Burradale wind farm owners build new 3MW turbine on former SSE site

A family-owned firm has erected a large wind turbine on a site in Shetland acquired from energy giant SSE.

 Shetland Aerogenerators, operators of the 15-year-old Burradale Wind Farm, one of the most productive in the world, has put up a 3MW Enercon machine at Luggie’s Knowe near Lerwick. The tower, generator and blade sections were lifted into place by a 750-tonne Liebherr crane with a reach of 85m. The crane was transported to Shetland by the German turbine manufacturer specially for the lift. Commissioning work and grid connection will follow.

 With a tip height of 121m, the Enercon E-82 E4 is Shetland’s largest so far. The Viking Energy project has planning approval for slightly larger 3.6MW machines. Shetland Aerogenerators took over the development from SSE. Commercial funding for the project was arranged with Lombard Finance.

 The power from the turbine will be exported through SSE's Active Network Management system, which was introduced as part of the NINES (Northern Isles New Energy Solutions) project. NINES is designed to let more renewable sources feed in to the local electricity grid.

 Shetland Aerogenerators managing director Angus Ward said:

“We originally thought the project could only be built out next year but thanks mainly to the goodwill of SSE we've been able to bring everything forward. “The Enercon is a highly sophisticated machine which will continue producing clean electricity even in high wind conditions.”

 Director David Thomson added that the civil works, including excavations, construction of the access road and pouring of the concrete base, had been very ably carried out by local firm Garriock Bros while Orkney firm Bryan J Rendall is doing the specialist electrical works.

 “It’s very exciting and satisfying to see the project, which we've been working on for the past year, come to fruition and now we can look forward to the commissioning phase.”

SSE buy 20% share in Laggan-Tormore gas project, including gas plant

SSE, already 50% partners in Shetland's Viking Energy windfarm project, has invested in 20% of Total's Laggan-Tormore gas project, taking in four offshore gas fields and the new gas plant in the isles. Shetland News story here: http://www.shetnews.co.uk/news/11118-sse-buys-stake-in-new-gas-plant

Shetland Times story here: http://www.shetlandtimes.co.uk/2015/07/29/sse-confirms-20-per-cent-investment-in-gas-fields

Base of new Bluemull Sound tidal turbine arrives in Unst.

The base of one of Nova Innovation's  100 kw tidal turbines, part of the 'Shetland Tidal Array' has arrived at Belmont in Unst. It will be sited in the fast-flowing waters of Bluemull Sound between the Shetland islands Unst and Yell, sitting alongside the world's first community-owned tidal turbine, installed by Nova last year for the North Yell Development Council. The blades of the entire five-turbine array are being manufactured by Lerwick company Shetland Composites.

First Clair Ridge topside modules safely installed west of Shetland

BP and its partners ConocoPhillips, Chevron and Shell have confirmed the safe installation of the new Clair Ridge platform’s quarters and utilities (QU) topside modules, a major milestone in the Clair Ridge project.

The QU platform comprises three modules – the quarters and utilities integrated deck (QUID) which has a lift weight of 9,400te; the power generation (GM) module which has a lift weight of 4,550te; and the living quarters (LQ) module which has a lift weight of 2,210te. They were safely lifted onto the pre-installed jackets by the Heerema Thialf heavy lift vessel.

The hook up and commissioning of these modules has created over 600 jobs, including six electrical apprentices, all of which have recently been recruited through Amec Foster Wheeler.

Clair Ridge is a multi-billion investment in the second phase of development on the Clair field which lies 75km to the west of the Shetland Islands. The project comprises two new bridge-linked platforms and new pipeline infrastructure to connect storage and redelivery facilities on Shetland. The next major milestone will be the installation of the production and drilling (DP) platform topside modules, scheduled for summer 2016, with production expected to commence in late 2017.

Trevor Garlick, Regional President for BP’s North Sea business said: “The safe installation of these three topside modules is a fantastic achievement by the project team. In a challenging time for the industry, this project shows the potential of our basin and why it is so important that we work to ensure a competitive future business.”

Approximately half of the Clair Ridge investment is occurring in the UK, with over 80 British companies providing engineering design and support service, hook-up and installation services, manpower and a wide range of engineered equipment.

The Clair Ridge development will have the capability to produce an estimated 640 million barrels of oil over a 40 year period, with peak production expected to be up to 120,000 barrels of oil per day.

