OFFSHORE - Invest Tees Valley...JDR Cables JDR Cables is a world-class provider of subsea technologies and services connecting the global offshore energy industry. Its flexible and

OFFSHORE

The offshore oil and gas industry plays a vital role in the UK economy, accounting for £20.5billion of GVA in 2018 and recording 10% growth during 2014-18. It currently supports around 280,000 jobs across more than 1,400 companies providing oilfield goods and services across the exploration and production life cycle. More than £12.3billion of goods and services were exported from the UK oil and gas supply chain in 2016, significantly contributing to the UK’s balance of payments.

The offshore wind industry is going through a strong growth period and currently supports approximately 7,200 jobs across the country. This is projected to grow to 27,000 jobs and be worth £4.9billion annually by 2030. In the Northern Powerhouse, the energy sector provides approximately £2billion of revenue and accounts for approximately 32,000 jobs.

Tees Valley is one of the biggest centres in the UK for offshore fabrication, the oil and gas industry, offshore wind, decommissioning and subsea. The region is also home to one of the largest clusters of subsea, cabling and trenching companies. A key contributor to the national economy, the area has played a major role in oil platforms and heavy engineering projects in the North Sea.Tees Valley’s location makes it ideally positioned for servicing the North Sea and offshore industries and there are a vast array of sites with river and port access that are ideal for large-scale investment, including the South Tees Development Corporation. The ports along the River Tees and at Hartlepool are key assets. Between them they offer 80 berths, including the deepest on the east coast of

England, as well as six roro berths. The ports are rail-connected and offer lock-free access to the North Sea and have numerous high-bay fabrication halls and heavy load-out quays.

The area is well connected to other strategic UK locations, with more rail-linked sites than any other comparable area and easy access to the strategic road network. An international airport provides daily connections to Aberdeen, the Scottish Highlands & Islands and Scandinavia as well as multiple daily flights to Schiphol, connecting Tees Valley to the rest of the world. This, combined with our excellent port facilities, means global markets can be easily reached.

INTRODUCTIONThe offshore energy industries are a key contributor to the UK economy, with the North-East of England accounting for an increasingly larger share of the UK’s GVA growth across oil and gas and renewables.

2 | Offshore Offshore | 3

A1(M) access

Able UK

Teesside International Airport

AV Dawson

Bulkhaul

A&P Tees

Van Oord

Redcar Bulk Terminal

Able UK

Able UK

DARLINGTON

EDF Energy

Innogy The Faraday Training Centre

Tata Tubes Liberty Tubes

Tees Components

Whessoe

ConocoPhillips

Mech Tool

Propipe

TTE Technical Institute

Esterline

StorkPX Group

Corrpro

Jacobs

K Home International

Francis Brown

Hydrasun

Nortech

Oceaneering

Askaris

TracercoKAEFER

NETA

Phusion IM

Subsea Innovation

Ennsub

Faithful & Gould

TWI

RelyOn Nutec

QA Weld Tech

Lionweld Kennedy

Tekmar Energy

PD Ports Teesport

Teesside University

IMHTeesAMP

Teesside Gas Processing Plant

Sembcorp Biomass Power Station

Sembcorp EFW Power Station

CATS

Deep Ocean

Wood

Offshore Structures Britain

Modus

BOC

Wilton Group

Materials Processing Institute

Frazer-Nash

ALE

LV Shipping

Dormer Engineering

MGT

JDR Cables

Engie Fabricom

Unasys

A66

A66

A66

A66

A66

A66

A19

Rail line

Rail line

Rail line


There are currently more than 400 direct and 3,000 indirect businesses in Tees Valley operating in the offshore sector, employing around 4,250 people and the area is home to industry leading names in oil and gas, subsea, decommissioning and offshore wind

OFFSHORESUPPLY CHAIN

SOUTH TEES DEVELOPMENT CORPORATION

WILTON INTERNATIONAL

SEAL SANDS

RIVER TEES ESTUARY

DARLINGTON

PD PORTS HARTLEPOOL

DOCKS

OIL AND GASTees Valley is a key centre for the oil and gas sector in the North. Ideally placed on the North-East coast, the region is one of the biggest centres for offshore fabrication in the UK.

