(epbr) “The route cannot be fully established in the regulated market. We have to develop other sales lines for this energy”, says Equinor’s director Andre Leite at the Offshore Week 23 Conference.
The executive explained that offshore power generation will enable the development of new electro-intensive markets and attract industries to consume this new renewable source alternative.
“The route cannot be fully attached to the regulated [energy] market. We have to develop other lines of sale for this energy, ”he explained. André Leite is at the forefront of the development of these Equinor projects, in the Latin American markets.
“Offshore electrification of oil and gas operations is a possible avenue. Another project that is emerging as the future of offshore wind is the production of hydrogen for industrial consumption and for power generation, including for export, in the form of ammonia and green methanol”.
The director stated that the company will have “50% of capex investments placed in renewable energy and low carbon solutions” by 2030.
Participants discussed how the knowledge gained from experience in oil and gas production can leverage offshore wind power generation in Brazil.
“The [offshore wind] industry demands technological improvement associated with logistics, engineering, resources for large-scale projects, mobilization of capital and labor. All this is part of our oil and gas industry”, declared the superintendent of Technology and Environment of the National Petroleum Agency (ANP), Raphael Moura.
Currently, more than 70 offshore wind farm projects, with around 180 GW in installed capacity, are in the process of environmental licensing by Ibama. And oil-producing states attract most of the offshore wind energy projects announced in the country.
According to the president of the Brazilian Institute of Oil and Gas (IBP), Roberto Ardenghy, the costs of offshore generation are higher than those of onshore generation, so companies must work to reduce these expenses.
“There is a challenge which is the issue of cost. Offshore production costs are higher than onshore. We must face this in a mature way,” he mentioned.
Offshore wind milestone
The perspective of a specific auction for offshore wind energy in 2024 is on the market’s radar. However, companies that are targeting opportunities with offshore generation find barriers with the lack of regulation in this market.
In 2022, the Senate approved PL 576/2021, authored by Jean Paul Prates, former senator and president of Petrobras. Now, the matter awaits deliberation in the Chamber of Deputies.
The president of the IBP reported that the companies are waiting for the approval of the text to proceed with their offshore wind projects.
“Regulatory issues are necessary for investors to be able to decide on their projects for licensing,” he said.
Regarding the regulation proposal, the ANP superintendent believes that it will not be difficult to supervise offshore wind production, as there is “synergy with the oil and gas sector”. “It goes the same way and it’s the same environment”, commented Moura.