Inside Energy August 2021 by Energy Industries Council

EIC Inside Monthly news for EIC members August 2021

Spotlight on technology

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Hydrogen in Asia Pacific: where’s the action?

Sector analysis

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Read the case studies of EIC members and learn about their growth strategies in the challenging market of 2020

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Sector analysis Hydrogen in Asia Pacific: where’s the action? Australia, Japan, South Korea and China are the frontrunners championing the development of a clean hydrogen economy in Asia Pacific. While the Chinese clean hydrogen scene is domestically focused at the moment, the opposite is true for Australia, Japan and South Korea. Australia has been fostering numerous partnerships to develop its hydrogen economy. Japan and South Korea on the other hand are very much focused on the usage side of hydrogen. These two nations are expected to be the biggest hydrogen importers in the region. Australia is currently in the lead in terms of clean hydrogen projects, with 46 projects and 38GW of green hydrogen projects in the pipeline. Australia’s vision is to build a clean, innovative, safe and competitive hydrogen industry. It aims to grow its hydrogen industry and position itself as a major player by 2030, through the Australian National Hydrogen Strategy which was released in November 2019. The document outlines an adaptive approach that equips Australia to scale up quickly as the hydrogen market grows. Hydrogen is a priority low emissions technology for Australia, which is why in February 2020, Australia’s Energy and Emissions Reduction Minister announced the ambitious ‘H2 under 2’ target, aiming to cut hydrogen production costs to less than AU$2 per kg (US$1.5 per kg), under the government’s first Low Emissions Technology Statement. It is a goal that will need supportive policies co-ordinated with industrial strategies and research activities. In terms of export opportunities, Australia has already set the foundations by; co-operating with Japan on hydrogen fuel cells and a world first clean liquefied hydrogen export pilot project; engaging with the Republic of Korea on a hydrogen production action plan; exploring renewable hydrogen supply chain possibilities and collaboration with Germany; exploring collaboration opportunities with Singapore; promoting hydrogen safety best practice as a member of the US Center for Hydrogen Safety; and supporting the work of the special adviser to the Australian government on low emissions technology. Japan considers its domestic uptake of hydrogen as a viable way to increase its energy self-sufficiency, decarbonise its economy, increase industrial competitiveness and position itself as a fuel cell technology exporter. The goals highlighted in Japan’s hydrogen strategy, released in 2019, are to have; 200,000 fuel cell vehicles by 2025, and 800,000 by 2030; 320 hydrogen refuelling stations by 2025, and 900 by 2030; and 1,200 fuel cell buses by 2030.

Madan

a Leela

As an extension to its hydrogen strategy in February 2021, Japan began promoting the Japan Ammonia Roadmap. The roadmap is focused on the use of ammonia in thermal power plants and as a shipping fuel. Japan expects to import 3m tons of clean ammonia, by 2030, with demand rising to 30m tons by 2050. At this stage, Japan is prioritising the reduction of the production cost of hydrogen and is actively looking for international co-operation to build a hydrogen supply chain, increase the scale of production, and reduce costs. Japanese companies continue to actively seek engaged international partners to undertake demonstration projects that deliver tangible results. South Korea announced its Hydrogen Economy Roadmap at the start of 2019, setting long term targets through to 2040. The roadmap outlines the country’s goal to have 5.9m fuel cell cars and 60,000 fuel cell buses on the road by 2040 all supported by 1,200 hydrogen refuelling stations. In terms of the energy sector, the roadmap outlines an objective to supply 15GW of fuel cell for utility-scale power generation and 2.1GW of commercial and residential fuel cells by 2040. In February 2021, the National Assembly of Korea passed the Hydrogen Law (Hydrogen Economy Promotion and Hydrogen Safety Management Law), laying the legal basis for the government’s support to hydrogen and safety standards for facilities. Previously, hydrogen equipment such as electrolysers, portable fuel cells and hydrogen extractors, and fuel cell facilities that directly used hydrogen were not subject to periodic government safety checks. Now, safety assurance will be carried out in three steps; technological safety at the design stage, an onsite examination upon completion of a facility, and annual safety checks. South Korea currently has one 50MW fuel cell power plant in operation, in Daesan (by Hanwha Energy) and another 20MW plant that is in planning in Gyeongju. To conclude, it is quite clear that while Australia is more focused on upstream hydrogen production, and Japan and South Korea are focused on the downstream side, all three countries are at the helm of Asia Pacific’s hydrogen journey. Madana Leela Lead Energy Analyst (APAC) – Business Information madana.leela@the-eic.com

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Inside this issue... We are well on our way on the road to COP26, and we are delighted to partner with EIC member DNV to bring you a Mark R isley series of live events as we approach the summit in Glasgow on 31 October to 12 November. With the future of the energy sector set to be a key topic at the landmark event, EIC LIVE e-vents will address the key factors surrounding the work the industry must continue to do in lowering carbon emissions. The panel sessions, thought leadership discussions and events will start on Tuesday 10 August, asking the question – is hydrogen the future of energy? On Tuesday 14 September we discuss the race to NetZero, and later in September on Wednesday 29 we look at the fastest-growing renewable energy sources. Just before COP26 opens its doors, our event on Thursday 21 October will study the megatrends shaping the world of energy. Finally, on Thursday 25 November and once the dust has settled on the summit, we look at some of the key outcomes and lessons from the course of the two weeks. Head to page 19 to hear from EIC’s Regional Director for UK and Europe, Jo Campbell, to find out more. We are also excited for the return of large-scale exhibitions and conferences around the world. EIC’s Director of International Trade, Camilla Tew, looks forward to getting back onto the show floor, with ADIPEC in November likely to be the first to take place in a physical format.

Contents Sector analysis

Inside this issue...

EIC databases

On page 6, EIC’s Sarah Gilley, Head of Sales and Strategy, highlights a new initiative set up by the EIC to offer the perfect opportunity to meet up to 20 EIC members each week.

Spotlight on technology 7

With networking opportunities severely limited in the new COVID-19 world, every Friday from 10am to 11am we offer the chance for EIC members to meet in a series of Speedy Networking sessions.

Member news

In this month’s Sector Analysis, the EIC’s Lead Energy Analyst for APAC, Madana Leela, looks at hydrogen in Asia Pacific, and asks – where’s the action? Australia, Japan, South Korea and China are all markets to follow and Madana goes into detail on where the opportunities can be found for the supply chain. We also spoke to HMI Elements in the latest Spotlight on Technology, who gave their insights into unlocking the full potential of digitalisation, found on page 7. Mark Risley, Head of Marketing and Communications mark.risley@the-eic.com

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Social media round up 15 Forthcoming events

International trade

UK and Europe news 19 Middle East news

Asia Pacific news

North America news

South America news 23 Survive & Thrive V @TheEICEnergy

EIC (Energy Industries Council)

DataStream NORWAY

Global opportunities SOUTH AFRICA

Prince-King Oil & Gas Discoveries

SAPREF Refinery – FCC Unit Upgrade

Operator: Vår Energi Value: US$300m Vår Energi has found significant discoveries at the Prince and King prospects. The project will reduce time from discovery to production as much as possible. Preliminary estimates show volumes between 60-135 MMboe of recoverable hydrocarbons.

Operator: SAPREF Value: US$50m KBR to provide technology for an upgrade of the 33,000 b/d FCC unit at its Durban refinery. KBR will license its catalyst regeneration technology as well as deliver engineering and proprietary equipment for the FCC regenerator project.

Grangemouth Floating Storage & Regasification Unit Operator: Crown LNG Holding AS Value: US$185m Crown LNG has signed a letter of intent (LoI)) to deliver a 5 mtpa floating, storage and re-gasification unit (FSRU) to a gas to power project in the United Kingdom.

For more information on these and the 10,000 other current and future projects we are tracking please visit EICDataStream

CANADA

DENMARK

PHILIPPINES

Edmonton Net-Zero Hydrogen Energy Complex

Avedøre Power Station CCS Facility

Offshore Wind Farm San Miguel Bay

Operator: Air Products & Chemicals Inc Value: US$1.07m Air Products Canada, the Government of Canada and the Province of Alberta plan to build the net-zero hydrogen energy complex. The facility will produce 30 tonnes of hydrogen per day using the auto-thermal reformer (ATR) method, featuring Haldor Topsoe technology.

Operator: Ørsted Value: US$50m Ørsted plans to deploy carbon capture technology at Avedøre Power Station as part of the Green Fuels for Denmark project. The Power-to-X facility in the Greater Copenhagen area is planned to reach a total capacity of 1.3 GW and have a carbon emission abatement potential of 850,000 tonnes yearly.

Operator: Windkraft FiT Gmbh Value: US$1.2m The Philippine Department of Energy has launched the Philippine Offshore Wind Roadmap project. BVG Associates has been appointed to study the technical, economic, environmental, social, employment and financing aspects of establishing an offshore wind market in the Philippines.

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AssetMap

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EMEA Join us

Asset-tracking database with 14,000 operational assets for energy O&M opportunities in EMEA EICAssetMap maps all key energy assets in all energy sectors across the EMEA region in the latest membership offering from the Energy Industries Council (EIC). EICAssetMap, the EIC’s asset-tracking database for all energy sectors, is now available as a new and powerful membership category for the entire EMEA region including 14,000 assets from over 100 countries. Companies can grow their business by identifying and engaging with key targets in the operator, developer and O&M contractor communities in Africa, ASEAN, Australasia, Brazil, EMEA, Europe and CIS, GCC, Gulf of Mexico and UK with this fully interactive map-based database.

key energy markets around the world in all energy sectors to find new O&M business opportunities Search for operational assets in

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SPEEDY SPEEDY NETWORKING NETWORKING EIC EIC MEMBERS MEMBERS Are you missing your fellow EIC members? Are you to missing members? Chance meet your themfellow every EIC Friday Chance them every Friday 10 am – to 11meet am BST 10 am30 – 11 am2021 BST From July From 30 July 2021

The perfect opportunity The to meetperfect up to 20 EIC opportunity members each week

What to expect What toexperience expect to make your even better

to meet up to 20 EIC members each week

to make your experience even better

Say goodbye to trying to make appointments Sayyour goodbye to waiting trying tofor make appointments on own or physical events to on your own or waiting for physical events to return! return! The EIC is delighted to offer its members the The EIC ischance delighted to offer its members the exclusive to network with each other exclusive to network eachspecial other on screen.chance We will also be with inviting on screen. also the be inviting special guests to We joinwill from operator and guests to join from the operator and contractor community so don’t miss these contractor community so don’t miss these fantastic opportunities! fantastic opportunities!

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Spotlight on technology HMI Elements Ltd

www.hmielements.com

UNLOCKING THE FULL POTENTIAL OF DIGITALISATION

Unlocking the full potential of digitalisation is fast becoming a key priority among multinational oil and gas companies looking to maximise productivity gains. IT hardware plays a vital role, being central to AI, automation, connectivity and robotics meaning reliability is essential and central to achieving consistent optimum performance. Providing health monitoring within the Human Machine Interfaces (HMI) provides an advanced level of comfort.

HMI Elements’ products undergo incredibly detailed testing to ensure that they remain reliable even after being treated badly from being thrown around in vehicles to being power washed daily and being rigged up and down regularly.

With multinational oil and gas service companies having large IT fleets ranging from hundreds to thousands of HMIs across the globe, it is of paramount importance that they are all functioning at their best given the focus on ‘up-time’. HMIs play a key role in mission critical operations because any downtime on a rig or in a well will lead to exorbitant costs.

With this in mind, companies need to be able to know that when they are connecting for use in mission critical operations, their HMIs are going to work and not fail. This is where the value of built in health monitoring comes into its own; you can quickly and simply check the monitored parameters before starting.

Given that fleets of this size are used globally, HMI builds products taking into account many variables such as local mains power, temperatures, moisture, humidity levels, water ingress, wireless capabilities all while ensuring it doesn’t violate international communication standards. Considering key oil and gas territories – such as Texas, the Middle East, Alaska, North Sea and Russia – shows that they could not be more diverse or extreme and yet hardware has to be able to perform in all of these harsh environments along with severe vibration and dirty power supplies.

If there are problems, the built in health monitoring allows users to see specifically what is going on or has happened, for example, a high temperature warning would indicate excessive solar loading, or that the unit is being operated outside of its certified temperature specification. Data is presented to the operator in an easy to understand graphical interface accessible locally and remotely over a network connection, providing unique digitalisation strategies.

Any EIC members who wish to be profiled in this section please contact Mark Risley, Head of Marketing and Communications: mark.risley@the-eic.com Get in touch To be profiled in this section please contact Email mark.risley@the-eic.com

New EIC members NEW RUSSIA AND CIS MEMBER

NEW UK MEMBER

NEW PRIMARY MEMBER

DEXSA LLC

IMS Energy Ltd

Leap29 Ltd

Orlikov pereulok, 5 building 1A Moscow 107078 Russia

Unit 9 & 10 Cleveland Trading Estate Darlington DL1 2PB

The Nominated Representative is Mr Sergey Karlykhanov, General Director

The Nominated Representative is Mr Robert Smaje, Director

Bollin House Bollin Walk Wilmslow Cheshire SK9 1DP

Telephone +7 495 641 91 07

Telephone +44 (0)1325 244 781

Email sergey.k@dexsa.ru

Email robert@imsenergyltd.com

Web www.dexsa.ru

Web www.imsenergyltd.com

DEXSA LLC is a Russian manufacturer of reliable, renewable electrical equipment (lighting fixtures, junction boxes, control cabinets, etc) for the oil and gas industry.

IMS Energy Ltd is headquartered in Darlington with manufacturing facilities in Darlington and Middlesbrough. IMS Energy is a well known and a highly regarded business providing multi disciplinary engineering, fabrication and project management services. The company’s experienced commercial and project management teams work closely with clients to deliver the best project solutions while never compromising on safety and quality. IMS Energy supplies offshore wind infrastructure products including truss structures, transition pieces, boat landing platforms, lifting and spreader frames, and associated sea fastenings. IMS Energy is also a leading manufacturer of accommodation containers to offshore, marine and renewable operators. IMS also operates in the construction sector offering structural steel work to major projects throughout Europe.

