Supporting the energy transition - Oil and Gas Authority · Energy transition | Energy integration...
Transcript of Supporting the energy transition - Oil and Gas Authority · Energy transition | Energy integration...
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Supporting the energy transition
Westminster Energy Forum November 2019
Kristina Dahlström
Head of Policy and Strategy
Debate more polarised than ever – quality dialogue and evidence based action required
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Oil demand Oil production
Oil demand (BEIS 2018
UEP Reference Scenario
Oil production (OGA
Mar 2019 projection
UK Oil demand and production UK Gas demand and production
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70
19
70
20
35
20
35
150
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Gas demand Gas production
Gas demand (BEIS 2018
UEP Reference Scenario
Gas production (OGA
Mar 2019 projection
MER UK
Energy
security
Strong
supply chain,
exporting
globally
Anchor
skills in UK
Diversification,
transition to
net zero 2050
Debate more polarised than ever – quality dialogue and evidence based action required
Energy transition | Case for change
Huge opportunity ahead
Energy transition | UKCS is a critical energy asset
Maximising
domestic
gas
production
Licensing of
carbon
storage
Offshore
flaring and
venting
Offshore energy
integration
study
Supporting
supply
chain
Enhanced
Oil
Recovery
Increasing
operating
efficiency:
emissions
benefits
OGA fully supports energy transition as set out in our policy position
Digital
platform
Energy transition | OGA current work
Working collaboratively with
government and industry
Licensing and permitting
authority for carbon storage –
OGA issued first licence Dec 18
Consider re-use as part of
the OGA Cessation of
Production process
Promoting role of CO2 EOR
2019 important year for CCUS with action plan underway
Recent steps in BEIS policy developmentOGA CCS role
large scale
(12 MtCO2 per
year) CCS
projects
in 2050
78GtCO2
6 to15 75-175MtCO2
CCC
estimate
of annual
require-
ment in
2050
total UKCS
CO2 storage
resource
estimate
Energy transition | Carbon Capture and Storage
• Funded by £1m grant from the Better Regulation Executive’s Regulators’
Pioneer Fund
• Led by the OGA, in collaboration with BEIS, The Crown Estate and Ofgem
• Aims to unlock UKCS energy integration opportunities
• Leverage oil and gas infrastructure for CCS, wind and hydrogen as an
essential enabler
• Oil and gas companies and supply chain partnering with renewables to play
a critical role
• Project has two phases:
1. Technical options (completed)
2. Economic and regulatory assessment (ongoing)
• In phase 2, team engaging across the energy industry to validate findings
and understand near-term opportunities
UKCS infrastructure (oil and gas,
renewables, and power transmission)
Energy transition | UKCS Energy Integration project
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• UKCS is a critical energy resource, which can be transformed to support the net zero target
• Significant further wind power potential, untapped carbon
storage capacity, and extensive oil and gas infrastructure in
place
• Phase 1 reviewed five technology concepts which integrate
multiple energy sources on technical ground
• Opportunities for UKCS deployment are plentiful, diverse
and location-specific
• All technology concepts offer carbon reduction benefits but
differ in terms of scalability and timelines
− O&G technologies (platform electrification, gas-to-wire) mature, but there are cost challenges
− Transition concepts (CCS, hydrogen) proven as pilots, with very large technology upside
− Cross-sector synergies can reduce costs
• Larger hubs – on or offshore – can help capture full potential
from renewables
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Concept Technical Feasibility UKCS Applicability
Proven
(e.g. Johann Sverdrup,
Norway)
EIS, CNS, WoS
opportunities via
windfarms, inter-
connectors or shore
Individual elements
proven (e.g. OCGT,
offshore power
transmission)
Niche solution
SNS, EIS opportunities via
windfarms or to shore
Piloted (e.g. Sleipner,
Norway)
Oil & gas repurposing to
be tested
Large storage capacity,
with O&G synergies in
SNS, EIS, CNS
Onshore – proven but
still upside
Offshore to be piloted,
Q13a (NL)
Onshore: cost advantage?
Offshore: O&G asset re-
purposing in SNS, EIS,
and NNS
Individual elements
proven, integration yet
to be tested
Shetland, Orkney,
SNS, and NNS asset
re-purposing
Technical Screening
Energy transition | Energy integration interim findings
Platform
Electrification
Gas-to-Wire
CCUS
Hydrogen
Energy Hubs
1Q 2019 2Q 2019 3Q 2019 4Q 2019 1Q 2020 2Q 2020
Energy transition | UKCS Energy Integration project
Phase 1 Technical Assessment
Economic Assessment
Regulatory Assessment
• Modelling economic and commercial opportunities
• Comprehensive stakeholder engagement to provide inputs to
economic and regulatory workstreams, and validate Phase 1
findings
• Electrification
• Gas-to-Wire
• CCS
• Power-to-Gas (H2)
• Energy hubs
− Project mapping - real world
energy integration
opportunities
Industry Engagement
Phase 2
• Mapping regulatory landscape to
identify gaps, barriers, opportunities
and enablers
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COMPLETION
SUMMER 2020
UKCS ‘size of
the prize’
Actions to
address priority
barriers and
enablers
Facilitate ‘quick
win’ projects to
accelerate cross-
sector synergies
Flotta & Sullom Voe terminals – H2 Offshore Project + renewable power
H21
HyNet
FLEXIS demo area
Tracking 61 projects (selection shown)
Electrification
Norway: Electrification,
Floating Wind, H2, CCS
Netherlands: H2, electrification, CCS
Caledonia
Clean EnergyProject Acorn
Clean Gas Project
SNS GTW and CCS
Zero Carbon Humber
OGTC NZSC and ONE ET Park
Energy transition | Growing number of potential developments
Thank you