Page 9 - AsiaElec Week 33
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AsiaElec RENEWABLES AsiaElec
Green energy could reduce Asian LNG
production emissions by 8%
ASIA USING renewable energy to operate LNG pro- gas turbines with electricity could greatly reduce
duction plants across the Asia-Pacific region emissions, assuming the grid power is less car-
could reduce emissions by about 8%, according bon intensive. The other option is to install
to analysis by Wood Mackenzie. on-site renewable power.
The region produces over a third of the “Our analysis shows that installing renewa-
world’s LNG, while generating 50mn tonnes per ble energy generation could reduce emissions at
year (tpy) of carbon dioxide equivalent of emis- Asia Pacific’s LNG plants by 8% in 2020 alone,”
sions during liquefaction. Taylor added.
Australian LNG projects account for over Taylor said: “A carbon tax is likely to be the
half, or 29 MtCO2e, of liquefaction emissions biggest driver for LNG projects to switch to
from LNG projects in the Asia-Pacific. renewable energy at the plant or deploy carbon
Many of the region’s LNG facilities are located capture and storage [CCS] to reduce emissions
in remote areas, far from the power grid, so feed- from upstream gas, or both.
gas is used to generate electricity to run the plant “Using less feedgas as a fuel would result in
and fuel the liquefaction process. more gas being available to supply either the
Typically, 8% to 12% of feedgas is consumed domestic market or be converted into LNG for
at the plant to run these processes. exports.
Wood Mackenzie senior specialist Jamie “In APLNG, for example, installing 60 MW
Taylor said: “Three main decarbonisation levers of solar in 2020 at a cost of $60mn increases the
could help reduce emissions at LNG plants, remaining value of the project by $62mn.
namely operational efficiency, design changes “This is due to the additional revenues gener-
and the use of renewable energy, which could be ated from selling the ‘saved’ feedgas. The relative
sourced from the grid or generated on-site.” benefits of installing solar are increased further
Feedgas is used to fuel gas turbines to gener- when a carbon tax is considered.”
ate electricity to power the plant. Replacing these
Week 33 19•August•2020 www. NEWSBASE .com P9