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The Nominated Representative is Mr Simon Calvert, Business Development Manager Telephone +44 (0)1625 537 555 Email scalvert@leap29.com Web www.leap29.com When you are expanding your business, it is important to have a global recruitment and PEO partner you can trust. For over 20 years, Leap29 has been helping businesses advance by providing reliable recruitment and employment management support. It operates from six global offices around the world and works with businesses across the energy sector including oil and gas, renewable energy and construction. Leap29 offers tailored solutions to meet your requirements, whether you are looking to recruit hard to find experts or need compliant employment management support, Leap29 can be your trusted partner, no matter the location.

New EIC members

NEW ASEAN MEMBER

Magnus Code Sdn Bhd

Oceancare Corporation Sdn Bhd

STEEL HAWK Engineering Sdn Bhd

2nd Floor, Wisma Yong Lung Lot 698, Pelita Commercial Centre 98000 Miri, Sarawak, Malaysia

23-2, Block H, Dataran Prima Jalan PJU 1/37 47301 Petaling Jaya Selangor, Malaysia

No. 24B, Jalan USJ 10/1B Taipan Business Centre Subang Jaya Selangor 47620 Malaysia The Nominated Representative is Mr Omar Zahid Bin Zahed Nasem, Technical Director Telephone +6014 6022 795 Email omair@magnuscode.com Web www.magnuscode.com Magnus Code is a digital development studio specialising in industrial technologies. It brings next generation hardware and software solutions to enhance digital transformation in all sectors. Magnus Code’s cloud infrastructure and authorisation server enables it to provide highly optimised, responsive and secure software applications. The flagship product, Magnus Reactor© provides all-inclusive enterprise asset management (EAM) which helps teams to maximise asset life, increase financial efficiency and align maintenance and operation systems to ensure safety of worker, environment and asset. Magnus Code’s cloud-based integration allows team access to data for analysis, dashboarding and reporting from anywhere. Quickly analyse data and detect anomalies, to find and proactively fix small problems before they turn into big problems. Keep your team on top of the industry through Magnus Code.

The Nominated Representative is Mr Abang Haji Adenan Bin Abang Haji Tudin, Managing Director and CEO Telephone +608 5423 825

The Nominated Representative is Mr Dato’ Sharman Michael, Executive Director Telephone +603 7880 7818

Email abg.adenan@ oceancare.com.my

Email sharman@steelhawk.com.my

Web www.oceancare.com.my

Web www.steelhawk.com.my

Oceancare Corporation Sdn Bhd, a well-established Sarawak based oil and gas services provider, was established in October 2001 in Miri Sarawak, Malaysia.

STEEL HAWK specialises in engineering, procurement, construction and commissioning in various pipeline engineering activities and is a contractor in integrated maintenance, rejuvenation, hook-up and commissioning in the onshore/ offshore oil and gas sector.

Since its inception, Oceancare has developed its competencies, reputation, accumulated vast experience and created a strong working network within the industry. The company originally was just a procurement company with less than 10 employees. Today, with more than 300 employees, it has gained the confidence and trust from customers around the nation with exceptional services in inspection and corrosion monitoring, electrical and instrumentation equipment services, integrated well services and much more.

STEEL HAWK’s competency lies in offering unique and feasible solutions such as offshore/onshore modification, construction and maintenance services (MCM), chemical injection skids and portable injection modules, pipeline operational pigging and pig trap systems, fire and blast rated doors and walls, oil spill response, mud cooler systems, hook-up and commissioning services (HUC) and pipeline integrity and maintenance activities. Visit STEEL HAWK’s website to know more of its offerings and solutions.

BRAZIL UK ENERGY COLLABORATION FORUM

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ABB to tackle asset integrity management challenges

ABB in the UK has signed a MoU with asset integrity management business Metegrity to bring a new solution to market that will tackle asset downtime by optimising asset strategy and increasing visibility of equipment performance in real time to better manage operations and interventions. Combining ABB’s deep domain expertise, data analytics and industrial AI capability with Metegrity’s leading asset integrity management and riskbased inspection software, customers will be able to perform advanced risk analysis on their assets with the intent of increasing asset reliability, reducing maintenance costs and turnaround time as well as boosting up-time. In addition, the new collaboration will streamline compliance reporting, moving away from a traditional paperbased approach or fragmented systems to an integrated digital one, with all asset data stored in a central, easily accessible database for a single source of truth. This will enable operators to instantly access insights on the condition of specific assets, at a micro or macro level, in the event of an incident or ahead of an audit.

The MoU builds on the success of its first project together with downstream operator MOL Group, announced last September. The new relationship is particularly well suited for midstream and downstream operations, where companies can increase operating cash flow by making the most of their valuable assets. Metegrity is a leading asset integrity management software company, offering best in class enterprise solutions that are highly configurable and strategically tailored to unique business needs. Metegrity empowers asset intensive industries in oil and gas operations and chemical manufacturing to achieve operational efficiency with its complete line of products. ABB is a leading global technology company that energises the transformation of society and industry to achieve a more productive, sustainable future. By connecting software to its electrification, robotics, automation and motion portfolio, ABB pushes the boundaries of technology to drive performance to new levels, with a history of excellence stretching back more than 130 years.

For more information: www.abb.com

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AEG of i

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A leading international drilling and well engineering consultancy and service provider for the energy industry has significantly strengthened its foothold in the ASPAC region by securing deals worth AUD$4.7 million.

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Add Energy has recruited four new consultants to its 25-strong team based in Perth, WA to augment the delivery of work on behalf of a broad and growing client base, including private investment groups, vessel owners and non-operating entities, as well as traditional oil and gas operators. Well management, production optimisation, well integrity studies, carbon capture storage well design and rig-less intervention solutions form the core of the recent work awarded. In addition, the team has been contracted to complete long-term service agreements for operational assets to enhance production performance by supporting the delivery of maintenance programmes and assuring compliance with regulations.

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Headquartered in Stavanger, Norway, Add Energy operates throughout the ASPAC region from its regional HQ in Perth, Australia and brings 30+ years of operations, drilling and well engineering experience to the provision of leading-edge solutions in the spheres of asset management; drilling and well operations; safety and risk; decarbonisation and energy transition; and training. Add Energy is an international consultancy, service and software provider to the energy industry. The company is focused on delivering solutions that have a direct impact on safety, cost reduction and operational efficiencies to its clients.

For more information: www.addenergy.no

For mo inform www.a

Member news

Multi-million dollar deals underline Asia Pacific growth for Add Energy

Member news

G Power Solutions announces new generation industrial switch mode modular DC charger

Power Solutions, a global provider of AC and DC power supply systems and ons for all types of critical and demanding applications, has announced the launch new generation of switch mode modular DC charger, Protect RCS MIPe, based on ew MIPe rectifier modules. Edge-technology based, the rectifier and the system bine ruggedness of design with high reliability and very high efficiency to ensure the nuity of service to critical DC loads in all types of environments. The systems are flexible and easy to use and maintain.

Protect RCS MIPe series provides power density in a compact design uilt-in protection. AEG PS leveraged dustrial expertise to develop a rectifier le embedding the benefits and field ience of the SMi2000 rectifiers in a dised and enhanced version. The rectifier is robust due to its very wide ting input voltage (100 to 275Vac). dition, the width of the modules has divided by two compared with former ations and the volume of the power of the system was also reduced by half.

heavy duty design ensures that the m can be located in a harsh industrial onment. It can be easily maintained s to hot-swappable modules and r can be increased directly onsite necessary.

ystem exists in pre-defined guration to reduce lead times and o available as a 19” battery charger ck version for a direct cabinet ation as ready to use solution.

ore mation: aegps.com/en/

Aggreko: contingency is key to growth of renewable power

Recent extreme weather conditions have re-emphasised the need to incorporate battery storage solutions to offset the inconsistency of renewable energy sources, warns temporary solutions supplier Aggreko. This caution follows a period of particularly high winds, when a new record was set for the proportion of the nation’s energy generated by wind.

Battery storage has the potential to smooth over peaks and troughs in supply, storing energy when output is good and then utilising it when production crashes. This way, we don’t have to rely on carbon power when circumstances become less than ideal. Chris Rason, Managing Director, Aggreko Northern Europe

However, just months earlier, the UK experienced its longest spell of low wind output in a decade, with the nation’s wind turbines delivering far below targets for almost two weeks. Fossil fuel solutions were called in to pick up energy shortfalls in the National Grid, meaning that carbon emissions increased during this period of downtime. Battery storage solutions, like those offered by Aggreko, present a carbon-neutral alternative to bringing in coal and gas power when renewable outputs are low. Aggreko’s lithium-ion Y.Cubes can each store up to 1MW of power within a standard 20ft modular container, allowing energy generated from green sources to be stored and then later deployed as necessary.

For more information: www.aggreko.com

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Member news

Ashtead Technology awarded funding for unmanned digital twinning project Welaptega, an Ashtead Technology company, has launched a US$500,000 initiative to develop a product to enable digital twinning of underwater infrastructure without the need for offshore personnel.

Funding for the Unmanned Digital Twinning Project has been awarded by Canada’s Ocean Supercluster, an industry-led, national ocean cluster that’s growing the ocean economy in a digital, sustainable and inclusive way. In collaboration with Whitecap Scientific, SubC Imaging and Nova Scotia Community College SEATAC division, the new digital twinning technology will develop an intuitive bridge between Welaptega’s and Whitecap Scientific’s technology systems. On successful launch of the project, conventional offshore ROV and vessel crew will be able to confidently collect high quality image data for post-processing digital twins, guided by real-time 3D reconstruction, to give feedback on image quality and coverage.

Digital twins digitise replicas of physical assets, used for integrity management, simulations and the general visualisation of remote infrastructure to maintain the economic viability of assets, increase safety and reduce risk. Together with members and partners, the Ocean Supercluster is accelerating the development and commercialisation of globallyrelevant ocean solutions, and advancing Canada’s position as a global leader in ocean.

For more information: www.ashtead-technology.com

Costain proving hydrogen can be distributed via existing gas networks

Costain, the smart infrastructure solutions company has produced a feasibility study that will contribute to the ongoing assessments of the ability to use the existing UK gas transmission and distribution networks to transport hydrogen.

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The project is the first to bring together all the gas distribution networks, working collaboratively to develop an innovative hydrogen solution that could be an answer to decarbonised energy for heat, transport, industry and power generation, helping the UK meet its target to be net zero carbon by 2050. The study is the first in a programme of work to evaluate, develop and demonstrate the concept of hydrogen ‘deblending’, where proven oil and gas process technologies are used to separate the hydrogen/natural gas streams at scale to provide consumer optionality in gas supply to meet different customer requirements. Hydrogen deblending would allow for a varying mix of hydrogen and natural gas to flow through the network, and then separating the two gases so a controlled blend can be supplied to the customer. In this way hydrogen can be supplied to those who are ready and prevented from being received by those who are not. The study is funded under the Network Innovation Allowance (NIA) available for gas and electricity network operators to fund innovative projects which have the potential to deliver benefits to network customers.

Member news

The objective is to provide critical evidence as to the technical and commercial feasibility of using deblending to support the transition of the UK national transmission system and gas distribution networks to a 100% hydrogen gas network.

This study demonstrates the technical and economic feasibility of deblending in the gas transmission and distribution networks, providing a credible pathway to support the UK government in achieving the 2050 net zero commitment.

The IP software will also benefit from a refreshed, cloud-ready user interface designed to be touchscreen compatible with a more detailed home screen view and improved search function, resulting in a more intuitive user experience.

Blending hydrogen into the existing natural gas pipeline network to relatively low concentrations (less than 20% hydrogen) has already been proposed as a means of transporting hydrogen without significantly increasing the risks associated with utilisation of the gas blend in enduse devices (such as household appliances), overall public safety, or the durability and integrity of the existing natural gas pipeline network.

The feasibility study is the first step in developing the deblending concept; future stages will entail further technical evidence gathering and construction of a demonstration facility to prove the concept.

IC, Lloyd’s Register’s well integration and visualisation software will benefit from a new addition to produce more detailed correlations of the subsurface characteristics between wells as well as easier to apply interactive interpretations.

Deblending could provide a means to transition from a 20% to a 100% hydrogen network, providing customers with the options for either pure hydrogen, hydrogen/natural gas blends or natural gas to meet demand in industry, heating, transport and green power generation, depending on the customer’s readiness to adopt hydrogen. The fact that this is enabled through the development of tried and tested technology would also help consumer confidence. Furthermore, it could help avoid the cost (estimated at billions of pounds) of building dedicated hydrogen pipelines or other costly delivery infrastructure during the early market development phase. Costain was able to draw on its operational expertise and deep process industry knowledge gained over 70 years of overseeing the design and build, technology selection and optimisation for large-scale gas processing and separation facilities including CO2 and hydrogen separation in petrochemical, refinery and ammonia production applications. Using the operational data provided by the gas network partners, Costain evaluated the techno-economic feasibility of deblending schemes, and carried out technical evaluation and selection of technologies for hydrogen recovery and purification, development of process schemes, plant designs and cost estimates. Sign up for the EICOnline newsletter

For more information: www.costain.com

Lloyd’s Register innovates lifecycle approach in oil and gas subsurface software

Lloyd’s Register, a professional services company specialising in engineering and technology solutions, has launched a suite of new modules and updates to its subsurface software packages IC and IP. The software’s new capabilities are prompted by the increasing need to capture and utilise data across the entire lifecycle of wells and fields, allowing E&P operators to rise to the challenges presented by a maturing industry, and the energy transition, without additional software investment at each stage. One of the new modules – Casing Inspection – introduced to IP, Lloyd’s Register’s subsurface interpretations software, will seamlessly integrate mature well monitoring and abandonment into the platform, strengthen IP’s existing collection of cased-hole tools, further improving insights across a well’s lifecycle. Two further modules will provide automated workflow benefits for users. Textural Facies will create an automated workflow for determining rock texture types from image log data, while Log QC will highlight data quality issues with raw log measurements.

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The industry is on a journey of change as it transitions to alternative and differing subsurface technology applications than just hydrocarbon production. Increased insights of scale, from region to well, across the lifecycle of all subsurface assets will be more valuable than ever in this changing world. Derek Crombie, Vice President of Subsurface, Lloyd’s Register

Not only will the tool be highly insightful for oil and gas operators, it can also play a role in new energy markets by identifying locations to tap geothermal resources, fresh water or lithium brine extraction, as well as being used to access underground aquifers or waste disposal sites. IC will produce holistic subsurface interpretations at a higher resolution than ever before, improving insights and decision making across any aspect of a project’s lifecycle. The new correlations feature is bolstered by a new data import infrastructure to make it even simpler for users to merge and integrate disparate subsurface data for visual display and interpretation.

