BP’s £ 10bn wind bid could create a global center of excellence in Aberdeen
Energy giant BP will make Aberdeen the center of its global offshore wind business in a £ 10bn spending spree if it secures a lease to install and operate turbines in the North Sea .
The company’s global offshore wind center of excellence would be the centerpiece of a massive investment across Scotland.
BP and its partner, German energy company EnBW, have submitted an offer for the E1 lease through ScotWind, the first round of offshore wind lease in Scottish waters in more than a decade.
There are over a dozen seabed plots off the Scottish coast available to commercial wind developers through ScotWind, which is managed by Crown Estate Scotland and is expected to be decided next year.
Several traditional oil and gas giants claimed land before the window for nominations closed on Friday. Equinor and Shell are also in the game.
Along with a wind farm that can produce 2.9 GW of power, BP has set ambitious plans that are estimated to create thousands of direct and indirect jobs in Scotland, including in Aberdeen.
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However, he has decided that we make the turbines that he expects to purchase from an original equipment manufacturer (OEM).
BP has already reached a pre-agreement to invest a seven-figure sum in the £ 40million renewable energy hub from Forth Ports to the Port of Leith in Edinburgh. The company said it was continuing to “work on” plans for the port of Aberdeen.
Dev Sanyal, BP’s executive vice president for gas and low carbon, said the company’s partnership with Aberdeen City Council and its existing Aberdeen-based remote operations center was a ” huge opportunity ”to make it a global base for its wind power generation capacity.
He said: “We have a partnership with the city of Aberdeen which we are very proud to have signed in September of last year. We believe that this partnership will have more because of what we can provide in terms of offshore wind energy.
“We see a huge opportunity. Today we have our remote operations center in Aberdeen. If you have a remote operations center using digital tools, we can set up a base in Scotland that serves a much larger area than Scotland alone. “
BP also signed a five-year multi-million pound deal with the Aberdeen-based company energy consulting, Xodus, to provide a “capacity accelerator” of skills.
The initiative, called the XAcademy, includes the creation of entry-level energy transition positions and the retraining of hundreds of oil and gas workers, graduates and technicians with capabilities in the renewable energy sector.
Training and skills development in the sector
Together, these investments would support thousands of jobs in Scotland’s energy sector and supply chain, and develop new jobs, skills and capabilities in the energy transition area, BP said.
Mr Sanyal said: ‘The offer would build on Scotland’s deep experience in offshore oil and gas, equipping its workforce and supply chain with renewable capabilities, including creating apprenticeships and supporting thousands of jobs.
“All of this aims to help generate community wealth and create a just transition in which people and communities are not left behind. “
Sir Ian Wood said the company’s offer was a “prime example of BP’s commitment to making Aberdeen the location of its global center of excellence for offshore wind,” which was “the proof of the enormous potential of our region in this sector “.
The offering would build on Scotland’s vast experience in offshore oil and gas, equipping its workforce and supply chain with renewable capabilities, including creating apprenticeships and supporting thousands jobs.
Dev Sanyal, BP Executive Vice President for Gas and Low Carbon
Sir Ian, in his role as chairman of ETZ limited, which leads plans to establish an energy transition zone alongside the £ 350million expansion of the South Port of Aberdeen, also reflected on the opportunity. larger offered by ScotWind to the region.
“North East Scotland is uniquely positioned in the UK to take advantage of the energy transition opportunity and solidify our position as an all energy, net zero region.
“Building on 50 years of a world-class oil and gas industry, the region has the existing talent pool, business capabilities and infrastructure to offer.
“It is extremely encouraging to see so many high caliber companies bidding on this ScotWind round.
“They will contribute over a period of time to the significant conversion of oil and gas skills in energy transition activities – floating offshore wind and hydrogen as well as carbon capture, maximizing the economic recovery of oil and gas. gas, minimizing carbon emissions and using carbon capture and storage to aggressively develop new energy transition activities to help us achieve net zero.
“About 60% of the new ScotWind licenses requested are within 100 miles of Aberdeen and we want the North East to reap as much economic benefit as possible.
“We need to create the environment to capitalize on this huge opportunity and that is precisely why we have developed the Energy Transition Zone, an ambitious and exciting project that will reposition North East Scotland as a globally integrated energy cluster. recognized that provides sustainable jobs and growth for the region.
60% of new ScotWind licenses requested are within 100 miles of Aberdeen. “
Mr. Ian Wood
BP also has has launched an online portal for the Scottish engineering and supply industry to participate in developments and urges companies based in Scotland, having significant operations in Scotland, or considering relocating their base or operations to Scotland to express their interest in future opportunities.
The portal is designed to meet requirements set by the Scottish Government and supported by Crown Estate Scotland that wind power developers participating in the ScotWind lease will need to define the anticipated level and location of supply chain impact of each phase of their proposed projects.
Winds of change for BP
BP’s ScotWind offering is in partnership with German energy company EnBW.
BP quickly turned to offshore wind, which the company says will be the fastest growing renewable energy source for at least the next two decades.
Earlier this year, the two companies formed a 50-50 joint venture to develop and operate two concessions in the Irish Sea that offer a combined potential generation capacity of 3gw.
BP also has a partnership with the Norwegian state energy company, Equinor, to develop offshore wind projects in the United States, including projects with a potential generation capacity of 4.4 gw.
Mr Sanyal did not give specific figures on the contribution of offshore wind to BP’s goal of reaching 50 gw of renewable electricity capacity by 2030, except that he expects the see “more than double” from current capacity.
He said: “We had no offshore wind turbines six months ago. Today we have 7.4 gw gross in the world’s largest market, the UK, and the world’s fastest growing market, the US. Our ambition is to continue to grow in this space.
He added that securing the lease would secure BP’s place in Scotland for another 100 years.
He said: “BP has proudly in Scotland for a century. We believe this bid has the power to support a clean and resilient energy future for Scotland for the next century and beyond. “
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