Neptune Energy announced it has signed a Memorandum of Understanding with Ørsted and Goal7 to explore powering new integrated energy hubs in the UK North Sea with offshore wind-generated electricity.

Integrated energy hubs have the potential to combine multiple energy systems, including existing oil and gas production assets, carbon storage and hydrogen production facilities. They could extend the life of producing fields and support the economic case for electrification with renewable energy, to keep carbon emissions low.

The agreement will see the companies examine the potential to supply renewable electricity from Ørsted’s Hornsea offshore windfarm projects to power future Neptune-operated hubs in the UK North Sea.

Goal7 will provide project management support and technical input.

Neptune Energy’s Director of New Energy, Pierre Girard, said: “The development of integrated energy hubs is an important part of Neptune’s strategy to store more carbon than is emitted from our operations and the use of our sold products by 2030.

“Neptune has submitted three applications under the recent Carbon Dioxide Appraisal and Storage Licensing Round, and securing the licences would enable us to develop future proposals for integrated energy hubs in the UK North Sea.

“In parallel, the agreement with Ørsted and Goal7 will support research into the potential use of wind-generated renewable electricity to power these hubs, which could comprise new and repurposed offshore assets and bring together hydrogen production and carbon injection facilities.”

Duncan Clark, Ørsted’s Managing Director Offshore and Country Chair UK&I, said: “The UK is a world leader in deploying offshore renewable energy and it is crucial that we use this clean technology as effectively as possible, finding new and alternative routes to market to ensure we are able to maximise the use of renewable power at the time it is produced.

“We must continue taking action to limit the damaging effects of climate change. Supporting the decarbonisation of other industrial sectors and providing renewable energy to enable more sustainable carbon storage is an important consideration as the UK transitions towards a low-carbon economy.

“As we build out the largest offshore wind zone in the world with our Hornsea projects and demand for electricity continues to increase, optimising production of these huge offshore assets will bring even greater value to consumers and support the UK’s efforts to meet its 2050 net zero commitments.”

The North Sea Transition Authority is due to award storage licences early in 2023.

About Neptune Energy Group

Neptune Energy is an independent global E&P company with operations across Europe, North Africa and Asia Pacific. The business had production of 130,000 net barrels of oil equivalent per day in 2021 and 2P reserves at 31st December 2021 of 604 million barrels of oil equivalent. Neptune aims to store more carbon than is emitted from its operations and the use of its sold products by 2030. The Company, founded by Sam Laidlaw, is backed by CIC and funds advised by Carlyle Group and CVC Capital Partners.

About Ørsted

The Ørsted vision is a world that runs entirely on green energy. Ørsted develops, constructs, and operates offshore and onshore wind farms, solar farms, energy storage facilities, renewable hydrogen and green fuels facilities, and bioenergy plants. Moreover, Ørsted provides energy products to its customers. Ørsted is the only energy company in the world with a science-based net-zero emissions target as validated by the Science Based Targets initiative (SBTi), and Ørsted aims to deliver a net-positive biodiversity impact from all new renewable energy projects it commissions from 2030 at the latest. Ørsted ranks as the world’s most sustainable energy company in Corporate Knights' 2022 index of the Global 100 most sustainable corporations in the world and is recognised on the CDP Climate Change A List as a global leader on climate action. Headquartered in Denmark, Ørsted employs approx. 7,700 people. Ørsted's shares are listed on Nasdaq Copenhagen (Orsted). In 2021, the group's revenue was DKK 77.7 billion (EUR 10.4 billion).

About Goal7

Goal7 develops and accelerates energy solutions which work in balance with the world around us. Goal7 is focussed on projects characterised by cross-industry collaboration which deliver large scale reduction in emissions including CCS, use of renewable energy and low carbon hydrogen production.