For more information: www.lr.org

@TheEICEnergy

EIC (Energy Industries Council)

Member news

Siemens Energy to help Irish grid exceed renewables penetration limit Siemens Energy will supply a synchronous condenser system to the Electricity Supply Board (ESB), Ireland’s leading energy company. The grid stabilising system will be developed at the Moneypoint power station located in SouthWest Ireland near Kilrush, County Clare. ESB recently announced the launch of Green Atlantic @ Moneypoint, an ambitious plan to transform the County Clare site into a green energy hub, where a range of renewable technologies will be deployed over the next decade with the capacity to power 1.6m homes.

The synchronous condenser, a key component of ESB’s Green Atlantic @ Moneypoint project, will be the first in the country and incorporate the world’s largest flywheel used for grid stability. The facility will enable an increased integration of wind power into the Irish grid by providing sufficient inertia for frequency support, short-circuit power for system strength and reactive power for voltage control. Commissioning of the new plant is planned for mid-2022.

Siemens Energy will deliver the synchronous condenser system, providing engineering, procurement, and construction. Key components are a control system which optimally fits to the overlaying grid automation system, a synchronous generator with circuit-breaker and a flywheel. In addition, Siemens Energy will provide the preventive maintenance for ten years with remote diagnostics. The synchronous condenser will, in turn, help management of Ireland’s transmission system.

Sonardyne wins Queen’s Award for Enterprise in Innovation

With the rising share of renewable power and the shutdowns of conventional plants, synchronous condensers are playing an increasingly important role in the grid. By means of the rotating mass of a conventional generator, the solution adjusts conditions on the transmission grid, provides the necessary inertia to support the grid frequency while also providing or absorbing reactive power. In addition, synchronous condensers can diversify revenue for owners and operators while providing an important cash flow contribution.

A pioneering system developed by marine technology company Sonardyne to study ocean floor movement has been recognised with a Queen’s Award for Enterprise in Innovation, the highest award a UK business can receive.

For more information: www.siemens.co.uk

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Raheenleagh forest, Ballinvalley, Co Wicklow. Ireland’s newest wind farm energy project located approximately 8km west of Arklow town

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Manufacturing Assembly Operator, Ian Hall, prepares a seabed m

New EIC members Social media round up Member news

Developed over more than a decade and in use globally by the energy and ocean science sectors, Sonardyne’s seabed deformation monitoring system provides engineers and scientists with critical new understanding of the seafloor and the physical processes that act upon it. Using a network of autonomous, battery-powered instruments deployed on the seabed, the system measures horizontal and vertical seabed movement, at a level of precision that was previously impossible. Initially developed for the offshore industry to identify geological hazards within oil and gas reservoirs, it has since been adopted by the earth science community to study everything from undersea landslips near volcanoes to deep sea plate tectonic motion. Such motion can trigger devastating tsunamis in some of the world’s geological hot spots, including the infamous Pacific ‘Ring of Fire’. The Queen’s Award, conferred by Her Majesty Queen Elizabeth II, on advice of the prime minister, recognises and encourages commercial success resulting from outstanding innovative achievements by businesses in the UK.

Social media round up We want to use every opportunity to connect with our members, so please follow us on Twitter (@TheEICEnergy) and connect with us on LinkedIn – EIC (Energy Industries Council) Below you’ll find a selection of some of the exciting EIC activities and useful industry information we’ve shared through our social media channels.

The EIC @TheEICEnergy

Join us on 15-18 November for the region’s most important energy event of the year #ADIEPC2021. Only a few stands remain. Contact pamela.nicholson@the-eic.com

UKESC

The EIC @TheEICEnergy

We are delighted to introduce the UK Energy Supply Chain Taskforce. An initiative where government and industry work together. For more details: http://bit.ly/3i8KUq7

For more information: www.sonardyne.com

EIC (Energy Industries Council)

SPEEDY NETWORKING EIC MEMBERS

Speedy Networking: The perfect opportunity to meet up to 20 EIC members each week. Book now: www.the-eic.com/EventDetail?dateid=3156

monitoring instrument at Sonardyne’s facility in Yatelely, England

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@TheEICEnergy

EIC (Energy Industries Council)

August – September 2021

Forthcoming events and 3 August LIVE e-vents

KSA Market Update Webinar

5 August Business Presentation

North America EICDataStream Online

6 August Business Presentation

EIC Members – Speedy Networking Webinar

10 August Business Presentation

DataStream CAPEX & OPEX Projects GoToWebinar

11 August Management Course

EICDataStream/AssetMap training Online

12 August Business Presentation

South America EICDataStream Online

13 August Business Presentation

EIC Members – Speedy Networking Webinar

17 August LIVE e-vents

ADIPEC 2021 – What to Expect Webinar

19 August Business Presentation

North America EICDataStream Online

24 August LIVE e-vents

Business Opportunities with ENEC Webinar

Get in touch Share your news and views...

Email newsdesk@the-eic.com • Phone +44 (0)20 7091 8600

LIVE e-vents The EIC’s new webinars

25 August Business Presentation

Floating Offshore Wind GoToWebinar

25 August Management Course

EICDataStream/AssetMap training Online

26 August Business Presentation

South America EICDataStream Online

31 August LIVE e-vents

Pre-Proposal Planning Webinar

1 September EIC Connect

Brazil-UK Energy Collaboration Forum Online

1 September LIVE e-vents

An Audience with Sellafield Ltd Webinar

2 September LIVE e-vents

An Audience with Harland & Wolff Webinar

2 September Business Presentation

North America EICDataStream Online

7 September LIVE e-vents

Women in Energy Webinar

8 September Management Course

EICDataStream/AssetMap training Online

For more information and to book visit www.the-eic.com

Forthcoming events

28 September 2021

CONNECT September 2021

Energy USA 2.0 9 September Business Presentation

23 September Business Presentation

South America EICDataStream

Online

14 September Business Presentation

27 September Overseas Delegation

COP26: The Race to NetZero

Brazil Showcase

GoToWebinar

Online

16 September Business Presentation

28 September EIC Connect

COP26: Is the Future Hydrogen?

EIC Connect Energy USA 2.0

GoToWebinar

Norris Conference Centers, Houston

16 September Business Presentation

29 September Business Presentation

North America EICDataStream

COP26: Fastest-Growing Renewables

Online

GoToWebinar

22 September Management Course

30 September Business Presentation

EICDataStream/AssetMap training Online

North America EICDataStream Online

5 October 2021

CONNECT

QATAR

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@TheEICEnergy

EIC (Energy Industries Council)

International trade Looking ahead – getting back onto the show floor! The International Trade team is looking forward to getting back to the show floors, with a mix of virtual, in person and hybrid events in the calendar ahead. Spurred on by recent activity on LinkedIn and social media showing busy exhibition floors, we are now looking ahead to our next in person exhibitions, with ADIPEC in November starting us off. Our friends @KallmanWorldwide hosted 111 companies in the USA partnership pavilion at Arab Health in Dubai a few weeks ago, paving the way for ADIPEC. We saw one of our freight partners @Agility Logistics, posting onsite photos at the SpaceComm Expo at Farnborough International two weeks ago. Things are looking positive as we work with key stakeholders and partners to ensure that we get our exhibitors back to the show floor safely.

We still have exhibition spaces, sponsorship and partnership options available at all of our upcoming events.

Camilla

Tew

What’s your next step? If you want to talk to one of the team about your marketing and show calendar and strategy please get in touch. We are more than happy for you to have a call with us and one of our analysts to look at where the opportunities are and what events there are both with the EIC and external exhibitions to help you take steps in the right direction. Please email: internationaltrade@the-eic.com

2021 EXHIBITIONS ADIPEC

Booking Now

15 – 18 November

Abu Dhabi

UK Pavilion

Wind Europe Electric City

Booking Now

23 – 25 November

Copenhagen

UK Energy Transition Pavilion

World Nuclear Exhibition

Booking Now

30 – 2 December

Paris

UK Pavilion

Oil and Gas Asia

Booking Now

7 – 9 December

Kuala Lumpur

UK Pavilion

2022 EXHIBITIONS Offshore Europe

Booking Now

1 – 4 February

Aberdeen

EIC Pavilion

Wind Energy Asia

9 – 11 March

Taiwan

UK Pavilion

Wind Expo Japan

16 – 18 March

Tokyo

UK Pavilion – Hybrid

Offshore Technology Conference (OTC)

2 – 5 May

Houston

UK Pavilion

Energy Exports Conference (EEC)

14 – 16 June

Aberdeen

Conference and Exhibition

ONS

29 – 1 September

Norway

UK Pavilion

Rio Oil and Gas

Booking Now

26 – 29 September

Rio de Janeiro

UK Pavilion

Wind Energy Hamburg

27 – 30 September

Hamburg

UK Pavilion

Arab Health, Dubai 21-24 June 2021 pictures courtesy of Kallman Worldwide

19 19

PRINCIPLE SUPPORTER

UK and Europe news The road to COP26 Ahead of COP26 the UK and Europe team has partnered with DNV on a live series of events, as we approach the road to COP26. We aim to promote industry awareness and address the key factors surrounding the future of the global energy sector and the work we as an industry must continue to do in lowering carbon emissions. Together with DNV, we will collaborate as we host a number of events, panel sessions and thought leadership discussions as we embark on the road to COP26, covering the presidency theme of energy transition. About our COP26 principal supporter DNV On 1 March 2021 DNV GL became DNV, the independent expert in risk management and assurance, operating in more than 100 countries. Through its broad experience and deep expertise DNV advances safety and sustainable performance, sets industry benchmarks, and inspires and invents solutions. As the world-leading classification society, a recognised advisor for the maritime industry and provider of digital solutions, DNV delivers world-renowned testing, certification and technical advisory services to the energy value chain including renewables, oil and gas, and energy management.

COP26 Event Calendar with Principal Supporter DNV

Tuesday 14 September Road to COP26: The race to NetZero Thursday 16 September Road to COP26: Is the future hydrogen? Wednesday 29 September Road to COP26: The fastest-growing renewable sources Thursday 21 October Road to COP26: Megatrends shaping the world of energy Thursday 25 November Outcomes of COP26

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Engage with the leading energy trade association

Jo Cam

pbell The EIC is the leading energy trade association and has been supporting the UK supply chain for 78 years. Covering all areas within the global energy sector the EIC now has over 700 member companies.

The UK and Europe team along with the membership department has launched a series of engagement days for members and non-members. This is the perfect platform for potential and existing members to discover, understand and keep up to date with the various membership products and services which enable you to access leading market information. The role and benefits of being on the EIC committee: did you know there are three regional committees? At EIC we want the role of the committee to be one of the most productive tools we work with. Did you know there are three regional committees serving EIC members across Scotland, the north and the south of the UK and we are currently looking for engaged and enthusiastic members to join. Each committee represents a wide range of sectors and meets at least four times a year. If you want to contribute to the efficient operation of EIC and assist in the decisionmaking process to help shape the future direction of the EIC, please contact eventsuk@the-eic.com

Forthcoming Events in August Tuesday 10 August Road to COP26: Is the future hydrogen? Tuesday 31 August An audience with: Harland & Wolff Jo Campbell Regional Director, UK & Europe jo.campbell@the-eic.com

@TheEICEnergy

EIC (Energy Industries Council)

Middle East news Regional update

Against the continued backdrop of the ongoing energy transition the market continues to pick up. In stark contrast to this time last year, with a low oil price Ryan M cPhers on and the continued impact of the coronavirus pandemic, the current oil price of ~US$76 bbl is the highest level seen since 2018 and close to breaching a seven-year record at the time of writing. Hence without getting ahead of ourselves, perhaps there is scope for a sense of optimism creeping into the industry as we enter into the back end of 2021. Our team hear is keen to build on this sense of optimism where our ongoing series of virtual events have continued, with our recent Oman Market Update (featuring PDO and Petrofac) and cybersecurity events proving to be extremely popular. We were also delighted to make a ‘soft return’ to a physical event with our evening reception at The Club Abu Dhabi, where it was great to see so many of you make the effort to join us which is hopefully the start of things to come. We will be hosting more ‘Business Opportunities with’ webinars in the weeks ahead with presentations from ENEC and Kentech confirmed. Check our website for full details. Our inaugural Qatar Connect event is scheduled for October 2021 where I would be delighted to hear from any member companies based in Qatar who would like to be part of the advisory committee, please email me if you are interested in this opportunity. New members continue to join us from across the region where we welcomed Aegion Corp. Our recently launched membership referral scheme is a great opportunity for your organisation to obtain complimentary exposure at our many webinars via our global digital supporter initiative. Further information can be found by contacting anand.kumar@the-eic.com or dina.abieva@the-eic.com We are delighted to once again be running the UK pavilion at ADIPEC taking place from 15-18 November 2021, stand space is currently 80% full, thus do not delay if you would like to join us. We will also be running a webinar on 17 August entitled ‘ADIPEC – What to Expect’ where alongside organisers DMG Events, we will provide an overview of the event, what the UK pavilion will be offering and the support available to EIC members. In the interim please continue to enjoy your summer and let me know if any of the team here can be of assistance to you and we will do our utmost to help. Ryan McPherson Regional Director, Middle East, Africa, Russia & CIS ryan.mcpherson@the-eic.com Get in touch Share your news and views...

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Regional news

Masdar signs deal to develop 2GW of solar projects in Iraq

Masdar will develop new solar projects in Iraq as the Abu Dhabi-based company continues to expand its renewable energy portfolio. The UAE company signed an agreement with Iraq’s National Investment Commission to develop photovoltaic projects with a minimum capacity of 2GW. This agreement with Masdar, a global leader in renewable energy, is an important step in the development of the clean energy investment sector and the exploitation of solar energy in Iraq.

