There are strong signs that the UK’s energy transition is finally gathering pace as two of the sector’s biggest players revealed significant milestones this morning.
Aberdeen-headquartered Wood has reported that it expects revenues from its sustainable business to top $1billion this year following major contract wins.
And the National Grid has revealed that it is spending nearly £22million per day investing in new infrastructure that will help deliver global net zero ambitions.
Wood builds on renewables progress
Revenue at the consultancy and engineering company has increased again in the third quarter by 8% to $1.48billion (£1.2b), compared with the same period last year. Annual revenue now sits at $4.46billion (£3.63b) for the year, falling in line with expectations of around $6billion (£4.88b).
The firm has been boosted by huge made in sustainable solutions, which now represents more than a third of the company's pipeline (35%), a jump from 33% since the end of the Q2.
Revenue in sustainable solutions has grown swiftly $900million (£732.5m) in 2023, with expectations that by the year end it will comfortably top $1billion.
Sustainable solutions account for renewable energy, hydrogen, carbon capture & storage and electrification, as well as LNG, the processing of energy transition minerals and decarbonisation of oil and gas.
The firm published a third quarter trading statement on Thursday morning. CEO Ken Gilmartin said: "We have delivered another quarter of strong growth in revenue and EBITDA as we continue to execute against the growth strategy we set out a year ago.
"I am particularly pleased to see continued progress across sustainable solutions, now making up 35% of our pipeline, and some excellent contract wins in the period.
"Reflecting the momentum that we are building in the business, we remain confident that our actions, business model and strategy are delivering."
Major grid investment
Meanwhile, National Grid has revealed that it is stepping up investment in 17 major onshore and offshore transmission projects in the UK.
Across the globe, it is now pumping £21.5billion per day into capital projects, spending almost £4billion in the first half of 2023.
Over the next five years, the firm plans to invest a total of £42billion to support the shift away from a reliance on fossil fuels.
Details of the investment were published alongside the firm’s half-year results this morning, which showed it made profit of £1.8billion in the first six months of 2023.
John Pettigrew, the firm’s chief executive, said: “Today we've announced solid results, and reconfirmed our full-year guidance, as we continue to enhance critical energy infrastructure across the communities we serve.
“This financial performance reflects our role at the heart of the energy transition and a new phase of capital delivery that is firmly underway. Capital investment in our regulated networks reached a record £3.5 billion in this half year, as we step up our investment in 17 major onshore and offshore transmission projects in the UK.
“In the US, we're now progressing a number of major transmission projects to unlock renewable generation and upgrade infrastructure across our jurisdictions. And we're delivering this critical investment at the same time as ensuring affordability for our customers, having now exceeded our £400 million efficiency savings target earlier than planned.”
On the five-year investment plan, he added: “We're ready to meet the opportunities, and are set up to tackle the challenges ahead, to deliver a clean, fair and affordable energy future for all.”
Energy transition business breakfast
Next week, Aberdeen & Grampian Chamber of Commerce, KPLG and the ETZ Ltd will discuss the energy transition and the progress being made here in the North-east at a special business breakfast.
The results of the 38th edition of the Chamber’s Energy Transition Survey will be revealed during the breakfast event, which is taking place at the Aberdeen Altens hotel this coming Tuesday.
There are limited spaces remaining, so if you would like to join the event, click here to reserve your place.