

countries signed a pledge to triple nuclear energy capacity by 2050, including the UK. The five nations known as the Sapporo 5 – Canada, France, Japan, the UK and the US – have agreed to ramp up nuclear fuel production capacity and secure fuel supply

The days of unique nuclear reactor designs for each site are over, at least for Westinghouse, and that will help facilitate deployment of new nuclear. We are already seeing this happen in China

chains. These are strong and timely signals to governments and investors, utilities and the public that nuclear is an important tool in the toolbox where energy security and climate change are concerned. What key factors or trends do you anticipate shaping the energy industry in the coming year, and how is Westinghouse positioned to navigate these changes? As stated, concerns about climate change and energy security will continue to shape the energy picture for the foreseeable future. Our job at Westinghouse is to provide the solutions that countries and industries are seeking to meet these challenges. Support for nuclear energy will continue to grow, but we as an industry must be vigilant. As a leader in the nuclear energy industry, we have a special responsibility to ensure this growth. Projects must be on schedule and on budget, the technology must be robust and reliable, and safety must continue to be the top priority. Our industry is meeting these challenges today. That is the trend that must continue to ensure nuclear is able to deliver in the decades ahead. www.the-eic.com | energyfocus 9

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

news&events Another award for EIC

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. 10 energyfocus | www.the-eic.com

Events

EIC LIVE events

What an incredible journey 2023 has been for EIC! Celebrating our 80th anniversary was a fantastic experience, with many memorable moments shared with member companies and industry peers. Having bid farewell to this milestone year, our excitement for the possibilities that 2024 holds is unwavering. The upcoming year is already brimming with fantastic opportunities to engage with the global energy community, and we cannot wait to reconnect with familiar faces and forge new connections. Our agenda is packed with enriching and insightful events. While this provides a glimpse into what lies ahead, more is in store. Explore our calendar at www.the-eic.com/events/ calendar to stay updated on upcoming events, including webinars. See you there!

EIC has won Market Intelligence Platform of the Year at the OWI Global Awards, held in Aberdeen on 23 November 2023. From six outstanding contenders, EIC was selected by an expert judging panel during the annual ceremony, which recognises excellence in global well intervention. With more than 23 years’ experience delivering market intelligence, EIC has consistently innovated and adapted its services to cater to the dynamic needs of its global membership. The flagship database EICDataStream boasts 14,307 tracked projects with a combined CAPEX of US$13.8tn, serving as a valuable resource for informed decision-making. Furthermore, EIC’s proprietary databases, including EICAssetMap and EICSupplyMap, provide comprehensive insights into global energy facilities and supply chain companies across key regions. This recent accolade adds to EIC’s achievements, including the King’s Award for Enterprise: International Trade received in April 2023, recognising its exceptional contribution to UK exports.

Upcoming events in 2024 Wind Energy Asia 2024

Date: 6–8 March 2024 Location: Kaohsiung, Taiwan Why attend? Taiwan has been actively engaged in wind energy for nearly 20 years, initially focusing on onshore turbines and later expanding to offshore installations. At the end of 2021, the country boasted 396 onshore and offshore wind turbines. Looking ahead to the next decade, Taiwan is set to embark on a significant initiative to replace onshore wind turbines, presenting the need to recycle a minimum of 900 blades.

From the EIC News and events

Reports

EIC Country Report: USA Amid political tensions, soaring inflation and ageing infrastructure, the EIC Country Report: USA navigates readers through USA the country’s expansive and diverse energy market, shedding light on aspects to consider when establishing a business there. Starting with a comprehensive examination of the oil and gas sector’s upstream, midstream and downstream segments, the report also delves into the US renewables market and energy transition developments. EIC Country Report November 2023

SECTOR ANALYSIS • MAJOR PLAYERS • PEST ANALYSIS • HOW TO DO BUSINESS

EIC is proud to be hosting the UK Pavilion at Wind Energy Asia 2024, taking place in Kaohsiung, Taiwan from 6 to 8 March 2024. Join us at the only B2B trading platform dedicated exclusively to Taiwan’s wind energy industry. If you are interested in exhibiting or want to know more, email internationaltrade@ the-eic.com or visit www.the-eic.com/ Events/Exhibitions/WindEnergyAsia2024

Trade delegation to Guyana

Date: 18–22 March 2024 Why attend? South America’s latest oil producer, Guyana has become a hotspot for project activity in the oil and gas market. The country’s project portfolio is increasing in number and CAPEX, and contract activity grows steadily every year. From floating production storage and offloading units to pipelines and gas processing plants, Guyana offers a wealth of opportunities for the energy supply chain. Join EIC’s trade delegation to Guyana and take advantage of organised group meetings with influential local players. Attend informative briefing meetings led by qualified speakers who are familiar with Guyanese market, and seize the opportunity to engage with local companies. If you would like to join this delegation or want to know more, email: internationaltrade@the-eic. com or visit www.the-eic.com/ Events/OverseasDelegations/ TradeDelegationtoGuyana2024

WindEurope Bilbao 2024

Date: 20–22 March 2024 Location: Bilbao, Spain Why attend? We are proud to be organising the EIC Pavilion at WindEurope 2024. Europe’s biggest onshore and offshore

wind event will be returning to Bilbao for a three-day conference and exhibition. More than 10,000 attendees are expected to explore the shape of the European wind energy today over the three days of the conference. Bilbao is the headquarters for two of Europe’s leading renewable energy leaders, while the Basque Country aims to become a major offshore energy hub in the years ahead. When it comes to the energy transition, Bilbao’s future looks bright! If you are interested in exhibiting or want to know more, email internationaltrade@the-eic.com or visit www.the-eic.com/Events/Exhibitions/ WindEuropeBilbao2024

Oman Petroleum & Energy Show

Date: 22–24 April 2024 Location: Muscat, Oman Why attend? Oman Petroleum & Energy Show (OPES) is Oman’s only event catering to the oil, gas and energy industries. Under the patronage of the country’s Ministry of Oil and Gas, OPES is an effective business and networking platform, serving as a key meeting point for energy professionals, oil and gas companies, decision makers and stakeholders. Exhibiting as part of the UK & EIC Pavilion offers a comprehensive package of benefits, including a prime location within the exhibition hall, enhanced promotion and networking opportunities, access to industry experts, appointed freights and stand contractors, and dedicated project management, from initial conversations right through to onsite delivery and postevent support. If you are interested in exhibiting or want to know more, email internationaltrade@ the-eic.com or visit www.the-eic.com/ Events/Exhibitions/OPES2024

N REPEW RT OUO T NOW

If you want to find out more, please visit www.the-eic.com/ MediaCentre/Publications

EIC Insight Report: Net Zero Jeopardy We are delighted to launch our latest Insight Report: Net Zero Jeopardy. Following the model of our Survive & Thrive report, we’ve interviewed EIC members worldwide to uncover perspectives on the disparity between policy aspirations and industrial reality in the energy transition. Recognising the precarity of net-zero 2050 commitments, and as the energy supply chain’s global voice, EIC is committed to addressing this issue. We have gathered evidence from our members, delving into their experiences, challenges and successes. Stay tuned for a comprehensive exploration of the state of play.

