Modern American Recycling Services Europe (MARS) has been named as the contractor to recycle Australia’s Northern Endeavour floating production storage and offtake (FPSO) vessel.
“MARS best meets the Australian government’s aims for completing this important decommissioning work,” the Department for Industry, Science and Resources said in a statement.
“We contracted MARS following a global, competitive open tender. Under the contract, MARS will recycle the FPSO and manage the waste streams, including hazardous waste. The priority is for MARS to complete the work to high safety and environmental standards and meet all Australian and international requirements.”
China’s COSCO Shipping Heavy Transport will first dry tow the FPSO to Denmark using its semi-submersible heavy transport vessel, the Hua Rui Long.There are no purpose-built facilities in Australia equipped to recycle a vessel as large and complex as the Northern Endeavour FPSO.
MARS will then complete the recycling at its ship recycling facility in Frederikshavn.
“This purpose-built facility has the capacity to recycle the Northern Endeavour FPSO and meets the European Union’s Ship Recycling Regulation,” the Department noted.
This regulation aims to prevent, reduce and minimise accidents, injuries and other negative effects on human health and the environment when recycling ships.
The Department added that recycling of the FPSO accounts for less than 2% of the overall cost of the Northern Endeavour decommissioning programme.
Australia is keen to generate work and opportunities for its domestic industry arising from the growth of the decommissioning sector.
“While the FPSO recycling will happen overseas, there will be ongoing opportunities for Australian industry involvement in the Northern Endeavour decommissioning programme,” the Department statement noted.
Procurement opportunities for the remaining work, on Phases 2 and 3, will be available to local firms.
Phase 2 focuses on permanently plugging the Laminaria and Corallina wells, while Phase 3 focuses on removing remaining subsea infrastructure, recycling and waste management.
