DNV GL, an assurance and risk management company, will combine its current Oil & Gas and Power & Renewables businesses into one new business area called Energy Systems. The move will better reflect the emerging energy future that will see renewables take a greater share of the energy mix and decarbonization become a major focus.
Energy Systems, which will start operating from Feb. 1, 2021, will provide certification, advisory, and digital monitoring services to the entire energy value chain. Ditlev Engel, CEO of the current energy business area since 2016, will lead the new business area, which will consist of approximately 4000 energy experts — making it the world's leading resource of independent energy experts and certification body.
"The creation of Energy Systems is our response to a rapidly changing energy market in search for deeper decarbonization," said Remi Eriksen, group president and CEO of DNV GL. "We want to enable our customers to tackle the energy transition — faster. By combining our expertise, we will better serve customers operating in and entering the energy market. This new structure will help us serve all players in the energy market."
While renewable energy is increasing market share, DNV GL will continue to work with the oil and gas sector as it refocuses on decarbonization. The sector will play an essential role in the energy transition with natural gas set to become the single largest energy source by the middle of the decade. Hydrogen, ammonia, and carbon capture and storage will be important tools in the low-carbon toolkit for the hard-to-abate sectors.
"Joining forces in Energy Systems gives DNV GL the size to work with the key industry players to help scale green energy technology and optimize safety from production to consumption. There is no hiding from the fact that we are on course for damaging global warming, but we have the technology to transition faster. I see a greater willingness among policymakers and companies to speed up the decarbonization of the sector, and we at DNV GL are ready to play our part, so we can tackle the needed energy transformation much faster," said Engel.
Additionally, DNV GL also announced the acquisition of U.S.-based engineering consultancy Energy and Resource Solutions, Inc. (ERS). Consisting of around 80 experts, ERS, like DNV GL, helps customers manage and reduce energy costs through program design, outreach, implementation, and evaluation services. ERS will be an integrated part of DNV GL.
On the acquisition of ERS, Eriksen said: "Given the speed of the energy transition, it is natural that we look outside our own organization for acquisition opportunities. The domain expertise and digital-first approach demonstrated by ERS is aligned with our vision and services, and I am sure our customers in North America and beyond will be delighted we have even more experts in our ranks."
The decision to create the Energy Systems business area was taken after a strategic review of DNV GL's business, which also led to the renaming of the company to DNV, effective March 1, 2021. Going forward, DNV GL will be a company of three houses consisting of approximately 12,000 experts.