Building a Resilient Supply Chain – by Katy Heidenrich of OEUK

Katy Heidenrich, the Offshore Energies UK Supply Chain and People Director at Offshore Energies UK, sets out her thoughts on the practical necessity of building a resilient supply chain for floating wind in the Celtic Sea.
The recently published Industrial Strategy Green Paper highlights the UK’s world-leading track record of decarbonisation.
The UK continental shelf has the potential to support much of our decarbonisation programme with reductions in emissions from oil and gas platforms and increasing use of wind power alongside carbon capture and storage and hydrogen generation.
Floating offshore wind (FLOW) will be increasingly important. The government has set out an ambition to quadruple wind generation capacity by 2030.
A big role for the Celtic Sea
I contributed to an exciting range of presentations at the Celtic Sea Power FLOW Summit at the Eden Project recently.
It’s clear we all know the potential of floating wind energy. The Crown Estate has set a target of using it to power more than four million homes.
The Celtic Sea will play a major role in this transition which will in turn transform the fortunes of the coastal communities of the UK’s South West peninsular, bringing skilled jobs and huge levels of new investment.
Much needed investment
We are expecting around £12 billion a year of capital expenditure in offshore wind by the end of this decade and around £18 billion by 2040, as electricity generation from floating wind comes into its own.
Offshore Energies UK members are already helping to develop 13GW of this. We are lucky to have a UK energy supply chain with over 50 years of expertise in delivering complex projects plus highly transferable capabilities and technologies, and a workforce that will be vital to delivering the UK’s ambitious offshore wind programme.
The opportunity is huge. But none of this is a given. We know it will require huge government commitment – and investment.
Examining the supply chain
A big part of my role at Offshore Energies UK (OEUK) is championing our fantastic supply chain – making sure we’re doing everything we can to deliver a homegrown energy transition.
We recently commissioned Rystad Energy to undertake an independent study of the supply chain servicing the oil and gas industry, and how its capabilities can be transferred to new energies.
The aim of this research, which was published in April, was to provide companies with insight into future opportunities and to ensure the flexibility of our industry is well understood by policy makers.
The report shows that there is significant skills overlap between oil and gas and the new energy sectors – from 60% in floating wind to around 80% in carbon capture and storage and hydrogen.
It shows clear pathways to accessible future markets for private companies and offers insight to inform investment decisions.
Preserving valuable skills
These figures speak to a theme that ran throughout this year’s Celtic Sea FLOW Summit.
Multiple speakers throughout the day noted the importance of the oil and gas supply chain and the need for governments to foster it within their industrial strategy.
There is a crucial need for us to make sure UK oil and gas capabilities do not erode before demand from new energies has ramped up to fill the gap.
Developing a strategy for success
To successfully grow new renewable energy industries, we need to build on the proven capability we already have in the UK energy supply chain.
At OEUK, we have welcomed the Industrial Strategy Green Paper recognising that the North Sea is critical to the Clean Energy Mission and showing that the UK can make use of the world-leading expertise in its oil and gas supply chain.
Now we need a joined-up execution plan –an Industrial Strategy that puts industry at its heart. We need to make sure that regions like the Celtic Sea are part of that strategy, and ensure we channel investment to the right location for a competitive, thriving, and sustainable all-energy supply chain.
Recent Posts
- CSP Secures Crown Estate Funding to develop a multi-user offshore coordination centre for the Celtic Sea.
- Realising Cornwall’s floating offshore wind ambitions
- A Collective Opportunity. By Tim Stiven of The Crown Estate
- An Enhanced Vision for the Celtic Sea
- Building a Resilient Supply Chain – by Katy Heidenrich of OEUK