Norwegian company says projects submitted to environmental agency total 190 GW
04/16/2024
Celebrating its 50th year in Brazil, Norwegian consultancy DNV views the country as a strategic market in the medium and long term. While its main focus remains on oil and gas, the company recognizes the potential of future offshore wind energy generation, still pending regulation.
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Alex Imperial — Foto: Divulgação
Celebrating its 50th year in Brazil, Norwegian consultancy DNV views the country as a strategic market in the medium and long term. While its main focus remains on oil and gas, the company recognizes the potential of future offshore wind energy generation, still pending regulation.
At the request of the World Bank, the company began an analysis last year of the scenarios of the offshore wind energy industry in Brazil. The initiative is part of the World Bank Group’s Offshore Wind Development Program, with support from the Energy Sector Management Assistance Program (ESMAP) and the International Finance Corporation (IFC).
DNV operates in risk management and project certification. It assists companies in meeting international safety standards, conducts risk assessments, and evaluates investment costs.
At least 96 offshore wind exploration projects have been submitted to Brazil’s environmental protection agency (IBAMA). DNV estimates that these projects total around 190 gigawatts, of which 50 gigawatts have been commercially evaluated by the Norwegian company.
The consultancy did not disclose which companies it was hired by. “Our work begins in an early phase, before these projects start operating, with analysis of the technical aspect and economic viability,” said Alex Imperial, vice president and regional manager of the DNV group in the Americas.
The consultancy said that the oil demand will decline after reaching a peak, but will not reach zero in 30 years. Therefore, the decarbonization of processes associated with oil and gas production is expected to become a window of opportunity. However, balancing global consumption and directing investments toward renewable sources is expected to be the industry’s biggest challenge in the coming years.
Brazil is well-positioned in the energy transition. “We see opportunities with onshore wind and solar energy, where we already have a strong position,” said the group’s global CEO, Remi Eriksen. “There is also great potential in offshore wind exploration due to the experience in oil and gas, which would generate more nautical activities to support it,” he added.
The full development of offshore wind activity in Brazil depends on regulatory frameworks. Bill 11247/2018 was passed by the Chamber of Deputies (Lower House) in November last year but still needs to be analyzed by the Senate. “We are working in workshops with the Ministry of Mines and Energy to assist in regulation. It is a role we have already played in other countries,” said Mr. Eriksen.
Petrobras, Yara, Modec, SBM, and Grupo OBC are among DNV’s main clients in Brazil, which ranks among the company’s top 15 markets. The operation in the country stands out for having one of the highest growth rates among the others, as highlighted by the group’s global CEO.
Mr. Eriksen spoke with Valor on Wednesday, during his visit to Rio for the company’s 50th anniversary celebrations in Brazil. In the Brazilian market, DNV has 300 employees and nine offices in six states: Rio de Janeiro, São Paulo, Minas Gerais, Rio Grande do Sul, Ceará, and Bahia.
According to the executive, revenues from the Brazilian operation grew by 65% between 2019 and 2023, while global growth was 50% in the same period. “During this time, we had COVID-19, which makes these 65% even more significant,” said Mr. Eriksen. “There is potential for growth in several sectors in Brazil,” he said.
With 160 years of history, DNV is present in 100 countries. Revenue ranking is led by the United States, Norway, Germany, the Netherlands, the United Kingdom, and China. In Brazil, the company operates in various sectors—such as food and beverage industries and healthcare companies—but the naval and energy sectors remain its main activities in the country.
“Norway discovered gas in the 1960s, and we started in Brazil in 1974. That is why oil, gas, and maritime transportation have been the main drivers of our growth here,” said the CEO. “Today, this is a very mature and well-regulated industry. These are the markets where we like to operate,” added Mr. Imperial.
*Por Paula Martini — Rio de Janeiro
Source: Valor International