Clair Ridge is the first sanctioned large-scale offshore enhanced oil recovery (EOR) scheme using reduced salinity water injection (LoSal^® EOR) to extract a higher proportion of oil over the life of the field. To reduce the environmental impact of the project, the platforms will be powered using dual-fuel power generators, incorporating waste heat recovery technology. Vapour recovery will also be used to capture and recycle low pressure gas for use as fuel or for exporting to shore.

First Laggan-Tormore gas by September: Petrofac statement

The Shetland gas plant being built for Total's Laggan-Tormore Project will have gas flowing into it by September, according to a trading update by contractors Petrofac.

The company say: "Construction activities on the Laggan-Tormore project are substantially complete; we are now busy with final completion and pre-commissioning-related activities and our focus remains on delivering first gas in Q3 2015; additional completion and pre-commissioning works are expected to lead to incremental pre-tax costs of approximately £30m; deferred tax asset recognised in respect of tax losses on the project of approximately £20m."

Full Petrofac statement here:http://www.petrofac.com/media/news/2015/june/23/trading-update.aspx

Shetland News story, with background, here: http://www.shetnews.co.uk/news/10916-petrofac-hopeful-of-first-gas-by-end-of-summer

UK Government windfarm subsidy change will not affect Shetland projects

The much-discussed change in subsidy provision for onshore windfarms will not affect major projects planned for Shetland, including Viking Energy.

Shetland Times stort here: http://www.shetlandtimes.co.uk/2015/06/18/renewable-subsidy-change-will-not-affect-isles

Shetland Islands Council publishes local Marine Spatial Plan

Shetland Islands Council has published the Shetland Islands Marine Spatial Plan as the first Supplementary Guidance to the new Local Development Plan.

The Marine Spatial Plan provides policy guidance for all types of marine activity around Shetland’s coastline, such as fishing, aquaculture, oil and gas, marine renewables, transport and recreation. The plan also shows where opportunities for sustainable marine development exist and where constraint is required, aimed at reducing conflict between those who use the marine environment.

The Scottish Government has just published its first National Marine Plan, providing an overall national policy marine activity. The next step is to produce Regional Marine Plans and Shetland is one of the first regions in Scotland to begin work on this, along with the Clyde area. The Shetland Islands Marine Spatial Plan has received favourable comments from a number of UK and European authorities for the processes involved in its formation and for the level of detail contained in the document.

Councillor Alastair Cooper, Chair of the Development Committee: “I am delighted to see the Marine Spatial Plan adopted as the Council's policy guidelines for marine development and resource use. Shetland has always been aware of the importance of the seas around our Islands and this Plan will ensure that that continues to be the case. Once again Shetland is a beacon for the rest of Scotland”.

The Shetland Islands Marine Spatial Plan can be viewed or downloaded at:http://www.shetland.gov.uk/planning/documents/SIMSP_2015.pdf (PDF file, 16.7Mb)

Total gas plant 'complete by summer' as more accommodation vessels arrive

- Total: gas plant completed "by end of summer"

Shetland News story here: http://www.shetnews.co.uk/news/10508-gas-plant-will-be-complete-in-summer-total-insists

- Petrofac blames weather and industrial action for gas plant hold ups

Shetland New story here: http://www.shetlandtimes.co.uk/2015/04/20/petrofac-blames-losses-on-gas-plant-delays

Million pound Bluemull turbine gets £573,000 Holyrood funding

A revolutionary tidal turbine to be sited in Bluemull Sound between Yell and Unst is to receive Scottish Government funding of £573,000 towards the £1m cost of development and demonstration . Nova Innovation has been awarded the cash to develop and demonstrate  a direct-drive tidal turbine under the latest competitive WATERS funding round. The innovative direct-drive generator will increase the efficiency and reliability of tidal turbines, reducing the cost of energy by 20%, and increasing the commercial returns available to Nova Innovation’s customers. Nova developed the world’s first community-owned tidal turbine in 2014 at North Yell in Shetland and will test the technology associated with the WATERS award at its consented site in Bluemull Sound, Shetland.

Welcoming the announcement Energy Minister Fergus Ewing said: “The Scottish Government and its enterprise agencies are working hard to ensure that small and medium-sized businesses in Scotland are well placed to take advantage of the opportunities presented by the low-carbon economy.