The area is home to one of the UK’s largest clusters of subsea, cabling and trenching companies and has significantly contributed to the oil platforms and heavy engineering for the North Sea. Tees Valley’s substantial available quayside has heavy-lift capacity and water depths ranging from nine to 11 metres and the area is delivering on significant North Sea platform projects.

Carbon Capture, Utilisation and Storage Carbon Capture, Utilisation and Storage (CCUS) is widely acknowledged as the only viable technology able to reduce industrial CO2 emissions and achieve cost-effective decarbonisation across industry sectors. Tees Valley is already leading the way with the Tees Valley Cluster, a partnership of major global companies located in Tees Valley with a shared vision: to be the go-to location for future clean industrial growth and to create the UK’s first CCUS industrial zone.

With the Tees Valley Cluster, the area presents a ready-made, cost-effective solution to CCUS. Its proximity to North Sea carbon storage sites means it is ideal for large-scale industrial decarbonisation.

One multibillion-pound scheme currently in the pipeline is the Clean Gas Project – a consortium of six global energy giants; BP, ENI, Equinor, Oxy, Shell and Total. The project, led by OCGI Climate Investments, will be the world’s first gas-powered energy plant to deploy full-chain Carbon Capture, Utilisation and Storage at scale.

JDR Cables JDR Cables is a world-class provider of subsea technologies and services connecting the global offshore energy industry. Its flexible and innovative technologies enable vital control and power delivery for both the oil and gas and renewable energy sectors.

JDR was awarded a multimillion-pound contract from Ørsted for the supply of inter-array cables and termination work for Hornsea Project Two, which will become the world’s biggest offshore wind farm, once operational in 2022.

The contract includes 100km of inter-array cables, all assembled in JDR’s Hartlepool facility. The project is Ørsted’s first in the UK to use 66kV for inter-array cables, as the developer used 33kV for its previous UK projects.

Tata The Tata Steel Hartlepool 20” pipe mill is a leading supplier of high frequency induction pipe which serves the construction, engineering and energy markets. With a long and successful track record serving the offshore energy industry, the pipe mill has supplied high-specification pipelines to safety-critical applications globally.

The Hartlepool 20” pipe mill is a leader in offshore pipelines supply in the extremely hostile North Sea environment. Tata Steel has supplied more than one million tonnes of pipelines to the North Sea in the past 25 years.

Modus Subsea specialist Modus has developed an innovative approach that enables autonomous underwater vehicles (AUVs) to remain at offshore wind farm sites without a support vessel. The move could shave £1.1billion from the operating cost of Europe’s offshore wind farms and would be a world-first in the sector.

The AUV docking station, which is currently being trialled, enables vehicle recharging, as well as the upload of acquired data and download of mission commands.

Seabed surveys and infrastructure inspections are currently performed by crewed survey vessels using hull-mounted equipment, diving and ROV support vessels. These methods are time consuming, expensive and are weather dependent. Modus is already operating hybrid AUVs to reduce costs in the performance of survey and inspection tasks in both offshore wind and oil and gas sectors. Replacing support vessels with the AUV docking station will further reduce expenditure. In addition to the estimated savings the scheme will also significantly reduce the need for staff to work in often hazardous environments improving safety.


Able UK’s landmark contract to decommission Shell’s Brent oil field has led to a £28million investment to create a bespoke quay, the strongest in Europe, and is one of the most important offshore projects of its time.

In June 2019 the 25,000-tonne Brent Bravo, which stands 410ft tall and 230ft wide, became the second platform from the Shell Brent field to be decommissioned at Able Seaton Port – the first, the Brent Delta, arrived in May 2017. Both were transported from north-east of Shetland by the Allseas Pioneering Spirit, one of the largest vessels ever built and the two topsides are the heaviest single piece ever lifted offshore. More than 98% of the structure will be recycled.

