Using petroleum technology to establish a foothold in renewable industries

GCE Subsea has long been one of Norway's leading offshore technology clusters, but is now rapidly expanding into fossil-free ocean industries. By applying knowledge and technology from the fossil fuel industry, the cluster can establish a presence in blue growth markets such as aquaculture and offshore renewable energy.

To reflect its expansion from a traditional oil and gas cluster into a broader range of ocean industries, the cluster has also changed its name to GCE Ocean Technology.

‘We have neither the financial resources nor the time to develop renewable industries from scratch. That is why we need expertise from the oil and gas sector to drive green industry forward,’ says Owe Hagesæther, CEO of GCE Ocean Technology.

The cluster shows how quickly the transition from fossil fuels to green industry can happen: In just the past three years, most of the cluster's companies have become involved in renewable energy activities alongside their oil and gas operations.

'In 2014, we were 120 companies working exclusively in the petroleum industry. Today, more than half of our companies are also involved in either aquaculture or offshore renewable energy,' says Hagesæther.

'Some companies now generate more revenue from renewables than from oil and gas.'

GCE Ocean Technology has many examples of crossover innovations that show how expertise and technology from the oil and gas sector can benefit renewable industries.

‘Take Seaproof Solutions, for example. They make transition joints between subsea cables and connectors. They previously supplied oil rigs, but are now using their expertise to adapt these products for offshore wind installations,’ says Hagesæther.

Beyond transferring technology from one type of offshore operation to another, many companies in GCE Ocean Technology are using their oil and gas experience to drive sustainable growth in the aquaculture sector.

‘Sensors and cameras developed for oil and gas extraction can, for example, help the aquaculture industry monitor sea lice and water quality. Companies such as Aanderaa and Imenco have done exactly that and now work extensively with aquaculture,’ he says.

‘What all the companies have in common is that they have built their expertise and developed their core technology for the oil and gas industry.
By joining the GCE Ocean Technology cluster, they receive support in adapting to new opportunities in the blue economy.’

– Through projects, programmes and seminars, we help companies adapt to the market. We also introduce them to key people and companies in the new industries, says Hagesæther.

The transition from the oil and gas industry to renewable industries has been challenging at a difficult time marked by downsizing and cost reductions. All companies in the oil and gas sector are vulnerable to price fluctuations.

'The oil and gas industry is cyclical, which poses a particular challenge for small companies that depend on relatively stable cash flow. By expanding into other renewable industries, they become more resilient. Not all of them earn as much now as they did when oil prices were at their peak, but in return they have more than one string to their bow,' says Hagesæther.

In any case, Hagesæther and GCE Ocean Technology are proud to be helping create sustainable growth.

– It is important for us to help create a viable market for businesses in the green transition. Only then can we achieve the UN Sustainable Development Goals.