Energy firm ‘exploring potential’ of windfarm at Sullom Voe Terminal

The operator of Sullom Voe Terminal (SVT) is “exploring the potential” of a windfarm at the site.

EnQuest confirmed the plans yesterday in its half-year financial results.

It said its subsidiary Veri Energy, which was set up to deliver future energy plans at SVT, had progressed “concept development” for the wind power project.

“A small scale project, harnessing the wind potential around Shetland and established technology could initially provide cost-competitive, renewable power to existing users at the site reducing emissions,” it said.

“In time, this initial project could be supplemented with additional build-out on site and surrounding areas.”

Veri is also exploring projects in carbon capture and storage and green hydrogen production.

The North Sea Transition Authority awarded EnQuest four carbon storage licences in 2023.

Since then, it said Veri had been working on early risk assessment reports for each of the projects, including looking at seismic data.

The plans involve repurposing oil and gas infrastructure, including the East of Shetland Pipeline System, to transport and store up to 10 million tonnes of CO2 each year.

The initial focus will be on developing the Thistle storage area to deliver around two million tonnes per year, prior to 2030.

“Veri continues to see interest in its flexible carbon storage solution from emitters both in the UK and Europe and is also evaluating opportunities to decarbonise some of the group’s existing portfolio,” the report said.

Veri also said it was progressing plans for a 50-300MW green hydrogen project at SVT.

It received £1.74m from the UK government’s net zero hydrogen fund to develop the project.

EnQuest has used the report to criticise the recent increase to the UK government’s Energy Profit Levy (EPL).

The EPL was introduced in 2022 as a windfall tax into the “extraordinary profits” of oil and gas companies operating in the UK.

But EnQuest said it was operating in an environment where “no windfall conditions exit.

“The current fiscal regime is causing irreversible damage to an indigenous and strategically important  establishes the UK as a globally competitive investment basin.

“The oil and gas sector is the key to a Just Energy Transition, protecting the skills, jobs and resources required to deliver the decarbonisation projects of the future and, with stability and the right fiscal stimulus, can deliver material UK economic growth through billions of pounds of investment-ready projects.”

EnQuest said it had invested over £4 billion in the UK and has the capacity and opportunities to do so again.

Given the prevailing tax regime, however, it said it was targeting UK portfolios with “limited capital reinvestment programmes”.

“Internationally, we are working on a number of growth opportunities in South East Asia where the return on capital investment is compelling.”

EnQuest reported a profit after tax of $30.3m, which was up on the $21.2m loss reported last year.

It has reduced its debt to $321m.