Able UK’s bespoke Quay 6 has a load capacity of 45t/m² and can accommodate the largest structure that the Pioneering Spirit can handle. The new quay has a line load of around 100t/m on skid tracks and a full quay length of 120m and is 121m deep.

The huge investment made by Able provides benefits that will extend beyond the Shell Brent project. The new quay will continue to attract similar projects to the area for the foreseeable future. The facilities are unique in the UK and put Able and Tees Valley in a strong position to secure ongoing business in a field of activity that is set to increase significantly over the next decade.

During 2020, Able Seaton Port will welcome a number of other new large-scale projects including the next element of the Shell project – the Brent Alpha – as well as a series of platforms and structures from the Exxon-Mobil operated Sable Offshore Energy Project (SOEP) off the coast of Nova Scotia, Canada.

Shell Brent Oil FieldINDUSTRY LEADERS INDECOMMISSIONING

Tees Valley is fast becoming the place for large-scale decommissioning projects. The area has substantial available quayside with heavy-lift capacity and water depths ranging from nine to 11 metres and is already delivering on significant North Sea platform projects.

The North Sea is rapidly entering its decommissioning era. There are currently around 320 fixed installations in production in the UK, primarily in the North Sea, making Tees Valley ideally located to capitalise.


Tees Valley is the ideal location to access the North Sea and offers direct access to strategic offshore wind farms, including Dogger Bank and Hornsea. The area has excellent links with Scotland, the North -East and the Humber, providing a pivotal role in the UK supply chain. Tees Valley is an excellent location for servicing the whole UK offshore wind market and provides significant logistics cost savings against shipping from other parts of Western Europe.

The River Tees has the deepest port facilities on England’s east coast and one of the largest exporting ports in the UK. With nine deep water sites and operational assets positioned along ten miles of the River Tees, coupled with

world-class engineering skills, Tees Valley is well-placed to service the UK’s 7.9GW of installed offshore wind assets and the 5.7GW currently in construction.

The region is one of only six locations across England that benefits from UK Government CORE status, namely a Centre for Offshore Renewable Engineering in recognition of the excellent infrastructure and underpinning supply chain for offshore wind.

Tees Valley is emerging as an energy powerhouse and the offshore wind industry here offers long-term sustainability with access to national and global markets.

The UK is already leading the world in offshore wind, with nearly 8GW installed. Offshore wind generated a record amount of electricity in 2018, increasing by 28% from 20.9TWh to 26.7TWh. This was due to an increase of 1.2GW, with several large sites opening, or continuing to expand, during the year.

Dogger Bank Dogger Bank Wind Farms consist of four offshore wind farm projects, Creyke Beck A and B, Teesside A and Sofia Offshore Wind Farm (formerly Teesside B), located around 130km off the North-East coast.

The 1.4GW Sofia Offshore Wind Farm, sited on the shallow central area of the North Sea known as Dogger Bank, is the largest project in innogy SE’s current development portfolio. It has an agreed connection point at an existing National Grid substation in Lackenby, Teesside.

It is 165km off the north-east coast between Redcar and Marske-by-the-Sea in Tees Valley and, at 593km2, is roughly the same size as the Isle of Man.

The sheer scale and size of Sofia Offshore Wind Farm will offer significant economic opportunities for the UK, in particular in Tees Valley, with potential supply chain benefits, infrastructure and associated jobs and contracts.

Wilton Engineering Wilton Engineering provided 21 transition pieces, each weighing 340 tonnes, for German company Steelwind for Ørsted’s Hornsea Project One. The completed pieces were loaded vertically onto a barge from Wilton’s Tees Valley base to be transported to the offshore wind farm located off the Yorkshire coast.

Wilton’s scope of works was to manufacture, install and fit all secondary steelwork and associated electrical installations. The work was carried out at Wilton Engineering’s vast fabrication facilities and painted within its state-of-the-art coatings facility on the banks of the River Tees.

Wilton engaged a predominately regional supply chain and Bill Scott, Chief Executive of Wilton Engineering, said: “The North-East has a strong, collaborative and integrated supply chain that maximises on its infrastructure – such as the ports and rivers, and its location on the UK’s east coast – to be able to effectively service offshore wind farm developments, such as Hornsea Project One.”

