The leading representative body for the UK’s offshore oil and gas industry – OGUK, is expanding to include the exciting low-carbon offshore energy technologies that its members are developing. These will include offshore wind, hydrogen production, carbon capture and storage systems, and other emerging low-carbon technologies.
- The move will also see OGUK changing its name to Offshore Energies UK.
- It follows a year-long strategic review and takes effect from February 14, 2022.
- Offshore Energies UK will continue to champion the oil and gas sector but will also support those with an interest in carbon capture and storage, hydrogen production and offshore wind.
- This move reflects the evolving nature of the industry in creating the diverse mix of energy generating systems needed to achieve net zero.
Deirdre Michie, CEO of Offshore Energies UK, said the organisation would be a unifying voice for an offshore energy sector that was undergoing rapid and positive change. Existing members approved the new strategic direction at their AGM in December 2021.
Deirdre Michie
Offshore Energies UK will continue to work with regulators, policy-makers and stakeholders to champion the offshore energy industries and help achieve a managed transition towards the UK’s climate goals. Some key elements of this work are already under way for carbon capture and hydrogen production, through the landmark North Sea Transition Deal that OGUK signed with the UK Government last March – the first deal of its kind by a G7 country.
Deirdre Michie said: “Our members are investing in cleaner energies, boosting the technologies needed to support jobs, communities and the UK’s energy security – and to drive the transition to low-carbon energy.
“Following an extensive strategic review, we recognised that we too need to evolve to reflect what is happening in our sector. Working with our members, we are driving forward towards the net zero energy future we all want to see. Our innovative companies, people and communities will add value to the UK economy as we build an integrated offshore energy sector.
“This is a natural next step for our organisation, which builds on our heritage of proudly championing the UK’s oil and gas industry.
“Extending our representation to include renewable and carbon cutting industries will better reflect the agile nature of the companies involved in energy production. We share the same interests, determination and ambition to deliver an integrated net-zero energy system that is cleaner and greener but also secure and sustainable.”
Our existing members are already involved in some of the most cutting-edge low-carbon projects across the country, including:
- Acorn Hydrogen & CCS – to turn natural gas into clean hydrogen
- Equinor’s Dogger Bank – the world’s largest windfarm
- West Anglesey Tidal Energy Project -turning tides into electricity
- Hywind Scotland – the world’s first floating windfarm
- Drax Zero Carbon Humber Projects – Decarbonising the UK’s largest industrial region
- OGCI Climate Investments – Promoting leadership, and investment in low-carbon tech
- Net Zero Teesside – deploying carbon capture technologies to decarbonise Teesside
This announcement of OGUK’s expansion follows the recent Crown Estates Scotland ‘ScotWind’ leasing round, which saw 13 member companies win leading roles in the 17 ScotWind projects. They will pay over £570 million in leasing fees to build offshore wind farms and develop more than 20GW in potential capacity. More of our member companies will be involved in the supply chains for these projects, with Worley, DNV, Xodus and others supporting Scotwind developments.
OGUK’s expansion to champion low-carbon energy alongside oil and gas prompts powerful reactions from industry leaders and politicians
- KEY POINTS
- Oil & Gas UK [OGUK) will change its name to Offshore Energies UK on February 14
- Expansion will cover offshore wind, hydrogen production and CO2 capture as well as oil and gas
Oil & Gas UK – widely known as OGUK – is changing its name and expanding its remit. From now on we will champion not just oil and gas but also the exciting low-carbon technologies being developed by our members.
Offshore Energies UK, as it will become on February 14, will promote offshore wind generation, hydrogen production – where natural gas is turned into clean hydrogen, and systems for capturing and storing CO2.
Offshore Energies UK (OEUK) will continue to champion the oil and gas sector. One exciting idea is to use renewable electricity from windfarms to power oil and gas installations – so reducing the emissions generated in producing and processing oil and gas.
The announcement has prompted widespread comment and reaction from leading industry figures and politicians.
Greg Hands, the UK government’s Energy & Climate Change Minister said: “Offshore Energies UK’s new name reaffirms how important the wide range of offshore energy technologies are to reaching net zero and reflects the important role OEUK will play in the North Sea Transition Deal, which is supporting the sector’s highly-skilled workers and supply chain as we shift to a lower carbon future.”
Michael Matheson, the Scottish government’s Cabinet Secretary for Net Zero, Energy and Transport said: “Offshore energies and technologies such as carbon capture and storage, hydrogen production and offshore wind will play an increasingly important role in ensuring a just transition for the energy sector. I welcome the approach being taken by OEUK to reflect just how important these industries are in ensuring we achieve net zero by 2045.”
Sir Ian Wood, chairman of ETZ Ltd, a non-profit working to create a low-carbon energy transition zone in north-east Scotland, said: “OGUK are a highly regarded organisation which has proved to be a trusted voice of its members and the wider oil and gas industry, particularly across the North East of Scotland. The decision to rebrand is absolutely right and reflects moves across the oil and gas sector to diversify its capabilities into offshore wind, hydrogen and carbon capture and storage.
“Oil and Gas still has a huge role to play if we are to succeed in new energies. Drawing upon 50 years of a world class industry – the infrastructure, people, technology, and financial capital – will be crucial if we are to achieve net zero targets. We’re confident that Offshore Energies UK will continue to make a hugely valuable contribution as we seek to capitalise on the massive opportunities that energy transition provides.”
Colette Cohen, chief executive of the Net Zero Technology Centre, based in Aberdeen, said: “To support the delivery of a just transition, we need to integrate our energy system and unlock investment. Today’s announcement reflects the shift in priorities of OGUK members and the evolving sector as we drive towards a net zero North Sea.
“OGUK has championed the oil and gas industry successfully for nearly 15 years. This broadening of focus as OEUK will further enable the delivery of the North Sea Transition Deal to meet our net zero ambition and support Scotland and the UK in becoming a global leader in renewable and alternative energy production.”
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