“WATERS is designed to foster a culture of innovation and research and development ... I am determined that we make the most of the clean, secure and abundant energy stored in the waters around our coasts and [the WATERS award winners] are developing pioneering technologies to help us do that.”

Welcoming the awards, Maggie McGinlay, director of energy and clean technologies at Scottish Enterprise said: “Scotland is playing a key role in the development of marine energy at a global level, with the sector offering significant opportunities for our companies.

“By taking key technologies to the next stage of commercial exploitation, this latest round of WATERS funding will help create more opportunities and support the growth of the sector.”

Calum Davidson, Director of energy and low carbon at Highlands and Islands Enterprise, added: "We welcome the announcement of the WATERS 3 funding and warmly congratulate each of the successful companies. The Highlands and Islands already boasts an enviable international reputation in the development of marine renewable energy. This is underlined by today’s announcement of another company investing in our region and offering significant supply chain opportunities."

Simon Forrest, Managing Director of Nova Innovation, said: “Nova Innovation is committed to driving down the cost of tidal power through innovation. Our direct-drive generator is more reliable and efficient than a conventional geared drive train; this increases the energy generated by our turbines and reduces operating costs. The impact is a 20% reduction in lifetime cost of energy and increasing commercial return for our customers.

“This product was originally developed with the help of a Scottish Enterprise SMART award, and has benefited from a Scottish Enterprise funded Knowledge Exchange partnership with the University of Edinburgh. This as an excellent example of public funding in Scotland supporting Scottish companies to bring innovative ideas from the drawing board to the market.”

WATERS 3 is a collaborative venture between Scottish Enterprise, Scottish Government and Highlands and Islands Enterprise.

Story from Shetland News here: http://www.shetnews.co.uk/news/10389-revolutionary-tidal-turbine-for-north-yell

Total get Government go-ahead for Edradour and Glenlivet

Total has been given official permission by the UK Government to develop the Edradour and Glenlivet gas fields in the North Sea and connect them to its Laggan-Tormore pipeline.

Full story from Shetland News here: http://www.shetnews.co.uk/news/10376-new-gas-fields-to-come-on-stream

New developer for proposed Yell windfarm

Manchester-based Peel Energy has taken over the rights to the proposed Beaw Field wind farm near Burravoe in Yell from German company Enertag, reports The Shetland News.

Some changes have been proposed in the siting of the 20-turbine development.

Full story here: http://www.shetlandtimes.co.uk/2015/03/16/new-developer-for-yell-windfarm-project

FT story - Total will auction 20 per cent stake in Laggan Tormore

According to a story in The Financial Times, Total is preparing to auction off just a 20 per cent stake in its Laggan-Tormore development, and would continue to operate the field, including the gas plant in Shetland.

Full story here: http://www.ft.com/cms/s/0/9c00e9ec-c982-11e4-b2ef-00144feab7de.html#axzz3UUKHsDap

Total to sell Laggan-Tormore for £1 billion - Reuters report

French energy giant Total is planing to sell its Laggan-Tormore gas field, according to the news agency Reuters, quoting 'banking sources'. The gas plant associated with the field is still under construction at Sullom Voe in Shetland and is due to be completed by contractors Petrofac by the end of September, several months behind schedule.

Reuters report that Total will seek around £1 billion for their 80 per cent stake in the field. Development costs for Laggan-Tormore are thought to be approximately £3.5 billion.

Total has refused to comment.

Full Reuters story here: http://uk.reuters.com/article/2015/03/11/total-northsea-idUKL5N0WD3V820150311

Petro Global News follow up here: http://petroglobalnews.com/2015/03/report-total-mulling-sale-of-laggan-tormore-field/

Total gas plant 'completed by end of September' - new accommodation ship arrives, 2000 staff on site

The Laggan-Tormore Total gas plant contract at Sullom Voe will be completed by the end of September, according to a spokesman for Petrofac.

The company now has five floating accommodation units in Shetland - three barges and two liners. The latest, former cruise ship SNAV Toscana, arrived in Lerwick at the weekend. An incoming workforce of 2000 is now involved in the project.

