Shetland Islands Council and the Oil and Gas Technology Centre (OGTC) have agreed to work together in partnership to help develop an Energy Hub concept which will deliver a clean, sustainable energy future for Shetland and the UK.

This new Energy Hub concept will focus on renewable electricity powering offshore oil and gas platforms from shore and producing industrial quantities of hydrogen. The Hub could make West of Shetland oil and gas assets net zero by 2030 and provide 5% of the UK’s low carbon energy demand by 2050.

The Energy Hub concept is ambitious and signals a transformational shift for Shetland and the surrounding oil and gas province which will benefit the local community, the wider supply chain, secure employment and energy security of significance at a local, regional and national scale.

With discussions taking place with a range of potential stakeholders, the next stage is a period of project planning, early stage concept engineering, research and studies. This feasibility stage will run for two to three years before any investment decisions are taken.

Steven Coutts, Leader of Shetland Islands Council: “This is exactly the boost that our economy needs at this time. I am delighted that the Project has moved so fast since the Council set it up earlier in the year as the opportunities are massive and the engagement is very strong. It is particularly important for our young folk and the wider community as we look to develop our workforce into the future.”

Maggie Sandison, Chief Executive of Shetland Islands Council: 
“The Hub’s aim is to provide local communities and industry access to clean energy, reduce emissions and maximize the value of the region’s oil and gas sector during energy transition. This project will create sustainable local and regional employment, which is of paramount importance in these difficult times”

Colette Cohen, Chief Executive of the OGTC: 
“Energy Hubs are an exciting concept, which have the potential to accelerate the transition of our industry to a net zero future, while also supporting the UK’s net zero ambitions. Our objective at OGTC is to reduce the cost of developing and deploying technology to enable and accelerate the energy transition. The energy hub concept is a priority, working in partnership with industry, the regulators and research organisations, it will accelerate the development of key technology to create an integrated energy future for Scotland and enable the region to transition to a Hydrogen economy.”

Douglas Irvine, Project Lead for Shetland Islands Council: 
“An essential part of our ambition is to ensure that the Shetland community’s energy requirements are integrated into the project, and community-scale schemes are encouraged as well as industrial-scale ventures. The interconnector between Shetland and the Scottish mainland is important for the project, but only a part of a much wider integrated renewable energy solution for Shetland and for the region”.

Energy Hub Key Facts

• Oil & gas fields located to the west and east of Shetland currently contribute ca.40% of UK production which could continue until 2050 if emissions can be reduced by electrification and CO2 capture projects.
• The Shetland to Mainland HVDC Interconnector is capable of transmitting 600 MW of energy which will be used locally in Shetland (50MW), replacing the current power stations by 2025, with the remainder for export which could include offshore electrification.
• ScotWind offshore wind licensing round opened on 10th June and will include an area East of Shetland. Current UKoffshore wind production is 8 GW which is estimated to rise to 80GW by 2050.
• Blue hydrogen (generated from natural gas) production is predicted to meet 30% of the UK energy needs by 2050 with Shetland potentially contributing 8-12% of requirements.
• Green hydrogen (generated from water) could provide local energy and fuel sources for transportation in Shetland and also be generated offshore by
• repurposing oil & gas infrastructure.
• 1MW of energy will power up to 1000 homes.
• One kilogramme of hydrogen equates to 1 gallon of petrol but emits no carbon dioxide(s) or nitrogen during consumption.
• Offshore Carbon Capture and Storage (CCS) projects to the East of Shetland could significantly reduce emissions with ca. 8Mt CO2 abated by 2050 which is 50% of current emissions of the whole of the UKCS offshore oil and gas industry.
• A car emits ca 40 tonnes CO2 over its lifetime.
• Reducing emissions in Shetland region by 2Mt/yr by 2030 is equivalent to emissions by over 200,000 cars (over their lifetime).

Energy Industry Directory: OGTC