Oil price downturn "should not affect Lerwick Harbour activity over next three years"

The Chief Executive of Lerwick Port Authority, Sandra Laurenson, believes that oil-related activity at the harbour will remain largely unaffected by the oil price downturn over the next three years. She has expressed some concern, however, about oil companies' future plans for developing more marginal fields.

Full story from The Shetland Times here: http://www.shetlandtimes.co.uk/2014/12/24/oil-price-slump-should-not-affect-harbour-activity-says-port-chief?utm_medium=twitter&utm_source=twitterfeed

Expansion underway for Lerwick's Shetland Composites after contract win announcement

Shetland Composites, based in Lerwick, is undertaking an expansion in order to enhance production and manufacturing facilities.

Fred Gibson

The company, led by Owner/Director Fred Gibson, has been awarded £69,774 from Highlands and Islands Enterprise (HIE) towards the extension to its current workshop premises on the Staney Hill Industrial Park in Lerwick.

The main areas in which Shetland Composites operates are Glass Reinforced Plastics (GRP) products such as storage containers, navigation lights, equipment for the aquaculture industry and now full size tidal machine blades. The company also specialises in bespoke requests and pioneering prototype production involving GRP.

The business has grown significantly since its move from Gremista in 2012, but there is still scope to expand on the current site. The new extension will create a temperature controlled area, dedicated ‘clean’ space for working with electronics and new office and reception area. The new extension will also increase capacity at the company, allowing it to take on more work and an additional two employees.

Fred Gibson from Shetland Composites, said: “This is a big step for us as up until now most of our work in the marine renewable sector over many years has been in the development of prototype devices. Now finally these projects are scaling up and becoming commercial viable.”

Katrina Wiseman from Highlands and Islands Enterprise said “Shetland Composites has the experience and ambition to further develop and grow out with Shetland, particularly in the energy and aquaculture markets. We are delighted to support Shetland Composites with their expansion which will further strengthen their national and international capabilities, contributing to the growth of the marine energy sector in Shetland.”

Shetland Composites has collaborated with UK and international academic institutions including the Universities of Oxford and Strathclyde. The company has a working relationship with Edinburgh Designs Ltd, a world leader in the design and production of wave tanks for research purposes, at present Fred and his team are building wave makers for projects in USA, Croatia and Ireland.

It was recently announced by the Scottish Government that Shetland Composites secured a six month contract from Edinburgh-based Nova Innovation who is developing five 100kW tidal turbines known as the Shetland Tidal Array.

The turbines, which sit more than 100ft below the waves, will be developed in two phases with commissioning of the first three devices by the end of 2015. Shetland Composites will manufacture the blades for the tidal turbines.

Scottish Enterprise and the Renewable Energy Investment Fund (REIF) are supporting Nova Innovation with £1.9 million of grant and loan funding for the tidal array project.

Shetland Composites awarded major tidal power contract

One of Shetland's most innovative companies, Shetland Composites, has won the contract to manufacture blades for a tidal array being made by Nova Innovation. The Shetland Tidal Array will be sited in Bluemull Sound between the islands of Yell and Unst and will provide sufficient power for 300 homes.

Full story from ClickGreen here:  http://www.clickgreen.org.uk/news/national-news/125304-developers-of-world%5Cs-first-tidal-array-award-contract-to-shetland-company.html

Shetland 'extremely desirable' for BP employees - SVT manager

BP's  Area Operations Manager at the Sullom Voe Oil Terminal in Shetland, Steve Cowie, says the isles are proving a very desirable posting for prospective employees. The attractions of the community have been important in attracting new skilled workers from all over the world to the isles, as BP carry out major refurbishment works at SVT and prepare for the construction of a new gas sweetening plant on site.

A new rotational working system has been introduced, offering a two weeks on, three weeks off system similar to that employed on offshore rigs and platforms.

Full details are in an article in the magazine Rigzone here: http://www.rigzone.com/news/oil_gas/a/133853/Onshore_Shetland_BPs_Sullom_Voe_Recruitment_Drive/?all=HG2

An interview with Steve will be available next year as part of a video project currently being carried out by Promote Shetland and Highlands and Islands Enterprise.

Shetland Gas Plant - exclusive pictures

Promote Shetland is in the process of making a series of films about the energy industry in Shetland for Shetland Islands Council and Highlands and Islands Enterprise. Last week saw the team meeting up with Total's Shetland Gas Plant manager Dave Wink and touring the site.

Looking down over the gas plant to Sullom Voe beyond.

Foundations for a fence!

Probably the strongest fence in the UK...

Road to riches. Beneath this track is the Laggan-Tormore gas pipeline.

Dave Wink, Shetland Gas Plant Manager, Total.

Japanese consul general checks out Shetland renewables

The Japanese consul general for Scotland and northern England, Hajime Kitaoka, was in Shetland recently to learn about Viking Energy and other wind and tidal power projects on behalf of his government.

Japan is looking to develop wind and marine renewables on a large scale to reduce its reliance on imported fuels and nuclear power, which fell out of favour after the Fukushima power station disaster in 2011.

