The North Sea has played a vital role in Europe’s energy supply as a significant source of oil and gas. As the urgency to address climate change and energy poverty intensifies, however, the region presents an opportune moment for rapid diversification and accelerated build out.
Offshore production of green hydrogen using electricity from offshore wind farms holds tremendous potential for expediting the energy transition while providing an abundant supply of affordable renewable electricity on a global scale. Collaboration and interconnectivity among offshore sectors are key to realizing the integrated North Sea concept.
By leveraging the existing infrastructure and expertise gained from the oil and gas industry, and applying these skills to integrate renewable energy sources, the offshore energy landscape can be revolutionized.This transformation paves the way for a greener and economically viable future.
Oil and gas are still important—and will be important for many years—as a feedstock to many processes and products. However, it is being used faster than it is being replaced. It needs to be used mindfully and with reduced carbon emissions.
The planet needs cheap, secure, and reliable alternatives to fossil fuels to enable the acceleration of the energy transition. Establishing national and regional hydrogen production at scale is core to driving down the levelized cost of hydrogen and to secure supply.
The North Sea region holds immense potential for the development of a connected energy system that leverages its abundant renewable resources, such as wind energy, while incorporating existing oil and gas infrastructure. By creating an interconnected energy network, the North Sea region can unlock numerous opportunities for clean energy generation, decarbonization, and sustainable economic growth.
This paper assesses the opportunity for an integrated and circular approach to developing the offshore energy sector for the energy transition. It evaluates how offshore wind, green hydrogen production, and heritage oil and gas expertise can be brought together to benefit all sectors to support a viable green hydrogen and wind economy.
The renewable hydrogen sector has struggled to establish a sustainable commercial model so far. This paper finds that significant advantages may be found in taking hydrogen production offshore, solving commercial challenges for both hydrogen and offshore wind developers while also repurposing oil and gas expertise and assets to feed the energy transition and accelerate production timelines.
Offshore engineering experience, research, and live case-studies are used to investigate the opportunities for this approach. It also considers the commercial viability and benefits of, as well as the ultimate offtake and transportation for, produced green hydrogen and electricity.