WOOD has won a contract to work on a flagship scheme to decarbonise industrial processes and produce what is billed as clean energy.

The Aberdeen-based engineering giant has been employed by the VPI Immingham power business to provide design services on the Humber Zero project.

This will involve capturing the carbon dioxide emissions associated with three huge industrial sites in the area for storage in depleted North Sea reservoirs. The project will include facilities for the production of low carbon hydrogen fuel.

Humberside is one of five areas that are seen as being well suited for the use of carbon capture and storage technology to deal with emissions from industry. The technology could also be used to support the production of hydrogen fuel from natural gas.

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Other areas under consideration for the development of large-scale carbon capture and storage operations include North East Scotland. Pale Blue Dot Energy is working with oil and gas firms on a plan that will involve capturing carbon dioxide associated with industrial processes in Scotland and transporting it offshore for storage beneath the sea.

Wood has been engaged to develop a masterplan covering sites that include a power plant operated by VPI Immingham, one owned by Uniper and the giant Phillips 66 Humber Refinery.

Led by chief executive Robin Watson, Wood has launched a drive to win work in areas such as renewable energy to help reduce its reliance on the oil services business on which it has focused.

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Oil services firms are facing the prospect of another deep downturn amid the plunge in commodity prices triggered by the coronavirus.

Firms that operate oil and gas fields are slashing spending in areas such as the North Sea

Wood was hit hard by the slowdown in the North Sea that followed the sharp fall in the oil price from summer 2014 to early in 2016.

North Sea spending to fall by £10bn a year amid oil price plunge

VPI Immingham is owned by Vitol, which has oil and gas trading operations.