N REPEW RT OUO T SOO N

If you want to find out more, please visit www.the-eic.com/MediaCentre/ Publications/EICNetZeroReport www.the-eic.com | energyfocus 11

From the EIC Members’ comment

The

BIG question

How bullish are you going into 2024?

Despite strong markets in oil, gas and nuclear power, the energy industry is grappling with escalating costs, fluctuating interest rates and stumbling progress towards net-zero goals. Amid these dynamics, coupled with macro-economic uncertainty, what is the reality for the energy supply chain looking forward? Energy Focus puts the big question to three members

Simon Wynne Head of ABB Energy Industries UK I feel excited about our business as we approach 2024, but am also realistic. The energy transition is progressing, but there is still some way to go. It will be an evolution, not a revolution – it’s not going to happen overnight. The social and economic imperatives remain the same, meaning we need to make every improvement possible – integrating more renewables, adding new energy sources and minimising emissions. This year has been a significant one for ABB. We renewed our partnership with Imperial College London to ensure that the engineers of the future have the right skills to help industries and countries meet their sustainability targets – specifically in carbon capture and storage (CCS) operations, which hold huge potential for the decarbonisation of industry.

12 energyfocus | www.the-eic.com

The energy transition is progressing, but there is still some way to go. It will be an evolution, not a revolution Furthermore, we confirmed partnerships with Pace CCS and Computer Modelling Group to tackle some of the challenges in CCS through a digital twin model that tracks carbon dioxide at every stage of its journey, to anticipate and reduce risks. As head of ABB UK, I’m particularly proud that the company is involved in eight of the UK’s offshore wind projects, including Dogger Bank – the world’s largest offshore wind farm, which is set

to power up to five million homes with clean, renewable energy. While energy markets remain challenging, we need to remember how far we’ve come and stay focused on the end prize: building a clean energy future for generations to come. ABB is a technology leader in electrification and automation, enabling a more sustainable and resource-efficient future. The company’s solutions connect engineering know-how and software to optimise how things are manufactured, moved, powered and operated. Leveraging more than 130 years of experience, ABB’s 105,000 employees drive innovations to accelerate industrial transformation. ABB’s Process Automation business, which has around 20,000 employees, automates, electrifies and digitalises industrial operations, catering to diverse needs in energy, water, materials, manufacturing and transportation. The goal is to enhance performance and safety in process, hybrid and maritime industries, contributing to a more sustainable future.

Members’ comment: From the EIC

Scott McIlwraith Regional Director for EMEAI at Kuiper The traditional oil and gas sector is coming out of a period of significant underinvestment. Rig counts have doubled since 2021, and utilisation of rigs and vessels is on an upward trajectory. Kuiper has service agreements with all the Tier 1 offshore drilling contractors and offshore EPCIs. In recent years, we have added clients in the renewable energy space and are particularly pleased to be active in the energy transition. Despite recent disappointments with some major players and projects being postponed or cancelled in renewables, we remain positive about the outlook for the energy sector in general. Oil and gas is back, and companies such as Kuiper, which has a diverse mix of clients across the energy spectrum, should expect a good 2024. We are certainly bullish! Established in 1999, Kuiper Group is a global provider of diverse, fully integrated human resources and recruitment solutions to the energy industry,

Oil and gas is back, and companies that have a diverse mix of clients across the energy spectrum should expect a good 2024

with a track record in serving some of the world’s biggest projects and organisations. The group specialises in crew management and contract recruitment, with coverage across UK, the Gulf Cooperation Council, India, Southeast Asia and Australia, servicing clients primarily in the drilling, offshore engineering, procurement, construction and installation, and renewable energy space. Kuiper has over 2,000 on-hire personnel on more than 120 vessels and rigs managed by teams across 25 strategically placed offices.

Faye Sherriffs Vice President of Energy Transition and Strategic Development at OPITO As the energy landscape shifts towards balancing renewable sources alongside traditional oil and gas operations, our global team is leveraging its 50-plus years of experience to support a sustainable transition, ensuring social and economic growth opportunities. Political uncertainties and geopolitical crises have created a focus on domestic energy security and sustainability. People must be front and centre of the transition if we are to successfully diversify and build energy security, so we cannot afford to be complacent over workforce development. The UK is a mature market for OPITO. It’s where we were established, and we remain proud of our heritage and the transferable skills of our workforce. Through our leadership of the Integrated People and Skills Strategy, part of the UK’s North Sea Transition Deal, we are championing cross-sector careers. We welcome the UK government’s recognition of the estimated 200,000 jobs that the oil and gas sector supported by committing to annual licensing rounds from 2024. This will bolster domestic energy supplies and support the supply chain while adhering to stringent climate compatibility and emissions tests. Globally, we predict continued strong demand for our core products. Working

People must be front and centre of the transition if we are to successfully diversify and build energy security, so we cannot afford to be complacent over workforce development closely with industry partners, we are building a cohesive picture of the demands for our products and the pace of the energy transition. In South America, the Middle East and Asia Pacific, we are buoyed by increased investment in major projects and the subsequent demand for proven workforce development solutions. Simultaneously, we must also look towards the energy workforce of tomorrow – and promote the industry as an exciting career proposition for the future. OPITO remains committed to empowering the next generation by developing an inclusive employee value proposition through campaigns such as My Energy Future. OPITO is the global skills organisation for the energy industry. Over 480,000 people are trained to OPITO standards every year through more than 230 accredited training centres in 50 countries. Operating in the UK and Europe, Middle East and Africa, Asia Pacific and the Americas, OPITO focuses on enhancing workforce safety and skills. By driving global standards and qualifications, and engaging with industries and governments, OPITO strives to create a secure and proficient workforce while providing career pathways and training opportunities for current and future generations.

www.the-eic.com | energyfocus 13

MANUFACTURING SUBSEA VALVES SINCE 1984 INTRODUCING OUR NEW RANGE OF DYNAMIC SUBSEA CONTROL VALVES KOSO Kent Introl has over 35 years’ experience in the subsea industry, manufacturing a range of Control and Choke Valves for the world’s largest Oil & Gas companies. The Series 1275 Subsea Control Valves are a new, highly accurate, low operating torque and fully qualified range, designed, engineered and tested at our Brighouse facility in the UK. Key features include: - Specialist trim technology to suit all applications. - Repeatable and dependable operation. - Enhanced wear resistance. - Backlash removal. - Highly accurate. - Power efficient. With input from some of the world’s leading international oil and gas companies, KOSO Kent Introl’s significant investment into the upgrade of its in-house testing facility means that each valve undergoes an extensive testing regime covering hydrostatic pressure testing, seat leakage and API 6A PSL 3G gas testing. The main qualification testing covers: - API 6A/ISO 10423 PR2. - Hyperbaric API 17D/ISO 13628. - Nitrogen leak testing. - Flow testing. - Endurance testing defined by TechnipFMC and KOSO Kent Introl.