Mr Kitaoka toured Shetland Aerogenerators’ Burradale Wind Farm and the sites of the proposed Viking Wind Farm before visiting Cullivoe to hear about North Yell Development Council’s wind farm and tidal energy projects, the wind farm proposed by Energy Isles Limited in Unst and Yell and Aquatera’s proposed tidal power bridge across Bluemull Sound. Earlier he called along SIC vice-convener Cecil Smith at the Town Hall.

From left: Angus Ward of Shetland Aerogenerators talks turbines with Mr Kitaoka and Aaron Priest of Viking Energy.

Contract awarded to Tulloch for £16.5 million Lerwick deepwater jetty

Lerwick Port Authority has awarded a construction contract for the latest expansion of the harbour’s facilities in a project costing a total of £16.5 million and which will benefit the fishing and oil sectors.

The new jetty at Holmsgarth North will provide deeper berthing and more working area for the fishing fleet, while the outer arm of the L-shaped jetty will create a dock sheltering a planned new white fish market. The outer arm will also be suitable for berthing offshore industry vessels.

Local company, Tulloch Developments Ltd, has been appointed main contractor. Site set-up will start before Christmas and the main works in the new year, with completion in autumn, 2016. Construction is expected to employ up to 50, helping to secure employment.

The design of the jetty is by civil engineers Arch Henderson LLP and they will also project manager the construction.  The jetty will extend to 800 metres, with ultimately 10 metres of water alongside.

Port Authority Chief Executive Sandra Laurenson, said: “The jetty will be a significant addition to our resources and another example of our versatile facilities. While principally benefiting the fishing industry, it will also serve the offshore sector, underlining our commitment to both.

“The latest step towards a new white fish market, Holmsgarth North will reinforce both Lerwick’s future as a leading UK fishing port and the sector’s key contribution to the Shetland economy.”

The development is being supported by funding from Bank of Scotland. David Nicolson, SME Banking Relationship Manager commented: “These improvements to Lerwick Harbour will provide a significant boost to the Shetland economy and Bank of Scotland is delighted to be investing in such an important project.

“In addition to the 50 jobs that will be created through the construction work, the investment will also be a major boost to the local fishing industry as well as the oil and gas supply chain on the island, supporting future jobs and economic growth.”

During construction of Holmsgarth North, the fishing industry will use Mair’s Quay as the berthing area for net repair and working on gear. The quay, which has brought a range of benefits to the fleet, was completed last year and will be the site for the new market, due to begin construction in early 2016.

Oil could boost Shetland economy for entire century

Hydrocarbon specialist Julian Farrar, of environmental consultants Ironside Farrar, claims oil industry “will still be a significant contributor to the Shetland economy throughout the whole of this century”.
Shetland News story:http://www.shetnews.co.uk/news/9460-oil-industry-could-be-here-until-2100-consultant

Isles groups must be connected - call from industry

 Scottish Renewables has called for all three Scottish island groups to be connected to the mainland of Scotland as part of the development of the country's energy industry in the wake of the independence referendum.

Full story from Shetland News here: http://www.shetnews.co.uk/news/9357-industry-wants-isles-connected-by-2020

Boom town: Plans for joint venture Shetland hotel take shape

Plans to tackle Shetland's desperate lack of accommodation during its energy boom have been mooted, with a joint venture planning a new hotel for Lerwick. Story in Shetland News. http://www.shetnews.co.uk/news/9145-joint-venture-could-lead-see-new-hotel-built

£21 million investment in Lerwick decommissioning

Lerwick Port Authority is to invest £12.5 million in lengthening  and strengthening the quay at Dales Voe South, aimed at attracting more of the lucrative North Sea decommissioning market, while Shetland decommissioning specialist Peterson will expand its local facilities  to the tune of £8.64 million.

Full story from Shetland News here: http://www.shetnews.co.uk/news/9115-decommissioning-cash-a-major-boon-for-harbour

Lerwick Harbour demonstrates capacity with huge tank offload while accommodating two giant support vessels

Lerwick Harbour has again demonstrated its deep-water capacity and capabilities by simultaneously accommodating two giant support vessels and the successful offloading of a 10,000 tonne subsea oil storage tank, destined for west of the Shetland Islands.

The sheltered port’s facilities and proximity to the Solan Field, being developed by Premier Oil 90 kilometres into the Atlantic, meant is was perfectly placed for final preparation of the tank ahead of installation.

The tank was delivered to the port on 26 July from the construction yard in Dubai by Cosco (Chinese Ocean Shipping) Heavy Lift’s transport vessel, Xiang Yun Kou.

One of the largest float-on/float-off vessels in the world, her displacement of 47,285 tonnes made the Xiang Yun Kou the biggest displacement tonnage ship to berth alongside at Lerwick, although not an alongside record-breaker for length and gross tonnage.  

The port was also used by Heerema’s semi-submersible crane vessel (SSCV), Thialf, which spent 1.5 days mobilising before heading for Solan on 31 July, arriving next day to await the tank for installation. It was a return visit for the world’s largest SSCV at 136,709 gross tonnes and 202 metres in length by 88 metres wide. Thialf has visited Lerwick previously, most recently last year.

