EIC Survive and Thrive Insight Report 2023 – Net Zero 2050: We Don’t Believe You!

The EIC (Energy Industries Council) has released its 7th Survive and Thrive report featuring 96 EIC members. HFI is delighted to be included in this annual report and to be nominated in the Middle East regional awards categories for Diversification and Client Services and Solutions. The report notes a shift towards oil and gas projects due to a lack of consistent and profitable opportunities in green projects: the UK supply chain’s message to the politicians is that global net zero by 2050 is not going to happen on the current trajectory.

The scale of the petroleum sector opportunities is underscored by aramco’s US$62bn profits announcement for the first half of 2023. Aramco is planning oil output of 13.0 mmbpd by 2027, driven by the Marjan, Berri, Damman and Zuluf projects. Aramco is also growing its gas production
capacity with key projects including Jafurah Gas Plant, Tanajib Gas plant, Hawiyah Unayzah Gas Reservoir Storage and Hawiyah Gas Plant.

Across the Gulf, ADNOC Gas has awarded a US$3.6 billion contract to expand gas processing infrastructure to a joint venture between Abu Dhabi’s National Petroleum Construction Company and Spanish contractor Tecnicas Reunidas, focussing on supply to Ruwais Industrial Complex.

By contrast, severe costs inflation has recently resulted in the cancellation of offshore wind deals: Spanish utility Iberdrola Renewables agreed to pay US$48.9m in fines to cancel a wind power contract off the coast of Massachusetts. In Rhode Island, Danish developer Ørsted’s bid to produce
offshore wind power was rejected due to rising operational and development costs. The UK Norfolk Boreas offshore wind project has been cancelled by Swedish state-owned utility Vattenfall. In a further blow to the clean energy sector, Siemens Energy has announced that problems with rotor
blades and gears at its wind turbines unit will cost US$2.4bn.

The EIC Survive & Thrive Report confirms that developing new export and international markets remains the least used and hardest growth strategy. HFI remains committed to supporting clients with advanced energy technology to establish, grow and divest their international businesses – in the short to medium term, the prize is clearly focussed on the petroleum sector in the Middle East.