Member Info for LSE03

Https://www.parliamentlive.tv/Event/Index/95b27121-34ac-47c5-b317-63fe8990332c

11:36 for 4 minutes provides a rationale on increasing number of UK defence shipyards with H&W having a specific mention

12:04 for 2 minutes covers approach to industry skills build up with shipbuilding skills given as an example.

Https://www.belfastlive.co.uk/special-features/major-employer-hiring-belfast-heres-28257517

Https://soundcloud.com/ore-catapult/episode-43-in-conversation-with-anil-sayhan-jane-cooper-ajai-ahluwalia?trk=feed_main-feed-card_reshare_feed-article-content

Daniel Fearnley, Director of Energy and Renewables, Harland and Wolff. (LinkedIn)

"Looking forward to attending the Supply chain Spotlight event in Edinburgh tomorrow, reach out to discuss what Harland & Wolff can do to support your renewable project with our fantastic UK footprint."

Https://ore.catapult.org.uk/events/uk-offshore-wind-supply-chain-spotlight-2023/

Https://www.theguardian.com/politics/2023/dec/11/northern-irish-leaders-offered-25bn-package-in-bid-to-revive-stormont

See expected minimum number of candidates is 5 for each Lot.

Https://www.publiccontractsscotland.gov.uk/search/show/search_view.aspx?ID=NOV492227

I'm not clear on that Xenor but it looks like they will be shortlisting on the 12th Dec?

IV.2) Administrative information

IV.2.2) Time limit for receipt of tenders or requests to participate Date: 12/12/2023 Local time: 12:00

IV.2.3) Estimated date of dispatch of invitations to tender or to participate to selected candidates Date: 12/12/2023

IV.2.4) Languages in which tenders or requests to participate may be submitted EN

IV.2.6) Minimum time frame during which the tenderer must maintain the tender Duration in months: 4 (from the date stated for receipt of tender)

Https://bidstats.uk/tenders/2023/W45/810352660

Hope we are tendering

Https://www.gov.uk/government/news/british-minehunting-ships-to-bolster-ukrainian-navy-as-uk-and-norway-launch-maritime-support-initiative

Strangely odd for an investor in a company to feel it important to publicly cap where that share price might rise to.

"The Department of Business and Trade (DBT) Shipbuilding Credit Guarantee Scheme, to be delivered by UK Export Finance (UKEF), provides a partial guarantee to a lender making a loan to a ship-buyer or operator, so that new vessels, or refits, retrofits or repairs of existing vessels can be procured from UK shipyards.

This facility enables the shipyard to receive payment as though it was a cash contract, while the buyer can access extended repayment terms.

The loan is typically repaid over a period of 2 years or longer by the borrower, while the shipyard receives payment via the credit facility as amounts fall due under the commercial contract.

DBT can provide partial guarantees covering up to 80% of the risk to lenders for a maximum repayment period of up to 12 years."

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

"In a move which supports the growth of the North Sea offshore wind industry, UK Export Finance (UKEF) has issued a loan guarantee so that Seaway7 can access a £370 million funding package.

The export credit agency has issued the guarantee under its Export Development Guarantee (EDG) so that the offshore wind specialist can invest in its UK operations. The UKEF guarantee covers 80% of the total loan, which has been coordinated by HSBC and with Citibank, Credit Agricole Corporate and Investment Bank, DNB, HSBC and ING as Mandated Lead Arrangers.

UKEF’s backing is expected to help the firm win and service Engineering, Procurement Construction and Installation (EPCI) contracts for fixed offshore wind projects which will generate UK export revenue. Seaway7 has completed successful offshore wind projects in a range of markets, including Taiwan, the USA and continental Europe."

There is an expectation of winning future export contracts but not 100% certainty - with H&W £77m capital investment/ employee build up and demonstration of historic export contracts H&W could argue the same ie they are positioned to secure export contracts.

