The integration of offshore energy systems, including oil and gas, renewables, hydrogen and carbon capture and storage, could deliver 30 per cent of the Ƶ’s total C02 reduction requirements needed to meet the 2050 net zero target.
The Oil and Gas Authority’s Energy Integration Project report, published today also highlights the additional potential for offshore renewables to double that.
It has been welcomed by developers on the Humber, including Equinor - behind a huge hydrogen proposal for Saltend. Several huge schemes are being brought forward as the worst polluting cluster in the Ƶ looks to become a global leader in decarbonisation, building on huge strides in offshore wind.
Both elements taken together, mean the Ƶ Continental Shelf could support, in combination with complementary investments in onshore energy infrastructure, around 60 per cent of the Ƶ’s decarbonisation requirements.
OGA chief executive Dr Andy Samuel said: “The Ƶ Continental Shelf has the potential to make a deep and meaningful impact on the Ƶ’s overall net zero target and offshore energy integration can be the game changer.
“By closely co-ordinating our energy systems a secure energy supply can continue to be delivered from a diverse mix of production, while unlocking more and more of the green energy and carbon capture needed to help take the Ƶ to net zero.”
Key findings in the report, published in collaboration with Ofgem, The Crown Estate and the Department for Business, Energy and Industrial Strategy, included:
A total of 20 individual CO2 stores are understood to be required, with the re-use of oil and gas reservoirs saving 20 to 30 per cent of the required funds.
Electrification of oil and gas platforms allows for renewable feed-in too, reducing the footprint in production by up to 40 per cent in the next decade.
Blue hydrogen, produced from natural gas, has the potential to decarbonise around 30 per cent of the Ƶ natural gas supply by 2050, potentially supporting half of CCS expansions in the same timeframe.
Green hydrogen, from renewables, can support and enable the significant expansion of the sector, as it provides an efficient storage and energy transportation solution.
It states that reducing the costs of the technology involved - electrolysis - would be needed to support the faster uptake of this technology.
Energy and Clean Growth Minister, Kwasi Kwarteng, who this week described the Humber as the “backbone for our green transition and an example to the many other industrial centres across the Ƶ that they can go green,” said: “It is great to see this report set out a clear path towards net zero, highlighting that the offshore energy sector has the capacity to help deliver huge carbon reductions.
“Sharing existing expertise and infrastructure from the oil and gas industry will be integral in the development of our outstanding renewable energy sector, helping us meet our climate change commitments.”
Highlighting the H2H Saltend project, a spokesperson for Equinor Ƶ said: “We welcome today’s report by the Oil and Gas Authority. Platform electrification, floating wind, CCS and hydrogen are important to reduce industry emissions and help the Ƶ to Net Zero.”