With more than nine metres’ water depth, the quay at Holmsgarth met requirements for berthing the 216.7 x 43.1 metre Xiang Yun Kou, initially starboard side-on before being turned to port-side alongside to give access to shore-based cranes and allow work, including removal of sea fastenings. Local contractors, including Ocean Kinetics and Peterson, assisted Aker, Premier’s main contractor. 

On 31 July, Xiang Yun Kou moved to the Brei Wick area of the harbour to ballast down overnight in a successful operation requiring 30 metres of water to partially submerge the vessel.  The float-off early the next day involved a number of tugs, including Lerwick Port Authority’s vessels, Knab and Kebister.

Once afloat, the tank was returned to Holmsgarth quay for transfer to the ocean-going tugs to take it offshore in the first weather window.

Xiang Yun Kou deballasted and departed port later on 1 August for Suez.

The ocean-going tugs left port on 3 August with the 300,000 barrel storage capacity tank for a two-day tow to Solan where it has been successfully installed in 130 metres of water.

Lerwick Port Authority Harbour Master, Captain Calum Grains, said: “The successful handling of the Solan tank is another example of Lerwick’s ability to provide sites and support for major offshore projects. To accommodate two vessels the size of Xiang Yun Kou and Thialf simultaneously while servicing other oil and gas projects, cruise ships and daily operations is a clear demonstration of Lerwick’s scope. 

“Our investment in facilities, including a major dredging project a few years ago, is paying off for the oil industry, the port and Shetland. We continue to develop resources, with plans including further deep-water facilities.”

The £12 million dredging project, completed in 2008, deepened and widened access, deepened berths and reclaimed land now well under development. The port’s near 4,000 metres of quays, including over 1,300 metres of deep-water berthing, are backed by around 130,000 square metres of laydown. Locations suitable for off-loading operations extend to more than 50 metres water depth.

Lerwick’s continuing support for the Solan project includes Bibby Offshore’s use of the port during the installation of subsea equipment.

Drilling and production jackets for Clair Ridge field installed

The production and drilling jackets for the £4.5 billion Clair Ridge oil development west of Shetland have been safely installed.

Story from the BBC here: http://www.bbc.co.uk/news/uk-scotland-north-east-orkney-shetland-23681061

Massive Chinese lift vessel unloads cargo

The huge Chinese heavy lift vessel  Xiang Yun Kou has spectacularly unloaded her cargo, a massive oil tank for Premier's Solan Field, at Breiwick, just outside Lerwick Harbour. Watched by many onlookers, the Xiang Yun Kou effectively submerged herself to do so.

Stories and pictures  from Shetland News here http://www.shetnews.co.uk/news/8989-heavy-lifting-creates-harbour-spectacle and Shetland Times here http://www.shetlandtimes.co.uk/2014/08/01/xiang-yun-kou-gets-that-sinking-feeling?utm_medium=twitter&utm_source=twitterfeed

Original story from marinelink.com here http://www.marinelink.com/news/installation-offshore373727.aspx

Oil-related arrivals and cargo hold steady at Lerwick Harbour, though tonnage down

Increases in cargo, passengers and mackerel landings helped the Port of Lerwick achieve forecast traffic levels in the half-year to June, 2014, compared with the same period in 2013.

The total for all cargoes handled at the port rose 8%, with combined ferry and cruise passengers jumping 13.8%.

The number of vessel arrivals, at 2,230, was down 11%, mainly due to a decrease in fishing vessels – also reflected in white fish landings which declined due to bad weather in the early part of the year, vessel refits and boats on charter to the oil industry.

The tonnage of vessels at 5.5 million gross tonnes was down 10%, principally due to an expected decrease in offshore industry bulk carriers/pipe-burying vessels compared with project work last year. 

The decrease was seen in the forecast drop in oil-related vessel tonnage, down 24% to 1.4 million gross tonnes.  However, oil-related arrivals held steady, at 307, as did offshore industry cargo – at 92,135 tonnes, less than one percent down.

The total for all cargoes handled at the port rose 8% at 582,253 tonnes.

Sandra Laurenson, Lerwick Port Authority Chief Executive, commented: “The nature of offshore projects means that the scale and type of traffic fluctuate. The reduced ship tonnages were forecast and are partially offset by the long-term presence of a significant tonnage of accommodation vessels housing construction workers at the Shetland Gas Plant. The deep-water port continues to be busy supporting major development and decommissioning projects.

“The sustained high level of other offshore activity and increased cargo and passenger figures are all positives. There was a welcome boost to winter mackerel landings at the start of the year, although the autumn fishery may be more modest due to poor international markets.”

While first quarter biennial refits to the two roll-on/roll-off ferries on the Aberdeen/Kirkwall routes and bad weather which disrupted ferries and an earlier-than-usual start to the cruise season saw passenger numbers reduced during the first three months,  figures rebounded in the second quarter to deliver a 13.8% increase to 78,894 for the half year.