www.kentintrol.com Tel +44 (0)1484 710311 | Email info@kentintrol.com KOSO Kent Introl Ltd. Armytage Road, Brighouse, West Yorkshire HD6 1QF, United Kingdom KOSO Kent Introl is part of the KOSO group of companies

Image Credit: Courtesy of TechnipFMC

TECHNICAL SPECIFICATION SIZE RATING MATERIAL CLASS TEMPERATURE RATING WATER DEPTH OPERATOR

1”-9” Up to and including API 6A 10K API 6A ‘HH’ (Corrosion Resistant Alloys) API 6A -46ºC to +140ºC (-50 to +284ºF) Qualified to 3,048m (10,000ft) Low friction MOIPRS-ROV/Electrical

TESTING QUALIFICATION MANUFACTURING TESTING HYPERBARIC TESTING LEAK TESTING FLOW TESTING ENDURANCE TESTING

API 6A/ISO 10423 PR2 API 17D/ISO 13628 Nitrogen leak testing Verify design CV + trim characteristic By KOSO Kent Introl + client

Special report Global opportunities

Where is the money in energy?

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Global opportunities: Special report

When a large-scale energy project secures final investment decision, there is certainty that it will be built, unleashing opportunities for the supply chain to deliver. But which sectors are seeing the most activity? Sara Verbruggen finds out

eil Golding, EIC’s Director of Market Intelligence, calls final investment decisions (FIDs) “the reaching and closing of the final, critical decision gate for an energy infrastructure project to proceed to the point where ground can be broken and construction commences”. He oversees EICDataStream – the organisation’s database resource, tracking more than 14,000 projects across the global energy industry.

Boom time in oil and gas

In oil and gas, the collective CAPEX values of projects reaching FID outshine any other sector. In 2022, 89 projects reached FID, representing a collective CAPEX value of US$154bn. Fewer projects have reached this stage in 2023, numbering 54, but their collective CAPEX is higher, in the region of US$176bn. “This could be down to a number of these projects in 2023 comprising large-scale liquefied natural gas liquefaction schemes, as well as buoyancy in the upstream and midstream oil and gas sector, including projects in Mexico, Guyana and Angola, not to mention Rosebank in the UK, reaching FID,” Golding says. Vysus Group CEO David Clark adds that a significant increase in oil and gas market activity across the Middle East during the last few years, along with increased project FIDs in Norway, has been driven largely by tax incentives put in place over the last three to four years. “Looking ahead, increased deepwater exploration, and additional development in South America, South Africa/Namibia and the Gulf of Mexico suggests continued FID approvals for these larger scale projects in the next two to four years,” he says. Andrew Aldrich, Global Business Development Director at BMT, thinks the high levels of hydrocarbon FID rates are suggestive of the “tumultuous” geopolitical landscape of the past 24 months, and show nations “taking out insurance policies for energy security”. Martin Layfield, Engineering Consultancy & Global Growth Director at Petrofac, adds: “Some regions like Africa have huge energy demand that economically viable oil and gas projects can meet in the immediate term, ranging from major greenfield developments to ones that are quite focused and niche. “On the other hand, we are seeing activity focused on smaller, marginal field developments, which may have previously been seen as unattractive but are now subject to accelerated development to move from design into construction and operation in the shortest possible timescale.”

SHUTTERSTOCK

Nuclear – big ticket power assets The energy security case for nuclear power continues to build, and countries are also recognising the key role of nuclear energy in reaching net zero. At COP28, more than 20

countries from four continents launched the Declaration to Triple Nuclear Energy Capacity by 2050. Indeed, new nuclear power stations represent high CAPEX, although a fair amount of risk is associated with developing these long-lead projects. Consequently, explains Golding, there are fewer of them when compared with other sectors. “Of the announced projects that are moving forward, we have seen 40% reach FID to date. The key markets are China and India, and 50% of the projects to reach FID are located in those countries.” Next is Europe, including the UK and eastern Europe. Golding says the length of time for a project to reach completion from FID should be noted. In 2022, just three projects reached FID, representing a total CAPEX of US$16.6bn. In 2023 that number was four, representing a total CAPEX of US$28.9bn.

Offshore wind

Despite ongoing inflationary pressures and supply chain issues, 12 offshore wind projects reached FID in 2023, totalling US$21bn in CAPEX. This compares to just four in 2022. The UK remains a key market, with the government’s recent decision to increase bidding caps in the Contracts for Difference Allocation Round 6. “For the foreseeable future, offshore wind growth will concentrate in three regions: Europe (EU & UK), Asia Pacific and North America (US),” says Golding. “Aside from China, Taiwan, South Korea and Japan will contribute to new capacity in the Asia Pacific.” Clark says: “From a UK perspective, many in the wind market supply chain are also legacy oil and gas players and have been able to fund the move to renewables partly from the revenue and margins generated by their oil and gas businesses. Slowing activity levels in the UK, including the slower pace of the Scotwind projects, combined with forward market uncertainty, mean that many businesses are challenged to continue to bridge the gap between the two markets, given the delays, or to green light the capital investment commitments needed to increase renewables capability. Consequently, they are looking to invest in overseas markets where activity is picking up.” According to Aldrich, offshore wind will be a key element of reaching net zero for the UK and Europe. “The green electrons from wind will play a critical role in powering our infrastructure and producing the new fuels that will decarbonise our transport and logistics sectors,” he says. “FID rates will accelerate in nations where the policy environment is right.”

High levels of hydrocarbon FID rates are representative of nations taking out insurance policies for energy security Andrew Aldrich, BMT

Energy transition

Layfied says: “We are seeing growth in demand for energy transition projects across the board, including wind and hydrogen. Heightened carbon capture and storage [CCS] activity has been a real positive in 2023, which we expect to continue.” www.the-eic.com | energyfocus 17

Special report: Global opportunities

Note: Projects are currently under development. Oil and gas includes upstream, midstream and downstream. Energy transition includes carbon capture, hydrogen and floating offshore wind. CAPEX is estimated. Source: EICDataStream

Which projects are reaching the energy supply chain? The results may surprise you. FID rates by sector in 2023 Nuclear new build

115

projects (US$904bn); 40.87% of projects reached FID (US$430bn) Biofuel/sustainable aviation fuel

230

projects (US$111bn); 31.74% of projects reached FID (US$15.4bn)

2 , 563 Oil and gas

projects (US$4,146bn); 13.38% of projects reached FID (US$913bn) Offshore wind

Energy transition

projects (US$31.4bn); 12.9% of projects reached FID

projects (US$1,837bn); 7.35% of projects reached FID

projects (1,308) (US$1,603bn); 4.2% of projects reached FID

(US$3.5bn)

(US$78.7bn)

(US$26.9bn)

