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Media Releases
2009

28 May
2009

Oil and Gas Expertise Will See North East Ride the Crest of the Offshore Renewables Wave

North East expertise in oil and gas will help the region capitalise on the huge projected growth in offshore renewables, according to the energy division of leading UK law firm Shepherd and Wedderburn.

Aberdeen-based energy partner Richard Cockburn is already witnessing an increasing number of the firm’s renewable energy clients putting in place oil and gas industry arrangements and agreements when undertaking projects.

He said: "We are finding real synergies between the way the oil and gas tackles offshore challenges and the needs of the offshore renewables industry.

“Working together, our oil and gas and renewables teams have been actively helping renewables developers to adopt oil and gas solutions such as contracting structures to avoid reinventing the wheel and to minimise cost.

“Of course, every project presents its own demands but the oil and gas supply chain has years of experience in solving problems offshore."

One of Shepherd and Wedderburn’s renewable energy clients, Mainstream Renewable Power, believes this sort of oil and gas expertise will enable the UK to ride the crest of the offshore green energy wave.

Steve Clarke, Mainstream UK Content Manager, said: “The global proliferation of wind energy means that demand continues to outstrip supply.

“This situation is likely to be exacerbated in the UK by STW/R3. Under this scenario, never has there been a greater opportunity for new capacity to enter the supply chain in either one of two ways.

“Firstly, the sector simply needs increased quantities of the same components, so the procurement teams within the original equipment manufacturer (OEM) businesses are more open to sourcing new global suppliers.

“Secondly, a clear opportunity exists for newly-designed more cost effective offshore wind turbine technologies to be accelerated to market. The component and system supply chains for these turbines are largely undefined at present and early entrants still have the opportunity to effectively design themselves in.

“A final important point to bear in mind is that UK Content is not only restricted to manufactured goods, it applies just as importantly to human capital too.

“Irrespective of where the wind turbines and their constituent parts end up being sourced, the operation and maintenance jobs associated with these large offshore generating assets generally last for a minimum of five years, but often up to 20 years, and from an economic basis are best delivered from the as nearest shore-side location – that is UK ports and harbours.”


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