Ferry passengers increased by 3.5% to 60,479, while cruise passengers rose 70% to 18,415, with the 25 cruise ships calling at Lerwick up 39%.

Fish landings went up 25% on volume and 35% on value, totaling 37,091 tonnes worth £35.1 million.

White fish, at 4,676 tonnes valued at £7.1 million, was down 19% on volume and 17% on value, with the price per tonne increased by 2.7% to average £1,528 per tonne.

UK Prime Minister 'hopeful' of Westminster-Holyrood deal on subsea interconnector

UK Prime Minister David Cameron used to his visit to Shetland to state his hope for a deal between the Westminster and Holyrood Governments on a subsea electricity interconnector between Shetland the Scottish mainland, which would open up the isles' potential as a centre for renewable energy. Full story from Shetland News here http://www.shetnews.co.uk/news/8927-cameron-hopeful-of-deal-on-subsea-cable

Caithness-Moray subsea interconnector cable gets green light

Approval from energy regulator OfGem for a £1.2bn, 1.2 gigawatt  subsea electricity cable across the Moray Firth from Caithness to Moray will boost renewables developments in far north.

Story from Windpower Monthly here: http://www.windpowermonthly.com/article/1303166/scottish-subsea-wind-link-given-green-light?utm_source=twitterfeed&utm_medium=twitter

Offshore installation on £1.4bn Solan Field set to start in August

Construction and commissioning of the platform for Premier Oil's £1.4bn Solan Field development, west of Shetland, is nearing completion. Offshore installation is set to begin in August.

Full story on this and other Premier projects, including the redevelopment of the Kyle Field, in Offshore Magazine here. http://www.offshore-mag.com/articles/2014/07/solan-set-for-offshore-construction-phase.html

Viking Energy gets legal go-ahead for Shetland windfarm

The way is clear for the 103-turbine Viking Energy windfarm to go ahead on the mainland of Shetland after the Court of Session overturned a previous ruling by Lady Clark that the Scottish Government's granting of permission contravened the European Birds Directive.

Full story from Shetland News here http://www.shetnews.co.uk/news/8850-court-rules-in-viking-energy-s-favour

The possibility of an appeal to the European Court of Justice remains for anti-windfarm group Sustainable Shetland.

Statement from Viking Energy:
         
Three of Scotland's top judges have today ruled that Viking Energy should keep its government consent to build a 103-turbine wind farm in Shetland.

Lord Brodie delivered the Opinion of The Inner House of the Court of Session that the consent application was competent, that Scottish ministers acted lawfully in issuing the decision letter and there was no breach of the EU Birds Directive.

Viking Energy Shetland chairman Alan Bryce said:

“We are pleased that the judges have found in favour of Scottish ministers, who awarded consent to build the wind farm more than two years ago. Their decision has been vindicated today and we can now move on.

“We believed the consent decision would stand up to the closest scrutiny and this outcome validates our position that this project can benefit the local and wider environment.

 “The potential for substantial economic and environmental benefits for Shetland means that Viking Energy is in this for the long haul and we continue to look forward to advancing our plans to build what could become the world’s most productive wind farm and a crown jewel of Shetland’s economy.”

The full court judgment can be read here.

More Total workers mean new liner. Edradour field full speed ahead.Total buy into Glenlivet

TOTAL has announced that a further 1000 welders and pipe fitters will be brought in to finish its £800m gas plant at Sullom Voe, Shetland, bringing the workforce to 2500. Another liner is sailing north to accommodate the extra workers, joining the various floating accommodation units, former cruise ships, crammed hotels  and temporary hostels currently sited in the isles. First gas is now expected to flow by the end of 2014.

When the cruise ship Gemini arrives next week, Lerwick Harbour will have six floating accommodation units moored.

Total has announced too that it will develop the Edradour field, which will feed gas to the new Laggan-Tormore pipeline and the gas plant at Sullom Voe. Total is partnered by the Danish company DONG Exploration and Production, with which it is also involved in the Glenlivet field. Total has just bought a 60 per cent stake in Glenlivet.

Full story here from Shetland News.http://www.shetnews.co.uk/news/8810-final-push-to-complete-gas-plant

Governments promise isles interconnector "irrespective of referendum result"

The Westminster and Holyrood governments have jointly committed themselves to connecting Shetland to the UK power grid, no matter what the result of the September referendum on Scottish independence.

At a meeting in Glasgow UK energy secretary Ed Davey and Scottish energy minister Fergus Ewing reaffirmed both governments' commitment to 'interconnectors' which would make major renewables projects on the isles viable. The total cost is likely to be around £1.5 billion. Shetland's connector alone will be about £600 million.

Full story from Shetland News here: http://www.shetnews.co.uk/news/8769-governments-make-grid-connection-top-priority

Lerwick hits half-century of oil related work

This week marks a milestone for Lerwick Harbour in its involvement with the North Sea oil and gas industry.

Fifty years ago, two seismic survey ships operating east of Shetland sought shelter in the port - and they are believed to have been the first oil-related vessels to call at the start of Shetland's transformational and ongoing relationship with the industry.

