The Scottish Gas Industry – Part of Something Bigger

Scotland. That tiny little country sat atop another tiny little country at the top of the world.

Although small, we are not insignificant. Far from it.

What we lack in geographical size we more than make up for in our contribution to the world stage.

Known for punching well above our weight, Scotland is recognised globally as a leader in energy production – from North Sea Gas and Oil to our incredible renewables industry.

Keep reading to find out exactly what makes the Scottish Energy industry quite so special!

North Sea Gas and Oil

Recently, Prime Minister Boris Johnson met with oil giants to attempt and reach new terms for North Sea exploration as he delayed the launch of the new UK ‘Energy Supply Strategy’. The round table meeting with critical energy producers on Monday was a tightrope act for Mr Johnson as he attempted to balance demands for a windfall tax on oil company profits against the pressing need to find alternative energy supplies. Alternative energy supplies are so urgent due to Russian aggression in Ukraine – explained here.

Downing Street has since communicated that Mr Johnson met with oil bosses to discuss increasing investment in the North Sea Oil and Gas industry and boosting supply of domestic gas. The North Sea provides roughly 47% of UK gas, and helps to meet 40% of the country’s overall energy needs.

The North Sea Gas and Oil industry is a crucial UK industry, and is likely a major part of the response to Russian aggression. There are calls from environmental campaigners and politicians in Scotland to wind down production, however.

The Cambo oil field remains an incredible source of oil, with a potential for 800 million barrels. The domestic oil and gas sector is a major component of both UK and Scottish economies, with oil and gas extraction alone worth and estimated £8.8 billion in GVA to Scotland’s economy (2019). This represents around 5% of Scottish GDP.

Since 1970, more than 44 billion barrels of oil equivalent has been extracted from the UK Continental Shelf – current estimates place a figure of 20 billion still to be potentially recovered. With oil and gas extraction obviously comes a heavy tax revenue benefit – providing over £330 billion in revenue to the UK government from production taxation alone (2019). Not just this, but in Scotland the industry helps to support around 100,000 jobs through direct, indirect, and induced impacts.

Offshore Wind Potential

Scotland too has a great deal of potential offshore wind resources, the strong offshore winds providing the idea conditions for technology which can harness its energy.

The east coast seabed in particular has been identified as a readily suitable location for further development of offshore wind, thanks to the gently shelving nature of the seabed. Further to this, there has also been the fairly recent emergence of deeper water offshore technology which can harness energy in deeper waters in both the east and west coasts.

Scotland is home to the world’s first ever floating windfarm, located around 30km from Peterhead and the Beatrice project (Hywind).  Scotland has in excess of 4.5GW of offshore wind projects largely concentrated on the east coast, and a new leasing round for offshore wind was announced by Crown Estate Scotland in 2017.

Additionally, there are over 9,000 wind energy supply chain businesses that include some of the most inventive firms at the forefront of world innovation. These businesses offer specialist training programmes, wind energy consultancy services, and are preparing for the next generation of wind energy technologies. Scotland is currently well placed in meeting the global demand for cost-efficient offshore wind solutions.

When it comes to current performance, future potential, and expertise – Scotland’s track record is undisputable. 10 years since Hywind was developed, two of the largest offshore wind projects anywhere in the world are under construction. The 950MW Moray East Project and the 1,075MW Seagreen Offshore looks set to extend some already impressive capabilities.

North Scotland Tidal

In the North of Scotland, tidal power is king.

Recently, the most powerful tidal-powered turbine has begun to generate electricity via the grid in Orkney. The Orbital O2 is believed to have the capacity to meet the annual electricity demand of 2,000 homes for the next 15 years.

It was sailed out of port from Dundee in May, where it was assembled over an 18-month period. Now anchored in the Fall of Warness, the 680-tonne 2MW offshore unit is connected via subsea cable to the local onshore electricity network. The manufacturer of the turbine, Orbital Marine Power, has said that their first commercial turbine powered by Scottish water is a ‘major milestone’.

Orbital Chief Executive, Andrew Scott, also praised his team and the supply chain for delivering a ‘pioneering energy project’ not just successfully, but safely too. He added;

“Our vision is that this project is the trigger to the harnessing of tidal stream resources around the world to play a role in tackling climate change whilst creating a new, low-carbon industrial sector.”

The turbine’s superstructure floats on the surface of the water with rotors attached to its legs, which actively extract energy from the passing tidal flow of water. A four-point mooring system holds the turbine in place, with each mooring chain having the strength to lift over 50 double decker buses. Electricity is then transferred from the turbine via a dynamic cable to the seabed and then through a static cable to the local onshore electricity network.

Just one of many incredible tidal projects taking place across Scotland.

Icelink

Icelink is the James Bond-esque sounding name given to a proposed electricity interconnector between Iceland and the UK. At 1,000 – 1,200km (620 to 750 miles), this would become the longest sub-sea power interconnector in the world. The 800 – 1,200 MW HVDC link’s project partners in the UK are National Grid plc and their Icelandic counterparts are Landsvirkjun (a state-owned generator based in Iceland).

Although significant progress has been made, 2019 brought about a temporary halt.

The link is seen to be a highly controversial subject in Icelandic politics, with a large fear of the environmental effects associated with increasing Iceland’s power supply to meet Icelink’s demand. There are further concerns over increased domestic energy prices.

The next stage in development would require the Icelandic Parliament to accept the construction, unlikely to happen in the immediate future. Some estimates suggest it will take about five years to complete feasibility and other work, with another five to six years needed for construction and installation.

Niccolo Gas and Power  

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