STRATEGIC OFFSHORE WIND LOCATION


Located in the heart of Tees Valley, Teesside International Airport is perfectly positioned with ideal development opportunities and an enviable transport infrastructure. It was recently brought back into public ownership by the Tees Valley Mayor and Combined Authority and, along with experienced aviation joint venture partner Stobart Group, there is a ten-year plan to grow the airport’s services.

The airport acts as the international gateway for the region to global markets. Through multiple daily services via KLM Royal Dutch Airlines to the award-winning Amsterdam Schiphol airport, the people of Tees Valley, North Yorkshire and wider North-East can access more than 200 worldwide destinations. This crucial connectivity is of paramount importance to the region’s prosperity, encourages inward investment and attracts foreign direct investment as businesses are safe in the knowledge that they can conduct global business from Tees Valley.

The region is a critical player in the North Sea oil, gas, offshore and renewables sector and as such is well served by daily connections with Flybe and Eastern Airways to Aberdeen, the Scottish Highlands & Islands as well as Scandinavia.

Land and Property OpportunitiesThe 819 acres of land at Teesside International offers a huge range of land and property opportunities for businesses of all types and sizes. Planning permission has already been granted for an aviation-related development on a 170-acre plot on the Southside. This was extended to allow a 50-acre area of open B1, B2 and B8 development as part of the permission.

Development opportunities are split across two phases, focusing on different land banks within its boundary. These have further been designated into specific development zones for a wide range of sectors. Opportunities lie within general employment and office space, warehousing and logistical units and the aviation sector. Zones are fully flexible and offer numerous plot sizes ranging from 6,000 sq ft all the way up to 100,000 sq ft.

Heliport Following the agreement to return the airport to public ownership in January 2019, it was announced that plans for a Heliport at the airport were being considered to support a £3.2billion wind project.

The airport would make an ideal base to service the world’s largest offshore wind project, Dogger Bank. Under the plans, the operations and maintenance base will see engineers and support staff mobilised directly from the Heliport at Teesside International during the construction and operational phases of the project.

The wind farm project is currently under construction in the North Sea more than 100 miles off the coast of Redcar.

TEESSIDE INTERNATIONALAIRPORT


SITES AND PREMISESTees Valley has a number of assets that make it ideal for offshore activity, many of them offering financial incentives for new investments, including the UK’s first Special Economic Area in the South Tees Development Corporation.

AV DawsonAV Dawson owns and maintains a large number of facilities which includes a variety of extensive warehousing, fabrication, storage and office capacity. Many of its warehouses can be configured to meet the requirements of a broad range of products from pallets, bulk and bagged goods to specialist subsea equipment and containers. Many of these warehouses have in-shed crane capacity and are metres from the quay, enabling efficient store-to-ship transfer.

AV Dawson can offer rail-linked, quayside or standard warehousing and storage options, ranging in scale and size, with in-shed cranes and, in some areas, heat and humidity controlled environments.

Able PortsAble has four sites in Tees Valley with river frontage, including Seaton Port and Middlesbrough Port. Between them they cover more than 160 acres and have some of the strongest quays in Europe, with heavy load-out pad areas and quayside depths of up to 15 metres. They make ideal locations for decommissioning and heavy-lift projects.

TeesAMPTeesAMP is a new £22.5million manufacturing park covering 27 acres in Middlesbrough which is bringing forward new high-quality buildings and facilities for investors. It is already home to TWI, one of the UK’s foremost industrial research organisations, housing the Offshore Wind Validation Centre, offering research and validation services for offshore tower manufacturers.

Hartlepool DocksHartlepool Docks includes more than 300 acres of open land for occupiers, with five general cargo berths, all with quay depths of up to eight metres as well as lay-down space for wind turbine towers, blades, cable reels and other components. Hartlepool Docks is also home to JDR Cables, producing subsea ultra-long length cables and umbilicals.

