McDermott signs decarbonisation MoU with Shell

McDermott has signed a memorandum of understanding (MOU) with Shell Eastern Petroleum (Shell), a subsidiary of Royal Dutch Shell, to collaborate on decarbonising construction.

The agreement enables McDermott and the Shell division to explore opportunities for reducing, and eliminating, emissions from construction through pathways such as low carbon fuels, renewable power, digital solutions and decarbonising marine construction vessels.

“Companies such as McDermott and Shell, who have targets to progress towards net-zero emissions by 2050, in step with society, are well positioned to approach the challenges of lowering emissions together,” said Samik Mukherjee, McDermott’s Executive Vice President and Chief Operating Officer. “A pathway to reduce greenhouse gas emissions from construction operations will make significant strides toward net zero Engineering, Procurement and Construction projects in the future.”

McDermott’s fabrication yards located in Indonesia, China, the Middle East and Mexico, as well as the marine construction vessels, will be key to identifying opportunities to lower emissions and gain operational efficiencies.

“McDermott’s integrated project delivery enables us to look holistically across our operations for opportunities to reduce emissions,” said Mahesh Swaminathan, McDermott’s Senior Vice President, Asia Pacific. “We are looking forward to working with Shell to explore what’s possible and see how our combined expertise delivers more sustainable operations.”

McDermott recently completed its first delivery, with sail away, of two bridges and a flare for the Tyra Redevelopment project for TotalEnergies EP Denmark (click here). The work was carried out at McDermott's fabrication yard in Batam, Indonesia, and included the Tyra East G (TEG) natural gas processing topside, two 328-foot bridges (100 metres) and a 449-foot flare (137 metres). 

McDermott is partnering with key clients and vendors to reduce carbon in existing energies such as LNG, upstream oil and gas, refined products and petrochemicals production.

With blue hydrogen, McDermott has completed over 200 steam methane reformer projects globally and deployed demonstration and commercial-scale water electrolysis projects in the green hydrogen sphere.

Construction decarbonisation is a major topic at COP26 with the industry accounting for 38% of carbon emissions.

The World Business Council for Sustainable Development reports there are around 255bn square metres of buildings in the world, with 5.5bn being added every year.

BSRIA and London South Bank University (LSBU) have launched a joint venture, the Net Zero Building Centre, to accelerate decarbonisation in the built environment. "We believe that greater communication and collaboration across sectors is essential in combating climate change," it said.