Member Info for LSE03

Https://www.enbw-bp.com/morgan-and-mona/

Extract

"BP is considering building two huge offshore wind farms in British waters without government subsidy contracts in what would be a first for the sector.

Bernard Looney, the energy group’s chief executive, said it could start building the Morgan and Mona projects in the Irish Sea as soon as “late next year” and may not seek contracts from the government to guarantee their revenues. The wind farms together would boast up to 214 turbines about 20 miles off the coasts of north Wales and northwest England and could power 3.4 million homes."

Belfast seems well suited to support.

Just nice to see Oliver's thoughtful reply to Peter Williams.

See Sittings and Vacations of NI Courts

https://www.judiciaryni.uk/court-sittings-and-court-structure

Venture tug

See vessel finder

Very upbeat podcast from Alan Green, UK Investor Magazine. Worth a listen.

Https://ukinvestormagazine.co.uk/apple-amazon-and-harland-wolff-with-alan-green/

Not bad company for H&W 👍

H&W section starts from about 19 minutes in.

Thanks Broomtree,

The last para suggests there might still be a conversation happening about access to levelling up funding.

https://www.itv.com/news/westcountry/2023-04-18/new-passenger-ferry-and-cargo-ships-to-serve-isles-of-scilly

Councillor Robert Francis, chairman of the council of the Isles of Scilly, said: “I understand the business decision made by the Steamship Group and their need to avoid further delays in replacing their vessels.

"However, I do have serious concerns over the level of borrowing the company is committing to.

"Fundamentally, the islands need the route to be economically sustainable for the operator – this is vital to ensure it is reliable for islanders and visitors and that it remains affordable in the long term.

"Obviously, we wouldn’t want a high level of borrowing to result in ticket prices that only work for those with high incomes and that further disadvantage residents, businesses and visitors.

"The government’s allocation of £48.4 million in Levelling Up funding was in recognition of the need to improve lifeline transport links for islanders and the difficulty the current operator would have in funding replacement vessels.

"We have requested a meeting with government to establish how this development affects their commitment to Levelling Up for our community."

The Department for Transport told ITV West Country that it was still working with the Council of the Isles of Scilly and relevant parties to meet the needs of businesses and the community served by the sea link project to replace vessels for the ferry services.

It's not clear is it.

From 18th April update - this is my understanding of the position.

"The new Scillonian passenger ferry and two new freight vessels will set sail by March 2026. The £42m project will be the single biggest investment in the 103-year history of the Company.

The deal will be financed through a £33.6m loan arranged with Lombard NatWest, one of the UK’s largest asset finance providers.

Stuart Reid, Chief Executive of the Isles of Scilly Steamship Group, said the announcement reaffirmed the Group’s long-term commitment to maintaining the lifeline service to the islands, providing certainty, reliability, and a clear timeline for replacing the current ageing fleet.

The Group launched its vessel replacement programme in 2019 to replace its Scillonian III passenger ferry, Gry Maritha freight ship and inter-islands launch Lyonesse Lady. At 46, 42 and 32 years old respectively, the existing vessels are coming to the end of their service life, suffer reliability challenges and are increasingly costly to maintain.

In 2021 the Company teamed up with partners on the islands to support a bid to the Government led by the Council of the Isles of Scilly. This saw a conditional offer of £48.5m of Levelling up Funding (LUF) in October 2021 to the Council for new vessels and infrastructure.

However, with no tangible progress made in the last 18 months following the initial offer, significant changes to the terms of the offer and growing frustration with the delay both on and off the islands, the Group has reverted to its original plan of privately financing the new vessels."

Https://booking.belfast-harbour.co.uk/

Https://www.gov.uk/guidance/shipbuilding-credit-guarantee-scheme

The Shipbuilding Credit Guarantee Scheme was only announced on 26 July might and maybe this change was significant enough to warrant further follow up questions.

"On 7th May 2023 we issued a Best and Final Offer (BAFO) invitation to our shortlist of shipyards, asking them to submit their BAFO proposals by 30th June. These proposals have now been received and the project team will evaluate each of the shipyard submissions by using a score matrix system which has been shared with each shipyard. We are expecting to announce our preferred shipyard by the end of July. "

Targeting contract completion by 30 Sep.

