The Offshore Wind Boom
The Norwegian people revised their thinking as a result of the oil boom in 1969. The same creative mindset is needed today to transition into the offshore wind market successfully.
The Norwegian TV series Lykkeland dramatises the true story of the country’s oil boom in 1969, where a sardine factory transitions into a supply vessel provider for the energy sector.
This analogy was used by Kristian Jacobsen, partner in Green Ducklings, at our webinar with them and Kluge this week, to promote the idea that the same creative transitional mindset is now necessary for companies, who want to transition into the offshore wind market.
Norway’s Success Criteria
The last 50 years, the suppliers in the Norwegian petroleum industry have harnessed world class experience within; maritime operations, equipment design for harsh offshore applications, seabed surveys, instrumentation technology and complex solutions, to mention a few.
Jacobsen claimed that Norway has an advantage with its operational excellence within oil and gas and a strong DNA for partnering (which can be rare in many countries), which Jacobsen predicts will be some of the country’s success criteria when diversifying into the offshore wind market.
Key Supply Chain Observations
Green Ducklings presented the following key supply chain observations:
- O&G heavy hitters are moving in fast to accelerate their green transformation!
- Investment frenzy in supply chain companies with a “green global platform”.
- Company valuation can increase 5-10 fold “overnight” with announcement of a green strategy.
- Industrialization and operational excellence will be the key to maintain long-term success.
As we normally say: it took us thirty years to get to 30 gigawatts and now we have 30 years to achieve 1500 gigawatts, Kristian Jacobsen, Green Ducklings.
Green Ducklings also drew up five tendencies regarding the offshore wind market:
- Oil and gas majors have communicated long-term targets for their investments into renewables.
- Lease prices expected to continue surging as oil and gas incumbents bet big on offshore wind.
- Strategic assets are set to be a key lever to control risk and lack of supply in high demand market.
- Offshore wind expertise set to increase in value in push to control developments and construction risks.
- Consolidation among suppliers will continue - expanded offerings, operation excellence and partnering capability will define success.
Green Ducklings and Kluge presented a winning recipe involving five strategic actions and the legal implications to be aware of to improving the odds of succeeding in the offshore wind sector.
Green Ducklings + Kluge = True
Green Ducklings is a Danish company that provides strategy and market support for companies with ambitions to grow their business within offshore wind, and this complements Kluge’s legal competence and market presence in Norway.
The two companies have now formed a partnership and this week, GCE Ocean Technology joined them in organising a webinar where we shared reflections and experiences about how to improve the odds to succeed within offshore wind.
- January 1, 2021 the Regulation to the Offshore Energy Act entered into force, and the areas Utsira Nord and Sørlige Nordsjø II were opened for concession applications for up to 4500 MW capacity. The Ministry is preparing a guideline for the application and election process, expected before summer. Source: Kluge
- The Norwegian Oil Fund has entered into an agreement with the Danish offshore wind developer Ørsted, and is buying a 50 per cent ownership interest in the company's Borssele 1 and 2 offshore wind farms, it appears from an announcement on Wednesday. The total value of the share in the Dutch wind farm is NOK 13.9 billion. Source: E24
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