Perhaps this shows the type of deal that can be secured.

https://www.gov.uk/government/news/offshore-wind-giant-secures-370-million-ukef-backed-facility-to-expand-uk-business

The link supports the view of higher defence spend happening and more required. (Shows how European defence spending has increased in 2022 alone.)

https://eda.europa.eu/news-and-events/news/2023/11/30/record-high-european-defence-spending-boosted-by-procurement-of-new-equipment#

High Representative/Vice-President and Head of the European Defence Agency Josep Borrell said: “Our armed forces must be ready for a much more demanding era. Adjusting to these new realities first and foremost means investing more on defence. A record €240 billion underpins the commitment of Member States to bolster European defence. However, we have key capability gaps and continue to lag behind other global players in spending. This is why it’s not just about spending more in defence, but also about spending better and together. We must find extra value in our ability to cooperate and seize the opportunities to strengthen our armed forces through common planning, shared projects and joint procurements.”

Witnesses at the recent UK defence select committee meetings also highlighted the UK's armed forces are constantly being asked to operate at a high tempo to meet demands.

Further defence investment to strengthen resilience /capabilities and increased western collaboration seems the sensible way forward. H&W's increasing capacity / skills capabilities should position the company well to support with this.

US also highlighting the need to increase the entire industrial shipbuilding base to outpace China.

https://www.nationaldefensemagazine.org/articles/2023/12/6/navy-must-invest-in-shipbuilding-industrial-base-to-outpace-china

Increased collaboration under AUKUS could see H&W help with this requirement and be a strong signal of US economic support for Northern Ireland.

Https://www.offshore-energy.biz/cory-group-joins-forces-with-harbour-energy-bp-and-abp-in-co2-transport-and-storage-pact/

Interesting development

UK interfaces with EU energy markets and so will develop commercial mechanisms / infrastructure to do just that.

Interesting if export of commodity gas / hydrogen to ROI and wider markets from Northern Ireland was considered a UK export would it attract UKEF funding to develop infrastructure. Maybe not but other financing options could be explored, especially when you see UK gov signing hydrogen hub agreements between UK and Brazil.

https://hydrogen-central.com/joint-statement-of-intent-between-brazil-and-the-united-kingdom-to-co-chair-a-brazil-uk-hydrogen-hub/

https://hydrogen-central.com/joint-statement-of-intent-between-brazil-and-the-united-kingdom-to-co-chair-a-brazil-uk-hydrogen-hub/

Https://www.h2-view.com/story/european-council-and-parliament-agree-on-hydrogen-and-gas-package/2103341.article/

The European Council and Parliament today (December 8) provisionally agreed on rules for the future hydrogen and renewable and natural gas markets.

Aimed at allowing the integration of low-carbon gases into Europe’s energy system, the hydrogen and gas decarbonisation package is hoped to reduce the bloc’s depending on fossil fuel imports as well as its emissions.

The agreement on the package follows on from the directive which was agreed last week (November 27).

The newly agreed package provides for a new entity in the hydrogen sector for Hydrogen Network Operators (ENNOH). It will also work independently of the existing network operators for gas and electricity (ENTSOG and ENTSOE).

ENNOH will coordinate the planning, development and operation of EU hydrogen infrastructure.

Both the Council and Parliament have agreed to extend the “demand aggregation/joint purchasing mechanism for gas” that was adopted during the energy crisis.

They also agreed that each national regulatory authority must consult its neighbouring authority on the draft tariff methodology for hydrogen. It said each would maintain the right to see its own tariff.

Daniel Fraile, Chief Policy Officer at Hydrogen Europe, said it would put hydrogen at an “Equal level with electricity and gas carriers, highlighting its fundamental role in the energy transition.”

Https://www.politico.eu/article/fear-fossil-fuel-firm-capture-hydrogen-industry/

"Negotiators are meeting Friday in Brussels for what could be the final round of talks on one of the bloc's flagship green energy policies, the hydrogen and decarbonized gas package. If EU capitals, the European Parliament and the EU's executive can strike a deal, the initiative would kickstart as soon as next spring an EU-wide web of hydrogen producers, which harness solar and wind power to split water molecules and generate the gas."

"Jerzy Buzek, the Polish MEP leading the Parliament's work on the initiative, called it "great news for our energy security — especially in circumstances of the brutal war which [Russian President Vladimir] Putin continues against Ukraine, where energy is one of his weapons." Harnessing renewable electricity to produce hydrogen will cut reliance on imports of natural gas from countries like Russia."

Islandmagee can help support the NI economy to transition to hydrogen.