Nuclear new build SMRs/ AMRs

626 1.3k

18 energyfocus | www.the-eic.com

In both hydrogen and CCS, the volumes reaching FID are much lower than in more established sectors. However, this year may have marked a turning point, with two major flagship projects reaching FID in each sector. In October, the US$1.37bn Pothos CCS scheme off the Netherlands secured this milestone, while Saudia Arabia’s multi-gigawatt-scale Neom green hydrogen/ ammonia project, which has a total investment of US$8.4bn, reached financial close earlier in 2023. It is important to note that these very large green hydrogen projects will require additional wind or solar capacity to supply them, signalling work for those segments of the renewables industry, too. “In addition to the Middle East and Asia-Pacific, more transition projects are moving from planning to FID in Northern Europe/Norway, while the commercial approval in the UK seems to still be sluggish, despite the broad number of projects and technologies in development,” says Clark. KBR works with both integrated and national oil companies. Its Director of Project Solutions in Energy Transition, David Cole, says that in the case of hydrogen projects, the work is currently focused on front-end feasibility and engineering study, whereas oil and gas projects are able to progress with greater ease into the engineering, procurement and construction stage. The challenge faced by the energy industry is the accurate cost estimation of hydrogen projects. “Oil and gas is a known entity and the risks are generally well understood,” says Cole. “Hydrogen projects are faced with a mountain of new challenges and risks that are yet to be fully explored through the long-term operation of the electrolysis, storage and transportation lifecycle. The industry sees that hydrogen has massive potential, but it carries risk, and this creates uncertainty when it comes to making the final investment decision.”

What does this mean for the supply chain?

“It’s clear that oil and gas will remain a major part of the energy mix and provide a significant proportion of future supply chain opportunities,” says Golding. One reason oil and gas is so buoyant is that this period has followed nearly a decade of suppressed investment, and the new capacity that will come onstream as a result of these FIDs will maintain production rather than increase it. “It is the consequence of a protracted era of under-investment,” he adds. Despite the current modest FID rates, project pipelines in nascent energy transition sectors are expanding – a proportion of which will progress to FID. That’s why it’s important for the supply chain to start divesting into energy transition markets, says Golding: “Bid early, get in early.” Aldrich adds: “Focus on where to play. Understand the customer and contracting routes and what value you can add. Build from your strengths.”

Energy Transition Global projects

Slow burn, bright prospects:

opportunities on the horizon for hydrogen and carbon capture Advances in the hydrogen and carbon capture energy sectors have been slow, but opportunities exist in Europe, Australia and the US, says Fernando Vieira at EIC

20 energyfocus | www.the-eic.com

Global projects: Energy Transition

ince 2018, the global energy sector has seen a surge in announcements of carbon capture and storage (CCS) and clean hydrogen projects. While this is a positive trend, most of these projects are still in their early stages, presenting challenges when it comes to transitioning from feasibility plans to operational assets. For these projects to contribute significantly to net-zero objectives, critical gaps must be addressed, such as the scale-up of CCS and hydrogen supply chain technologies, seamless integration into existing energy grids, and the establishment of storage and distribution infrastructure. While global funding programmes and subsidies are aiming to enhance the commercial scalability of technologies and drive profitability, markets in Europe, Australia and the US are attracting investors due to their coherent legal frameworks and highly appealing long-term supply contracts.

Europe’s

Markets in Europe, Australia and the US are attractive to investors due to their coherent legal frameworks and highly appealing longterm supply contracts

ISTOCK

green energy drive

Norway and the Netherlands are actively advancing their substantial CCS initiatives. Having reached a final investment decision (FID) in October 2023, the Netherlands’ Porthos CCS project, with a US$1.37bn investment, aims to be operational by 2026. Meanwhile, Norway’s Northern Lights project, set to begin operations in 2024, will handle 1.5m tonnes of CO2 annually. The US$4.5bn Heidelberg Cement Plant in Brevik also secured FID in December 2020. Both projects will contribute to Norway’s Longship initiative, which aims to establish a complete CCS value chain throughout the country by 2024. Meanwhile, hydrogen and CCS are poised for growth in the UK, the Iberian Peninsula and Denmark. bp’s US$1.2bn H2Teesside project in the UK, which focuses on blue hydrogen production from natural gas, is a standout initiative; an FID is expected by late 2024 and start-up by 2029. Also in the UK, Kellas Midstream’s H2NorthEast project, a US$1.6bn low-carbon blue hydrogen facility, is in the front-end engineering and design (FEED) stage; an FID is anticipated by mid-2025. In the UK, the CCS and carbon capture, utilisation and storage (CCUS) sectors aim to decarbonise industrial clusters, with notable projects including H2Teesside Carbon Capture, H2NorthEast Teesside Carbon Capture and Stanlow Refinery CCS. The latter secured a pre-FEED contract in late 2022 and targets a a start-up date of 2028, with the FID anticipated by late 2024. www.the-eic.com | energyfocus 21

Energy Transition: Global projects

Scotland’s Stratera is developing the Kintore Green Hydrogen Plant, a US$500m project that aims to produce 200,000 tonnes of green hydrogen annually. The FEED contract, awarded to Worley, is targeted for completion in Q4 2024, followed by an FID in 2025. Portugal’s Madoqua project, a US$1bn green hydrogen and ammonia production venture in Sines led by Power2X, is expected to begin operations in 2027; an FID is anticipated by mid-2025. Galp’s US$264m green hydrogen plant, also in Sines, aims to begin operations in 2025 after an FID in September, contracting Plug Power for electrolysers and Technip Energies for overall engineering, procurement, construction and management. FIDs for Spain’s Catalina project (US$1.7bn) and Denmark’s Esbjerg Green Hydrogen project (US$3bn) are anticipated in late 2024 and mid-2024 respectively. Copenhagen Infrastructure Partners is developing the Spanish project, with Technicas Reunidas as the FEED contractor. Meanwhile, Trafigura will develop the Danish project, with Plug Power supplying the electrolysers and Ramboll handling the project management contract.

North America

strategically positions for domestic and international supply The Louisiana Clean Energy Complex in

22 energyfocus | www.the-eic.com

Ascension Parish, Louisiana, is poised to be a significant player, producing more than 750m cubic feet of blue hydrogen per day, with CO2 capture for permanent sequestration. Securing a substantial US$7bn FID in November 2023, this boost in funding is credited to the Inflation Reduction Act passed in August 2022, which is driving investments in renewables. MAN Energy Solutions and Baker Hughes are on board to provide essential equipment and technology. ExxonMobil’s US$2bn Baytown Blue Hydrogen and CCS Project in Texas has also advanced, with the FEED phase contract awarded to Technip. With an FID anticipated in June 2024, the project is set to start producing blue hydrogen in 2028. Three carbon capture projects are awaiting FIDs, including the Baytown CCS Project and the Tundra CCS project in North Dakota. The latter aims to capture 90% of CO2 emissions from a coal-based power plant, with Fluor Corporation handling the FEED and Kiewit overseeing construction. An FID is targeted for late 2024, and start-up for 2026.

