Energy / Neshion energy could supply Sullom low carbon fuel plant after agreement
ENERGY generated from a proposed energy park near Sullom Voe Terminal (SVT) could be used to supply a low carbon fuel plant at the terminal.
It comes as a memorandum of understanding has been agreed between two energy companies behind major projects in the North Mainland.
Neshion Ltd, which is behind a 10 turbine energy park near SVT, has entered into an agreement to collaborate with Veri Energy.
Veri Energy, a subsidiary of SVT operator EnQuest, is leading the decarbonisation of Sullom Voe Terminal. It is exploring CO2 being exported from England to SVT as part of its carbon storage plans.
The two companies have signed a deal to collaborate through the development of their respective projects, with the collaboration focusing on how energy generated at the Neshion Energy Park could be used to supply a new low carbon fuel plant at SVT.
Neshion is planning to build 10 turbines, all 200m high, and a 25MW battery energy storage system to the east of Sullom Voe Terminal.
Neshion has said its wind turbines could supply SVT with renewable electricity via a “private wire”, which it said would mean it would not have to wait for a connection to the electricity grid.
It added this would accelerate the timeline of the project.
“It could also mean that all energy generated by the wind turbines would be used for e-fuel production, avoiding curtailment, which can result from demand on the grid being lower than power generation,” the company said.
Neshion held a public engagement event in Mossbank in March, where development manager Brendan Hall would not be drawn on what developments the park could power.
“We’re keeping all of our options open,” he said. “But obviously, there are some potential customers in the area.”
Neshion, which is a local joint venture headed by Shetland Aerogenerators, is set to hold a second public engagement event at Mossbank Public Hall on Tuesday from 3.30-7.30pm.
An environmental impact assessment is currently underway for the project, with a planning application expected to be lodged early next year.
If approved, construction on the 630 hectare site could get underway in 2028 – with the energy park possibly getting underway in 2030 for a maximum lifespan of 40 years.
Veri Energy chief executive Gavin Templeton said they were pleased to be working with Neshion “to unlock the long-term potential of Shetland and the Sullom Voe Terminal for the energy transition.
“At Veri Energy, we believe the combination of world-class wind resource, existing infrastructure, and a highly skilled local workforce creates a unique, scalable model for low-carbon fuel production,” he said.
“This is a place-based solution with global relevance, designed to deliver enduring decarbonisation, energy resilience, and economic opportunity for Scotland and beyond.”
Announcing the agreement, Hall said that locating renewable energy generation next to major energy users like SVT “makes sense and is a key pillar of the energy transition.”
“We are pleased to be partnering with Veri to explore how we can harness Shetland’s world class wind resource to produce the next generation of sustainable fuels,” he said.
“As a local company, we are also excited about the potential for our projects to help Sullom Voe Terminal have a sustainable future, and to support the jobs and investment the terminal provides.”
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