Danish Offshore Development Gets Boost from Local Government

There is still great potential in Danish offshore and offshore will continue to play an important role in Danish industry.

For the next three years, the Region for Southern Denmark will support Offshoreenergy.dk in its endeavours to further drive development in the offshore industry and activities in the offshore sector. Yesterday, the Region for Southern Denmark granted the national cluster organisation and innovation network DKK 23 million.

"Danish offshore has a strong base in the Region of Southern Denmark. The industry is present nationwide and therefore makes a distinctive contribution at the national level too. We in the regional authority believe it is our duty to enhance the Danish leadership of this sector and fund a strong regional industry with national and, not least, international perspectives," says Stephanie Lose, Chairman of the Region for Southern Denmark.

Offshoreenergy.dk focuses on boosting innovation and development in offshore by means of close cooperation between players in the sector. Offshoreenergy.dk drives important new initiatives in the cluster, such as the Cost Reduction & Innovation forum (CRIF), which seeks to ensure that the sector reduces costs by applying the latest technology and expertise. Offshoreenergy.dk seeks to match the challenges facing established companies in the offshore sector with problem-solvers among the SMEs and start-ups, and at the universities.

The Region for Southern Denmark believes that there are good prospects for this approach:

"The Danish offshore sector has succeeded in remaining competitive at the global level by building on state-of-the-art technology, expertise and competences – often in the spirit of mutual cooperation. Offshoreenergy.dk's mission is to enhance innovative cooperation and involve every link in the offshore value chain in these efforts. If Denmark is to remain competitive on the global market, sustained innovative cooperation is in fact imperative,” says Stephanie Lose.

Battles to remain ahead of the field

Offshoreenergy.dk's Chairman Anders Eldrup welcomes the Region for Southern Denmark continued support and its conviction that innovation and cooperation are decisive for the future of the Danish offshore sector:

"Danish offshore is well-known and respected as an innovative partner with strong competences. For example, offshore wind energy developed in Denmark and then spread to the rest of the world. Innovations, such as horizontal drilling, were developed and perfected in the Danish sector of the North Sea – and subsequently exported. If we are to retain this outstanding position of strength, it is crucial that we in Danish offshore develop the sector together," says Anders Eldrup:

"By working together, we can remain at the forefront but we must continue to develop competitive technologies. We must persist in fighting for our lead. The pole position is not for keeps," he says.

There are challenges enough up ahead – and indeed exciting opportunities:

"The offshore industry needs innovation more than ever. We simply have to lower the cost of energy. Cost reductions have become a market imperative. And, when it comes to bringing costs down, there's most to gain from innovation and new solutions. If we do things in smarter, cheaper ways, we save and add value at the same time," says Anders Eldrup:

"It is therefore crucially important that, even when times are hard, we pursue the next step in development and the next innovative solution. Danish offshore has many aces up its sleeve. One of our primary advantages is that we have an offshore industry eco-system, in which all links in the value chain are represented. When operators and producers join forces in strategic development projects with each other and with start-ups, the universities and SMEs, we can create unique expertise that others will find difficult to copy," says Anders Eldrup.

Strong cluster beneficial to all

CEO of Offshoreenergy.dk, Glenda Napier, regards continued commitment to developing and enhancing a national offshore cluster as proof that the cluster strategy is correct and that the right parties are committed to its success.

"In an efficient cluster, the big guns, the small fry and the scientists work together in mutually trusting cooperative relationships. Our members are very keenly aware of the value of a strong Danish offshore cluster and that it provides access to the latest knowhow, competencies, technologies and close innovative partnerships. Their convictions are reflected in their commitment to the cluster: We are currently witness to well-established companies, such as Maersk Oil, sending clear signals to the effect that they cannot necessarily resolve all their specific oil and gas-related challenges on their own. We're also seeing offshore wind companies, such as Siemens and MHI Vestas, working together to meet common challenges," says Glenda Napier.

At a strategy day in January, the Board of Offshoreenergy.dk will set a direction and goals for Offshoreenergy.dk's activities in 2017 and beyond. Read about this in the next newsletter.

Facts:

The grant is to cover the following new cluster activities in the next three years:

• Cost Reduction & Innovation Forum: Working closely with companies in the sector, CRIF will set up multiple cooperative projects with focus on cost reduction and innovation within both offshore wind and offshore oil & gas.
• Internationalisation: More internationalisation – between offshore SMEs in nine specific countries.
• Eco-system: A national offshore eco-system with close strategic cooperation and networking between companies, scientific institutions, advisory bodies and investors, which also works broadly with other relevant clusters and sectors.