ENGIE-led consortium reaches financial close on Jubail desalination plant

A consortium led by ENGIE has reached financial close on the 3B independent water project in the Kingdom that will supply potable water for the cities of Jubail and Dammam. The Saudi Water Partnership Company (SWPC) reached financial close on the project alongside developers ENGIE, which has a 40% stake in the project, Nesma Company Limited (30%) and Abdulaziz Al Ajlan Sons for Commercial and Real Estate Investment Company (30%). The plant, which is based on reverse osmosis technology, will produce 570,000 cubic metres per day of potable water supply. The plant will include storage facilities for one operational day in addition to in-house renewable energy capacity to reduce grid electricity consumption throughout the desalination process. The desalination scheme is being built on the basis of a build, own, operate contract, with commercial operation of the project expected to begin in 2024.

Forthcoming events

Please go to page 16 to see upcoming events in your region

21 21

Asia Pacific news Regional update

The COVID-19 status in most countries in Asia Pacific is still the same as earlier in the year with countries closing their borders and Azman lockdowns in some of the Nasir larger cities. Malaysia, Indonesia, Philippines and India are still struggling to contain the spread and are now starting to face economic issues mainly due to the prolonged closures of businesses in their respective countries. Vaccination programmes are under way in most countries, however due to supply issues, the pace of vaccination is not as fast as it should be. International travel is still on hold, with a handful of exceptions. In Australia, New Zealand, China, Hong Kong, South Korea, Singapore and Taiwan authorities are experimenting with country-to-country travel bubbles to jumpstart aviation, tourism and business travel. Safe air travel corridors are being established between carefully selected airports, where quarantine-free travel is allowed (with temperature and symptom-checks still in place). We expect a gradual addition of new low-risk countries to these travel bubbles, with the coronavirus-free situation being the main condition for inclusion. In June, the EIC APAC office in Kuala Lumpur was busy organising the virtual conference sessions for the Energy Exports Conference 2021 (EEC2021) which was held from 14 to 17 June 2021. EIC APAC managed a total of eight speaker sessions featuring 22 key industry speakers from Taiwan, Japan, Australia, India, Malaysia, Sri Lanka and Thailand. Companies that participated as speakers included Petronas, Shell, Malaysia Marine Heavy Industries (MMHE), Hyundai Corporation, Sembcorp Singapore, Essem Corporation, Western Australia Government Office, Yara, GAIL India, AG&P India, Larsen & Toubro, Sapura Taiwan and the director general of petroleum Sri Lanka. The feedback that we received from delegates, sponsors and speakers was very positive indicating that the event was a greater success than the previous year. The EIC APAC office is organising regular engagement sessions with new APAC/ASEAN members and will be featuring some of them in virtual webinars. On 16 July EIC APAC organised a networking session among several selected ASEAN members and briefed them about the products and services on offer by the EIC and also to encourage higher usage of EIC DataStream by member companies. Azman Nasir, Head of Asia Pacific azman.nasir@the-eic.com Sign up for the EICOnline newsletter

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Regional news

DOE, World Bank launch offshore wind roadmap for the Philippines

In an effort to fast-track the Philippines’ target to achieve 35% of renewable energy in its energy mix by 2030, the Department of Energy (DOE) has launched the Philippine Offshore Wind Roadmap project. It is funded through the World Bank Group’s (WBG) Energy Sector Management Assistance Program (ESMAP), with the aim of identifying areas in the country with high potential for offshore wind development. The roadmap will establish both short and long-term offshore wind targets, formulate strategies to integrate offshore wind in the government’s renewable energy portfolio as well as providing recommendations on policies to promote a conducive business environment for offshore wind investors. WBG has estimated that the country’s offshore wind sector has over 170GW of technical potential.

Japan pledges US$10bn in finance to drive ASEAN energy transition

Japan’s Ministry of Economy, Trade and Industry (METI) has offered Southeast Asian Nations (ASEAN) energy ministers US$10bn in financial aid, focusing on the growth of LNG and renewables, to help accelerate their moves toward energy transition. The support measures and roadmap for changes were unveiled during a virtual meeting of energy ministers from Japan and the ASEAN countries. The offer, which will include loans and investment from Japan’s public and private sector, comes at a time of increasing pressure in the financial sector to restrict finance for fossil fuel projects.

EIC Newsbriefs membership@the-eic.com Keeping you up to date with energy news from around the world

@TheEICEnergy

EIC (Energy Industries Council)

North and Central America news Regional update

As of 30 June, Houston has vaccinated about 70% of its population. Businesses are open, and the mask mandate has lifted. We continue to closely monitor the COVID-19 Amand a Duho n situation and look forward to the further opening of the city. Like many companies, organisations and trade associations around the world, the EIC embraced technology at the start of the pandemic and has now most recently delivered for the second time, virtually, one of its biggest events: The Energy Exports Conference. In June, the EIC’s North and Central America offices had the pleasure of hosting three international delegations with concentration on offshore wind, oil and gas, and carbon capture in the United States. During each of our three sessions we had the pleasure of hosting industry experts, and this year we had the honour of welcoming: Amanda Lefton, Director of the Bureau of Ocean Energy Management (BOEM); Martin Jr Tremblay, Offshore Wind Lead, USA, Arup; Sy Oytan, Deputy CEO, Vineyard Wind; Scott Hamilton, Renewables Division Manager, Xodus Group; Kristy Bellows, Vice President, Upstream/Midstream Sector Leader, Worley; David Nguyen, CP Manager – Permian Projects, Shell; Jane Stricker, Senior Relationship Manager, Regions, Cities & Solution, bp; Nick Fulford, Senior Director, Energy Transition, Gaffney, Cline & Associates; and Jarad Daniels, Director, Office of Strategic Planning, Analysis, and Engagement, US Department of Energy (DOE). With a distinguished group of panellists in attendance, each session proved to be fruitful and informative with high delegate participation and conversations ranging from the Biden administration’s role in achieving net-zero, to key barriers to at-scale deployment for US offshore wind and CCUS.

On 22 June the EIC partnered with BMT to deliver ‘Weathering the Storm: Preparing for and addressing the impacts of worst-case scenarios’. During this event, we welcomed speakers from BMT, Shell and Spire Engineering who discussed the importance of accurate damage assessment, remediation and the role of modern technology in preparedness plans. It was clear that remote operations and data are at the centre of ensuring health and safety and asset integrity while deterring costly downtime.

VIRTUAL

ENERGY EXPORTS CONFERENCE Registration sponsor

Lastly, in partnership with the British Chamber of Commerce in Mexico (BritChaM), the EIC welcomed Rafael Daryanani, President Energy Group, BritChaM to our Houston Coffee Break series. During the live webinar, both Rafael and I highlighted the fantastic benefits available to EIC and BirtChaM members by way of our MoU, and a deep dive on the recent election results in Mexico and what that means for the energy sector and foreign investment in the country. Amanda Duhon Regional Director, North & Central America amanda.duhon@the-eic.com

28 September 2021

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23 23

South America news Regional update

The Rio team is happy to share the news that we have hired three young professionals to join the Rio hub. Ana Beatriz Vizeu is working as our events intern, Flavia Porto joined Clariss e Roch a us as junior graphic designer and Michelle Muller as website intern. We are delighted to have them in our team and supporting the EIC worldwide to improve the quality of our services to members.

He explained in more detail about its operations in Brazil such as the Atlanta field in the Santos Basin including the early production system (EPS) and definitive system (DS). He emphasised the importance of local content and presented opportunities for suppliers. We thank attendees for participating actively in the Q&A session at the end. We would like to remind our EIC members that the webinar recording is available to those that were not able to attend this event. On 1 September we will have the fourth event of this series featuring a presentation by Trident Energy, a leading independent operator involved in the redevelopment of mature oil and gas assets.

Continuing with our partnership with the British Chamber of Commerce in Brazil, we held the third event of the Brazil-UK Energy Collaboration Forum series on 23 June. The event topic was ‘Opportunities at the Atlanta Field’ and was supported by Airswift and Pentagon. Mr Carlos Peixoto, BritChaM’s Head of the Oil & Gas Committee opened the event followed by Mr Arlindo Moreira, Latin America Area Sales Manager for Glamox who presented his company’s LED lighting solutions, products and innovative technology for offshore applications. Then Atlas Copco’s Application Engineer, Mr Felipe Barata gave an overview on vacuum, industrial and power techniques, focusing on compression. The key speaker was Mr Vinícius Passos, Procurement Manager for Enauta.

At the time of writing, we are planning to host the EIC South America Membership Open Day on 8 July, in which Pietro Ferreira, Senior Analyst (Americas), Clarisse Rocha, Director for The Americas and Gabriella Fernandes, Business Development Co-ordinator, will provide the latest updates and trends on the South America energy sector as well as the opportunity to hear from our key speaker Mr José Monteiro, Senior Sales Manager LATAM, from one of our global members, GE Power Conversion, talking about how the EIC’s market intelligence tools are being implemented in their strategy.

Regional news

Argentina strengthens IEASA’s role

The Fernández administration has approved a series of measures expanding the activity scope of IEASA (formerly known as Enarsa), the state-owned energy holding. The company, which traditionally oversees the country’s LNG imports, has been allocated two offshore exploration blocks in the Malvinas Oeste Basin off the coast of Santa Cruz, as well as the ownership of four major combined cycle power plants in the country. IEASA has also been allowed to increase natural gas imports from neighbouring Bolivia.

Clarisse Rocha Head of Americas clarisse.rocha@the-eic.com

RLAM acquisition by Mubadala approved by regulator The UAE-based state-owned holding Mubadala Investment Company has reached an important milestone in the acquisition of the Landulpho Alves Refinery (RLAM) from Petrobras. The Brazilian competition regulator CADE approved the transaction in June, adding that it does not pose any risk of market concentration. The deal between the two companies was announced earlier in March and is a key element in Petrobras’ divestment plans. The refinery will be sold for an approximate value of US$1.65bn.

EIC Newsbriefs membership@the-eic.com Keeping you up to date with energy news from around the world

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@TheEICEnergy

EIC (Energy Industries Council)

UKESC

Amplifying your voice, shaping policy, taking action Introducing the UK Energy Supply Chain Taskforce, Government and Industry working together to maximise opportunities and mitigate challenges

Amplified voice Industry and government coming together to form the UKESC Taskforce with the dedicated focus on amplifying the voice of the UK energy supply chain.

Shaping policy Forming more direct links between businesses of all types, sizes and strategies across the supply chain with policy makers to inform policy formulation.

Enabling energy transition Putting British supply chain businesses at the heart of energy transition in the UK, in line with the government’s 2050 net zero targets.

Increasing exports and internationalisation Putting the UK’s world class competitive products and services on the international map, delivering step change growth in exports and internationalisation.

All UK regions Working in support of government initiatives such as Building Back Better and Levelling Up to strengthen the supply chain across the whole of the UK.

All energy sectors Key representatives from all major energy sectors working together, recognising that there is a role for all sectors in the transition, behaving in an energy agnostic way.

Seeding, rooting, and growing UK content and capability Nurturing critical UK capabilities, technologies and manufacturing capacity crucial to successful energy transition, competitiveness, scale-up, and maximising UK content.

Sharing and collaborating, not duplicating Sharing best practices and collaborating on tangible actions, being careful not to duplicate but to complement existing regional and sector initiatives.

Surveys and sub-groups, reaching deep into the supply chain Administering surveys and working sub-groups to ensure that the needs, challenges, and opportunities of the entire supply chain are collected, understood and incorporated.

Delivering outcomes Working hard to implement real actions with timely and measurable outcomes, always with focus exclusively on benefitting the UK energy supply chain. To find out more about the UKESC Taskforce and to learn how you can get involved, contact us at stuart.broadley@the-eic.com or visit the EIC website at www.the-eic.com/about/UKESC.

Secretariat:

Co-chairs: Graham Stuart MP Minister for Exports Anne-Marie Trevelyan MP Energy Minister

Taskforce Members:

Survive & EIC Insight Report 2021 VOLUME V

THANKS TO OUR EIC MEMBER COMPANIES AAL Shipping ACL Group Advanced Insulation Aker Solutions Alderley Ankura AqualisBraemer Aubin AVA Balmoral BMT Bollore Bureau Veritas Marine and Offshore Cargostore Worldwide Crondall Energy Deep Down Deugro DNV Enermech Equilibrium Essem

EthosEnergy Fulkrum Technical Services GAC Hendrik Veder Group UK HFI HKA Hunt Thermal Indra Jo Bird Johnson Controls KBR McMenon NRL On-Line Electronics Petrofac PetrolValves Group Proserv Quanta Re-Gen Robotics Rotork Samuel Knight

Serba Dynamik Speedcast STATS Group Texo TP Group TRS Staffing Solutions TÜV SÜD National Engineering Laboratory UCT Fluid Solutions Valor Venture Services VWS Westgarth V-TES Vysus Group W Maass Walter Tosto Wasco Waves Whitebeard Engineering Wood

www.the-eic.com

COVID-19

Learnt how to make the most of virtual events, meetings and networks, making it far easier to reach more people, on a truly global basis, more quickly, and with high meeting acceptance rates.

RADICAL, INNOVATIVE BUSINESS CHANGES COVID became the catalyst to make some big, urgent, rapid, fundamental changes, changes that were otherwise seen as too hard to consider. Innovative new products, processes, organisational structures, cultures and streamlining were implemented at pace.

THE DIFFICULTIES IN WORKING FROM HOME The sudden shift to remote working led to delays, particularly around onsite operations, and poor mental health among the workforce. Staff and clients missed the human interaction and finding new ways of networking remotely proved difficult.

NEGATIVE FINANCIAL IMPACTS Q2020 saw gross revenues fall drastically, and major cash injections were needed to stay afloat. In some cases, contracts were cancelled and government support schemes such as furlough were necessary to survive.

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48%

FINDING NEW WAYS TO NETWORK

17% 35%

a catalyst for change

COVID-19

How did COVID-19 help and hinder EIC members, and what new ways of working brought about by the pandemic will be a catalyst for permanent change in the ways that we work? 48% of companies were primarily hindered, but surprisingly also 35% were helped, and 17% were neutral.

SEAMLESS TEAMWORKING AND REDUCED COSTS Adapted quickly to working-from-home, or -anywhere, enabling time- and cost-efficiencies, utilising free, innovative digital tools, offsetting revenue shortfalls with far lower travel and office costs, connecting global teams seamlessly, benefits that all plan to keep.