In the Middle East, Saudi Arabia and Oman are at the forefront of decarbonisation initiatives within their oil and gas sectors

Australia’s promising market

Australia is poised to be a key player in the burgeoning green hydrogen sector, boasting a substantial pipeline of projects with significant CAPEX and production capacity.

MAJOR PROJECTS TO WATCH

Where are the opportunities in energy transition? (Carbon capture, hydrogen and floating offshore wind) FID leaders by region (2020–2023) Middle East Africa Europe North America Asia Australasia South America

2 projects 1 project 21 projects 17 projects 5 projects 8 projects 1 project

US$9.05bn US$6.5bn US$4.8bn US$3.3bn US$2.4bn US$0.7bn US$0.1bn

FID leaders by country (2020–2023) Saudi Arabia Saudi Arabia Egypt Egypt US US Norway Norway Netherlands Netherlands

1 project 1 project 17 projects 3 projects 2 projects

US$8.4bn US$6.5bn US$3.3bn US$1.6bn US$1.5bn

4 projects 13 projects 24 projects 14 projects

US$1.6bn US$1.5bn US$5.9bn US$17.7bn

Number of projects reaching FID (2020–2023) 2020 2021 2022 2023

Source for all data: EICDataStream. Note: all projects are under development and CAPEX is estimated

It aims to become a leading net exporter of low-emissions hydrogen by 2030 and the largest by 2050, according to the International Energy Agency’s 2022 World Energy Outlook. Notable projects include the Aldoga Green Hydrogen Plant in Queensland, a U$1bn initiative by Iwatani with an FID expected in late 2024. This project strategically explores export opportunities, particularly to the Japanese market. In Western Australia, plans are underway for a U$3bn Green Hydrogen Plant in Murchison, set to start construction in 2025 and begin operations in 2030. In the CCS market, the Bayu-Undan Carbon Capture and Storage Project in the Timor Sea is estimated at US$1.1bn and expected to start operations in 2026, pending an FID around late 2024 or early 2025. Worley has secured a FEED contract for the project’s offshore facilities and pipelines.

The Middle East’s decarbonisation drive

GETTY

In the Middle East, Saudi Arabia and Oman are at the forefront of decarbonisation initiatives within their

oil and gas sectors. NEOM and ACWA Power in Saudi Arabia are creating a US$8.4bn Green Hydrogen Plant in Tabuk Province, using 4GW of solar and wind power to produce 650 tonnes of green hydrogen daily. Slated to start in late 2026 following a May 2023 FID, the project will leverage thyssenkrupp technology. Saudi Aramco is spearheading the development of the world’s largest CCS hub: the US$4.5bn Jubail Industrial City project, expected to be operational by 2027. Meanwhile, Oman is planning a green ammonia and hydrogen facility in the Duqm Industrial Zone, which will use 3GW of solar and 500MW of wind power to yield 1.2m metric tonnes of green ammonia daily. ACME Solar is set to make an FID in late 2025, with start-up anticipated by 2027. Furthermore, a US$1bn green hydrogen and ammonia project in the Salalah Free Zone is undergoing feasibility studies. It aims to generate 400MW of green hydrogen and 365,000 tonnes of green ammonia annually from 3.8GW of wind and solar energy. Developer OQ anticipates an FID by mid-2024. By Fernando Vieira, Energy Consultant, EIC

Five major projects targeting FID in 2024/2025 Acorn CCS Transportation & Storage Project Value: US$9bn Country: Scotland Operator: Storegga Start-up year: 2027

Pecém Port Green Hydrogen Plant Value: US$6bn Country: Brazil Operator: Fortescue Metals Group Start-up year: 2027

St. Rose Blue Ammonia Plant Value: US$4.6bn Country: US Operator: St. Charles Clean Fuels Start-up year: 2027

Summit Carbon Solutions CCS Project Value: US$4.5bn Country: US Operator: Summit Carbon Solutions Start-up year: 2026

Duqm Green Ammonia & Hydrogen Project Value: US$3.5bn Country: Oman Operator: ACME Solar Start-up year: 2027

Interested in exploring energy transition opportunities? Inform your decisionmaking with the latest contracting activity and markest research from EIC. To discuss your needs, email Aadam Sufi at Aadam. Sufi@the-eic.com www.the-eic.com | energyfocus 23

Renewables Global wind projects

Unlocking

opportunities in global wind energy With technologies progressing and governments aiming to hit their net-zero objectives, the onshore and offshore wind sector is in robust shape across Europe, North America and South Korea. Fernando Vieira assesses the state of play

ICDataStream’s pipeline of renewable energy projects highlights the onshore and offshore wind energy sector as a lucrative investment opportunity, driven by substantial CAPEX, new capacity additions, imminent final investment decisions (FIDs), and anticipated launches of commercial operations. Despite rising production and maintenance costs affecting profit margins, governments are actively incentivising wind projects to align with net-zero objectives through auction policies and financing initiatives. In addition, the wind industry is poised to benefit from the growing green hydrogen sector. Advances in fixed and floating offshore wind technologies are making significant progress in Europe, the US and Asia. Notably, the UK anticipates FIDs on a number of floating projects in 2024/25.

Europe: offshore exploration and onshore development

In the near term, Europe is gearing up for substantial investments and increased power capacity from planned offshore wind farms, particularly in the Baltic and North Sea regions. Noteworthy projects that reached FID in 2023 include Denmark’s 1GW Thor Offshore Wind Farm (US$2.37bn), France’s 496MW Iles d’Yeu et de Noirmoutier (US$2.4bn) and Dieppe-Le Tréport Offshore Wind Farms (US$2.4bn), the UK’s 882MW Moray Firth Western Offshore Wind Farm (US$2.8bn), Poland’s 1.1GW Offshore Wind Farm Baltic Power (US$2.5bn), and Germany’s 960MW Hochsee Offshore Wind Farm (US$1.44bn). These projects are in the construction phase and expect to start commercial operation between 2024–2027. Siemens Gamesa has successfully secured contracts for the offshore wind

24 energyfocus | www.the-eic.com

projects in Denmark, France and the UK, while Vestas has emerged as the chosen contractor for ventures in Poland and Germany. Onshore wind farm development is thriving in Scotland, with projects such as the 80MW Enoch Hill and 36MW Camster II securing FID in 2023. Similarly, Germany is repowering the existing Elster onshore wind farm to replace Enercon turbines, with operations expected to start in 2025. Sweden’s Horshaga Onshore Wind Farm, secured in 2023, is set to commence operations in 2026, with Vestas providing 147MW of turbines. Future FID projections for 2024 highlight promising developments in Poland’s fixed offshore projects, UK floating projects and offshore fixed wind plans in Sweden. In the UK, the 96MW Erebus and 100MW Dounreay Tri floating offshore wind farms are expected to secure FID in 2024, developed by Blue Gem Wind and Copenhagen Infrastructure Partners respectively. Sweden’s major player OX2 has ambitious plans for the 1.5GW Triton and 1.7GW Galatea-Galene offshore wind farms, which are projected to commence operation in 2030.