South Tees Development Corporation

The South Tees Development Corporation is the single biggest development opportunity in the UK. With 4,500 acres of prime land south of the River Tees, the site is six times the size of the City of London, making it one of Europe’s biggest industrial economic prospects.

In the heart of the region’s industrial zone, the Development Corporation benefits from strategically important businesses, facilities and other industrial assets, as well as excellent national and international connectivity. With rail-connected portside facilities and access to the rest of the UK via the wider strategic road network, the site is well connected to other industrial and manufacturing hubs.

The site’s unique selling point is sea connectivity. The South Tees area benefits from being situated within a major export region for the UK. With the deepest water port on the east coast of England and one of the UK’s busiest ports, it is the UK’s Northern gateway to the world. Less than 30 minutes’ drive is Teesside International Airport – providing another crucial link to international markets.

Multibillion-pound projects already announced include Sirius Minerals’ polyhalite processing plant for its North Yorkshire mine project, Yorkshire firm PMAC Energy’s £250million waste-to-energy plant and the world’s largest purpose-built biomass power plant is also under construction on the site, a £650million investment by MGT.

The vision, outlined in the 25-year Master Plan, will see the area transformed into a world-class advanced manufacturing centre. It builds on Tees Valley’s clean growth ambitions and our engineering and scientific competencies in area such as hydrogen, Carbon Capture, Utilisation and Storage, offshore energy, process engineering, industrial optimisation and the circular economy. It presents an international-scale opportunity for large-scale investment in new and advanced technologies.


TWI

TWI’s research and development work covers a wide range of technologies for industry sectors including oil and gas, chemical, power and transport. Services include materials characterisation and modelling for safety critical applications on structures and welds, surface and coatings technologies, fitness-for service assessments and additive manufacturing simulation support.

TWI is also home to the Offshore Wind Validation Centre, providing research and validation services for offshore wind tower manufacturers, as well as the oil and gas and subsea sectors.

The Centre’s training and examinations facilities contain specially designed training suites and state-of-the-art equipment for underwater inspection, plastics joining, weld inspection and non-destructive testing applications. It enables engineers to use the latest technologies to ensure the safety of structures such as offshore platforms, wind towers, chemical plant and oil pipelines

Materials Processing Institute

The Materials Processing Institute is a not-for-profit research and innovation centre with a 75-year track record in developing new materials, processes and technologies.

The Institute is a globally recognised centre for the innovation, development and commercialisation of technology for advanced materials, low-carbon energy and the circular economy. This is delivered by scientists, engineers and project teams with expertise in materials science and advanced processing, utilising state-of-the-art equipment, laboratories, workshops, demonstration, scale-up and production facilities to develop technology, enhance materials and improve processes.

Engineering Design ExpertiseTees Valley is home to some of the most innovative and forward-thinking international engineering design companies in the world. Global giants such as Wood, Jacobs, Whessoe (Samsung), Johnson Matthey and Frazer-Nash are all based in the area supporting oil and gas and offshore projects. With capabilities in planning, conceptual studies, engineering design, automation, scientific and speciality consulting, they are able to deliver end-to-end innovative solutions to companies across multiple markets.

Technical Training and Apprenticeships

The region has a number of world-class training facilities that specialise in technical training and apprenticeships for the offshore sector. They use real-work environments with high-specification equipment that matches that of an industrial setting, ensuring our workforce is equipped with the skills, training and safety awareness that is needed in the offshore sector.

There are a number of training providers based in the region, including RelyOn Nutec, a leading health and safety training provider for the offshore sector; TTE Technical Institute, the UK’s largest technical training organisation in the engineering, process and offshore sectors; NETA, which provides accredited courses and apprenticeships in the engineering and offshore sectors; and TWI, a global leader in technology and engineering services.

Teesside University

Teesside University is a key asset for the area, working with local employers to deliver sector-related courses and initiatives that support the local economy. It won national acclaim at the 2018 Enterprising Britain Awards for Improving the Business Environment, which recognised initiatives that support business and innovation growth.

