Monday, March 30, 2015

Teesside's energy sector facing a bright future say chiefs


The North-east’s energy industries say there’s much to look forward to for regional firms, despite the recent fall in oil prices.


Developments in renewables, energy-from-waste and the oil and gas industries are gathering speed - and Teesside firms are gearing up to get their fair share of the work.


Thanks to a pipeline of new projects, Teesside is fast becoming the hub of the region’s low-carbon energy sector.


Later this year a £250m Energy from Waste (EfW) plant will open in Billingham. It’s the first of its kind in the world, and a further two Teesside EfW schemes are set to follow next year.


Plans for two new biomass plants, valued at more than £650m, are well advanced. Meanwhile renewed efforts are underway to develop carbon capture and storage facilities to protect some of Teesside’s major industrial plants from rising carbon taxes.


Stephen Catchpole, managing director of Tees Valley Unlimited says: “Tees Valley has the right infrastructure, the right skills and a proven track record of delivering large-scale energy sector projects, creating hundreds of jobs and over £410m of private investment in the area.


Matthew Hancock MP, speaking at the NOF Energy conference 'Energy: A Balanced Future' Matthew Hancock MP, speaking at the NOF Energy conference 'Energy: A Balanced Future'


“With £1bn of private investment either planned or in construction, a further 800 permanent and 800 construction jobs will be created over the next 18 months, representing a bright future for Tees Valley in the energy sector.”


In renewables, the Government has sanctioned major Round 3 offshore wind developments in recent months worth up to £20bn - creating a healthy pipeline of work.


Energy Minister Matthew Hancock addressing NOF Energy’s annual conference Energy: A Balanced Future at the Sage, Gateshead, earlier this month, highlighted the opportunities in the sector for the region.


He said the North-east, as a ‘significant exporter of offshore manufacturing and engineering expertise’ would have a crucial role to play in the industry.


Offshore Structures (Britain) Ltd is set to create 350 jobs after winning a major contract with a German and Danish turbine foundation-maker.


The company, a partnership between Denmark’s Bladt Industries and Germany’s EEW SPC - took over the assets and base of TAG Energy Solutions site at Haverton Hill, Billingham.


The consortium is now investing up to £35m in the site and recently secured its first major contract with Dong Energy, which will see it supply foundations for 32 turbines for the Burbo Bank Extension offshore wind farm in Liverpool Bay.


North of the region, on the site of the former Neptune shipyard in Wallsend, now the site of Shepherd Offshore Neptune Energy Park, a £7m subsea centre is currently under construction.


Andrew Hodgson, managing director of SMD Andrew Hodgson, managing director of SMD


A few miles upstream at Spillers Mill work will soon begin a second £10m subsea innovation centre being developed by BEL Valves and Newcastle University.


Both will help secure the region’s leading role in the global industry and encourage the development of a skilled supply of future workers to support its growth.


While the oil price fall is slowing the global growth of the subsea industry, it’s still expected to more than double in size to £40bn by the end of the decade.


Analysts say the industrialisation of the developing world - and global population demographics - mean worldwide oil demand is set to grow from 90m barrel of oil equivalent per day (boepd) to over 100m boepd equivalent by 2030.


With most conventional and easy to get oil and gas already in play, the quest is now on the recover unconventional


resources - such as shale oil and gas – and those harder to get offshore reserves in deep water and the Arctic.


Andrew Hodgson, chairman of Subsea North East and chief executive of Wallsend subsea remotely operated vehicle maker SMD, says: “With a growing worldwide demand for oil, and subsea production being the most cost-effective recovery method, even an oil price of less than $100 a barrel makes the future of the industry look very strong.”



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