North America: balancing onshore and offshore investments

North America boasts several offshore and onshore wind initiatives, particularly on the US’s northeastern coast. Key projects in 2023 include the 329MW Boswell Springs Onshore Wind Complex in Wyoming, developed by Innergex Renewable Energy, and Ørsted’s Revolution Offshore Wind Project in Rhode Island. Both are in the engineering, procurement and construction (EPC)

MAJOR PROJECTS TO WATCH

Where are the opportunities in offshore wind energy? FID leaders by region (2020–2023) Europe Asia North America

23 projects 20 projects 3 projects

US$56.6bn US$17.3bn US$4.9bn

Coastal Virginia Offshore Wind

FID leaders by country (2020–2023) UK (offshore) UK France France Taiwan Taiwan Netherlands Holland Germany

6 projects 5 projects 9 projects 4 projects 5 projects

Germany

US$20.1bn US$12bn US$11.2bn US$11bn US$6.5bn

10 11 4 12

US$22.3bn US$20.6bn US$5.7bn US$21.8bn

Source for all data: EICDataStream. Note: projects are under development and CAPEX is estimated

stage, expecting commercial operation to begin between 2024 and 2025. GE Energy secured the wind turbine supply contract on the Boswell Springs project and Mortenson Construction will act as the EPC constructor. Additionally, Siemens Gamesa clinched the contract for the Revolution Offshore Wind Project. Several major projects are expected to reach an FID during 2024. Equinor’s 2GW Empire Wind Offshore Project in New York is slated for FID in July 2024 with start-up operations planned in two phases: the first in 2026 and the second in 2027. Vestas will supply the turbines for the project, which is in the EPC stage. The 2.6GW Coastal Virginia Offshore Wind project by Dominion Energy has a planned FID in July 2024 and estimated completion in 2026. Siemens Gamesa has secured the wind turbine supply contract for the project, which is already in the EPC stage. Sunrise Wind’s 924MW Sunrise 1 Offshore Wind Farm in Rhode Island is expected to start commercial operation by 2026. Currently in the EPC stage and with an anticipated FID in January 2024, Siemens Gamesa has already secured the wind turbine supply contract for this project.

Wind energy takes off in South Korea

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In 2023, South Korea saw FID for the first phase of the 99MW Offshore Wind Farm Jeonnam Complex, valued at US$726m. Developed by SK

Value: US$9.8bn Country: US Operator: Dominion Energy Start up year: 2026

Offshore Wind Farm EW Baltica-2 Value: 5.5bn Country: Poland Operator: Ørsted Start up year: 2027

Atlantic Shores 1 Offshore Wind Farm

Number of projects reaching FID (2020–2023) 2020 2021 2022 2023

Five major offshore wind projects targeting FID in 2024/2025

E&S, the project is currently in the EPC stage, with Doosan Heavy Industries set to supply the wind turbines for a targeted commercial operation in 2025. Looking ahead to 2024, three significant offshore projects are expected to secure FIDs, showcasing the country’s growing presence in the offshore wind sector. The Anmado Island Offshore Wind Farm, with a total capacity of 528MW across two phases, is being developed by Equis Funds Group. Currently in the EPC stage, Siemens Gamesa has secured the wind turbine supply contract, and various other EPC and original equipment manufacturer supply contractors are involved. The 220MW Dongahe Floating Offshore Wind Farm in Ulsan is part of a larger 6GW offshore farm developed by Equinor and KNOC. The US$1.3bn first phase is in the EPC stage, with Doosan Heavy Industries providing wind turbines, and Hyundai Heavy Industries handling the construction of the floating foundations. Commercial operation is targeted for 2026. In the same region, the 1.2GW Floating Offshore Wind Farm by Korea Floating Wind, valued at US$2.5bn, aims to commence operations in 2030. However, it is still in the feasibility stage. These developments underscore the wind energy landscape’s dynamism, offering strategic business opportunities across the globe. By Fernando Vieira, Energy Consultant, EIC

Value: US$4.5bn Country: US Operator: Atlantic Shores Offshore Wind Start up year: 2027

Sunrise Wind 1 Offshore Wind Farm Value: US$3.3bn Country: US Operator: Sunrise Wind Start up year: 2026

Offshore Wind Farm Triton (Skåne) Value: US$3bn Country: Sweden Operator: OX2 Start up year: 2030

Interested in exploring global renewable opportunities?

Inform your decisionmaking with the latest contracting activity and marketing research from EIC. To discuss your needs, email Sharanya Kumaramurthy at Sharanya. Kumaramurthy@ the-eic.com www.the-eic.com | energyfocus 25

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Oil and gas Global projects

Amid ongoing climate goals and heightened energy security considerations, global investments in the oil and gas sector have notably shifted their focus towards liquefied natural gas projects, says Fernando Vieira at EIC

28 energyfocus | www.the-eic.com

All eyes on LNG:

key to tackling energy security and climate goals

Global projects: Oil and gas

North America:

uring the last six years, data collected by EICDataStream has revealed a significant trend towards higher investments in liquefied natural gas (LNG) production, liquefaction and regasification projects.

Gulf Coast is key strategic hub for meeting global LNG demand

LNG:

a catalyst for the energy transition

ISTOCK

Investments in LNG, a transitional and less polluting fuel, have risen to prominence, playing a central role in the medium-term decarbonisation strategies of both Europe and the US. Moreover, these investments effectively tackle pressing energy security issues – particularly amid geopolitical tensions and economic uncertainties, as underscored by the ongoing Russia-Ukraine conflict. In the first half of 2023, data from the US Energy Information Administration indicated that the US, Australia and Qatar secured the top three positions in LNG exports, with daily volumes of 11.6bn, 10.6bn and 10.4bn cubic feet respectively. Since 2021, these countries have consistently alternated among the leading positions in LNG production, liquefaction and export. Notably, Europe, Japan, and China were major destinations for regasification in 2022. There is growing interest in floating storage regasification units (FSRU) and floating liquefied natural gas (FLNG) terminals, as opposed to conventional onshore terminals. However, it will be challenging to balance FLNG mobility, access to remote offshore gas fields, and the accelerated monetisation of resources against issues of scalability, output and higher initial investments. In response, there is a trend towards developing small-scale offshore liquefaction projects to reduce costs while preserving mobility.

Approved liquefaction projects are abundant in North America, particularly in the Gulf of Mexico. In the US, there are 16 onshore projects listed on EICDataStream, all anticipating a final investment decision (FID) within the next two years. Notably, terminals such as Driftwood and Plaquemines LNG Export in Louisiana are gearing up to initiate multiple liquefaction trains between 2024 and 2028. Mexico and Canada are emerging as potential strategic suppliers in the LNG market. The Fast LNG project in Mexico is expected to begin commercial operations with its first train in January 2024. Following a successful FID in February 2023, the second phase of the project is set to add two new trains in 2025. In Canada, British Columbia is a budding hub for LNG and FLNG projects, with numerous initiatives set to commence operations from 2025 to 2028. Particularly noteworthy is the establishment of a fully electrified small-scale LNG facility in Port Edward. This project, which secured its FID in June 2023, stands out as one of the most promising ventures in Canada.