Digitalisation

Supported by Teesside University, Datum360 is a leading information management company specialising in providing innovation solutions for the oil and gas and process industries. It has developed a suite of robust Software as a Service (SaaS) solutions that provides accurate and reliable asset management information, helping its clients make significant cost reductions and increase operational efficiencies. This has led to major contracts with global oil and gas companies such as Engie, Total, PremierOil and Maersk Oil.

SKILLS INNOVATIONTees Valley has a large catchment area of skilled labour experienced in delivering big and complex projects. We have invested heavily in the workforce as we are committed to delivering a world-class education and skills system that provides a base for the economic growth for the future of the area. We work closely with our businesses to identify their current and future workforce needs to ensure we have a readily available, experienced and skilled labour pool.

North-East England has been a hub for offshore innovation for decades. With its roots firmly in the oil and gas sector, the region has successfully diversified through the transference of skills and expertise to also become an established location for technology-led solutions for the offshore wind industry.

Tees Valley is home to leading research and technology development organisations. The Materials Processing Institute and TWI have the skills and track record in the development of new and advanced offshore and clean technologies.


■ To find out more, go to EnjoyTeesValley.com – the Combined Authority’s dedicated destination marketing service

Invest Tees Valley is the Combined Authority’s business investment team. There are financial incentives and support available for companies looking to locate in the region, such as the Northern Powerhouse Investment Fund and the Tees Valley Capital Grant Scheme.

The business investment team makes investing here easy and works with investors to understand their project parameters and identify the key risks. It provides advice and assistance to help mitigate those risks with the aim of finding solutions to reduce the capital and operational expenditure for potential investors.

The team can advise on funding streams to support capital investment and make introductions to our network, including strong connections with UK Government, cluster and innovation specialists, as well as skills development within local universities and colleges.

Being one of only nine areas in the UK to have a metro mayor and a devolution deal, Tees Valley has a competitive

edge and investors can be confident that decision-making here is done with our local businesses in mind. Devolved decision-making helps us fulfil our potential and develop and nurture businesses in a way that will support them and the wider Tees Valley.

Significant funding has already been delivered to ensure the area has the infrastructure to support major investments. Over the next ten years Tees Valley Combined Authority will be investing £588million across six key themes. This investment in our transport, culture, skills, innovation, communities and businesses growth will make Tees Valley an even better place to do business.

Tees Valley offers a great standard of living with a richly diverse landscape, from picturesque villages to charming market towns and a beautiful coastline to stunning countryside. Each of the five boroughs has unique strengths that make Tees Valley greater than the sum of its parts.

Five distinct boroughs big on culture and adventure bursting with things to do and places to see. From dramatic hilltops to rugged coastlines, picturesque countryside to attractive villages, Tees Valley may just surprise you.

Quality of life is good here because our people get more for their money. There is a superb variety of homes to suit most incomes. From country cottages to new builds and Victorian houses to executive apartments, there is something for everyone.

Nine out of ten Tees Valley primary schools are either good or outstanding and apprenticeships and support schemes create pathways for our young people.

The area is rich in culture and history with an arts offering that includes one of the UK’s leading galleries for modern art, mima. It has a proud railway and maritime heritage and a packed programme of exciting events and festivals, including a spectacular international festival of outdoor art – the Stockton International Riverside Festival – and the increasingly popular artisan food market Orange Pip.

An adventure lover’s paradise, you can surf on the waves at the coast, enjoy the spectacular countryside by foot or bike, enjoy a river boat ride, jet-ski, canoe, kayak, paddle-board or try out our Olympic standard white-water rafting course. We are also home to the only bridge in England that you can bungee jump off – the Transporter Bridge.

INVEST TEES VALLEY ENJOY TEES VALLEY


DarlingtonRedcar & Cleveland

Hartlepool

Stockton-on-Tees

Middlesbrough

For more detailed information, please get in touch with the Business Investment Team

T: 01642 524400

E: [email protected]

www.teesinvest.com

TeesValleyCA @TeesValleyCA @TeesValleyCA

Documents

OFFSHORE - Invest Tees Valley...JDR Cables JDR Cables is a world-class provider of subsea technologies and services connecting the global offshore energy industry. Its flexible and