Full story from The Shetland Times here: http://www.shetlandtimes.co.uk/2015/03/07/new-accommodation-ship-arrives

New start date for BP gas sweetening plant in Shetland

Work by contractors Petrofac on constructing BP's new £500m gas sweetening plant at Sullom Voe in Shetland will begin six months later than scheduled, in early 2016. Clearance of the 16 hectare site will begin later this month and BP say the delay will let the company take advantage of improved weather and actually speed up completion.

BP has been looking at rescheduling some capital projects due to the oil price crash.

A BP spokesperson said:

“This helps us to reset the project to better weather windows. That will reduce the project time, which is beneficial and allows us to look at the project again to make sure it is as efficient as it can be. Everyone is looking at  capital projects and seeing where we could benefit from slowing down."

Story from The Shetland News here.

Shetland - the place to be. New film about oil and gas activity in the isles

A new film looking at Shetland's capabilities when it comes to oil and gas exploration and production in the North Sea and North Atlantic. More films soon about decommissioning and renewables.

Lerwick Harbour defies North Sea gloom to announce £12m quay contract

Plans for significant further expansion of Lerwick Harbour’s extensive deep-water facilities for the offshore oil and gas industry have advanced with the award of a major contract to extend the quay at Dales Voe South to support subsea developments and decommissioning.

Lerwick Port Authority has commissioned the Scottish business unit of civil engineering contractor BAM Nuttall as main contractor for an £11.95 million investment to lengthen the quay to 130 metres. Part of the Dutch construction group Royal BAM, BAM Nuttall specialises in complex marine construction, with a strong track record working around Scotland and on the Western and Northern Isles.

Lerwick has been servicing the offshore industry for over 50 years and now also has an established reputation as a location for decommissioning. The extended quay will provide deep-water, versatile berthing and heavy load capacity to take an offshore structure in a single lift, with a substantial, expanded laydown area.

Captain Calum Grains, Port Authority Deputy Chief Executive and Harbourmaster, said: “The contract marks an important step in further developing Lerwick’s role as a leading centre of offshore industry operations. Dales Voe South is another value-added expansion and reflects our confidence in future activity, including ongoing subsea projects, particularly west of Shetland, and the developing decommissioning and offshore renewable markets.”

As previously announced, the Scottish Government and agency, Highlands and Islands Enterprise, are providing £2.39 million in grant for the project, with Bank of Scotland supporting the Port Authority’s investment.

Work will begin in April, with completion due in April 2016. At peak, BAM expects up to 40 people to be employed directly in the construction of the new facility, with wider benefits spreading to local suppliers and subcontractors.

Commenting on the contract award, BAM Nuttall’s Business Unit Manager for Scotland, Dougie Grant said: ‘We’ve been tracking the proposals for Dales Voe for over a year now and we’re delighted to have been chosen by the Port Authority as their construction partner. We understand the positive impact this scale of investment can have locally and we look forward to engaging proactively with the Shetland community to ensure this benefit is fully realised.”

Civil Engineers, Arch Henderson LLP, is responsible for design and project management of one of the largest infrastructure developments in recent years in the Port Authority’s on-going programme.

The contract will extend the quay by around 75 metres, with a load-bearing capacity of 60 tonnes per square metre, making it unique in Scotland. It will have 12.5 metres water depth alongside, like the existing quay, amongst the deepest of its type in Scotland. The sheltered voe, located between oil basins east and west Shetland, has 24-hour access to the North Sea.

The extension will be complemented by increased, adjacent laydown for equipment and materials. A phased expansion underway in recent years will total 45,000 square metres by 2016.

Supreme court decision "about building future for grandchildren" says isles energy group

The Supreme Court's rejection of Sustainable Shetland's appeal against the Viking Energy windfarm in Shetland could mark the creation of a whole new industrial sector for the isles, according to a local energy firm.

The Shetland company Energy Isles, which is developing a wind farm project in Unst and Yell, welcomed the decision to let the Viking Energy project proceed.

Reacting to the final judgement issued by the Supreme Court in London, chairman Paul Riddell said Viking would open the door to further renewables projects that would significantly benefit Shetland communities. 

“It’s very rare that an island community with a successful but fragile economy gets to create a whole new sector, but that is what Viking and the interconnector will enable Shetland to do,” he said.

“This judgement gives Energy Isles the potential to bring much-needed income and employment to those areas of Shetland like Unst and Yell which are simply not benefiting from the current economic good times.”