1964: The Dutch seismic survey ship Runmond III

The Shetland Times of Friday 3 July 1964 reports that vessels, Cedar Creek from the USA and Runmond III, from Holland, surveying for Western Geophysical on behalf of a British ‘petroleum’ company, had been stormbound in Lerwick the previous weekend (27-28 June). They later headed for Norway.

This year also marks the 50th anniversary of the UK Government’s passing of the Continental Shelf Act, the First Round of Licensing of blocks for exploration and the first well drilled.

The first wells were drilled east of Shetland in 1971 and a first well to the west in 1972. The impetus for a major role for Lerwick Harbour came in the 1970s with the development of East Shetland Basin fields, including Brent and Ninian.

Lerwick Port Authority Harbourmaster, Captain Calum Grains, explained: “Oil-related vessels weren’t recorded separately from general ships through the 1960s. Only with increasing activity in the ‘70s were they categorised and counted by their types.

“Research by our staff and recollections from the then shipping agent at Hay & Co led to these two vessels which are believed to be the first oil-related ships into Lerwick.

“By way of comparison, Cedar Creek, at 151 gross tonnes, is around the size of the port’s current vessel, Kebister. The then fairly new stern trawler, Runmond III, at 241 gross tonnes, is comparable to a modern local white-fish vessel. Seismic ships now calling at Lerwick can be significantly larger - some Ramform vessels weigh in at over 10,000 tonnes.”

Since oil vessels were first categorised in the port’s records in the 1970s, around 40,000 have called at Lerwick which developed as a leading support centre.

Captain Grains added: “No-one could have guessed then what these two vessels heralded for Shetland in oil and gas activity and the impact on the economy and community over the next five decades. Or that, 50 years on, development would still be continuing onshore and offshore, with years of production to come – and that we would still be investing in the port to make the most of more new opportunities.”

2014: The Ramform Challenger

The offshore industry is a major beneficiary of investment by the Port Authority which is proposing to spend another £30 million-plus in the next few years. Development over the decades means Lerwick now has almost 4,000 metres of quay, including over 1,300 metres of deep-water berthing, and 130,000 square metres of laydown.

Future capital projects will include another 1,800 metres of quay.

The "Shetland Tidal Array": Five 100kw tidal turbines confirmed for Blouemull Sound

 Following the successful deployment of the world’s first community owned tidal turbine in Shetland, Nova Innovation (Scotland) and ELSA (Belgium) have secured funding to build the Shetland Tidal Array – potentially the world’s first in-sea tidal array.

 The £3.75M investment package supported by Scottish Enterprise will deliver this pioneering project and accelerate the growth of new projects across Europe. The partnership draws together pan-European partners and brings significant inward investment to Scotland.

 The array project will see further development of the existing Bluemull Sound site in Shetland with the deployment of a further five 100kW devices and will be developed in two phases with commissioning of the first three devices by the end of 2015.

 Energy Minister Fergus Ewing welcomed plans for the 0.5MW Shetland Tidal Array saying:

 “ELSA’s decision to invest in Scotland is a testament to the confidence felt by international investors to help develop the huge wave and tidal energy resources from the waters around the Scottish coast. The Scottish Government and its agencies will do everything we can to ensure Scotland benefits from the significant economic opportunities the renewables industry presents.”

 Olivier Bontems, Managing Director of ELSA (IDETA), said:

 “The partnership between ELSA (IDETA) and Nova Innovation contains all the fundamental elements of a successful partnership: dedicated partners; commitment to the development of renewable energy; strong innovation in GreenTech; and co-operation across European regions. We are very proud to be part of this project and to contribute to the development of green electricity in Shetland and Scotland.”

 Simon Forrest, Managing Director of Nova Innovation, said:

 “This partnership agreement will accelerate Nova Innovation’s technology development; help secure the company’s Scottish manufacturing base and expand the integrated supply chain here in Shetland and Scotland. The pan-European vision of the partnership will open up export markets and deliver real growth for the marine energy sector.”

 Seonaid Vass, director of renewables and low carbon technologies at Scottish Enterprise, said:

 “Scotland is leading the world when it comes to innovation in wave & tidal energies - and Nova's continued success is a real testament to the strengths in the sector. Seeing this tidal technology developed into in-sea tidal arrays is a significant step forward for the industry, and we will be working closely with Nova to support its work in this and other potential projects."

Shetland Times story here: http://www.shetlandtimes.co.uk/2014/06/15/turbine-array-announced-for-bluemull/

£500m Shetland gas sweetening plant gets planning permission

BP's £500m gas sweetening plant at the Sullom Voe Oil Terminal in Shetland has received planning permission from Shetland Islands Council.

Also to be used by Total, which is close to completion of its own massive gas plant on an adjoining site, the BP project will take  three years to build, employing 500 workers. 

It is expected to last 25 years and will employ around 33 full-time workers when fully operational.

Full Shetland Times story here: http://www.shetlandtimes.co.uk/2014/06/11/approval-for-550-million-gas-sweetening-plant/

World first for Shetland as community-owned seabed turbine feeds local grid

A seabed tidal turbine off the island of Yell in Shetland has become the first in the world to feed electricity to a local grid. It will power 30 homes, an ice plant and a small industrial estate.