WE HAD TO ADAPT BUT IT WORKED OUT The initial response to the outbreak led to rapidly adapting to new ways of working, including moving to home office set-up where possible, establishing stringent health and safety measures onsite, constant communication with all members of staff.

LOGISTICAL CHALLENGES COVID-19 had a negative impact on logistical costs, schedules and predictability. Continuing business operations while creating a safe working environment for staff and adhering to multiple countries’ varying restrictions proved to be a real challenge.

DEFERRED PROJECTS Key projects, cargo shipments and site operations were put on pause, delayed or cancelled. The impact ranged from having to find alternative solutions, changing our ways of working, and in the worst cases the loss of revenues and staff.

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Survive and Thrive V Success stories

AAL shipping Weathering the storm to emerge in new markets How is AAL thriving? Singapore-based marine transportation firm AAL has ridden out the storm caused by the 2014-2016 oil price crash, drawing on its multi-purpose heavy lift cargo expertise to outlast much of its competition and consolidate in key markets such as the Americas, Europe, Asia and Oceania. Here, the company continues to thrive and has taken on a number of new projects, work which so far has produced extremely promising client feedback.

The challenge AAL Shipping also commonly known as AAL, has mastered the niche multipuppose shipping sector since it began operating in 1995. The company provides marine transportation solutions, including the handling and transporting of project heavylift, breakbulk, dry bulk and steel cargos for clients across many industries, including energy, oil and gas, mining, forestry, leisure, agriculture, and construction. It is a multipurpose, heavy-lift ocean carrier with vessels designed to carry a broad range of cargo – a specialism which, due to the complexity of infrastructure required, is not offered by a large number of competitors. Projects such as transporting enormous wind turbine blades involve huge amounts of planning, in many cases for up to two years, before the transportation takes place in order to lay the logistical groundwork. It is a process AAL has carved a niche in, spurred on by the 2008 shipping boom which saw the number of carriers in oceans double within five years. But the industry learned the hard way that there can be too much of a good

thing. By the time the 2014 oil crisis arrived, there was an enormous supply of vessel capacity which simply was not in demand. For AAL, which had previously relied heavily on contracts serving oil and gas clients, the need to diversify into new segments and markets became paramount.

The solution The company had to endure some lossmaking years, applying to shareholders for capital injection to navigate the worst of what was an extremely bumpy period after the oil price dip. However, its initial investments made from the outset in the 1990s have stood AAL in better stead than many competing firms. The company’s vessels are specialist multi-purpose ships and able to transport a wide range of cargo, from the simple to the complex. Meanwhile, early investment was made in sourcing and developing industry leading engineers, as well as establishing a network of local office

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infrastructure to bring the company closer to customers in various markets. Technological capabilities and vessel numbers were steadily increased to deal with a wider variety of increasingly large and heavy cargos, with a significant focus on oil and gas in the early days. This expertise, wealth of assets and infrastructure has proven invaluable despite the recent oil and gas industry slump. Clients have continued to be served by a reliable and determined partner through troubled times, even during the COVID-19 pandemic which has caused enormous disruptions to portside operations and mandated home working in many cases. Thanks to its previous investments in cloudbased technological systems and other tools, AAL has been able to maintain smooth delivery of services. AAL’s investments in technology, infrastructure and skills have also been applied to serve new sectors and gain traction in new markets. Australia is perhaps the most striking

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example. Here, AAL now holds a 70% market share thanks to its ability to exceed expectations regarding the speed and quality of its services, its customer surveys and questionnaires strongly reflecting this. The company is over-performing in the market because of its enduring monthly liner services between Australia and Asia – a lifeline for big and small shippers trading between the two regiond - and sustained efforts to digitise and optimise the performance of its vessels and voyages. This has helped to mitigate costs, provide economies of scale for its customers and maintain AAL profit margins.

Windfarm in the Barrier Ranges of New South Wales. AAL also successfully completed an intense 9-month project shipment for LPL Projects + Logistics GmbH, to transport 194,561 freight tons of HRSG modules and related accessories (architectural steel and other components) from Ulsan and Penglai to the Egyptian ports of Sokhna and Adabiyah – cargo destined for the country’s largest-ever power generation project, the Siemens’ Megaproject.

been discouraged to continue, AAL has stood the course.

About AAL

Having weathered several storms in recent years, AAL has emerged strongly, owing to its initial start-up investments and determination to continue providing complex multi-purpose cargo services to its clients. Where others have fallen or

AAL Shipping (AAL) is a multiple awardwinning breakbulk, project heavy lift, steel and dry bulk commodity carrier which has for over 25 years delivered competitive solutions for the world’s most dynamic industry sectors including oil & gas, mining, energy, construction and agriculture. AAL provides the market with seamless around the world connectivity, comprising scheduled monthly liner services operating between Europe, Middle East, India, Asia and Oceania backed by an ever-increasing number of tramp chartering sailings covering the Americas and the rest of the world. With 12 representative offices on four continents, AAL’s team comprises more than 25 different nationalities and 35 spoken languages, ensuring a local 24/7 service in key trading hubs and in support of major trade lanes globally.

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Key findings

AAL at a glance:

#serviceandsolutions (main category)

For industry

#culture, #innovation, #optimisation, #resilience

• Always be relevant and open-minded • Promote a culture that promotes partnership and mutual understanding • Work for the future

Key products and services: Service providers for ocean transportation for cargos destined for oil & gas, mining, energy, infrastructure, raw materials

In 2019, the firm carried the largest volume of wind turbine blades to Australia in a single voyage, a feat only achievable thanks to the AAL engineering team’s ability to plan ahead for such an undertaking. AAL successfully completed three sailings into Adelaide with 45 windmill blades (each of around 65 metres in length), turbine generators and other related components on each sailingcargo destined for the AGL Silverton

Benefits • 70% market share in Australia

The cargo comprised 384 HRSG modules and 45,000 freight tons of accessories, transported on 17 sailings between South Korea, China and Egypt. The modules were employed at the Beni Suef and New Capital Power Plants, two thirds of the biggest gas-fired combinedcycle power station in the world and one that will generate 14.4 GW – a boost of 45 percent to Egypt’s power capacity.

For government • A planet first mentality is needed to tackle climate change

Government support? The company has not received any type of government support.

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Main industries served: • Wind - 25% • Hydro – 5% • Petrochemicals – 5% • Industrial – 60% • Containers – 5% Headquarters: Singapore Year established: 1995 Number of employees: 100 Revenue: US$190m Revenue from exports: 100%

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ACL

How is ACL thriving? Audrey Caulliez-Louis, with 15 years of investment banking experience behind her, established ACL Impact in 2019 to work with Corporates/Governments or Financial institutions on the energy transition and projects delivering tangible ESG benefits. Having taken a huge personal risk by setting up her own consultancy, the newly-formed company is now starting to live up to its name.

and starting up a business can prove very rewarding and inspiring. For Audrey Caulliez-Louis, it was a leap of faith taken in 2019. Having spent 15 years in the world of investment banking, she wanted to see a more direct impact of her work. The energy sector has always been a path of interest, especially in new markets, and she was also determined to help steer investment towards smaller companies and projects that could make a real difference.

The challenge

The solution

Starting a business is no small undertaking, and can be a daunting prospect if you’re influenced by statistics. In the UK, 20% of all new businesses fail within a year, and fewer than half make it beyond five years according to official government figures.

ACL Impact was thus born. While ACL was able to establish the firm relatively inexpensively and lean on a significant pool of contacts from her banking days, ACL’s success was, and to a degree still is, by no means a foregone conclusion.

It is a gamble, especially for those leaving a secure job that has taken many years of hard work to climb to. However, with risk also comes reward,

ACL, operating as a one-woman band, provides consultancy services in fundraising (early-stage capital, Project Finance, Export Finance) for activities that have a strong environmental,

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social and governance (ESG) impact, with a particular focus on social infrastructure and energy transition. After seeing first-hand how largescale investment machines tend to lean towards larger corporates, she was also determined to work closely with smaller players who worked on projects that piqued her imagination. ACL hit the ground running in 2019, with two early contracts covering investments into climate change awareness campaigns and a waste to energy scheme in the Philippines that converted plastic bags and other waste into biofuels. They worked with UK Export Finance (UKEF) to assist its pipeline of renewable assets with some bigger players in the market, as it continued to expand its renewable energy and carbon management expertise – which is now in place. Among them was an offshore wind farm – ACL assisted on the structuring

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side, helping UKEF to support its local players in the supply chain of the Energy transition. ACL also assisted on the Business development efforts, to build the Clean Energy pipeline where possible, as the Export Credit Agency wanted to support an increasing amount of Energy transition projects. By the time the COVID-19 pandemic struck, ACL was off the ground and able to operate fully remotely, helping to mitigate some of the challenges that may otherwise have presented themselves. However, the coronavirus and its knock-on effects have had devastating consequences for businesses which have been forced to reduce or cease their activities amid lockdown policies.

in the knowledge that her work is making a tangible difference. The contract with UKEF has been a welcome stabiliser for the business, and ACL was also invited to join the initiative to launch CCC Training, a training boutique, in partnership with three other collaborators, covering Project Finance topics in the Energy and Infrastructure sectors, as well as legal & ESG aspects of Project Finance (www.ccctraining.org) .

And with work also likely to pick up as the world recovers from pandemic shutdowns, the investment banker turned entrepreneur is looking to the future through an increasingly optimistic lens.

About ACL

However, ACL has steadfastly continued to support start-ups and SMEs in their endeavours despite these challenges, pursuing her passion

All of this has so far been achieved by word of mouth. A key future priority for ACL (and CCC Training) is to formalise marketing activities through partnerships with key publications.

ACL Impact is a consultancy boutique specialised in international business origination and fund-raising (earlystage equity/project finance/export finance/development finance) for corporates or projects with a positive environmental, social and governance (ESG) impact. The company is currently working alongside UK Export Finance (UKEF) on its international project finance pipeline, including in the energy transition sector in emerging countries. ACL has also assisted a start-up in the digital health sector for their fund-raising exercise and early business development efforts in Asia and is helping a start-up in the financial inclusion sector on the African continent.

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Key findings

ACL at a glance:

#sustainability (main category)

For industry

#collaboration, #energytransition, #scaleup

• Networking is a huge ‘plus’ – make sure you leverage your networking platform and meet as many people as you can

Key products and services: consultancy services in ESG-focused fund-raising activities

The aforementioned project in the Philippines, unfortunately, succumbed to the pandemic with the SME behind it also closing its doors. Meanwhile, other projects have stalled which has added complications to ACL’s funding work.

Benefits • Contract with UKEF • Successful collaboration to deliver project finance training

CCC Training welcomed 10 clients onto the inaugural course and has received interest from numerous energy industry stakeholders (banks, technical advisers, project sponsors, insurance companies, Development Finance Institutions, SMEs, etc) since then. Likewise, CCC Training is attracting a lot of interest from the oil and gas industries players willing to use Project Finance to help the financing of the Energy transition to Renewables and other technologies.

For government • Ambitious carbon reduction targets should come with solutions and momentum

Government support? The company has not received any type of government support

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Main industries served: • Renewables (Structuring and Business development) – 80% • Waste to Energy – 10% • Others: Health 5% / Financial Inclusion in Emerging markets 5% Headquarters: London, UK Year established: 2019 Number of employees: 1 Revenue: Not disclosed. Revenue from exports: 20%

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Advanced Insulation A trilogy of diversified triumphs

How is Advanced Insulation thriving? In the face of a volatile oil and gas market and pressures from the coronavirus pandemic, Advanced Insulation is stepping up to the challenge and successfully diversifying in three key markets: subsea buoyancy, offshore wind cable management, and electric vehicle fire protection.

The challenge At the beginning of 2020, Advanced Insultation was facing a series of challenges. Cyclical changes in the oil and gas market contributed to continual uncertainty as early parts of the year saw the price of oil drop to its lowest since 1998. These commercial pressures were further compounded by the pandemic. As countries went into lockdown, air travel ground to a halt, car usage plummeted, and many businesses typically using large amounts of

energy either partially or fully shut down. In total, global energy demand fell by an estimated 20%. Advanced Insulation’s progress was unavoidably caught in these challenges. Short term growth was impacted by delayed projects, additional considerations and a £750,000 investment were needed to navigate the new COVID-19 environment, and similarly pressured suppliers saw cogs in a usually seamless system begin to deteriorate. A rethink was therefore needed – for this company, 2020 became a year of steadying the ship, adapting, and readying itself for a new, diversified wave of growth.

The solution Testament to Advanced Insulation’s proactive culture, the company had thankfully already been re-strategising since 2017. Through extensive internal

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planning, two key plans of action had been identified. First, the company was to focus on innovation with the aim of developing and selling new technologies to the existing oil and gas market. And second, it began to focus on two new markets – offshore wind and automotive fire protection – as they looked to diversify their portfolio using existing knowledge. For the former of these focus areas (technology development), buoyancy products have been the source of much of Advanced Insulation’s success. Having already been a growing part of the business back in 2017-18, they are now a firm staple of its overall offering. Differentiating in the market and providing competitively priced solutions through its patented clamping technology, the firm is investing £8 million in a new, state-of-the-art

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65,000-square-foot factory to enable delivery of key projects. The result? In 2020, buoyancy products led to £10-15 million in new orders, and are now expected to contribute 20% of overall revenue this year – up from less than 1% just two years earlier. Similarly fruitful success can be found in Advanced Insulation’s offshore wind endeavours. Here, the company has been focusing on delivering products that provide effective retrofit solutions for installations. Its ambitions in this domain were drastically bolstered by the acquisition of Bardot Group last year – a company which specialises in buoyancy bend stiffeners, grout seals, water injection risers and other polyurethane-based solutions. Now capable of delivering these products to the highest standard, Advanced Insulation is anticipating that 4% of 2021 revenue will be derived from renewables – up from 0% last year.

And headway is being made in the second of Advanced Insulation’s external diversification projects – automotive fire protection solutions. Early 2020 saw the company win a four-year, £2.5 million contract to enhance the fire protection of automotive battery covers. They have also been a partial beneficiary of a £20 million government grant, securing £1 million in funding for the development of electrical vehicle battery pack protection solutions. Unlike its typical lines of business, this will entail dealing with large product volumes with smaller values per unit, however, quality standards are still under significant scrutiny given the nature of the automotive industry. There are clear indications that the company is well on the way to successfully diversifying and bypassing the pressures seen at the turn of the decade. With a new £8 million facility, expanded in-house expertise, a significantly diversified product portfolio, and more

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For government

#diversification (main category)

• An anti-O&G policy will slow down decarbonisation. A healthy and secure baseload of O&G-related business is vital for the supply chain to be capable of investing in energy transition. • Energy transition requires a fully thought-out, detailed and integrated plan – not grandiose pledges.

