finance

Fife decommissioning facility launched with win of Scotland's largest contract of its type to date



Decommissioning business CessCon Decom has launched a new facility at Energy Plant Fife in Methil with the win of Scotland’s largest decommissioning contract to date.

The contract for the onshore decommissioning, dismantlement, and recycling of Spirit Energy’s Morecambe Bay facilities in the East Irish Sea will see CessCon Decom creating up to 50 jobs.

The project, which involves the processing of more than 23,000 tonnes of material at CessCon Decom’s facility in Methil, has been in the making over the last two years.

CessCon Decom secured the contract as a result of a competitive tender and will start work immediately.

The first structures are planned to arrive at the Energy Park Fife facility early this year.

CessCon Group CEO Lee Hanlon 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’s 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

The work has included 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 supply chains are set up, to aim to benefit local businesses and communities.

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The inaugural contract with Allseas is seen as key in ‘putting Fife on the map’ as a Scottish decommissioning location.

Councillor Altany Craik, convenor of Fife Council’s economy committee said: “This announcement 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.

“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.”

Scotland’s Energy Minister Paul Wheelhouse MSP 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.

“With the market for oil and gas decommissioning forecast to reach £15.2bn 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.”



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