INDUSTRY ANALYSIS
People power But does the top end of the supply chain have the skills necessary for the transition to net zero ? Stephen Marcos Jones believes that it does .
“ Our biggest assets are our people ,” he told Fuel Oil News . “ We have a highly-skilled workforce , with 35 % of refinery workers having a degree level qualification or higher and 23 % having completed an apprenticeship – clearly that STEM expertise will be essential for the energy transition .
“ On the large industrial decarbonisation projects , our sector continues to innovate , upgrade , and work safely on multi-billionpound assets , which are continuously evolving . Because of this , the transition to industrial cluster projects is not a giant leap , rather , a continuous evolution of skills in our workplaces . “ As the largest producer and user of hydrogen in the UK , our workforce is uniquely placed to benefit from , and push forward , the hydrogen economy . We think that , as we make our own hydrogen production less CO2 intensive , we can export more of it to decarbonise other industries and transport . Those same engineering skills will also be required for large CCUS projects where our members also can be leaders .
“ As well as those technical skills , I think another important attribute where our industry has proven its ability , is in managing the massive upgrades mentioned earlier . The scale of the net zero challenge cannot be overemphasised , but our members – many of them global players – can bring their project expertise to the table . This means delivering renewable fuel and energy projects at the same scale that we currently use to deliver the hundreds of millions of litres of fuel every day .”
A bright future With no shortage of skills to move these decarbonisation projects forward , protecting
12 Fuel Oil News | October 2021 and creating jobs is very much a priority for the industry .
“ While reaching our climate targets will require extensive change across our economy , we must do so in a way that protects jobs ,” said business and energy secretary , Kwasi Kwarteng , outlining the Government ’ s plans .
Despite initial worries over job security , it ’ s thought that , as well as reducing emissions , projects such as HyNet and Humber Zero will actually create and maintain thousands of local jobs , which is welcome news for the employment market and those working in the industry .
According to Jonathan Briggs , Humber Zero ’ s project director : “ Humber Zero aims to reduce emissions while preserving jobs and supporting growth in the energy-intensive industries that have made Humber a leading industrial hub . It can establish the foundation for a gateway to decarbonise the wider Humber , bringing new industries , sectors and jobs to the region .”
The project , which aims to remove eight million tonnes of CO2 by 2028 through carbon capture and storage technology , is expected to create 25,000 jobs during construction , 200 permanent jobs and safeguard 20,000 direct , and indirect , jobs in the area .
And it ’ s the same at HyNet according to Inovyn : “ HyNet North West will protect and retain jobs in existing high value manufacturing industries . Workers will develop fresh skill sets and train in exciting new sectors , fostering regional growth and inward investment . By kickstarting the UK ’ s hydrogen economy , HyNet North West will help support up to 75,000 jobs across the country by 2035 .”
Stephen Marcos Jones believes : “ The future can be a bright one . While the jobs themselves will be different , there will be a range of new jobs with similar skillsets to today ’ s downstream sector workforce , but this will only occur if the transition is managed well by both industry and
government .” He adds : “ There will be an increased demand for skills relating to the safe handling of hydrogen and building the carbon capture and storage projects of the future . The large foundation-industry assets will need to be upgraded to be more energy-efficient and emit less carbon and this will require world-class engineering .”
“ Furthermore , new jobs will be created to monitor carbon emissions from sites . Unmanned vehicle pilots for inspections and machine risk officers to ensure the safe working on sites , will all be required in the future of the downstream sector , so there are definitely new opportunities that are going to emerge – potentially quite quickly .”
The Future Fuel Scenario As refineries take major steps towards meeting the Government ’ s stringent net zero targets - driving change from the top down - and the future is looking bright for the job market , what will be the impact on the supply chain and the look of future fuel ?
Right now , it ’ s very much an evolving scenario as Stephen Marcos Jones points out : “ Fossil-based technologies will probably have less demand , and new energy sources will grow to fill the gap .
“ We see low-carbon hydrogen as an important energy source in the future fuel mix , not only for industry , but also with hydrogen home boilers , hydrogen-fuelled farm equipment , and as a transport fuel , for example in rural areas where access to electricity and gas grids is more challenging .
Low-carbon fuels such as biofuels will also play a big role , especially in aviation and heavy vehicles , which will be important across the UK . The Department for Transport recently announced a new strategy for low-carbon fuels which is very much needed and will , we believe , show the huge potential for these fuels – bios , synthetics , and from wastes – to contribute significantly to net zero alongside electricity and hydrogen .”
We look forward to speaking in greater depth to Stephen Marcos Jones on broader industry issues in our November issue .
With many fuel oil distributors having already taken significant steps of their own to move towards net zero , it ’ s reassuring to know that change is very much being driven right through the industry . And , while some may feel uncertain about what lies ahead , they can rest easy in the knowledge that whatever future fuel they ’ ll be distributing , the top end of the supply chain will be ready with it .