Norwegian offshore oil and gasoline drilling contractor Odfjell Drilling is stepping out of the consolation zone and into the offshore renewables area.

The corporate, which gives drilling rigs for oil and gasoline firms, on Thursday introduced its funding in Oceanwind AS, an organization engaged on growing harsh surroundings floating offshore wind generators. 

“With nearly 50 years of offshore competence in Odfjell Drilling and 20 years of offshore wind expertise amongst Oceanwind’s founders, the events imagine that it is a successful mixture for additional commercializing vitality from offshore wind,” Odfjell Drilling stated.

Odfjell Drilling plans to attain a controlling place, topic to the profitable completion of the contemplated fairness tranches. 

Simen Lieungh, CEO of Odfjell Drilling stated: “With the invention of Ekofisk in 1969, Norwegian business gamers requested themselves the right way to make the most of the enterprise alternatives forward. In 1971, Rederiet Odfjell made the ultimate funding wanted to finish the primary floating drilling rig design ever created in Norway. This was the start of what we now acknowledge as Odfjell Drilling. I imagine we’re in an analogous state of affairs immediately.”

He stated his firm’s goal was to create worth for shareholders and society “by leveraging nearly 5 a long time of competence in working floating property in harsh environments to develop a stable idea inside offshore wind along with Oceanwind’s founders.”

“I hope today is the start of a brand new chapter, and one other main milestone within the firm’s historical past,” Lieungh stated.

Oceanwind Founder Jon Erik Borgen and CTO/Founder Eystein Borgen stated in a press release: “We’re very happy and honored to have joined forces with Odfjell Drilling. With their lengthy custom and impeccable observe file as a high-quality operator of drilling models, it was simple for us to knock on their door. For a few years, our purpose has been to reap inexperienced vitality offshore.  In 2001, as founders of SWAY, we initiated the game-changing know-how for floating offshore wind generators. Nearly twenty years later we have now determined to enter the enterprise of proudly owning and working such property and grow to be an essential contributor to the discount of fossil gas emissions.”

“Odfjell Drilling is thought for working with the very best security requirements and for having a really sturdy and competent in-house group overlaying all features of floating asset administration, together with technical, operational, and business capabilities. This meets Oceanwind’s objectives as a future proprietor and operator of floating property,” says CEO/Founder Geirmund Aasbø of Oceanwind. 

Zero-Emissions Drilling

Odfjell Drilling stated the transfer was an essential step within the technique in the direction of “zero-emission drilling.”

“Since 2015, the corporate has invested numerous hours to optimize rig operations from an energy-saving perspective. By reviewing operational procedures and introducing new battery and hybrid applied sciences, emissions from our drilling operations could be considerably diminished.  Nonetheless, reaching zero requires a substitute for fossil fuels as the first vitality supply,” the drilling firm stated.

“Oceanwind’s know-how and enterprise mannequin can allow Odfjell Drilling to ship energy-efficient, world-class drilling operations, contributing to purchasers’ and Odfjell Drilling’s zero carbon emission targets,” the drilling contractor stated.

“Creating options to attach our rigs to offshore wind installations is one attainable highway to zero-emission drilling. With possession in Oceanwind, we’re well-positioned to make it a actuality,” says Per Lund, EVP Know-how & Sustainability of Odfjell Drilling.

Wind energy for oil and gasoline platforms

Hywind Illustration – Credit score: Equinor

Price noting, Norway – Europe’s second-largest oil producer – doesn’t have any offshore wind generators put in on its shelf, nevertheless, there are tasks within the pipeline, corresponding to Equinor’s Hywind Tampen, that can change that.

The Hywind Tampen is a floating wind farm growth, sanctioned by Equinor in October 2019, which will likely be used to offshore energy oil and gasoline platforms, in what would be the offshore oil and gasoline business’s first.

The wind farm will likely be situated some 140 kilometers from shore in 260-300 meters of water between the Snorre and Gullfaks platforms.

The wind farm will include 11 wind generators primarily based on the Hywind know-how developed by Equinor. The eight MW generators may have a complete capability of 88 MW, able to assembly about 35% of the annual energy demand of the 5 Snorre A and B, Gullfaks A, B, and C platforms.

One of many causes for the shortage of offshore wind farms on the Norwegian coast is the truth that, principally, there is not any want for them, not less than not in relation to the home electrical energy consumption, as hydropower accounts for nearly the entire of the Norwegian energy manufacturing.

Nonetheless, this doesn’t imply that Norway, by is firms, is a complete newcomer to offshore wind. Specifically, a few hundred kilometers from the Norwegian coast, within the UK, Equinor operates a number of offshore wind tasks.

Within the UK, Equinor is now concerned in eight offshore wind tasks, with three operational wind farms: Sheringham Shoal, Dudgeon, and 30MW Pilot floating wind venture Hywind Scotland.

Other than the three wind farms in operation, Equinor can be set to construct what has been dubbed the world’s largest wind farm – the three.6 GW Dogger Financial institution Undertaking, aimed to be developed in three 1.2GW phases. Earlier this week, Equinor signed agreements to increase Sheringham Shoal, Dudgeon lease areas, which can ultimately result in these areas doubling their electrical energy producing capability.

From oilfield companies to wind

Illustration – Credit score: Aker Options

Whereas Odfjell Drilling is likely to be the offshore oil and gasoline drilling firm to dip its toes within the offshore wind sector, there are different Norway-based companies – till lately identified largely for serving the oil and gasoline sector – which are more and more getting concerned within the offshore renewables as properly.

A primary instance is Subsea 7. With the oil and gasoline contracting state of affairs shrinking up to now few months resulting from low oil costs and E&P firms delaying or canceling tasks to protect money as a result of low oil costs, Subsea 7 managed to herald $2 billion in new orders in the course of the second quarter.

What’s attention-grabbing to focus on is that out of the $2 billion awarded within the quarter, $1.7 billion got here from the offshore renewables sector, primarily the offshore wind area.

New orders recorded in backlog in the course of the quarter included Seagreen, an built-in EPCI offshore wind venture offshore Scotland, Kaskasi, an built-in contract offshore Germany, and Hollandse Kust Zuid, an built-in contract for the primary deliberate subsidy-free wind farm venture offshore the Netherlands.

One other Norwegian offshore oilfield companies supplier, Aker Options, lately determined to extend its give attention to offshore renewables and carbon seize options.

The corporate final month agreed to merge with offshore development companies agency Kvaerner, however earlier than the merger, it determined to spin off its wind growth enterprise and the carbon seize know-how enterprise in two separate companies.

Aker Options stated the offshore wind and carbon seize companies can be higher off as standalone companies than as built-in with oilfield companies. They’re anticipated to be admitted to buying and selling on Merkur Market on the Oslo Inventory Change.

Øyvind Eriksen, Chairman of Aker Options stated on the time that it had grow to be more and more clear that these companies – offshore wind and CCUS – represented worth creation alternatives “in a world transitioning to inexperienced options at accelerated velocity and have extra potential as stand-alone firms than as an built-in a part of an oil service enterprise.”

“Renewables and inexperienced applied sciences have fully totally different worth chains, prospects, investor bases, and sources of funding. Capitalizing and separating the offshore wind and CCUS enterprise areas from Aker Options presents a novel alternative for development and worth creation,” Eriksen stated.

Norway-based subsea set up agency Ocean Installer is popping to wind too. It has established a brand new enterprise department known as “developer of offshore wind,” and has lately appointed Olav Hetland as Director Offshore Wind Farms.