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.