He added: “It’s also about looking ahead 20, 30, 40 years and trying to build a future for our children and grandchildren when the world we take for granted today will have changed dramatically.” 

Last legal barrier to Viking Energy windfarm removed by Supreme Court

The UK’s final court of appeal  has dismissed an appeal against the Scottish Government's planning consent for the 103-turbine Viking Energy windfarm in Shetland, and declined to refer the case to the European Court of Justice.

Local campaign group Sustainable Shetland's argument that the effect on the population of Whimbrel was rejected.

The estimate of 3.7 annual

collision deaths was regarded as “very small” in the context of 72-108 annual deaths from other causes. The court was  "not satisfied" that the estimated impact of the development on whimbrel was

significant, and considered that the potential beneficial effects of the development's 'habitat management plan' could reasonably be

expected to provide "counterbalancing positive benefits". And even if the level of bird deaths remained, the level of impact was outweighed by the benefits of the project, for example in tackling climate change.

Full judgement available on the Supreme Court website here: https://www.supremecourt.uk/news/latest-judgments.html

Viking Energy chairman Alan Bryce said: 

“We are delighted the Supreme Court has endorsed the planning consent for Viking wind farm, granted in April 2012. We can now concentrate on developing what would be one of the world’s most productive wind farms, to generate renewable energy and significant income for the Shetland community.

“I would like to thank all who have supported us in reaching this positive outcome. Viking Energy looks forward to making progress during 2015.” 

Atlantic developments shield Lerwick Harbour from oil price drop

Lerwick Harbour will be shielded from falling oil prices by continuing subsea hydrocarbon developments in the Atlantic, according to the port's chief executive. And Lerwick's importance as a gateway for Shetland’s communities and industries is underlined by an increase in passenger traffic, cargo handled and fish landed in 2014.

"Continuing project support, especially for subsea development in the Atlantic, will help shield the port from the drop in the oil price, with the sector a significant area of our

activity for the foreseeable future,” said Sandra Laurenson.

Passengers were up 11.8% to 179,352, with numbers on the roll-on/roll-off nightly ferries between the port and Kirkwall and Aberdeen increased by 2% to 135,629 compared with the previous year, despite the two vessels being off-route in sequence for a total five weeks for biennial servicing. A recovery in cruise traffic saw passengers up by 64% to 43,723.

The tonnage of all cargo shipments across the deep-water harbour’s near-4,000 metres of quays increased 2% to 1,192,286 tonnes.

Fish landings totalled 69,973 tonnes, valued at £61.2 million – up 4.7% on volume and down 2.4% on value. The 9,700 tonnes of white fish were valued at £15.8 million, down 12% on volume and 7% on value, with the average price up 5% to £1,637 per tonne. In the pelagic sector, the volume and value of summer herring decreased, and an increase in mackerel was offset by a drop in prices in the autumn.

Lerwick Port Authority Chief Executive, Sandra Laurenson, said: “Overall levels were as predicted and the year ended on forecast, underpinning our financial performance and confidence in the continuing development of the port.

“There are a number of positives going forward. For example, the 52 cruise ships booked this year are ahead of 2013 which was a record year for passengers. Increases in some key fishing quotas should mean higher landings. Continuing project support, especially for subsea development in the Atlantic, will help shield the port from the drop in the oil price, with the sector a significant area of our

activity for the foreseeable future.”

There were 5,078 vessel arrivals in 2014, down 6% – due mainly to fewer fishing boats, following a busy year in 2013 – with the overall tonnage down 7% to 12.2 million gross tonnes compared to 2013 when shipments of rock to cover an offshore pipeline boosted figures.

A record tonnage of vessels was handled by the Authority’s pilots – 10.5 million gross tonnes, up 3.8%, reflecting the larger vessels using the port, although the number of piloted movements were down 5.6% at 1,418.

Shetland 'remains key' for future BP developments

Despite the announcement of redundancies in the North Sea sector, BP has confirmed that while there may be a few job losses among office staff in Shetland, its activity at Sullom Voe "remains key" and planned developments including the multi-million pound gas sweetening plant and multi-billion pound investments in the North Atlantic fields such as Schiehallion will continue.

Story from Shetland News here: http://www.shetnews.co.uk/news/10003-bp-to-shed-some-sullom-voe-office-jobs