Recycling of Australian FPSO in Denmark Sparks Controversy

An obsolete and decaying Australian floating production storage and offtake (FPSO) vessel will be recycled in Denmark, despite local criticism over the selection of a foreign contractor.

After five years of managing the decommissioning process of the Northern Endeavour FPSO, the Australian government has awarded the recycling contract to Danish company Modern American Recycling Services Europe (MARS).

The 274-meter long FPSO is set to be towed to the MARS ship recycling facility in Frederikshavn for dismantling. COSCO Shipping Heavy Transport will transport the FPSO to Denmark using its semi-submersible heavy transport vessel, the Hua Rui Long.

The Australian government has deemed dry towing as the safest and most reliable method to transport the vessel due to its massive size and condition. Weighing over 43,000 tonnes, the FPSO is equivalent to just over four Eiffel Towers. Hua Rui Long, the third largest semi-submersible heavy transport vessel in the world, is capable of carrying such a heavy and long structure as the Northern Endeavour.

Controversy and Criticism

The decommissioning of the Northern Endeavour has been a subject of controversy, with local workers’ unions and legislators advocating for the contract to be awarded to an Australian company. The Maritime Union of Australia (MUA) and the Australian Workers’ Union have expressed concerns over sending the FPSO abroad, arguing that recycling it locally would help build domestic recycling capacity.

Despite the criticism, the Australian government decided to transport the FPSO to Denmark because there are no purpose-built facilities in Australia capable of recycling a vessel as large and complex as the Northern Endeavour.

Contract Details

Under the contract, MARS will recycle the FPSO and manage the waste streams, including hazardous waste, to high safety and environmental standards. The yard meets the European Union’s Ship Recycling Regulation, ensuring compliance with international requirements.

The Australian federal government took on the responsibility of decommissioning the FPSO after its former owner, Northern Oil and Gas Australia (NOGA), went into liquidation in 2020. The government asserts that the recycling of the Northern Endeavour represents less than two percent of the overall decommissioning program’s cost.

Conclusion

Despite the controversy surrounding the decision to recycle the FPSO in Denmark, the Australian government maintains that the choice was made due to the lack of suitable facilities in Australia. The contract with MARS aims to ensure the safe and environmentally friendly recycling of the vessel, paving the way for further decommissioning activities in the region.