#energytransition

Benefits • Contract awards exceeding £20m • Diversified product portfolio • Improved pipeline of tenders in the buoyancy segment

Key findings For industry • Perseverance is essential to unlock business opportunities • Invest in getting the best possible team • Challenge the status quo

Government support? In addition to R&D tax credits, the company benefits from the Apprenticeship Levy. Advanced Insulation has used bank guarantees provided by the UK Export Finance as well as grants by Innovate UK.

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than £20 million in first contract wins, the future looks both exciting and bright.

About Advanced Insulation Advanced Insulation is an established global leader in the engineering, manufacture and application of insulation and passive fire protection systems, buoyancy, and SURF products (subsea, umbilicals, risers and flowlines) to the offshore and onshore oil and gas industry. The company has achieved exceptional growth both in the UK and overseas through growing demand, increasing turnover from £3m in 2008 to £35.6m in 2020. The company has a strong international footprint, with manufacturing facilities in five sites in the UK and further facilities located in, Brazil, Kazakhstan, United Arab Emirates and the United States.

Advanced Insulation at a glance: Key products and services: Subsea insulation, buoyancy products, cable protection, fire protection and insulation for energy market Main industries served: • Oil & Gas – 80% • Marine – 8% • Renewables – 6% • Electric vehicles (EV) – 3% • Power – 3% Headquarters: Gloucester, UK Year established: 2008 Number of employees: 348 Revenue: £40m Revenue from exports: 81%

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EIC (Energy Industries Council)

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Aker Solutions A cleaner, greener mission

How is Aker Solutions thriving? Motivated by the opportunity to champion a greener, more sustainable future, Aker Solutions has taken difficult albeit rewarding steps away from oil- and gas-related activities towards delivering market-leading services and solutions to the renewable energy market, its transition underpinned by a new £1 billion offshore wind contract.

The challenge Founded 180 years ago, Aker Solutions is one company that has made significant contributions to these economic advancements. With origins tracing back to a small mechanical workshop found on the Aker River in Oslo in 1841, the company’s near two-century-long activities have varied over the years from shipbuilding and manufacturing to the provision of oil and gas industry solutions.

It is the latter of these which has formed the basis of business for Aker through the 21st century, where it has helped to address environmental pressures in oil and gas with low carbon solutions. Yet, as circumstances change, Aker has recognised the need to adapt.

base and become leaner in order to successfully capitalise on the relatively limited renewable opportunities and survive through a period of significant adjustment.

The winds driving its sails have shifted and Aker is now driven to deliver expertise for not only the oil and gas sector, but rising renewable energy verticals.

Progress has already been made, however. Renewables are not entirely alien to Aker, the company having begun looking at carbon capture technologies as early as the 1990s. Over the last decade , it has also been transforming technical capacity in the area of offshore wind.

A period of transition has been required in order to achieve this transition, and with that has come challenges. Not only does a shift towards renewables entail an alteration in product and service provision, but equally the company’s culture and identity. For Aker, this is a long-term, gradual, holistic move that offers little in the way of quick wins. In pursuing its new vision, it has had to shrink its core

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The solution

Aker’s legacy includes significant work in offshore oil and gas projects that share similarities with the emerging offshore wind industry, and 2018 saw the firm invest in Principle Power – a move that provided a leap forward in the way of technical expertise and ensured the successful establishment of Aker Offshore Wind.

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In February 2021, Vattenfall announced that Aker Solutions together with Siemens would be their preferred bidder if Vattenfall starts a development project for the Norfolk Offshore Wind Power Zone. In the potential project, Aker Solutions’ scope can include deliveries of HVDC converter platforms and other parts of the infrastructure Through this project the firm will leverage its oil and gas engineering experience and existing equipment to develop optimised HDVC transformer platforms that will significantly reduce topside weight on the offshore wind farm. In doing so it will minimise the need for scheduled and unscheduled maintenance and ensure the infrastructure will be able operate almost entirely remotely. This contract is significant. Valued at approximately £1 billion, it provides demonstrable evidence of the company’s success in energy transition, no better signified than by a shift in its revenue sources.

future. Aker’s chairman Kjell Inge Røkke has invested heavily in ocean clean up ventures and been working alongside the World Wildlife Fund, for example. Like many companies, the COVID-19 pandemic has affected Aker and placed some hurdles in the face of its ambitions. Yet it has also brought to life some structural benefits that will benefit the firm long term. Remote working, for example, has been recognised as a sustainable model that brings many benefits to the table. Not only has it facilitated a lower fixed cost base with smaller core teams on site, but it has additionally allowed the company to leverage expertise from all over the world and better pull in key resources for projects at short notice.

Against a backdrop of an accelerating global energy transition towards sustainable power, supported locally by Norway’s strong pro-green KPIs, Aker’s proactive approach will stand it in good stead to achieve both a more diversified and sustainable business model in the long term.

About Aker Solutions With over 180 years of experience, Aker Solutions helps the world meet its energy needs. The company engineers products, systems, software, and services required to unlock energy. The company’s experience spans shallow to ultra-deep waters and tropical to arctic conditions. From subsea to surface and concept to decommissioning, Aker Solutions’ technical expertise and strong partnerships provide energy companies what they need to succeed.

And its progress on a financial and technical front are not the only ways in which the company is making great strides towards a cleaner, greener

Indeed, while recent times could be characterised by upheaval and complications for Aker, internal and external changes have also led to progress and positive change. Looking ahead, the company is targeting 33% of revenues from non-oil activities by 2025 and hopes that two thirds of its business will be motivated by renewables by 2030.

Story type

Key findings

Government support?

#diversification (main category)

For industry

#energy transition, #transformation

• A business needs a vision • Work with partners as needed, even if the partnership does not look ideal

In the UK, Aker Solutions has benefited from the Apprenticeship Levy, R&D tax credits as well as export financing. Aker Solutions actively supports Norwep trade delegations.

Benefits • £1 billion contract award • Successful diversification from oil and gas to offshore wind

For government • R&D tax credits are also needed for larger businesses, not just SMEs • The industry needs funding to carry out energy transition projects • A meaningful engagement with the energy supply chain is necessary

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Aker Solutions has 12,000 employees in about 20 countries around the world – all embracing innovation and collaboration in a drive to create a sustainable future.

Aker Solutions at a glance: Headquarters: Oslo, Norway Year established: 1841 Number of employees: 15,000 (1,500 in the UK) Revenue: 29,396 MNOK (2020)

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Alderley Moving closer to customers through digital diversification

How is Alderley thriving? Alderley has embarked on a dramatic diversification of its business over the past year, seizing the opportunity to offer greater value to both new and existing customers. Its development of a digital fiscal metering solution in response to the challenges presented to oil and gas operators by the COVID-19 pandemic has proven to be a winner.

The challenge Thirty years is a long time in business. Having emerged on the oil and gas services scene in 1989, Alderley PLC has truly mastered its craft, serving large capital projects very successfully as an independent systems integrator.

But recent years in particular have seen a somewhat bumpy demand in the large project EPC sphere, and the COVID-19 pandemic only served to crystilise what Alderley and CEO Colin Elcoate already knew. In order to survive and thrive, diversificationn and a new focus was required. How could Alderley widen its knowledge base and offer something different to a new segment of customers and its existing client base?

way to shift away from what had previously been a business heavily reliant on capital-intensive equipment towards a healthier balance of product and services. Indeed, the past 12 months have seen a renewed strategy adopted, focussing key priorities such as end user solutions, environmental upgrades and enhancing clients’ operational efficiencies across a range of areas including water treatment and cybersecurity.

The solution

What the pandemic highlighted was an opportunity to digitise crucial processes, not least in the area of asset monitoring. Here, Alderley already offered condition-based monitoring, but clients were in need of solutions that could enable monitoring away from their sites in light of new remote working protocols.

While COVID-19 has devasted many industries, including activity in the oil and gas sector, it has likewise presented opportunities to diversify and open up new revenue streams. For Alderley, it helped paved the

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It soon became clear to Elcoate and his leadership team that the company housed more capabilities than they realised, and that a smart metering solution was the answer to clients’ painpoints. Already an independent system integrator used to configuring products with multi-OEM input (alongside its own), Alderley transformed itself into an independent digital integrator. Harnessing its collaborative experience and spirit, in summer 2020 it set about creating a digital, cloud-based asset management system. Able to connect all existing fiscal metering systems within a network of assets (upgrading older solutions with its digital twin), clients are now able to benefit from a single view of all global metering assets, providing the critical insight required to make important decisions.

business operates – digital and servicedriven companies, in order to survive, require agility. The shift is starting to pay off. Alderley achieved incremental service-based wins of +£5 million in 2020 and expects to generate an additional £10 million of service-led business by the end of 2021. Meanwhile, the digital arm is forecast to pull in £500,000 this year, with more on the horizon. Indeed, the company is now operating at a much more even split in terms of capital equipment and services/digital revenue. In 2019, services accounted for just 20% of income, a figure which will rise to 35% in 2021 with digital contributing another 5%.

About Alderley From humble beginnings as a single workshop in Wickwar, Alderley has grown to become a leading provider of integrated solutions for the global energy industry. The company was initially established to deliver innovative metering systems for the challenging North Sea environment, but now Alderley applies its vast experience and unrivalled technical capabilities across their entire range of solutions.

In tough market conditions, this investment required a leap of faith by the family firm, as well as a fundamental change in how the

And such diversification will also help to boost profit margins, with digital typically achieving margins of more than 50%, compared to 30-50% in services and up to 20% in the traditional capital equipment business. As Alderley continues to shift the digital dial, its long-term future looks ever more secure.

Story type

Key findings

Alderley at a glance

#digital (main category)

For industry

#innovation, #serviceandsolutions, #transformation

• Be ready to embrace change

Key products and services: advanced digital, mechanical, electrical, process, hydraulic and aftermarket solutions for the global energy industry

Benefits • Continued diversification to service and remote monitoring segments • Pipeline of services tenders increased from £5m to £55m in 18 months

For government • A more sensible discussion around energy transition is needed, without compromising the valuable oil and gas supply chain

Government support? Alderley has benefited from R&D tax credits, DIT trade missions as well as the Apprenticeship Levy. In addition, the company has been supported by UK Export Finance (UKEF).

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Repeatedly partnering with some of the biggest names in the industry, Alderley’s services – including advanced digital, mechanical, hydraulic, electrical, process and aftermarket solutions – have benefited offshore, floating and onshore operators around the world.

Main industries served: • Oil and gas – 100% Headquarters: Wickmar, UK Year established: 1989 Number of employees: 330 Revenue: £70m Revenue from exports: 80%

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Ankura Collective knowledge is power

How is Ankura thriving? Ankura has stuck true to its values. A company built around collaboration and knowledge sharing among internal teams and external clients, it has grown steadily having started small in 2014, and continues to operate at full capacity despite the operational challenges caused by the COVID-19 pandemic.

The challenge We’ve all come across the age-old saying knowledge is power. Often attributed to British painter Francis Bacon in 1597, the term has stuck through the centuries and been rephrased in a wide variety of contexts – from the political theory of Thomas Hobbes to the contemporary world of business. At global business advisory and expert services firm Ankura, this ethos has underpinned its existence ever since it was founded in 2014. The company helps organisations operating in a range of industries, including energy, to navigate a range of risk management challenges.

It does so successfully because of the formidable knowledge contained within the firm, expertise which provides clients unparalleled insight and experience across a wide range of economic, governance, and regulatory challenges. The key challenge facing the company in its short history has been one of how to drive growth most effectively. How could it make the most of its knowledge base and become greater than the sum of its individual parts?

The solution Ankura and its CEO Kevin Lavin have always been actively on the lookout for ways to grow, both organically and inorganically. As time has passed, it became clearer and clearer to the company’s leadership that internal collaboration between its various expert practice teams not only helps bring better value to clients, but also presents the business with new opportunities to

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grow and enhance the quality of what it does – a dual benefit which could not be ignored. The strategy has involved numerous components. It is constantly seeking to develop the skills of its people, which in turn enhances the nature of support it gives and how that support is delivered to customers. Regarding the latter, Ankura has also expanded geographically in order to be closer to clients, with offices spread around the world. In the U.S., where it is headquartered in New York, the company has a presence in most of the major cities, including Chicago, Dallas, Baltimore, San Francisco, Seattle, New York and many others. Key international locations include the UK, Abu Dhabi, Dubai, Ann Arbor, Singapore, Sydney, Canada, Germany and Hong Kong. Over time, Ankura has extended and deepened its expertise and experience, meaning it can offer a wide range of services ccovering numerous pressure

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points for clients, such as: capital projects and forensic investigations; litigation, arbitration and disputes; investigations and accounting; strategy and performance; data and technology; economics and statistics; and risk management and compliance. And within these various areas of expertise and industry verticals, the company has mastered the art of cross-collaboration. In an energy sector context, this is best demonstrated by a series of recent challenges it has helped clients to overcome. For example, in 2020 it concluded a complex construction dispute involving an offshore oil production vessel conversion project for an offshore fleet owner. Ankura’s Construction Disputes and Advisory business group provided quantum expert support, evidence, analytics and testimony, but at one stage the client’s opposing party in the dispute pursued security for costs in the arbitration. Here, the firm’s Forensic Accounting team were able to review the accounts of the client (which had recently financially re-structured) and provide expert evidence and testimony

as to its ability to pay the costs in the arbitration if necessary. After settling the case successfully, the client was looking to hire assets and potentially set up in a new territory. Ankura was able to offer a further set expertise in the form of the Geopolitical Intelligence team which specialises in political, economic, social, security, technological and environmental risks, opportunities, potential risk mitigation strategies and analysis at country or regional level. This is a perfect example of how crosscollaboration between teams has led to Ankura growing its scope on a project and delivering a superior result to a client. And, despite the challenges presented by COVID-19, collaboration continues to underpin everything the firm does. It was quick to adopt a homeworking model backed up by internal support systems. Virtual group chats, recruitment and onboarding, and key employee wellbeing mechanisms are all operating strongly, while externally Ankura has been communicating

Story type

Key findings

#collaboration (main category) #serviceandsolutions

For industry

Benefits • Tailored solutions by assembling the right combination of experts • Unique blend of subject matter expertise, cross disciplinary and cross industry expertise • You gain a partner not just one area of expertise

• Be guided by your client’s needs, collaborate with them

Ankura at a glance: Key products and services: global business advisory and expert services firm • • • • • • •

Cyber Security Economist & Statistics Intellectual Prosperity Investigations & Accounting Advisory Litigation, Arbitration & Disputes Risk Management & Compliance

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closely with clients and conducting business through virtual methods. The disruption has revealed the company’s collaborative spirit, helping it to thrive through the pandemic period and explore new opportunities to accelerate the growth journey it has been on since the very beginning.

