DSM’s Lyness Vision Promises Major Boost For Orkney

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Early plans have been revealed to create a development site on Orkney – and with it a significant jobs boost – to take advantage of the expected boom in North Sea oil and gas decommissioning work.

DSM Demolition, one of the UK’s leading demolition and decommissioning companies, is seeking to develop the facility at Lyness, on the east coast of Hoy.

The project has the potential to directly create jobs locally with further economic benefits to come through the use of local suppliers and businesses.

While the plans are at a very early stage, representatives from DSM met with Graemsay, Hoy and Walls Community Council on Tuesday (August 30) to provide an initial outline of the project.

DSM aims to work closely with Orkney Island Council, local businesses and the Hoy and wider Orkney community to develop the concept.

With a growing number of North Sea oil and gas fields heading towards the end of their production lives, combined with the falling oil prices, decommissioning has presented a major economic opportunity for Scotland.

Industry analysts estimate that 144 rigs will be decommissioned between 2019 and 2026, accounting for a spend of between $44 and $51 Billion – and First Minister Nicola Sturgeon has already said that ‘Scotland can play a leading role in the development of the decommissioning market’.

Site layout of DSM Demolition's proposed oil and gas decommissioning site

DSM’s Graham Crowe said while the potential opportunities for Orkney are significant, DSM is committed to work with the local community as the plans progress.

Graham said: “Our vision is for the Lyness site to become the exemplar decommissioning facility for the North Sea.

“The project has potential to create a significant number of local jobs and that local companies will secure further spin-off benefits from supplying support services.

“The substantial, long-term opportunity provided by decommissioning offers an economic driver to provide employment and community benefits to Hoy and the rest of Orkney for many years.”

“However, we are fully aware that it is absolutely vital that the local community – even at this early stage – are able to see what is proposed, to have any questions answered and to have their say on this very important project.

“That is why we have wanted to meet with Graemsay, Hoy and Walls Community Council in the first instance and we intend to maintain ongoing consultation with the local community and other stakeholders to allow us to prepare a future planning application.

“We will be also working closely with Orkney Island Council to ensure all the required environmental impact reports and consultations with interested parties are fully completed.”

DSM has extensive experience in the decommissioning of steel structures in sensitive locations across the UK and, with the Lyness site, it intends to position itself as the leading onshore decommissioning company in Scotland.

After exploring a number of sites along the east and west coasts of Scotland, DSM identified Lyness as an ideal location because of its existing harbour and safe, deep water anchorage, combined with access to the oil and gas fields through Scapa Flow.

All deconstruction works will be undertaken in a safe and environmentally friendly manner that protects local natural and built heritage sites – and DSM is committed to ensuring all procedures follow best practice standards.

It is anticipated that a formal planning application will be made at the end of this year with the facility scheduled to open in 2018.


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