Neshion Energy Partners with Veri Energy for Low Carbon Fuel Supply

A new partnership between Neshion Ltd and Veri Energy aims to supply low carbon fuel to the Sullom Voe Terminal (SVT) using energy generated from a proposed wind farm. The agreement marks a significant step forward in the decarbonisation efforts at SVT, which is operated by EnQuest.

Under a recently signed memorandum of understanding, Neshion will collaborate with Veri Energy, a subsidiary focused on the energy transition at SVT. Neshion is developing a renewable energy park consisting of ten 200-meter-high wind turbines and a 25MW battery energy storage system, located east of the terminal.

The collaboration will concentrate on how the energy produced at the Neshion Energy Park can be harnessed to power a new low carbon fuel facility at SVT. Neshion has indicated that the wind turbines could provide renewable electricity through a “private wire,” which would allow for immediate energy use without waiting for a connection to the main electricity grid. This arrangement is expected to accelerate the project timeline significantly.

Neshion highlighted that this direct energy supply could eliminate potential curtailment issues, where excess power generation cannot be utilized due to low demand on the grid.

Brendan Hall, the development manager for Neshion, spoke at a public engagement event in Mossbank in March 2024, where he expressed optimism about the project’s potential. “We’re keeping all of our options open,” he noted, while acknowledging the presence of potential customers in the area. Neshion plans to hold another public consultation on March 12, 2024, at Mossbank Public Hall from 15:30 to 19:30.

An environmental impact assessment is currently underway, with a planning application expected to be submitted early next year. If approved, construction on the 630-hectare site could begin in 2028, with the energy park operational by 2030 and a projected lifespan of up to 40 years.

The CEO of Veri Energy, Gavin Templeton, expressed enthusiasm about the partnership, stating, “We are pleased to be working with Neshion to unlock the long-term potential of Shetland and the Sullom Voe Terminal for the energy transition.” He emphasized the advantages of the region, noting that the combination of a world-class wind resource, existing infrastructure, and a skilled local workforce creates a strong foundation for low-carbon fuel production.

Hall reiterated the strategic importance of co-locating renewable energy generation with major energy consumers like SVT. “We are pleased to be partnering with Veri to explore how we can harness Shetland’s world-class wind resource to produce the next generation of sustainable fuels,” he said. He also expressed excitement about the potential for these projects to contribute to a sustainable future for SVT while supporting local jobs and investment.

This partnership represents a key development in the ongoing transition towards sustainable energy solutions in the region, aligning with broader global efforts to reduce carbon emissions and promote renewable energy sources.