STATE OF THE MARKET AND THE EMERGING NORWEGIAN VALUE CHAIN

Menon Economics has conducted a study that assesses the long-term development in the global market for floating offshore wind, the turnover potential and what economic impact a Norwegian-based industry can support. The study was carried out on behalf of Norwegian Offshore Wind, Innovasjon Norge, Norsk Industri, Rederiforbundet, GCE Ocean Technology og GCE Node/Framtidens havvind.

The full report in Norwegian can be downloaded  here.

Contact person: Even Winje

Development and production of batteries will play a crucial role in Europe’s decarbonisation efforts. Through cutting fossil fuel usage in transportation and electricity production, batteries will help bring down emissions from two sectors which contribute heavily to global emissions. Currently, large-scale political and commercial capital is being mobilised to establish European battery production capabilities as well as a specialised supply chain. Both on a regional, municipal and national level this is one of the most ambitious industrial endeavours in decades. However, there is a distinct lack of credible estimates for the sector’s potential effect on employment and wider economic impact.

In this note we present our estimates for the European battery cell market in 2030, price development, as well as production and value added. The main focus, however, will be jobs creation and economic impact (indirect job creation) in the European battery market. Finally, we take a brief look at the effect factories can have for small and mid-sized cities.

In this note, we employ two different methods to estimate the numbers of jobs in the industry in 2030. We estimate that the number of direct jobs in European battery cell production in 2030 will be 150,000. If we include the indirect effect, we estimate that the battery production value chain can create and sustain roughly 735,000 new jobs in Europe by 2030. In addition, we discuss possible societal effect for small or mid-sized cities which attract large battery production facilities.

The LMC report is compiled in cooperation between Menon Economics and the classification society DNV.
Approximately 15000 cities are benchmarked on 40 different indicators. As before, we benchmark each maritime city based on five key pillars

• Shipping
• Maritime Finance & Law
• Maritime Technology
• Ports & Logistics
• Attractiveness & Competitiveness

Singapore’s strong performance across the five pillars sees it keeps its number one spot overall, followed by Rotterdam and London. Oslo retains its strong position in Maritime Technology and Finance & Law, and takes the 7^th place on the total ranking.

Menon has since 2014 published a yearly in-depth study of the Norwegian maritime equipment suppliers on behalf of The Federation of Norwegian Industries (“Norsk Industri”)The report is based on maritime equipment manufacturers and analyzes their level of activity – both historical development, status quo and expectations for the future.
Production of ship equipment and other maritime equipment is one of Norway’s few internationally competitive industries that do not rely on natural resources. In 2020, companies producing or selling maritime equipment had a total revenue of close to NOK 150 billion and employed around 34 thousand people.

GCE Blue Maritime is one of three Global Centers of Expertise in Norway – the highest level in the hierarchy of Norwegian Innovation Clusters. Menon Economis has for six consecutive years studied the competitiveness of the Blue Maritime cluster, measured by key economic performance, both in absolute terms and compared to the rest of the maritime industry in Norway and to international competitors. In this year’s report, we place more emphasis on the market prospects of the cluster, as a function of expected growth in different market segments and the Blue Maritime cluster position in these markets.

In this report, we have carried out a socio-economic assessment of which policy instruments are most suited to induce private investment in large-scale floating offshore wind on the Norwegian continental shelf. Furthermore, we have assessed the market development over the last 12 months in order to update our 2019-analysis on the prospects of the industry.

Menon Economics has for the fifth year running produced the annual status report for the Blue Maritime Cluster in Møre og Romsdal. The report documents how the maritime cluster in Møre og Romsdal has developed in recent years, benchmarks the cluster’s performance against competitors in Norway and compares recent developments to foreign competitors.
Estimates and prognosis for 2020 and 2021 are included in the analysis.

Menon Economics har for femte gang utarbeidet den årlige klyngeanalysen av GCE Blue Maritime Cluster i Møre og Romsdal på oppdrag fra klyngen selv. Rapporten viser utviklingen i den maritime klyngen og sammenligner klyngens utvikling med konkurrenter i Norge og utlandet.

Estimater og prognoser for 2020 og 2021 er inkludert i rapporten.

Menon Economics has on behalf of Nordic Innovation written a report on female entrepreneurship in the Nordics. In the report, we investigate the current entrepreneurial landscape in the Nordics, using data from the statistical agencies in the Nordics and Bureau Van Djik. Even though the Nordic countries are viewed as forerunners on gender equality, far fewer women than men are starting businesses. Also, even though the Nordics are considered to be culturally similar, there are clear differences in the share of female entrepreneurs across the Nordics.

In the study, we provide an overview of factors that may help explain this, looking both at personal characteristics and preferences of the entrepreneurs, and structural factors outside the independent entrepreneurs’ control. The study is concluded with measures to stimulate female entrepreneurship, related to role-models and networks, access to external financing, and competitive disadvantages in industries where women start businesses.

In this project Menon Economics has mapped the economic performance of the world leading business cluster GCE Blue Maritime. The report shows the historic development in the cluster and provides an outlook on economic performance in the coming years. The statistics and prognosis are based on a comprehensive collection of data from accounts, survey data collected in the project and internationally renowned maritime information databases.

The 2019 report shows that activity incraesed in 2018 after declining revenues from 2014 through 2017. Revenue is expected to grow further in 2019 and 2020 with an estimated increase in income of 20 per cent from 2018 to 2020. The increased activity comes as a result of continued growth in relatively new market segments.

The Møre yards have taken a strong position in the market for exploration cruises and are set to deliver 15 of the 40 cruise vessels under 50 000 GT currently on order with a delivery date before 2022. As a result, the equipment manufacturers are increasingly shifting their focus towards deliveries for cruise vessels as well.

Offshore shipping companies continue to struggle. Market conditions are still harsh, even though there looks to be some light on the horizon higher fleet utilisation. The Norwegian and Møre offshore shipping companies still, like last year, seem to be more indebted than their foreign counterparts, which makes it harder to compete against foreign competitor

Menon Economics har vurdert verdiskapingspotensialet som ligger i en norskbasert industri for flytende havvind, med hensyn til markedsutvikling og global konkurransekraft. Studien er gjennomført på oppdrag fra Norwegian Offshore Wind Cluster i samarbeid med Eksportkreditt Norge, Norges Rederiforbund, Norsk Industri, GCE NODE, Haugaland Vekst og Greater Stavanger.

Norske aktører står bak sentrale teknologikonsepter i den pågående utviklingen innen flytende havvind, og kompetansen fra olje- og gassektoren bidrar til et betydelig potensial for å ta andeler i et globalt marked.

Menon Economics have examined the potential for value creation in the Norwegian floating offshore wind power industry, with a focus on market development and global competitiveness. The study was conducted on behalf of Norwegian Offshore Wind Cluster, in collaboration with Export Credit Norway, Norwegian Shipowners’ Association, GCE NODE, Haugaland Vekst and Greater Stavanger.

Executive summary in English.