Page 7 - EurOil Week 32

EurOil COMMENTARY EurOil

Source: OGA report.

Key findings at electrolysers using renewable energy – can
Among its key findings, the OGA concluded in support a significant expansion in offshore
its report that oil and gas platform electrification renewables in the 2030s and beyond. It will
would be essential for reducing sector produc- essentially provide a means of storing this
tion emissions in the near term. Electrification sometimes intermittent energy supply. A pri-
can abate operational emissions by 2-3mn ority would be reducing production costs,
tonnes per year (tpy) of CO2 by 2030, it said. This which are currently much higher than for blue
is equal to 20% of current production emissions, hydrogen.
rising to 40% by 2030.
The report also sees oil and gas capabilities, Recommendations
infrastructure and the industry’s supply chain The OGA recommended that greater regula-
as crucial to energy integration, and poten- tory co-ordination and support were needed for
tially supportive of further offshore renewables pioneering integration projects to be a success.
expansion. There needs to be cross-industry awareness of
Oil and gas reservoirs and infrastructure potential synergies, and economic hurdles to
can also be repurposed for CCS, connecting development need to be identified and over-
to onshore net-zero hubs and saving 20-30% come, it said.
of capital expenditure on specific projects. Hydrogen markets need to be developed,
UKCS reservoirs have 78 gigatonnes of CO2 identifying industrial demand clusters, creating
storage capacity, which is sufficient for hun- more uses for hydrogen and establishing a more
dreds of years of the UK’s CCS needs. To widespread transportation and distribution sys-
achieve the scale of CCS needed for net- tem, in part by converting existing gas pipeline
zero carbon, the UK will have to develop to flow hydrogen.
around 20 individual CO2 storage facili- There also needs to be a focus on improving
ties with over 3 gigatonnes of CO2 space by production economics using pilot projects.
2050. More than two pilot and two commer- “Blue hydrogen could accelerate the CCS
cial-scale projects would be needed by 2030, ramp-up by supporting more scalable business
to generate the necessary learning to support cases,” the OGA said. “A faster growth timeline
a later expansion. could support more opportunity to re-use oil
Blue hydrogen – produced from natural gas and assets (e.g. terminals, pipelines and natural
but with CO2 from the process being captured gas resources).”
and stored – has the potential to decarbonise “Reducing the costs of the technology
30% of UK gas consumption by 2050. This would involved in electrolysis would be needed to sup-
entail annual production of 250 TWh of hydro- port the faster uptake of this technology,” the
gen, supported by 70mn tonnes of annual CO2 OGA added, calling for research and develop-
storage capacity. ment “to abate electrolysers’ costs and increase
Green hydrogen – produced from water their energy efficiency.” ™

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