Full BBC story here: http://www.bbc.co.uk/news/uk-scotland-north-east-orkney-shetland-27490726 

Viking Energy response to Government consultation on island wind power

The UK government is proposing a further incentive for Scottish island wind power projects like the Viking Wind Farm because their success could cut costs for the renewables industry and help it diversify. In a consultation launched this week the Department of Energy & Climate Change (DECC) says “considerable longer term benefits” could flow to the renewable energy sector from “new and innovative technologies” delivered by projects in Shetland, Orkney and the Western Isles. Specific benefits pinpointed include: Knowledge gained from use of large-scale turbines onshore for the first time to generate maximum electricity from windy locations; [1] Expertise developed from using multi-terminal undersea high-voltage direct current cabling (HVDC) could cut costs for future electricity interconnectors, including links from offshore wind farms and across the EU; Infrastructure put in place to support future wave and tidal stream projects in the islands. DECC says island wind projects combine factors which make them “unique within the UK” with expected high transmission costs, high load factors from the abundant wind and the potential for large projects to “make a major contribution to the UK’s renewable generation targets in the immediate and the longer term”. The consultation document Electricity Market Reform: Allocation of Contracts for Difference states: “We propose to continue to treat wind generation on the Scottish islands as a new and innovative technology, distinct from onshore wind located elsewhere in the UK.” [2]  To help ensure projects like Viking Wind Farm go ahead, DECC proposes shielding island wind developers from direct competition for government support under the Contracts for Difference (CfD) regime, which will apply to new renewables projects coming onstream from 2017. More “established” technologies, like mainland-based wind farms and solar photovoltaic installations, will compete with each other for generation incentives. But DECC proposes that island developers sit in a separate technology grouping of their own or with “less established technologies”, such as offshore wind, wave and tidal stream power. The UK and Scottish governments have already agreed to tackle the extra costs and challenges of developing wind power in the Scottish islands by backing an enhanced island “strike price”. This would guarantee a payment of £115 per megawatt-hour (MWh) under the CfD regime. Commenting on DECC’s new consultation, Viking Energy development manager Aaron Priest said: “We are encouraged by the launch of this consultation which is extremely welcome for Viking Energy and other island renewable developers. It is increasingly clear that both the UK and Scottish governments are fully committed to getting the islands connected, paving the way for Shetland to reap the benefits that the Viking project will bring. “Another valuable part of that process took place in Shetland this week with a two-day visit from National Grid which had constructive talks with Viking Energy on the interconnector link to the Scottish mainland and visited the proposed wind farm site.” The full DECC consultation document can be read here.

Isles could benefit from special wind farm classification

Shetland could benefit from UK Government proposals to classify renewable developments on Scottish island groups as a separate "technology group" to the rest of the onshore industry. 

Consultation has begun on new proposals which could shield Shetland, Orkney and the Western Isles projects from mainland competition for allocations under the 'Contracts for Difference' system.
Full story here: http://renews.biz/66477/island-wind-freed-from-mainland-rivalries/

Lerwick Harbour development continues with new jetty construction

The fishing industry will be the main beneficiary of the next major project in the continuing development of Lerwick Harbour where the construction of a large new jetty at Holmsgarth North is due to begin in the third quarter this year.

It will provide deeper berthing and more working area for the fishing fleet, while the outer arm of the L-shaped jetty will create a dock sheltering a planned new white fish market. The outer arm will also be suitable for offshore industry vessels.

Extending to over 630 metres, with ultimately 10 metres of water alongside, the Holmsgarth North project is scheduled for completion, at an estimated cost of £17 million, at end 2015.

It will be followed by the construction of the market, timetabled to start in early 2016 at Mair’s Quay.  The quay was completed last year and has already brought benefits to the fleet.  It will be the berthing area used for net repair and working with fishing gear during the construction of the large new jetty.

Sandra Laurenson, Lerwick Port Authority Chief Executive, said: “The commitment by the Port Authority to develop these next projects for the fishing industry will secure Lerwick as a leading fishing port in the UK and complement the excellent service provision for the fleet available here in Shetland.  The main economic driver for this community is the marine sector and by meeting the requirements for fish landings in the future, that economy can flourish.”

The positive approach by the Port Authority is underlined by increased fish landings. Latest figures, for the first quarter, show a total of 32,577 tonnes landed, valued at £33.14 million, up 40% on tonnage and 57% on value compared to the same period in 2013.  

                                                                                          

Oil-related shipments up 60% at Lerwick Harbour

MIXED FORTUNES AT LERWICK HARBOUR IN FIRST QUARTER

Increased cargo but fewer passengers

Lerwick Harbour recorded strong performances across various key sectors in the first quarter of this year, compared with the same period in 2013. However, seasonal factors impacted negatively on passenger traffic in particular.

• Cargo across the near-4,000 metres of quays increased 19% to 282,060 tonnes.

• It included 43,388 tonnes of oil-related shipments, up 60% due to movement of heavy items, such as offshore anchor chains, and increased supplies.

