2.1.10Energy Transition

MANAGEMENT APPROACH

Key elements that enable SBM Offshore’s success in the energy transition area are:

  • Product Development for Floating Offshore Wind and Wave Energy.
  • Technology Development supporting these product developments (see more detail in section 2.1.9).
  • The emissionZERO® program explained in section 2.1.7.
  • SBM Offshore commits to a strategy and action plan that is compatible with the transition to net-zero by no later than 2050, as explained in section 2.2.

Product development for energy transition is addressed through SBM Offshore’s New Energies & Services business unit, in collaboration with the Technology Department. An important step in this process is the development of prototypes and pilot projects, which can also be done as co-development projects with partners and/or clients. SBM Offshore monitors its commercial pipeline to allow SBM Offshore to achieve its envisioned growth goals in line with its 2030 ambition.

With this management approach for energy transition, SBM Offshore is addressing the significant risks of oil price dependency, portfolio risks and climate change described in section 1.4.2.

SBM Offshore complies with the EU taxonomy regulation and leverages the framework to set targets for and report on the energy transition. Disclosures are found in section 5.1.2.

2021 PERFORMANCE

SBM Offshore has made significant achievements in 2021:

  • The newly established New Energies and Services entity is accelerating in building up the organization, expertise and culture for the Renewables, Gas, Terminals and Digital Service markets.
  • SBM Offshore has further articulated a clear ambition to have >2GW Floating Offshore Wind installed or under construction by 2030. This ambition statement provides a directly measurable target.
  • The project execution of EDF Renouvelables Provence Grand Large 25.2MW Floating Offshore Wind is in full swing with detailed engineering, structure fabrication and assembly activities ongoing.
  • SBM Offshore moved forward as a co-developer in the offshore wind industry with the newly established joint venture, Floventis Energy Limited. The first development project Llŷr in the UK, comprising 2 offshore sites each up to 100MW, has received the Crown Estate’s intention to grant lease subject to a Habitats Regulations Assessment.
  • Manufacturing for the WEC S3® prototype is in progress in SBM Offshore Carros-based laboratory.
  • Seawater intake riser program is underway with Shell in Brazil to cool FSPO systems and reduce energy use.
  • SBM Offshore has invested in renewable energy technology and products development, with 60% of the total 2021 Group Technology R&D budget applied to non-carbon1 technologies. This includes further development of next generation of Tension-Leg Platform (TLP) floater design, and Wave Energy Converter products, as well as studies in energy storage, desalination, hydrogen and ammonia for offshore applications.
  • SBM Offshore is working on projects that address emissions reduction along the lifecycle of its business, as part of its emissionZERO® portfolio (see section 2.1.7).

The revenues, CAPEX and OPEX associated with these projects and initiatives add to EU Taxonomy eligible business, as reported in section 5.1.5. SBM Offshore’s commitments should lead to higher revenues from eligible business in the future, with 2021 R&D investment already reflected in the EU Taxonomy eligible OPEX KPI stated. Above-mentioned R&D investments are visible in the OPEX KPI reported. These activities support the mitigation of and/or adaptation to climate change impacts.

FUTURE

SBM Offshore will continue to build upon these achievements and is looking at developing from renewable energy pilots to commercial scale energy infrastructure, as well as increasing its role in the supply chain with the aim of creating more value. For 2022, SBM Offshore has set a target of investing 50% of its R&D budget into EU Taxonomy eligible1 technologies, as can be read in section 5.1.5.