Energy boss Bob Drummond on seizing the transition opportunity.

After more than forty years as one of the leading figures in the UK energy sector, Bob Drummond has seen it all.

The industry veteran was just finding his feet in the late 1970s as engineering boundaries were pushed and vast North Sea structures leapt from drawing boards into reality. Fast forward to 2024, and a new effort – equally impressive in its scale – is underway to decarbonise our energy systems. And Bob finds himself in the thick of the action again as Chief Executive of D2Zero, which is emerging as an energy transition powerhouse with more than 4,000 staff.

“Something special is happening in Aberdeen right now – you can feel a pioneering spirit in the air again,” he said.

Business Bulletin caught up with Bob in Aberdeen’s Energy Transition Zone, where D2Zero has just announced its global headquarters. He must have started a trend, because just weeks later Prime Minister Sir Keir Starmer confirmed that the UK Government will headquarter Great British Energy – Britain's new state-owned energy company – in the Granite City as well. The decision is shot in the arm to a region where many have been left fearing for the future as aggrieve taxation of the oil and gas sector drives investment overseas.

However, Bob is in no doubt that the energy transition is an opportunity of unparalleled scale for this region. “At D2Zero, our strapline is short and simple - together it’s possible,” he told us. “It’s a message which I hope resonates with people within the energy sector, for whom the transition may seem unsettling or uncertain, particularly given the current fiscal regime in the North Sea. However, you should rest assured that the world needs the skills, expertise and entrepreneurialism of this region more than ever before. Where decarbonisation is taking place, expect to hear the dulcet tones of an Aberdonian. Because just like the 1970s and 80s, the skills, expertise and technology emerging here will be exported around the world.”

D2Zero - which has the financial backing of SCF Partners - is a business grounded in the realities of the transition, with dual focus on servicing and decarbonising the vitally important oil and gas sector, whilst accelerating the transition to renewable energy. The group includes Score and Hydrasun – two long-established and highly-respected service businesses – and has revenues of over £500 million.Powerstar, Nexos and Fuel Cell Systems are also part of the group, as is of Hull-based OSL Consulting Engineers, which was acquired in July.

Bob adds: “D2Zero is the transition in action; with dual focus on decarbonising traditional energy sources, whilst accelerating the transition to renewable energy. Our group companies are collaborating closely with each other - and with industry - across four key areas of the energy transition: emissions reduction; clean hydrogen; power efficiency and resilience management; and carbon capture and storage. Demand across these four strategic pillars is already substantial, and is only going to grow further as the energy transition gathers pace."

The momentum already being built by D2Zero is evidence of that demand. Just last month Hydrasun was selected by bp and Aberdeen City Council to support the delivery of the Aberdeen Hydrogen Hub, which is estimated to be worth over £700 million to the Scottish economy. Hydrasun will work closely with Aberdeen Hydrogen Energy Ltd to develop the supply chain, skills and training to position Aberdeen as a hydrogen leader and a model for how scalable green hydrogen solutions can play a critical role in delivering net zero for cities and regions. It is a pioneering project being developed in Aberdeen, by Aberdeen-based contractors. It is an example, perhaps, of the just transition our governments aspire to achieve.

D2Zero’s early progress has won the praise of Sir Ian Wood, who himself seized the opportunities of a nascent energy sector in the 1970s to build a global energy services empire. “D2Zero are the embodiment of what a just and managed energy transition should be,” Sir Ian said. “They have taken the bold decision to combine a number of pioneering and successful businesses, each with different sectoral strengths, to capitalise on the vast opportunities presented by new and green energies. The decision of D2Zero to establish its global headquarters in the Energy Transition Zone marks a huge vote of confidence in the North-east of Scotland’s ambition to reposition as a globally recognised energy cluster focussed on the delivery of net zero.”

Bob, who worked with Sir Ian earlier in his career, welcomes the vocal support of the industry doyen – and says that Aberdeen was always the logical choice for the firm’s HQ. He added: “While our operations and customers are truly global, there is only one place we would base ourselves, and that is here in the North-east among companies which share our focus on net zero solutions.”

Beyond its organic growth ambition and objectives, acquisitions are also a key part of D2Zero’s strategy, and the firm is identifying high-quality companies that can expand the group’s expertise and accelerate its growth. Bob says the firm has a “strong and active pipeline” of opportunities and, supported by SCF Partners, is looking to complete further acquisitions in the coming months. He added: “D2Zero was founded on the premise that by bringing leading and complementary decarbonisation technologies together, under a supportive infrastructure and strong leadership, we could significantly accelerate progress and deliver breakthrough innovations for the energy transition. “SCF’s backing is helping us to grow at pace and we want D2Zero to be a platform that can turbocharge the opportunities for businesses that want to make an impact on the energy transition.”

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This article featured in the November edition of Aberdeen & Grampian Chamber of Commerce Business Bulletin, and can be read here Business-Bulletin-November-2024.pdf