• Fish landings totalled 32,577 tonnes, valued at £33 million – up 40% on volume and 57% on value.

Bad weather in the North Sea hit the scheduled month-early start to the cruise season, with only one of three vessels due in March reaching Lerwick, bringing 609 passengers. With the combination of January’s poor weather conditions and biennial refits for the two roll-on/roll-off ferries on the Aberdeen/Kirkwall routes reducing sailings, the overall passenger total was down 11% at 18,532.  

Lerwick remained open during the severe weather, attracting a large increase in offshore-related supply and standby vessels. With twice as many supply vessels, the number of offshore vessels was up by 13% to 137, but the tonnage of offshore ships, at 553,550 gross tonnes, was down 16%, with fewer large construction vessels early-year.    Overall ship arrivals for the quarter were down 5% to 913, with the tonnage down 15% at two million tonnes. 

There were 286 pilotage movements during the period – up 10%, with the 1.2 million gross tonnes of vessels piloted down 21%.

White fish landings totalled 2,261 tonnes, valued at £3.4 million – down 5.7% on volume and up 4.8 % on value, with the price per tonne up 11% to average £1,528 per tonne.

In the pelagic sector, winter mackerel landings were substantially up in volume and value, with landings extending well into February. However, autumn 2014 mackerel landings are uncertain, with the large increase in available quota coinciding with what is expected to be a weak market, such as in Ukraine, Russia and Nigeria.

Sandra Laurenson, Lerwick Port Authority Chief Executive, said: “The January gales meant an unusual start to the year, but with spring here, the cruise and offshore construction seasons are underway.  While 2013 will be a hard act to follow for activity, we have two new berths available since this time last year.  Combined with new laydown sites becoming operational soon, Lerwick has plenty of capacity for offshore projects. Healthy cargo traffic and sustained fish landings are underpinning our next developments, scheduled for later this year.”

Oil wealth-fuelled Shetland independence would be 'too greedy' - council leader

BBC Scotland's business and economy editor, Douglas Fraser, has been told by Shetland Islands Council political leader Gary Robinson that it would be 'too greedy' for Shetland to go for independence from either Scotland or the UK, funded by its hydrocarbon income.

Full story here:

http://www.bbc.co.uk/news/correspondents/douglasfraser/

100 jobs to be created at Sullom Voe by BP

A £600m investment by BP at Sullom Voe in Shetland will see 100 new jobs created.
BBC story here http://www.bbc.co.uk/news/uk-scotland-north-east-orkney-shetland-27070041

New gas sweetening plant and reorganising of workforce rota system on 'offshore' basis, aimed at attracting specialised skills from outside the isles.

Shetland Times story here: http://www.shetlandtimes.co.uk/2014/04/17/boom-time-again-at-sullom-voe/

Shetland "quite smart at avoiding busts and troughs"

BBC Scotland business and economy editor Douglas Fraser was in Shetland last week and has produced reports in various media on the busy and buoyant economy her found. He looked at oil and gas, renewables, decommissioning, new dimensions in the Shetland fiddle, and seafood

His BBC blog is here

http://www.bbc.co.uk/news/uk-scotland-26903854

The Business Scotland BBC Radio Scotland report is on iPlayer for seven days from broadcast (05/04/14) here

http://www.bbc.co.uk/programmes/b03zqlz4

New Arctic sea passage could make Shetland shipping hub

Arctic ice-melt could lead to new 'North-East Passage' and need for a container port in Shetland, says Professor Chris Harvie in wide-ranging piece for Scottish Review.

http://www.scottishreview.net/ChrisHarvie150.shtml

Also tackles renewable energy and North Sea decommissioning.

Seaweed energy? Shetland project could provide fuel for future

Cultivated Shetland seaweed could provide a fuel for the future both in the isles and as an export, according to a scientist from the North Atlantic Fisheries College (NAFC)Marine Centre in Scalloway.

 A Coastal Communities Fund grant of £290,000 has been awarded to the centre for a project aimed at developing local seaweed cultivation. 


Full story from The Shetland Times here. http://www.shetlandtimes.co.uk/2014/03/12/290000-to-develop-seaweed-growing/

Major local windfarm initiative for Yell and Unst

A windfarm of up to 200MW could be built across the islands of Yell and Unst, after 18 local companies formed a united front aimed at capitalising on the proposed 300km interconnector between Shetland and Scotland. The 'Energy Isles' project could bring 'jobs, money and community benefit, according to one of those involved. Full story from The Shetland News here. http://www.shetnews.co.uk/news/8060-firms-plot-big-windfarm-in-yell-and-unst

Imminent appeal hearing on Viking Energy - legal update and Trump implications

A legal update from law firm Bond Dickinson on the Viking Energy planning situation, the recent decision on Donald Trump's appeal against the offshore wind farm near his Mennie golf development, and the looming Court of Session hearing of the Scottish Government's appeal against the Judicial Review on the Viking development. http://www.lexology.com/library/detail.aspx?g=bd73cd8f-4bcd-445c-a5b3-f34a011c83ff

