Shetland set for “Energy Hub concept”

Shetland Islands Council and the Oil and Gas Technology Centre (OGTC) have joined forces to collaborate on the development of an Energy Hub concept.

Announced on 24 June, the Hub, described as a “transformational shift” for Shetland, will focus on renewable electricity powering offshore oil and gas platforms from shore and producing “industrial quantities” of hydrogen. With blue hydrogen forecast to meet 30% of the UK’s energy needs by 2050, Shetland could potentially provide 8-12% of this. Green hydrogen, meanwhile, would be used to provide local energy and fuel sources for transportation in Shetland, generated offshore by repurposing of oil and gas infrastructure.

Overall, the Energy Hub could see the West of Shetland oil and gas assets become net zero by 2030, while providing 5% of the UK’s total low carbon energy demand for 2050.

Discussions have been taking place with a range of potential stakeholders, with the next stage set to be a period of project planning, early stage concept engineering, research and studies. It is anticipated the feasibility stage will run for two to three years before any investment decisions are taken.

Colette Cohen, Chief Executive of the OGTC, said: “The energy hub concept is a priority, working in partnership with industry, the regulators and research organisations, it will accelerate the development of key technology to create an integrated energy future for Scotland and enable the region to transition to a Hydrogen economy.”

Shetland Islands Council