CessCon Decom has launched its new decommissioning facility at Energy Park Fife, Methil, with the announcement that it has been awarded Scotland’s largest decommissioning contract to date, with the creation of up to 50 jobs.
The facility, which has been in the making for the last couple of years, was awarded its first contract in December (2020) for the onshore decommissioning, dismantlement, and recycling of Spirit Energy’s Morecambe Bay DP3 and DP4 facilities in the East Irish Sea, by Allseas. The contract involves the processing of over 23,000 tonnes of material at CessCon Decom’s facility in Methil.
CessCon Decom secured this contract as a direct result of a competitive tender and will commence work immediately. The first structures are planned to arrive at the Energy Park Fife facility in early 2021.
Commenting on the award, Lee Hanlon, CEO of CessCon Group, said:
“We are delighted to have been selected by Allseas and Spirit Energy to provide onshore decommissioning, dismantlement and recycling services at our new decommissioning facility in Scotland. It is excellent to see that our hard work and determination to establish a new UK dismantlement and recycling facility has been recognised by Allseas and Spirit Energy, and we look forward to delivering a successful project together.”
InvestFife – Fife Council Economic Development Team – has been working with Scottish Enterprise and CessCon Decom, which has included a £7m investment programme to expand the site to allow access for larger structures to be dismantled. It’s very much been a team approach, with help and support from Fife Council’s planning team, investment secured from a range of sources, as well as InvestFife helping to source the right workforce, and to ensure the correct supply chains are set up, to benefit local businesses and communities.
This inaugural contract with Allseas has gained much traction and has certainly put Fife on the map as a Scottish decommissioning location.
Scotland’s Energy Minister Paul Wheelhouse said:
“The award of this major onshore decommissioning contract is evidence of the growing strength of Scotland’s decommissioning supply chain and the capabilities, knowledge and skills held within the industry.
“I am delighted to see how recent investment through the Scottish Government’s Decommissioning Challenge Fund and the Vacant and Derelict Land Fund has been used to develop the decommissioning potential of Methil Docks and to help secure major projects within this key growth sector.
“With the market for oil and gas decommissioning forecast to reach £15.2 billion over the next decade, there is huge potential for the Scottish supply chain to capitalise on this opportunity and to continue to develop its world class capabilities. At a time in which the decommissioning supply chain continues to be significantly affected by the impact of the COVID-19 pandemic, it is welcome news that this new facility has secured its first major dismantlement and recycling contract.”
Councillor Altany Craik, Convener - Economy, Tourism, Strategic Planning & Transportation Committee, commented:
“This is great news for CessCon Decom. It is a significant contract with Allseas, which includes the processing of over 23,000 tonnes of materials at Cesscon Decom’s newly established facility at Energy Park Fife. I hope it is the first of many such contracts!
“This announcement also reinforces the importance of the decommissioning sector to Fife, which will bring a significant economic boost to the region’s economy, with the creation of between 30 and 50 jobs, with scope to increase this in the years to come.”
Councillor Craik added:
“We have invested significantly in the Decommissioning Campus at Energy Park Fife to capture such contracts, as well as to target the Central North Sea structure dismantling projects. COVID-19 has delayed this slightly, but this significant contract, shows that decommissioning activity is starting to pick-up.”