Ukraine fundraiser - 18 June 2024
Friday 14 June 2024
 9.9°C   ESE Strong Breeze
Ocean Kinetics - The Engineering Experts

Energy / EnQuest forms new company to push forward plans to turn SVT into ‘green energy hub’

Sullom Voe Terminal. Photo: Shetland News

THE OPERATOR of the Sullom Voe Terminal has launched a new subsidiary company which will oversee new energy projects including plans to turn the site into a “green hub”.

EnQuest said it will still remain the operator of the terminal, while supporting the new energy opportunities on site.

The company has previously announced proposals for hydrogen production at the terminal, as well as facilitating carbon capture and storage.

This is whilst the oil and gas industry slows in the lead up to net zero.

The new wholly owned subsidiary is called Veri, and EnQuest said it will focus on “progressing world scale decarbonisation and new energy projects, including carbon capture and storage, green hydrogen, and electrification at the Sullom Voe Terminal (SVT)”.

EnQuest has previously spoken of its desire to decommission its gas-fired power station at SVT, operated by Equans, and to join the local electricity network once Shetland is connected to the national grid via the subsea HVDC link.

EnQuest chief financial officer Salman Malik has now taken up the role of CEO of Veri.

The company added that Veri “provides an opportunity to leverage support from financial and strategic partnerships”.

EnQuest chief financial officer Salman Malik has now taken up the role of CEO of Veri. Photo: Hans J Marter/Shetland News

In 2022 EnQuest said it had “secured exclusivity from the Shetland Islands Council to progress new energy opportunities on the site to achieve value for the Council, the Shetland community and EnQuest”.

Speaking on Thursday, SIC chief executive Maggie Sandison said the local authority had been aware of EnQuest’s intention to form a subsidiary company.

She added that the council has regular engagement with EnQuest about its routemap for an energy transition including its “world leading plans for carbon capture and storage, green hydrogen, and electrification at the Sullom Voe Terminal”.

Become a supporter of Shetland News

 

Sandison continued: “The council speaks to all existing and prospective energy developers about the expected commitment to Shetland Islands Council’s energy development principles including delivering benefit to the local community, environmental protection, local supply chain opportunities and sectoral co-existence.”

A spokesperson for EnQuest also said due to Veri being a subsidiary of the terminal operator there will be no change to the make-up of the Sullom Voe Association, which brings together oil and gas companies and Shetland Islands Council.

Meanwhile Malik said: “I am proud that as EnQuest’s CFO we delivered strong financial results, significantly de-levered the balance sheet and strengthened the capital structure.

“I am passionate about energy transition and committed to establishing Veri as a leading infrastructure and new energy company.

“Through Veri, we initially plan on transforming SVT into a green energy hub, with ambitions to export those capabilities to other assets internationally in the future.”

Not far away from Sullom Voe Terminal, Statkraft plus partners are in line to lease the nearby former Scatsta Airport site from Shetland Islands Council.

Become a supporter of Shetland News

Shetland News is asking its many readers to consider start paying for their dose of the latest local news delivered straight to their PC, tablet or mobile phone.

Journalism comes at a price and because that price is not being paid in today’s rapidly changing media world, most publishers - national and local - struggle financially despite very healthy audience figures.

Most online publishers have started charging for access to their websites, others have chosen a different route. Shetland News currently has  over 600 supporters  who are all making small voluntary financial contributions. All funds go towards covering our cost and improving the service further.

Your contribution will ensure Shetland News can: -

  • Bring you the headlines as they happen;
  • Stay editorially independent;
  • Give a voice to the community;
  • Grow site traffic further;
  • Research and publish more in-depth news, including more Shetland Lives features.

If you appreciate what we do and feel strongly about impartial local journalism, then please become a supporter of Shetland News by either making a single payment or monthly subscription.

Support us from as little as £3 per month – it only takes a minute to sign up. Thank you.

 

Newsletters

Subscribe to a selection of different newsletters from Shetland News, varying from breaking news delivered on the minute, to a weekly round-up of the opinion posts. All delivered straight to your inbox.

Daily Briefing Newsletter Weekly Highlights Newsletter Opinion Newsletter Life in Shetland Newsletter

JavaScript Required

We're sorry, but Shetland News isn't fully functional without JavaScript enabled.
Head over to the help page for instructions on how to enable JavaScript on your browser.

Your Privacy

We use cookies on our site to improve your experience.
By using our service, you agree to our Privacy Policy and Cookie Policy.

Browser is out-of-date

Shetland News isn't fully functional with this version of .
Head over to the help page for instructions on updating your browser for more security, improved speed and the best overall experience on this site.

Interested in Notifications?

Get notifications from Shetland News for important and breaking news.
You can unsubscribe at any time.

Become a supporter of Shetland News

We're committed to ensuring everyone has equitable access to impartial, open and quality local journalism that benefits all residents.

By supporting Shetland News, you play a vital role in ensuring we remain a pivotal resource in supporting the community.

Support us from as little as £3 per month – it only takes a minute to sign up. Thank you.