New roadmap displays the £90bn potential for UK offshore energy supply chain

Detailed plans to help make sure more UK companies build and deliver the changes required to deliver a net zero energy system of the future have been published for the first time today.

Offshore Energies UK (OEUK), together with Robert Gordon’s University (RGU), has produced a roadmap, entitled Harnessing the Potential, that outlines how the UK can support jobs, economic growth, and innovation, including in North East England, Yorkshire and the Humber where the offshore industry supports more than 15,000 jobs.

The wider offshore energy sector, including oil and gas operators and wind developers, could invest up to £200bn on UK energy production and technology projects in the remainder of this decade to help deliver government energy targets.

OEUK today reveals over £90bn of this could go to UK supply chain companies over the next decade if the roadmap is delivered and both government energy production and local content targets are met.

The roadmap sets out detailed industry, government and regulatory action required in six key areas to build, enable, and then grow and sustain UK capabilities from 2022-2035. Ahead of major project decisions expected in the decade to come, it shows that with the right support, UK companies are well placed to win a bigger share of the work.

The report raises key challenges which might impact meeting these goals, including the loss of UK capabilities such as steelworks and the risk of losing investment due to unpredictable regulatory and fiscal environments.

Katy Heidenreich, OEUK supply chain and people director, said: “Delivering the roadmap and building more energy projects in Britain could unlock £90bn of work for our offshore energy supply chain. Given’s the North East’s rich energy history, this has the potential to bring enormous economic opportunities to the region, from Teesside to the Humber.”

As plans from other countries to attract supply chain investment take effect, like the US inflation Reduction Act, OEUK said more emphasis needs to be put by politicians and governments on an energy future built in the UK instead of shipped and sourced from abroad.

The potential to boost the UK offshore energy supply chain through the roadmap is explored through three scenarios. Each considers the impact on the UK supply chain of both the scale of energy projects and the percentage of which is delivered by UK companies over the coming decade.

Katy Heidenreich added: “For a country with a proud maritime and industrial heritage, we must question why so much of the nation’s energy manufacturing needs are met from outside of the UK. To deliver an energy future that benefits the UK economy, jobs and innovation, we need both the volume of work and the focus on supply chain companies here winning a bigger share of that work.

“We need politicians of all parties to support the roadmap and our plans for at least half of these projects to be delivered in the UK. This means putting the UK workforce and industrial capabilities at the heart of decision making on energy, supporting enduring policies that encourage companies to invest over decades, and championing the talent on our doorsteps to a global market.”

By Mark Adair – Correspondent, Bdaily

• Add me on LinkedIn and Twitter to keep up to date
• And follow Bdaily on Facebook, Twitter and LinkedIn
• Submit press releases to editor@bdaily.co.uk for consideration.

Looking to promote your product/service to SME businesses in your region? Find out how Bdaily can help →