The Middle East and Africa:

continued influence and prospective projects The Middle East, with Qatar at the forefront, and Africa, led by Nigeria, present enticing prospects in terms of projected CAPEX, expansion of liquefaction capacity, and ongoing construction projects. Qatar Energy, operating 14 liquefaction trains at the Ras Laffan Terminal, made two FIDs for the expansion of the LNG Export terminal in February 2021 and May 2023. These expansions, totalling a US$32bn investment, are scheduled to start operations in 2027. Meanwhile, Nigeria is gearing up to expand the Bonny Island LNG Export Terminal, having secured an FID in 2019 to incorporate a new train at a cost of US$4.5bn; commercial operations are slated to begin in 2027. Another noteworthy project is the Yoho FLNG Vessel, expected to receive an FID in late 2023 or early 2024.

www.the-eic.com | energyfocus 29

MAJOR PROJECTS TO WATCH

Where are the opportunities in oil and gas? (Upstream, midstream and downstream) FID leaders by region (2020–2023)

Five major LNG projects targeting FID in 2024/2025 Driftwood LNG Export Terminal (Phase 1)

North America Europe Middle East Asia South America Africa Australasia Indian sub-continent

Value: US$14.5bn Country: US Operator: Storegga Start-up year: 2027

Lake Charles LNG Export Terminal Value: US$13.2bn Country: US Operator: Energy Transfer Partners LP Start-up year: 2030

US$230.52bn US$157.66bn US$156.25bn US$108.05bn US$97.79bn US$87.66bn US$40.48bn US$34.32bn

66 project 16 project 26 projects 4 projects 6 projects

US$138.33bn US$66.92bn US$65.5bn US$52.2bn US$46.06bn

19 projects 69 projects 89 projects 54 projects

US$50.96bn US$126.26bn US$153.26bn US$176.48bn

FID leaders by country (2020–2023) US US Canada Canada Brazil Brazil Kazakhstan Kazakhstan Qatar Qatar

Port Arthur LNG Export Terminal (Phase 2) Value: US$10bn Country: US Operator: Sempra Energy Start-up year: 2028

Number of projects reaching FID (2020–2023) 2020 2021 2022 2023

Elk-Antelope LNG Liquefaction Project (Papua LNG) Value: US$9bn Country: Papua New Guinea Operator: ExxonMobil Start-up year: 2026

Source: EICDataStream. Note: all projects are under development and CAPEX is estimated

Cameron LNG Liquefaction Plant Expansion (Train 4) Value: US$7.5bn Country: US Operator: Cameron LNG Start-up year: 2027

Europe and Asia:

regasification is key to energy supply

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Interested in exploring global oil and gas opportunities? Inform your decisionmaking with the latest contracting activity and market research from EIC. To discuss your needs, email Muhammad Arif at muhdarifsyafiq@ the-eic.com

95 projects 78 projects 31 projects 36 projects 36 projects 36 projects 14 projects 17 project

30 energyfocus | www.the-eic.com

During the past three years, Europe has become highly attractive for LNG imports, considering new regasification capacity and CAPEX. Major European importers such as Spain, France, the Netherlands and Belgium have emerged due to their operational assets. Countries such as Germany, Italy, and Poland are actively investing in LNG imports to decrease their reliance on Russian natural gas. Since the Russia-Ukraine conflict broke out, the German government has encouraged investments in FSRUs and import terminals. Operational projects such as the Lubmin LNG terminal and Brunsbüttel Port, with increased regasification capacity, have begun operations,

supplying power and heat to German homes and industries. Short-term opportunities in Germany include the second phase of the Brunsbüttel Port and a mid-scale LNG transshipment terminal in Rostock Port. Despite lacking an FID, both governmentapproved projects aim to start operations by 2026, starting construction in 2023. The Ravenna FSRU in the Adriatic Sea stands out among projects in Italy. With a US$1bn investment and receiving an FID in September 2023, its operator, the Snam company, has contracts with BW LNG and Saipem for FSRU acquisition, installation and commissioning, expected to conclude by late 2024. Japan, China and South Korea are at the forefront in Asia, with Taiwan and Vietnam also amassing substantial CAPEX and regasification capacity portfolios. Taiwan’s US$2bn Taoyuan LNG Project is in progress and is expected to start operations in 2025, featuring a regasification terminal with a capacity of 3m tonnes per annum (mtpa). Another notable venture is the Taichung Terminal, which has obtained all necessary government licences and is advancing steadily, boasting a regasification capacity of 4.1mtpa, even in the absence of an FID. By Fernando Vieira, Energy Consultant, EIC

Nuclear

Global projects

Global nuclear opportunities

on the rise

As the case for nuclear power’s impact on energy security becomes more compelling, countries are increasingly recognising the crucial role of nuclear energy in reaching net zero. Fernando Vieira at EIC looks at the global opportunities on offer

uring the last 12 years, there has been a substantial worldwide reassessment of nuclear energy. Following the Fukushima Daiichi nuclear accident, safety concerns cast doubt on nuclear technology. Despite the advancement of cutting-edge technologies aiming to address safety queries, Conventional Nuclear Power Plants (CNPPs) of Gen III and III+ continue to serve a crucial role in mitigating long-term emissions. They remain a reliable, localised energy source, especially amid the ongoing Russia-Ukraine war. In the US, the Westinghouse AP1000 (PWR) model, a Gen III+ nuclear reactor certified by the US Nuclear Regulatory Commission (NRC), began its commercial operations at Vogtle Power Plant in mid-2023. This serves as a compelling illustration of how CNPP technology continues to play a crucial role in the ongoing efforts to decarbonise global economic growth.

CNPPs around the world The EICDataStream database documents expansion and refurbishment projects around the world, presenting prospects for operation and maintenance (O&M)

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services, as well as opportunities for engineering, procurement and construction companies. Even nuclear plants initially slated for decommissioning have undergone reassessment amid the prevailing geopolitical circumstances. Europe, North America and Asia have witnessed a resurgence in conventional nuclear reactor CAPEX after initial scepticism and project stagnation. However, the nature and stage of proposed projects vary across each region.