Hi Kaeren

Have a read of 7 July publication. Lottie identified 31 July date mention in document 👍

https://www.islesofscilly-travel.co.uk/new-vessel-replacement-news-media/

Executive summary

Chapter 2 - Hydrogen transport infrastructure

The minded to positions in this chapter provide a direction of travel for the hydrogen transport

business model design. The minded to high-level design is a Regulated Asset Base (RAB)

alongside an external subsidy mechanism, in the form of private law revenue support

contracts. In addition to business model design, we will also develop our position on allocation,

as well as the accompanying market framework for early projects. We intend to continue to

work with industry as we progress towards the final business model design.

Chapter 3 - Hydrogen storage infrastructure

The minded to positions in this chapter provide a direction of travel for the hydrogen storage

business model design. We propose a revenue ‘floor’ to mitigate demand risk for storage

providers; an incentive to maximise sales to users and a mechanism to give the subsidy

provider a potential share of the ‘upside’. We anticipate the initial focus for support to be

geological storage, though we are minded to retain optionality to support above-ground storage

where it faces similar market barriers. We consider the model best delivered through a private

law contract lasting at least 15 years. We will move into the next level of design detail of the

business model and the contract, as well as developing our position on allocation of the

contract to potential storage projects. We intend to continue to collaborate closely with industry

as we progress towards the final model design.

Chapter 4 - Strategic planning

The minded to position in this chapter sets out that some form of strategic planning, potentially

combined with elements of a market-led development, is necessary to enable the efficient,

cost-effective and timely roll-out of transport and storage infrastructure. It is our view that the

build-out of hydrogen transport and storage infrastructure, and in particular larger scale or

systemically important assets, should be guided by centrally coordinated, locally sensitive,

strategic planning that is integrated across energy and other relevant systems. Our intention is

that the Future System Operator (FSO) take on a central strategic planning role at an

appropriate time following its establishment, within the statutory framework provided for by the

Energy Bill. In the interim, we believe it is necessary for UK government, working closely with

Ofgem and industry, to take a leading role in providing early strategic direction for the build out

of hydrogen T&S infrastructure. Therefore, we will publish a ‘hydrogen networks pathway’, to

set out the next steps in our vision for the development of hydrogen T&S in the UK

Https://pemedianetwork.com/hydrogen-economist/articles/storage-transportation/2023/uk-eyes-15-year-support-for-h2-storage-projects/

Https://www.offshorewind.biz/2023/08/04/scotland-brittany-seal-offshore-wind-pact/

Https://www.irishexaminer.com/sponsored/arid-41190865.html

Interesting to see ROI direction of travel

The Strategy not only recognises that hydrogen is a zero-carbon substitute for fossil fuels, posing an unmissable opportunity for Ireland to transition to a climate neutral economy, but it also highlights that green hydrogen is both safe and feasible to use in Ireland’s existing gas distribution network. Gas Networks Ireland has the capability to transport hydrogen blended with natural gas now, and with some modifications, to transport 100% hydrogen in the future — a huge game changer for the green energy industry.

“Our strategy is both focused on meeting our current customer demands and transforming our network to meet their future energy needs. Replacing natural gas with renewable gases, such as hydrogen, will support our customer on their net zero journeys while also complementing intermittent renewable electricity and ensuring a more diverse and secure energy supply,” explains Gas Networks Ireland’s Chief Executive Officer, Cathal Marley.

“We believe it is important that the National Hydrogen Strategy recognises how Ireland’s modern gas network can be leveraged to accommodate hydrogen produced from wind energy, as well as acknowledging that during this transition, natural gas will continue to be needed to ensure continued security and resilience of Ireland’s energy system. The gas network is Ireland’s hydrogen-ready infrastructure and reliable energy backbone, which will substantially reduce the country’s carbon emissions and play a vital role in establishing our future hydrogen economies.”

“As the gas pipelines are already in the ground, it’s the least disruptive option and cost-effective option as the cost of repurposing the existing gas network to transport hydrogen is significantly less versus the cost of building new dedicated hydrogen pipelines,” Mr. Marley added.

https://www.gasnetworks.ie/home/

Great news 👍

Methil looks interesting. I was getting excited / a bit cryptic yesterday when I saw a number of tugs gather near Methil but then they all disbanded. Seems Venture tug and ship there now.

Https://www.gov.uk/government/consultations/proposals-for-hydrogen-transport-and-storage-business-models