Bright forecast between Met Office and North Sea oil and gas industry

Oil & Gas UK health & safety director Robert Paterson says weather data reports, obtained from over 104 oil and gas platforms and mobile installations across the North Sea in real time, enable forecasters to predict and analyse weather patterns more accurately and provide bespoke  forecasting advice.  “Helimet is an internet-based weather data network originally designed to share data between UK offshore installations and helicopter operators. This collaboration is a great example of how cutting edge data technology, driven by the oil and gas industry can be of great value to other areas.” Mr Paterson said.  Helimet uses a network of automated weather stations located on offshore oil and gas platforms and mobile installations. They provide detailed reports of cloud, visibility and weather and in some instances, information of wave conditions. These data are fed into a network allowing more accurate definition of the weather across the North Sea, an area prone to adverse weather conditions.   “The safety of the offshore workforce is the absolute priority for the offshore oil and gas industry. Up to date and accurate weather forecasting allows the managers of installations in the North Sea to operate in a safe environment and the helicopter pilots to fly as safely as possible.“ He added.  CHC Helicopter’s regional flight operations manager Jon Hopkinson says tracking and evaluating weather is critical to the helicopter operator’s daily operations. “This system provides up-to-the-minute weather data. This analysis is an important part of the thorough flight planning each pilot does before every flight, across all of our UK operations.” Mr Hopkinson said. Met Office Metocean Advisor John Mitchell says data from Helimet makes a significant contribution to the Met Office’s ability to accurately monitor and provide weather advice.  “Accurate guidance is critical to the safe and efficient operation of not only the oil and gas industry but also the wider offshore renewables, shipping and aviation activity. In addition, coastal communities will benefit through the more accurate analysis of wave activity and potentially damaging surge events as recently experienced along the east coast of England.” Mr Mitchell said.

Oil and gas traffic increases at Lerwick Harbour

The oil and gas industry has continued to take full advantage of Lerwick Harbour’s expanded deep-water infrastructure which helped attract increased traffic in 2013.

The number of oil-related vessels calling jumped 9.6% to 683, compared to 2012, with the tonnage up 28% to 3.8 million gross tonnes and the cargo handled by 36% to 189,090 tonnes.

There was a total of 5416 vessel arrivals last year, up 4.9%, with the tonnage of all ships ahead by 5.5% to 13.2 million gross tonnes.

Use of the port by larger vessels is again demonstrated by pilotage movements, up 7.6% to 1502, with 10.2 million gross tonnes of vessels piloted, up 5.3%.

Total cargo across the port’s near-4,000 metres of quays rose by 17% to 1,169,108 tonnes.

Sandra Laurenson, Lerwick Port Authority’s Chief Executive, said: “In a very busy year, our investment in enhanced facilities again paid off. On top of regular traffic, the port handled various projects demonstrating the capacity of the deep-water harbour, including storing and transhipping modules weighing up to 450 tonnes for the Shetland Gas Plant and accommodating several floatels housing construction workers.

“The outlook is positive for the foreseeable future and we are progressing further developments to maximise the opportunities in various sectors.”

Fish landings totalled 66,745 tonnes, valued at £62.5 million, up 8.6% on volume and 23% on value.

The 10,940 tonnes of white fish were valued at £17 million, up 14% on volume and 9.3% on value, with the price per tonne down 4% to average £1,553 per tonne. In the pelagic sector, mackerel landings increased and there were no blue whiting and less herring landed.

Passengers on ferries between Lerwick and Orkney and Aberdeen increased 7% to 133,028 in 2013. As previously reported, cruise passenger numbers decreased - by 29% to 26,684 – resulting in a minor reduction of 0.85% in total passenger numbers to 160,445.

Ms Laurenson said: “The cruise season was affected by one-off factors relating to specific operators. Bookings for this year indicate a strong recovery, with around 46,000 passengers expected.”    

Shetland Islands Council goes for biomass at Sella Ness

Shetland Islands Council's port administration building at Sella Ness, next to one of Europe's biggest oil and gas terminals, Sullom Voe, will be heated by wood pellet boilers supplied by Windhager UK. Full story from Specification Online here: http://specificationonline.co.uk/news-article/6017/windhager-shetland-islands-council-chooses-windhager-uk-biomass-boilers

Another accommodation barge could avert Sullom Voe strike threat

Solution to the threatened strike at the Sullom Voe gas plant construction could be on the cards, says The Shetland Times - if yet another floating accommodation unit can be brought to the isles.

http://www.shetlandtimes.co.uk/2014/01/15/concrete-solution-offered-in-gas-plant-dispute/

Shetland and Orkney must be leaders in renewable energy - Carmichael

Scots Secretary and Northern Isles MP Alistair Carmichael has called for more to be done to ensure that Orkney and Shetland become international leaders in renewable energy. Report in Shetland News here.

BP looking at further massive investment west of Shetland

BP could invest  "easily" several hundred million pounds in a third phase of the Clair development west of Shetland, according to Dave Lynch, a key member of BP's North Sea management team, says The Herald. http://www.heraldscotland.com/business/company-news/bp-eyes-major-new-shetland-investment.22922496