Europe

In France, EDF has spearheaded US$50bn of financing since 2016 for upgrades and O&M work for a fleet of conventional nuclear power reactors. Nearly 50 reactors have been or are undergoing refurbishment to meet new safety standards and extend operational lifespans beyond 40 years. France’s expansion plans, including the US$19bn project to add two new Gen III+ reactors at the Penly Nuclear Power Plant by 2035 using the EPR2 model (each with a 1,650MW capacity) in partnership with Framatome, show advancements. Penly and Gravelines Nuclear Power Plants stand out, with an

MAJOR PROJECTS TO WATCH

Where are the opportunities in nuclear power? FID leaders by region (2020–2023) Europe Asia Indian sub-continent Middle East Africa North America

15 projects 20 projects 9 projects 3 projects 1 project 1 project

US$152.5bn US$106.9bn US$93.3bn US$35bn US$30bn US$9bn

China China India India France France England Egypt

16 projects 7 projects 2 projects 1 project 1 project

England Egypt

US$81.6bn US$74.6bn US$33.8bn US$32bn US$30bn

Number of projects reaching FID (2020–2023) 2 projects 3 projects 3 projects 4 projects

US$13bn US$15bn US$16.6bn US$28.9bn

Source for all data: EICDataStream. Note: all projects are under development and CAPEX is estimated

anticipated financial investment decision (FID) and startup estimated for mid-2025 and the mid-2030s respectively. The new reactor model EPR2 is still expected to be employed at the Bugey Nuclear Power Plant, although the project currently lacks a specified FID expectation. EDF plays a strategic role in the UK, developing the US$32bn Hinkley Point C and US$28bn Sizewell Nuclear Power Plant projects. Both projects will use two EPR reactors (each of 1,600 MW), with Hinkley having secured FID in 2016 and expected commercial operation by 2028. Sizewell’s FID is anticipated by late 2024, targeting startup in the mid-2030s. Poland is a significant player in Eastern Europe’s nuclear sector. The government’s US$14bn funding for the Poland Nuclear Power Plant projects aims to operate seven to eight Gen III+ PWR reactors, expecting to add 6–9GW of nuclear capacity by 2043. While lacking an FID expectation, government approval is in place, and front-end engineering design work is ongoing.

North America

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In North America, particularly the US, there is an emphasis on modernisation and upgrades rather than phasing out traditional reactors. The

Value: US$18.8bn Country: France Operator: EDF Group Start-up year: 2038

Integral Molten Salt Reactor

FID leaders by country (2020–2023)

2020 2021 2022 2023

Five major projects targeting FID in 2024/2025 Gravelines Nuclear Power Plant Reactors 7 &8

successful completion of the Vogtle expansion in Georgia, involving two new Westinghouse AP1000 reactors, is a clear example of this approach. Many projects are dedicated to extending the operational lifecycle of existing assets, exemplified by efforts at the Byron and Braidwood Nuclear Power Plants in Illinois and the Surry Nuclear Power Plant in Virginia. Since 2013, Canada’s focus has been refurbishing four CANDU reactors at the Darlington Plant, with the aim of extending the plant’s life by another 30 years. The ongoing US$9bn O&M contract with GE Power and BWX is expected to conclude by late 2026.

Asia

While China and India boast 38 nuclear projects, the majority are developed and operated by nuclear state-owned companies. These projects largely collaborate with the local supply chain. India, however, presents a promising market for American and French companies following recent discussions between Biden, Macron and President Modi to bolster bilateral nuclear cooperation for energy deployment purposes. By Fernando Vieira, Energy Consultant, EIC

Value: US$0.7bn Country: Canada Operator: Terrestrial Energy Start-up year: 2028

Penly Nuclear Power Plant Reactors 3 & 4 Value: US$18.8bn Country: France Operator: EDF Group Start-up year: 2035

Sizewell C Nuclear Power Plant Value: US$28.1bn Country: England Operator: EDF Energy Start-up year: 2034

Kozloduy Nuclear Power Plant Unit 5 & 6 Upgrade and Unit 7 & 8 New Build Value: US$7.7bn Country: Bulgaria Operator: Bulgarian Energy Holding Start-up year: 2033

Interested in exploring global nuclear opportunities? Inform your decisionmaking with the latest contracting activity and market research from EIC. To discuss your needs, email Aadam Sufi at Aadam. Sufi@the-eic.com www.the-eic.com | energyfocus 33

EIC Member Focus Sodexo

MY BUSINESS

Chris Ormshaw

Offshore Chef Manager Chris Ormshaw takes Energy Focus behind the scenes at Sodexo Can you tell us a little about Sodexo? Sodexo is a global food services and facilities management company operating in 53 countries. Sodexo employs more than 30,000 people across various business sectors in the UK and Ireland, including energy and resources. With more than 50 years’ experience in the industry, our Energy & Resources team works in isolated and complex environments, such as offshore rigs, delivering daily catering, hospitality, welfare, facilities and property management, and refurbishments. What are your daily challenges? Working offshore has its own set of unique challenges. Equipment breaking down can be a huge issue, as replacement can take two to three weeks to arrive, so it’s ensuring that appliances go through

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What’s your favourite part about working at Sodexo? We usually work from a bank of Sodexo’s Kitchen Works Co. recipes created specifically for the offshore environment. With more than 2,500 recipes, we can explore different cuisines or food styles, including street food, Chinese, Italian and Indian, as well as great British classics. We try to keep up with current food trends, too, so we can best adapt our menus to the needs of offshore workers. Life on board can be challenging, so we provide a range of meal options to allow offshore workers to refuel, recharge and regroup. Working offshore is rewarding in terms of work-life balance. Teams are usually on-site for two full weeks before having a rest period for three weeks onshore – which can be an advantage compared to working full-time in a kitchen onshore. What has changed since your first day at Sodexo? Today, we’re putting more emphasis on the nutritional value of food than ever before. Workers, and consumers in general, have become increasingly aware of the food they consume, so we’re using more fresh and locally sourced ingredients that cater to various dietary needs and preferences. We use

Sodexo’s Kitchen Works Co. approach on-site to provide variety and keep menus fresh, modern and new, all of which our customers appreciate. Nutritional value is paramount for consumers, so we’ll display more information on the dishes we serve. How is life as an offshore chef different to a regular chef? The pace and lifestyle are different. We work in pairs for two weeks, followed by three weeks of rest, so you don’t go home at the end of your shift. Our team is much smaller than in an onshore kitchen, too – we have a chef manager, a chef and a baker working overnight. As we live and work together, we collaborate closely. What role does food and nutrition play in the offshore environment? Offshore workers need food that will sustain them through extended periods, but they also want food they’re looking forward to during the day or after a long shift. By keeping variety in our menus, we try to capture that ‘home-from-home’ experience as much as possible while always taking their feedback on board. Offshore workers often spend extended periods away from home, and we recognise the significant impact that food can have on improving their daily lives – particularly during special occasions such as Christmas, when our team places extra emphasis on enhancing their experience. Our planning process for festive meals begins up to four months in advance. We carefully consider seasonal ingredients to ensure the offshore teams enjoy a memorable and celebratory food experience.

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regular safety and quality checks. Another challenge is ingredient availability. Fresh produce is usually delivered in bulk once a week, so not having the right ingredients can impact our menus. Planning can also be challenging in a fast-paced environment. For example, the team I currently work with caters for 95 offshore workers on board, which requires a lot of early groundwork.

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