About Ankura Founded in 2014, Ankura is a global business advisory and expert services firm. The company helps clients navigate a wide range of corporate performance and risk management challenges, including those pertaining to compliance, investigations, forensics, technology, turnaround and restructuring, and corporate strategy. Ankura’s unique blend of subject-matter expertise, wealth of cross-disciplinary and cross-industry experience, and proven track record enables the company to deliver tailored, effective solutions and unparalleled service in a broad range of matters.

• • • •

Advisory Strategy & Performance Transaction Advisory Service Turnaround and Restructuring

Main industries served: • Energy • Construction • Financial Services • Real Estate Advisory • Healthcare • Public Sector Headquarters: New York, USA Year established: 2014 Number of employees: 1,500+ Revenue: Publicly unavailable Revenue from exports: Not applicable

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AqualisBraemar LOC Becoming an owner’s engineer to thrive in a new market

How is AqualisBraemar LOC thriving? As part of its ambition to become the energy and marine consultant of choice for both client and employee, AqualisBraemar LOC is helping to drive energy transition around the world towards its new-found strength in offshore renewables, in particular floating offshore wind. Marketing itself as an a reliable owner’s engineer, the company has made remarkable headway in the past few years, a trend which has only been accelerated by the recent acquisition of LOC.

The challenge The global clean energy transition is a mightily complex picture. Full of complex indicators and ever-moving variables in supply and demand trends, the underlying objective is to create a global energy mix that greatly reduces the toil it inflicts on the planet.

Indeed, the energy sector accounts for 90% of the world’s carbon dioxide emissions, something which drives AqualisBraemar LOC (ABL) to make its own business more sustainable.

it is aiming to have renewables and sustainable business account for 50% of turnover by 2025, a major part of this being derived from offshore renewables.

The company offers independent adjusting, marine and offshore consultancy to the global renewables, maritime, oil and gas and power sectors. Spread across a network of offices in 39 countries worldwide, the group operates under seven brands: AqualisBraemar, LOC, OWC, Innosea, Longitude, JLA and ABL Yacht Services. It has a rich history dating back to the middle of the 19th century, and for much of its existence has relied on the oil and gas sector for the lion’s share of its business.

In 2017, it carried out due diligence work for ACS Cobra on its Kincardine Floating Offshore Windfarm, located around 15 kilometres off the Aberdeen coast. This project provided a catalyst to go further, and with the potential of floating offshore wind recognised, ABL needed to grow its expertise and capabilities to fully capitalise on the opportunity in front of it.

But recent years have seen a change in the status quo. Not only does the firm intend on leveraging its traditional leading positions to improve profitability in the marine and oil and gas sectors,

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The solution Careful recruitment of personnel with experience in floating offshore wind has been critical to the company’s increasing activity in this segment. In combination with the already formidable bank of traditional offshore

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wind knowledge contained in the group and its divisions, ABL markets itself as a reliable owner’s engineer. For new players, technologies and investors entering the floating offshore wind market, acquiring the services of an owner’s engineer is a pre-requisite to succeed. While becoming an owner’s engineer is not necessarily a major corporate process, it involves integration with and understanding of a client’s team, and being bedded into their culture. ABL and its division’s ability to be flexible has enabled it to master the owner’s engineer brief, the past 18 months having seen the floating offshore wind business snowball for the firm. OWC has been able to leverage strength and expertise, as well as financial resources, from across the group, with more knowhow being brought on board in late 2020 through the acquisition of LOC.

Group’s Innosea and other renewable focused units, the combined group has doubled its size in the renewables space and commands a far broader offering covering EPCI, insurance, consultancy to developers and investors, and services for technology players. The end of 2020 also saw ABL land its most important floating offshore wind contract to date. Here, Erebis has selected ABL subsidiary OWC for its UK offshore wind development activities, a $6 million contract spanning three years which involves the management of consenting and engineering packages. The site is being developed by Simply Blue Energy and Total under a joint venture called Blue Gem Wind, and is the largest floating offshore wind project currently under development.

LOC Group, founded in 1979, is an international marine and engineering consulting firm that operates within the shipping, oil and gas and renewables sectors. By joining OWC and LOC

This landmark contract, along with the acquisition of LOC, has propelled ABL in to becoming a global leader in the offshore floating wind consultancy arena. Indeed, a quarter of the 37GW of projects worked on in 2020 is in the floating category, and the company is already jointly bidding

Story type

Key findings

#energy transition (main category)

For industry

Benefits

• Build the best team, the one most appropriate to your business • Have strategic clarity, and be flexible in its execution

• US$6m contract award

• Measurable, actual commitments are needed to meet the emission targets set at COP21

Government support?

The company has benefitted from a DIT trade mission as well as R&D tax credits.

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Renewable’s activity grew by 59% in the last 12 months alone, and ABL looks well on its way to meeting its lofty 2025 ambitions and driving real, impactful change in the global offshore renewables market.

About AqualisBraemar LOC AqualisBraemar LOC (ABL) is a leading global independent energy and marine consultant working in energy and oceans to de-risk and drive the energy transition across the renewables, maritime and oil and gas sectors, offering clients the deepest pool of world-class expertise across marine, engineering and adjusting disciplines from more than 300 locations worldwide.

AqualisBraemar LOC at a glance:

For government

on work that could not have been targeted before thanks to is unique joint scope.

Key products and services: independent energy and marine consultancy services Main industries served: • Oil and gas – 55% • Maritime/marine – 28% • Renewables – 17% Headquarters: London, UK Year established: 2012 (AqualisBraemar LOC formed in 2020) Number of employees: 950 Revenue: US$139m (ABL Group) Revenue from exports: 80%

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EIC (Energy Industries Council)

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Aubin A new low-carbon culture How is Aubin thriving? Aubin has been pursuing a series of diversification initiatives since early 2018 by repurposing its chemical technology, developed over 30 years in oil and gas, for the renewable and water markets. They have also diversified by developing new solutions to provide more cost effective and lower carbon options for decommissioning oil and gas wells. XcludeTM offers a cost effective well abandonment solution which is now being evaluated to stop leaks of methane from thousands of abandoned oil wells around the world.

The challenge The importance of sustainability to commercial and non-commerical life cannot be understated. In the last decade, awareness surrounding the impact of human activity on our planet has reached new heights as climate change and the overuse of finite resources are now firmly at the forefront of the world’s most influential minds. The message is simple – businesses, governments and society alike must work together to safeguard the health of planet earth for future generations. For Aubin, a globally recognised supplier of chemical solutions to the oil and gas industry, flying the flag of a more sustainable energy industry was a key motivation in its pursuit towards energy diversification.

The solution Aubin took the decision to diversify in an attempt to change these fortunes. No longer could the company differentiate itself by simply doing things differently – it needed to do different things too.

Having attended Fit4Energy (F4E) at Robert Gordon University (RGU) in Aberdeen, a programme designed to equip participants with the knowledge, insights and best practices for sustainable growth in the energy industry, Aubin set an ambitious target of generating 25% of revenue from nonoil and gas activities within two years.

bolster both the reliability and lifespan of offshore wind turbines. By testing compressive strength and working on ways to improve performance of the grout, it is working to reduce maintenance costs and downtime, and eliminate the need for preventative maintenance in restrictive weather windows.

Since setting that goal, the company has been exploring the potential application of existing products in new markets with rigorous research and development, driven by its dedicated chemicals lab and highly experienced technical team.

So, just what impact might this have? Assuming Aubin can reduce turbine downtime by just one day a year, it could deliver more than £5 million in savings during the lifetime of Seagreen’s 114-turbine offshore wind farm.

This has included efforts to create a series of wind turbine tower and monopile grouting solutions for the offshore wind sector, its buoyancy and ballast products already demonstrating translatable application in this field. The company has already been contracted by several companies to conduct tests on additives for cement grouting that have the potential to

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Indeed, it is Aubin’s commitment to consistent product innovation that has made these repurposing efforts not only possible, but effective. The firm is supporting a variety of industry partners, from developers and designers to installation contractors and grout-pumping service providers. For example, it completed two landmark projects in the first quarter

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of 2021, including a contract with FoundOcean which involved using ultrasonics in low strength grout testing. Using Aubin’s qualifications of its proposed grout mixes not only saved FoundOcean time, but also provided an additional level of authority to its tenders and technical responses. Aubin also offers alternatives to grout from plant-based materials that aid carbon capture and reduce reliance on cement, which is thought to contribute as much as 8% to carbon dioxide emissions. Its AXI-GardTM is proven to be effective and sustainable, reducing pumping times by around 75%. The company is currently working with an oil and gas client’s foundation designers on MP-TP connections to utilise non-grout reinforcement within metal structures by deploying AXI-GardTM, which Aubin estimates can lead to savings of at least £60 million in typical foundation structure deployments over the next five years. Delivering variable and controllable ballast to launch installation jackets from shallow water facilities or to

Story type #diversification (main category) #collaboration

Benefits • 10% growth in non-O&G revenues • Lifecycle OPEX savings estimated at £50,000 per wind turbine

Key findings For industry • Be open to accepting support and guidance • Be bold – everything is do-able • Avoid rabbit holes – always check your sources

assist in the mooring or buoyancy of structures is another area where Aubin is collaborating with partners in the offshore wind sector. Beyond the offshore wind and oil and gas sectors, the company has also made headway in delivering applications to the utilities industry Aubin is using its expertise to support the development of a novel method of sealing leaks in the water network. And there are other reasons for optimism too. Staff members are more engaged than ever before, keen to embrace the firm’s new low carbon strategy, and diversification has made it increasingly viable to attract investment having improved Aubin’s overall prospects with a more consolidated business model. Indeed, Aubin has already received funding from Scottish Enterprise, and has been accepted for theFit4OffshoreRenewable (F4OR) programme. With this support it is hoped that the firm will be better placed to further invest in more sustainable solutions that both

About Aubin Aubin Group is globally recognised as a leading developer and supplier of chemical solutions to the oil and gas industry. The company commits resources to developing effective and reliable products and delivering these promptly to clients around the world. Using chemistry in a number of ways, Aubin develops innovative and proprietary materials technology to solve industry problems. Aubin’s headquarters are located in Aberdeenshire, where global research and development work is carried out. The company also has an important presence in the Middle East, with a local support office in Dubai and manufacturing and stocking capabilities in Abu Dhabi and the Kingdom of Saudi Arabia.

Aubin at a glance:

For government • SMEs require investment to make the transition to a cleaner energy matrix

Government support? Aubin has joined trade missions organised by the Department of International Trade (DIT). The company has also received funding from the Oil & Gas Technology Centre (OGTC) as well as the Innovate UK’s Knowledge Transfer Network (KTN) for selected projects. Aubin has also benefited from R&D tax credits.

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improves its own diversification strategy and assists it in flying the flag of green energy globally.

Key products and services: design, development, manufacture and supply of chemical solutions Main industries served: • Oil and gas – 90% • Renewables – 5% • Water – 5% Headquarters: Aberdeen, UK Year established: 1986 Number of employees: 20 Revenue: US$11.5m (£8.2m) Revenue from exports: 75%

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AVA Energy Making the most out of a crisis

How is AVA Energy thriving? The COVID-19 pandemic has, in many ways, served as a blessing in disguise for recruitment specialist AVA Energy, with its response to the enormous challenges it faced leading to a root and branch overhaul of how the company is structured and led by Julian Morison. On track to achieve a record year, expansion overseas is now firmly in sight.

The challenge The world stood still for much of 2020 as societies responded to the COVID-19 pandemic. It is still with us today, and despite light being at the end of the tunnel in the form of vaccination programmes, the economic

fallout in particular is only just kicking in. At AVA Energy, an industry recruiting expert helping clients all over the world find the expertise they need to thrive, coronavirus gave CEO Julian Morison and his board the opportunity to review the whole business. Following two record trading years, 2020 was forecast to be the best year yet. The pipeline was strong, and a new office opening in the USA was earmarked – once COVID-19 struck, the momentum ground to a sudden halt. It could have been worse, however, as AVA had previously operated heavily in the oil and gas segment of the industry, as much as 100% in 2015. The company made the decision to diversify shortly after, a move which has helped to safeguard it against the volatile nature of the global

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oil market. But the pandemic still hit hard. Project delays and client hiring freezes, created cashflow backlogs, and enduring uncertainty through the middle of 2020 prompted Morison to reconsider the way AVA was run – how could the business emerge from the other side of this in the best possible shape?

The solution One thing COVID-19 did afford the CEO was time. While the numbers may have been stalling, the opportunity to revisit the business model has been proven invaluable – an opportunity which AVA has exploited to the full. For instance, the firm’s activities have been split into key focus areas.

