Neshion Energy Partners with Veri Energy for Low Carbon Fuel Plant

Energy generated from a proposed energy park near Sullom Voe Terminal (SVT) could soon supply a low carbon fuel plant at the terminal. This development follows a memorandum of understanding between two energy companies: Neshion Ltd and Veri Energy. Neshion is planning to construct a 10-turbine energy park near SVT, while Veri Energy, a subsidiary of EnQuest, is spearheading the decarbonisation initiatives at the terminal.

The collaboration aims to explore how the energy produced at Neshion Energy Park can be utilized to support a new low carbon fuel plant at SVT. Neshion’s project involves building ten wind turbines, each standing at 200 meters, along with a 25 megawatt battery energy storage system located to the east of Sullom Voe Terminal. This arrangement allows Neshion to provide renewable electricity to SVT via a “private wire,” eliminating the need to wait for a connection to the national electricity grid.

This innovative approach is expected to accelerate the project’s timeline. Neshion stated that this could ensure that all energy generated by the wind turbines is directed towards e-fuel production, preventing the curtailment that often occurs when demand on the grid is lower than the available power generation.

Public engagement has been a priority for Neshion. In March, the company hosted an event in Mossbank where development manager Brendan Hall refrained from disclosing specific developments the park could potentially power. He remarked, “We’re keeping all of our options open. But obviously, there are some potential customers in the area.”

Neshion, a local joint venture led by Shetland Aerogenerators, plans to hold another public engagement event at Mossbank Public Hall on Tuesday from 15:30 to 19:30. An environmental impact assessment is currently underway, with a planning application expected to be submitted early next year. If approved, construction on the 630-hectare site could begin in 2028, with the energy park anticipated to commence operations in 2030, and it is projected to have a lifespan of up to 40 years.

Veri Energy’s chief executive, Gavin Templeton, expressed enthusiasm about the partnership with Neshion, stating they are “pleased to be working with Neshion to unlock the long-term potential of Shetland and the Sullom Voe Terminal for the energy transition.” He highlighted that the combination of a world-class wind resource, existing infrastructure, and a skilled local workforce creates a unique opportunity for scalable low-carbon fuel production.

Announcing the agreement, Hall emphasized the importance of situating renewable energy generation alongside major energy consumers like SVT, stating, “This makes sense and is a key pillar of the energy transition.” He added, “We are pleased to be partnering with Veri to explore how we can harness Shetland’s world-class wind resource to produce the next generation of sustainable fuels.” Hall further noted the potential for these projects to ensure a sustainable future for Sullom Voe Terminal, contributing to local jobs and investments.