Exploration for new gas reserves showed a worrying decline last year - but the Southern North Sea's key role in powering the UK is set to continue through a new generation of wind and subsea coal energy. That was the message in Norwich yesterday as industry' experts gathered for the annual Southern North Sea (SNS) conference, organised by the East of England Energy Group. While SNS gas could contribute to the country's energy supply for another 30 years, power firm RWE development manager Mark Hughes warned delegates that the number of new exploration projects dropped from 17 in 2008 to 11 last year, due to lower world gas prices and the difficulty attracting loans. He said: "This is a worrying trend. The picture from an investor's perspective is very worrying." But government plans for By SAM WILLIAMS Senior business writer thousands of wind turbines in the North Sea, generating up to a fifth of the country's electricity by 2020, offers a major opportunity for the offshore energy industry - and could make the UK a world leader in the sector. However, huge challenges remain if the targets are to be met and if British companies are to share in the spoils. Gabriel Ruhan, chief executive of subsea cabling company Essex-based Global Marine Systems, said: "The vast majority of manufacture of components is being done overseas. We don't make turbines or blades, and we don't make export cables. "There are very few British success stories." He added: "The gap between where we are today and where we need to be is significant, but not insurmountable. But the odds are stacked against us." Innovative technology involving burning coal deep below the seabed could also play a key role in keeping the nation's lights on. Underground coal gasification, in which seams of coal are gasified using oxygen and steam, and the resulting gas used as a power source, was outlined by Catherine Bond, chief executive of British firm Clean Coal, which has secured five licences to use the technique in the UK - including a 308sq km area of seabed off Cromer. She said: "There is really a massive amount of untapped energy in the North Sea that no one has really talked about. It is an extraordinarily exciting and interesting technology, but a relatively nascent technology. We really want to make it a success here."
EDP 26/02/2010 |