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Contract (freelance) and permanent postings are now handled by dedicated teams, as opposed to its previous dual approach. The move has created greater focus and relevance to its offering. The teams have also been strengthened thanks to clever recruitment which involved offering experienced people the chance to advance their careers even further, taking advantage of the available talent pool created by competitors making cut backs. AVA, on the other hand, managed to minimise losses and engendered huge loyalty among existing staff by putting their welfare at the heart of the pandemic response. The firm adopted a remote working model, underpinned by its move away from its London lease into a more flexible office space. While it has been a challenge to keep morale high without the daily social interaction inherent in a face-to-face working environment, AVA placed a lot of effort into keeping all personnel motivated during this period; through an online PT, funded apps and books and a business coach, psychologist.

target setting to reflect new market conditions, a key part of the new strategy being to retain key people through incentive schemes such as revised targets for bonuses. It is part of a self-examination and journaling culture, with every thought encouraged to result in a call to action, something which works its way right to the top. Indeed, Morison, the board and selected groups of people within AVA, drove the cultural shift with the help of a business psychologist. His desire is to create a best-in-class operation over the long term, built around investment that is designed to underpin the business for the next 15-20 years, as opposed to quick cash injections and profit withdrawals via share sales. A clear vision and plan which is held by values, a scalable structure and people development, where AVA Appraise ensures the hiring and promotion agisnt these plans and values.

by 160%, doubling the size of the business for this year. Hitting these budgetary targets is step one of an ambitious plan for 2021, the other two goals being to open its US office and ensure all leadership positions are filled. This will lay the foundation for the longer-term ambition Morison is determined to achieve – to hit £500 million in revenues and create a major player on the global stage.

About AVA Energy

This has been aided by more realistic

All of this has driven a marked resurgence in the numbers. The contract business is due to grow 250% in 2021, with recruitment for renewables projects at the heart of this growth. Meanwhile, permanent placement activity is set to rise

AVA Energy is a London-based independent international energy recruitment expert. The company helps clients within both traditional and renewable energy markets by helping them fulfil both permanent appointments and contract assignments in the following areas: Nuclear, Power and Transmission & Distribution, Renewables - Solar, Wind & Hydro, Oil & Gas, Energy Trading and Energy Management.

Story type

Key findings

AVA Energy at a glance:

#transformation (main category)

For industry

#culture, #resilience, #scaleup

• Perseverance is essential – success will come eventually

Key products and services: human capital management business

Benefits • Successful diversification away from oil and gas (100% to 0% in six years) • Growth in contract business to grow by 300% in 2021, while permanent placement business expected to grow by 200%

For government • Greater clarity is needed around free movement of people following Brexit

Government support? Ava Energy has not received any kind of government support.

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Main industries served: • Renewables (wind, solar and energy storage) – 40% • Conventional power – 25% • Nuclear – 15% • Sustainability/ESG – 10% • Hydrogen –5% Headquarters: London, UK Year established: 2016 Number of employees: 32 Revenue: £15m Revenue from exports: 70%

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Balmoral Prosperity through proven, patented technology How is Balmoral thriving? Through extensive R&D and the application of world-class oil and gas expertise, buoyancy specialist Balmoral Comtec (trading as ‘Balmoral’) has developed state-of-the-art offshore power cable protection solutions for renewable energy markets. It has taken a significant step in consolidating its diversification strategy, doing so despite challenges posed by COVID-19, Brexit and market uncertainty.

The challenge The most successful businesses are those willing to embrace change, adapt and shift as change and challenge requires. Tailwinds and headwinds will constantly fluctuate in any industry – it comes with the territory. Yet, it must be said, 2020 posed a truly difficult series of hurdles that tested the resolve of even the most resilient businesses. For offshore engineering specialist Balmoral, these difficulties were particularly pronounced. Headquartered in Aberdeen and operating in the energy industry, the company was faced with a trifecta of challenges. While it had a buoyant order book at the beginning of 2020, COVID-19 cast the potential for prosperity into doubt as it caused economic hardships, travel restrictions and rapidly changing UK government regulations. The UK’s exit from the European Union at the end of January 2020 added an additional layer of uncertainty, impacting the supply of raw materials which placed pressure on Balmoral’s ability to deliver projects in line with commitments. Meanwhile, ongoing downturns in the oil and gas market thanks to a duo

of price crashes in 2014 and 2020, alongside growing environmental pressures, had resulted in the need for transition to sustainably succeed and scale in the long term.

The solution In the event, 2020 was a successful year for Balmoral despite these challenges, thanks to a combination of quick and agile responses in the face of hardships, coupled with a sound long-term strategy. Regarding the former, effective governance had been vital during the year. Drastic change swept the company as health and safety requirements had to be addressed in order to maintain production output in a secure manner, while other preparations had to be made to allow for home working and a shift to online business interactions. Testament to Balmoral’s willingness to be flexible, the efforts of its HR team to prioritise staff motivation and mental wellbeing, and a rapid deployment of and shift towards technology, the firm was able to adapt to the needs of the hour effectively and efficiently, and production output remained aligned with client commitments. Yet 2020 was not simply a year of stability for the company. It was able to not just survive, but also thrive.

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Since 2017, the firm had begun to pursue a significant diversification strategy, using its experience to support renewable energy markets while also sustaining its traditional oil and gas activities. This transition began with the acquisition of Norwegian firm Seaproof Solutions, bolstering Balmoral’s portfolio with the introduction of a unique offshore wind power cable protection system. Owing to financial distress at Seaproof, Balmoral decided to move the technology to its Aberdeen HQ in 2019 to permit greater control of the design, engineering and manufacture processes – a change which enabled the company to shift its focus towards organic energy transition. Here, the firm took Seaproof’s patented technology and developed a series of functional products. First it introduced FibreFlex™ – a fibre-reinforced cable protection system used to protect subsea power cables that have a lifespan of 25-40 years. Alongside this, the company developed technologies to reduce cable fatigue and introduced ballast systems that provide dampening and additional stability, whilst improving design life and higher tensile load capabilities. To facilitate and prove the benefits of its state-of-the-art products, Balmoral

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built a full-scale test rig in Aberdeen in April 2020 to test robustness. This was a major leap forward. The test rig proved the capabilities of its products and allowed the firm to release them for full use at the end of the year with supporting use-case data. How were these received? Well, in the short period since then, the company has secured three contracts within the offshore wind sector, the latest of which is valued at £1.6 million. Here, the firm will be deploying its FibreFlex and ballasted systems to upgrade the client’s power cable arrangement, working in close partnership to develop a custom solution that will feature a ballast stability system to dampen the curvature on the CPS. This system minimises movements from wave and current whilst prolonging the cable’s lifespan. With this system clients will avoid cable failures and the costly problems associated with that, including more frequent loss of power, downtime and higher replacement costs. Assuming

Story type #diversification (main category), #technology (main category), #resilience

Benefits • Projected ten-fold order increase in diversified sectors (£700k to £7 million) over the course of 12 months • Potential OPEX savings of £600,000 per turbine over wind farm’s lifecycle

Key findings For industry • Adopt an open-minded approach – don’t copy and paste existing solutions

that typical power cables fail once every five years, Balmoral’s fibre-reinforced solution will deliver approximately £600,000 in savings per turbine. It must be noted that it hasn’t all been plain sailing for the Aberdeenheadquartered organisation. The Seaproof acquisition provided fresh challenges at the outset, and it also faced difficulty in getting internal and external buy-in into its diversification strategy. Yet the company’s order intake in diversified sectors is expected to increase from £700,000 in 2020 to £7 million in 2021 – a stark jump that highlights a rapid move towards consolidation within renewable energy markets and, ultimately, a significant step towards the successful completion of its energy transition.

About Balmoral Balmoral specialises in supplying engineered buoyancy, elastomer and composite solutions for demanding applications in the offshore oil and gas industry spanning the E&P and marine segments.

• Development of renewable technologies needs to be driven by industry players. The supply chain plays a key role in bringing oil and gas products to energy transition markets For government • There should be more local content in the development of UK wind farm projects

Government support? Balmoral has benefitted from R&D tax credits as well as Scottish Enterprise grants. The company has also joined DIT trade delegations.

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Headquartered in Aberdeen, the company offers a varied portfolio which includes buoyancy modules for drilling and production risers, riser towers, bend restrictors, bend stiffeners and protection equipment for subsea infrastructure, cables, pipelines and risers, among other products. Balmoral’s manufacturing operations include a range of syntactic, hot and cold cure processing capabilities. In addition, the company’s proprietary laboratory, hydrostatic and mechanical testing facilities enable it to research, identify and develop cost effective materials across a spectrum of applications. Balmoral Comtec Ltd is part of Balmoral Group Holdings Ltd, which is also active in the advanced composites and liquid storage tanks sectors, in addition to property management.

Balmoral at a glance Key products and services: surface and subsurface buoyancy, protection and insulation products and solutions Main industries served: • Oil and gas – 95% • Renewables – 2.5% • Defence – 2.5% Headquarters: Aberdeen, UK Year established: 1980 Number of employees: 322 Revenue: £96.7m Revenue from exports: 92%

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BMT (Regional) knowledge is power How is BMT thriving? By pooling knowledge across all its areas of expertise into a matrix organisation with a regional focus through customer-, market- and mission-focused teams BMT has been able to reach new clients with joined up specialisms, the organisation taking on a variety of new projects across Europe and Australia. Although in its early days, early signs suggest that the structural sea change is starting to pay dividends on a financial and cultural level.

The challenge The global energy mix is constantly changing. As countries and regions look to exploit the renewable potential of their geopgraphies – be it hydrogen in Australia or offshore wind in the UK – companies in kind are having to adapt in order to maintain a relevant offering to the new-age energy sector. Market volatility has been exposed by COVID-19 and resultant oil price drops, while new players are entering the industry with disruptive technologies that are transforming old ways of doing business. For BMT, a leading international design, engineering, science and risk management consultancy active in oil and gas, defence and security, ports, risk management and maritime transport, sea and coastal sectors with 36 offices around the world, transitioning to a sustainability-driven footing was vital to its long-term viability. However, entering a renewable energy market presents challenges to the likes of BMT which have been associated with oil and gas for a long time. The organisation had to prove it was serious about sustainability in project tenders, all the while keeping on top of fast-moving industry trends and navigating difficulties in the

recruitment of seasoned oil and gas, mining and defence professionals, still vital to its business.

opportunities for collaboration to help win projects and deliver better outcomes for clients.

The solution

Furthermore, key functions such as HR, finance and marketing, sales and business development have been identified to be the focus for improved efficiencies in process. These are known as blue chips, with senior managers deployed to oversee these areas and drive continuous improvement using an agile and lean perspective way of working amongst the internal teams called the “scrum” team approach. A key task has been to retrain and adapt sales roles to regional scopes across multiple products and specialisms. Helping to support staff through the change of course are specialist transformational change leaders.

BMT’s chief executive Sarah Kenny has been instrumental in creating and executing a vision to overcome these challenges, adopting a strategy of renewal and growth. At the heart of this is a new business model based on a regional structure with centralised portfolios, a setup which has enabled efficiencies to be made and expertise to be shared more readily across the organisation, a three by two matrix. The process involved merging and consolidating previously disparate future business teams into centralised hubs, activity which has brought multidisciplined expertise together under one roof. COVID-19 both hindered and expedited the transition BMT were already on, however as the organisation had a history of working well in remote teams, the shift to homeworking and virtual communication help to break down the barriers created by prior needs to travel. Teams are interacting and collaborating, gaining a greater understanding of each other’s competencies, and exploring

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While the transformation is still in its infancy, initial outputs and results have been extremely positive. Employees are adapting to the changes and embracing new opportunities to collaborate with colleagues, and new doors are being opened as a result. BMT’s project pipeline is now clearer, , while operational efficiency and productivity processes are improved thanks to standardised process control and implementation of a strategic

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review process of all opportunities in pursuit at various stages of the progress through the sales pipeline. Several contracts have been secured via the new regional framework. In the UK, BMT’s Australian business expertise had proved vital in securing a fisheries project for a consortium of Scottish seafood companies, a project financed awarded funding by the UK Seafood Innovation Fund. The work will see BMT deploy its AquaDEEP BMT Deep, digital platform solutions to help farmers deal with lice infestation, a major issue facing aquaculture in Scotland. Another European project, this time with the European Space Agency, involves BMT carrying out a feasibility assessment of ways to improve safe and secure decommissioning of oil and gas and renewable energy assets via the use of space-based satellite data.

assessment in support of the proposed large-scale renewable energy supply project, the Asian Renewable Energy Hub (AREH), in Western Australia. BMT has worked closely with InterContinental Energy as the project has evolved from a renewable energy export project via a high voltage direct cable (HVDC) to a downstream processing facility utilising seawater and renewable power to produce green hydrogen and ammonia as stored/exported renewable energy. BMT’s technical expertise in hydrodynamic and plume dispersion modelling, habitat mapping and field data collection will continue to support the environmental impact assessment for the AREH project. This prestigious project will provide BMT with experience in this relatively new industry, building on our capabilities across the Australian environment team and the broader BMT community.

In Australia, InterContinental Energy contracted BMT to undertake the marine environmental impact

About BMT Formed in 1985 following the merger of

the British Ship Research Association and the National Maritime Institute, BMT is a leading international design and security, engineering, science and risk management consultancy with a reputation for engineering excellence. From initial concept through to design, construction, operation and eventual decommissioning security arrangements of these projects, the organisation supports customers at every stage of the project lifecycle. Active in the defence and security, oil and gas, energy and renewable energy, ports, risk management and maritime transport, sea and coastal sectors, BMT has around 1,400 professionals located in 36 offices in Asia, Australia, Europe and North America.

Story type

For government

BMT at a glance:

#transformation (main category)

• Government investment is required to support innovative solutions, seeded by funding UK companies, and specifically focused for the targets set to be met for Net Zero. • Policy on the protection of our maritime environment needs to look at climate risk and our coastal habitats. • Export finance is difficult to unpick as an SME, greater engagement with UK based companies and ways of facilitating partnerships to secure overseas investment would be gratefully received.

Key products and services: design and security, engineering, energy and renewable energy, science and risk management, maritime transport, sea and coastal consultancy

#diversification, #optimisation

Benefits • Improved pipeline of project opportunities

Key findings For industry • Perseverance is essential in business. Believe what you are doing and keep going, even if it is difficult • Get your teams aligned and fully on board with your vision • Companies need to be adaptable and completely flexible in a fastchanging world

Government support? BMT benefits from the Apprenticeship Levy and has received R&D tax credits. The organisation has also received funding from Innovate UK and Aquaculture Scotland.

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Main industries served: • Defence and Security – 63% • Oil and gas – 12% • Commercial shipping and Offshore services – 10% • Environment and Coastal and Oceans Resilience services – 7% • Land and Coastal Infrastructure – 5% • Energy and Renewable Energy – 3% Headquarters: London, UK Year established: 1985 Number of employees: 1,400 Revenue from exports: 97%

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