When it comes to sharing lessons about operating offshore, the oil and gas industry has plenty to give to the burgeoning offshore wind sector as the world pivots toward cleaner sources of energy, according to a panel of experts.

Think navigating supply chains, successfully co-existing with other maritime industries, perfecting the hub-and-spoke approach, using subsea electricity interconnectors and collaborating with peers to advance the industry as a whole.

ONS 2020 put offshore wind in the spotlight Sept. 1 with sessions on the topic. Top executives from companies that explore and produce oil and gas along with renewable energies discussed what the oil industry can bring to offshore wind, while the head of an organization representing more than 400 wind industry players spoke on the impact the oil industry is having within offshore wind—among other topics.

“We are all learning from the oil and gas industry on how to do offshore wind even more effectively,” said WindEurope CEO Giles Dickson. These include the areas of health and safety involving, for example, running large offshore installations in extreme conditions; community engagement and coexisting with the fishing and shipping industries; and a wider approach to maritime spatial planning, he said.

“Their impact [on offshore wind] is already real,” Dickson said. He pointed out Equinor ASA’s Dogger Bank wind farm being developed in the U.K. North Sea, Royal Dutch Shell Plc’s showing in two Dutch offshore wind auctions and Repsol SA’s ambitious onshore wind farm plans in Spain. “The more players that come into the market, the greater the competition, the more capital that is brought in for investment. So that is positive. Now we are seeing announcements from other oil and gas companies such as BP Plc, Total SA and Eni SpA that they want to get involved in offshore wind as well.”

That could prove useful as the sector expands.

“In Europe today, we have 23 gigawatts of offshore wind in operation. Globally, there is 29 gigawatts of offshore wind operating. So, Europe has three-quarters of the world’s capacity today,” Dickson said. “By 2030, looking at the current project pipeline and the commitments that governments around Europe have made, we expect Europe to have 106 gigawatts by 2030. The global figure we expect to be 234 gigawatts by 2030.”

Sharing Experiences

Some oil and gas companies are moving deeper into offshore wind amid the energy transition with focus on net-zero greenhouse gas emissions and cleaner forms of energy. The continued investment shows commitment to renewable energy strategies even after deep spending cuts made as the result of the coronavirus-driven slowdown in energy demand and subsequent oil price crash.

On Sept. 1, Total announced a partnership with Macquarie’s Green Investment Group to develop five large floating offshore wind projects in South Korea.

Shell is also involved in several offshore wind projects. These include several in development—the CrossWind and Blauwwind wind farms off The Netherlands and Atlantic Shores offshore New Jersey in the U.S.

Leaning on its extensive ocean engineering and project management expertise, Equinor is a clear leader in the journey into offshore wind for oil and gas players. With interests in 16 offshore wind assets, Equinor aims to grow the renewables’ share of the company’s production capacity to 4-6 GW by 2026 before ultimately boosting it to 12-16 GW by 2035.

Many of these companies are bringing offshore oil and gas knowledge to offshore wind along with their global presence.

That widespread geographical footprint could help spread offshore wind faster, according to Beate Myking, senior vice president of new energy solutions for Equinor.

In addition, “oil majors have more hands in with the supply industry, having more multi contracts,” unlike traditional offshore wind players.

“So maybe in a way we can help from the oil and gas side to develop an industry faster and in a more collaborative manner than what’s been traditionally in offshore wind,” Myking said. “Definitely, we cannot succeed alone and we are mutually dependent on cooperating with each other. And then maybe we can grow a more diversified portfolio, making us less vulnerable and have more resiliency in downturns, for example.”

Jenneke Verhoef, general manager of offshore wind for Shell, said collaboration is needed for the offshore wind industry to accomplish the scale many countries desire. In the U.S., for instance, a company developing an offshore wind farm could save hundreds of millions of dollars by using existing DC grids instead of acting on their own, she said.

“I think this is something where oil and gas has been a lot better in teaming up with an industry as such,” Verhoef said before speaking on other areas such as local content and helping support economic developments in communities where they operate. “A lot of governments are also focusing on that local content element in their auctions and so on.”

Olivier Terneaud, vice president of offshore wind for Total, added that offshore wind and oil and gas have some suppliers in common. “This is actually one of those things which surprised me arriving at Total one year ago,” he said, noting the size of the contracts, however, are smaller compared to oil and gas.

“More than pricing what is really important is the risk,” which ensures that goods will be delivered on time, according to Terneaud. “You can lose millions and millions if the boat’s not there.”

Myking added that the two sectors could build on supply chains to become more resilient together.

Reputational Risk

Companies like Shell and Equinor are already sharing good practices and knowledge when it comes to health and safety at sea, Dickson said, adding it’s also good to share experiences on community engagement.

“I think a lot of even some of the established utility operators in offshore wind would welcome that,” Dickson said. However, he questioned the oil and gas industry’s reputation as they become more involved in renewables.

“How is it in terms of the baggage and the reputation that you bring into our industry as oil and gas majors?” he asked. “Do you feel that in some countries or in some parts of the value chain, you are viewed with suspicion because of where you are coming from?”

Verhoef responded that there is no one answer to the question as different companies are perceived differently in different parts of the world.

“I think what is a disadvantage for companies like Shell, Total or Equinor is that we’re still perceived as oil and gas companies,” Verhoef said, noting a young engineer might not be willing to work for an oil and gas company anymore. “I think there’s a lot of trends in taking social responsibility and also acquiring the best talent to make the energy transition happen. That’s probably where I see a bigger reputational risk.”

Myking agreed, adding that it is important that companies engage in projects that are positive for local communities and create opportunities. “It’s definitely extremely important to be humble in the way we go to develop our industry in the transition.”

Reaching Goals

Data from the International Energy Agency (IEA) show offshore wind electricity generation increased only 20% in 2018, compared to 32% growth in 2017.

Grid-connected offshore wind capacity additions rose 40% to 5.9 GW in 2019 compared to 2018, according to a recent IEA report.

“Offshore wind annual capacity additions need to more than quadruple by 2030” to get on track with the Sustainable Development Scenario, the IEA said in the report.

There seems to be plenty of room for cross-fertilization between companies in the oil and gas industry entering offshore wind, between the utilities and oil in the offshore wind sector, and between countries in learning from the oil and gas majors how to build global supply chains, said Jon Dugstad, panel moderator and director of solar and wind for Norwegian Energy Partners.

“There will be cross-fertilization between Europe and Asia and potentially Europe and the U.S.,” Dugstad said. “And even though we are aiming to produce much in Europe, we could also learn from other areas or from other industries as we see it.”