Energy / Terminal investigates e-fuel production
SULLOM Voe Terminal (SVT) could be hosting a 50MW e-fuel production plant at some point in the future should a modelling project to simulate optimal hydrogen production from a number of renewable sources show it could be viable.
Veri Energy, a company wholly owned by terminal operator EnQuest, said it is leading a programme to advance what is described as “investable e-fuel production”.
The project, supported by funding from the Aberdeen based Net Zero Technology Centre, brings together a number of European new energy providers, including some involved in the development of sustainable aviation fuels (SAF).
The modelling will start by tackling a 50MW-scale green hydrogen plant powered by local wind, with plans for deployment at SVT. This development has previously been awarded UK Government funding.
Veri Energy’s integrated approach to e-fuel production and CO₂ management provides a compelling proposition, the company said.
“The project is designed to serve regional demand initially, with export potential as capacity scales.”
Veri’s announcement links in with other energy transition projects planned for the oil terminal, including carbon capture and storage.
The company confirmed it is working with local and regional partners, including Neshion Limited, a Shetland-based wind joint venture, and The Carbon Removers, a Scottish biogenic CO₂ supplier.
While the terminal in the north of Shetland has for a long time been seen as an attractive location to drive forward green energy plans, EnQuest has always insisted that the throughput of oil and gas will have to continue to make the transition financially viable.
Veri chief executive Gavin Templeton said: “Our focus is on unlocking Scotland’s full potential to produce low-carbon fuels by harnessing Shetland’s exceptional wind resource to enhance long-term energy resilience.
“Repurposing the industrial footprint at Sullom Voe allows us to retain and redeploy highly skilled engineering jobs, work hand in hand with the local community, and deliver industrial decarbonisation in a way that’s both responsible and enduring.
“If successful, this will serve as a scalable model for gigawatt-level low-carbon fuel production—paving the way to decarbonise homes, businesses and infrastructure across the country.”
SIC chief executive Maggie Sandison added: “This important work is central to Shetland’s ambitions to be a national lead in clean energy development using our existing facilities and giving our skilled energy workers new opportunities to remain employed in the energy sector.”
Meanwhile, the community is still waiting for details of a planned 400MW ammonia plant at Scatsta, on land belonging to the council, to be announced.
Norwegian state-owned energy company Statkraft and the SIC reached an agreement on the lease of land and community benefit earlier this year which was approved in private by councillors in early April.
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