2024 McDermott Sustainability Report - Report - Page 11
Our Path
Our Approach
Environment
Social
Governance
Framework Alignment
Performance Data
2 0 2 4 S u st a i n a b i l i t y Re p o r t
CLIMATE
Reducing our carbon footprint
As the world’s energy demand continues to
increase, the need for clean, lower-carbon
energy is greater than ever. Innovating and
supporting our customers in the production and
delivery of lower-carbon energy is a core part of
our business.
As a global, integrated engineering, procurement, construction,
and installation (EPCI) contractor, we are uniquely positioned to
design and deliver the infrastructure needed to produce and
distribute clean and reliable energy globally. In support of energy
transition, our EPCI solutions have increasingly focused on lique昀椀ed
natural gas (LNG); high-voltage direct current (HVDC) systems;
hydrogen; carbon capture, utilization and storage (CCUS); and
sustainable aviation fuels.
Construction is a key enabler for renewable and lower-carbon
energy projects, and of the decarbonization of hard-to-abate
sectors. Identifying pathways to reduce our carbon footprint
across our operations and of the infrastructure we design and
deliver for our customers is our commitment to responsible EPCI
project delivery.
McDermott operates a sizable portion of the world’s energy
infrastructure fabrication capacity. Our fabrication yards
distinguish McDermott and are at the heart of our operations, to
deliver large and complex modular construction projects and
offshore structures. Building on our success in securing renewable
energy to replace grid power, we are now improving energy
ef昀椀ciency across our operations.
In 2024, we achieved ISO 50001 certi昀椀cation at four of our major
fabrication yards, demonstrating our commitment to continuous
improvement in energy management. Targeted energy ef昀椀ciency
initiatives through our yards resulted in a 9% reduction in overall
energy consumption and improved energy intensity (measured
in MWh per workhour) from 2% in 2023 to 15% in 2024. These gains
resulted primarily from:
• Asset management software deployed in the Jebel Ali and
Batam yards;
• Increased electrical grid coverage and purchase of energyef昀椀cient variable frequency drive air compressors; and
• Site-level energy target setting, tracking, management review,
and rapid actions.
Energy ef昀椀ciency is a topic of increasing signi昀椀cance to our
customers, and given emerging sustainability regulation around
the world, McDermott is taking a proactive approach. In 2024, we
implemented a global energy policy aimed at integrating energy
ef昀椀ciency and conservation measures into our operations. The
policy re昀氀ects McDermott’s commitment to provide lower-carbon
project delivery and achieve long-term emission reduction targets.
Concurrently, our customers have faced increased requirements
to improve their energy ef昀椀ciency and greenhouse gas (GHG)
management. We regularly collaborate with customers and
reduce embodied emissions by optimizing the weights and
quantities of material used in the facilities we design and build.
Through our involvement in early design stages, we are also able
to recommend 昀氀are reduction and asset integrity management
initiatives that support our customers’ 昀氀are and methane
reduction goals.
We are having similar success in marine ef昀椀ciency, as
demonstrated by the award of SUSTAIN-1 classi昀椀cation to our
DLV2000 vessel. All our vessel transits are planned at max ef昀椀cient
speed, which is as eco-friendly as possible. By operating at a
slower speed, they burn less fuel, which allows for signi昀椀cant
emissions reductions without compromising operational
ef昀椀ciencies.
Achieving the ISO 50001 certi昀椀cation
for McDermott’s yards highlights our
proactive focus on energy ef昀椀ciency
as a critical decarbonization lever
and our commitment to providing
lower-carbon project delivery
solutions to our customers.
Sadaf Hameed
Senior Manager, Sustainability
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