Gas-Fired Power Methane Emissions a Call to Action

Gas-fired power methane emissions A call to action

www.ge.com/power/future-of-energy Executive Summary Methane is a potent greenhouse gas, trapping ~25X more heat radiated from the earth’s surface than carbon dioxide.

According to the International Energy emissions more accurately, but actions can despite more than a 60 percent increase in Agency (IEA), about 40 percent of total be implemented immediately to contribute natural gas production from 2000 through global methane emissions occur naturally to methane emissions abatement. 2018, largely due to the introduction of from sources such as wetlands, geologic hydraulic fracturing techniques, methane seepage, permafrost, and animal secretions. The IEA has identified abatement emissions have come down by 9 percent The remaining 60 percent of global methane technologies and practices which could overall and 17 percent in the energy sector. emissions are anthropogenic (man-made), yield significant reductions in methane and the largest portion of these come from emissions from the oil & gas sector. They Approximately 40 percent of global natural agricultural production such as raising evaluated the potential impact of each to gas consumption is for the power sector, livestock and rice production. Fossil fuel global sector emissions and the associated with the remainder dedicated primarily to production, transportation, and use account cost. The agency concluded that in many home heating, industrial process heating, for approximately 20 percent (~113 million instances, the abatement technologies and use as a chemical feedstock. Gas-fired metric tons) of total global methane cost less than the value of the methane power generation therefore accounts for emissions, and emissions attributable to gas saved. This means such technologies have approximately 17 million metric tons of power are about 3% (17 million metric tons) a positive net present value and pay for methane emissions per year or 3 percent of the global total. Despite gas power being themselves because the market value of of total global methane emissions. responsible for a relatively small percentage, the captured methane exceeds the cost of GE acknowledges methane emissions the abatement measures. The amount that GE believes addressing climate reductions across the entire industry are can be abated at no net cost depends, of important and should be addressed. course, on the prevailing price of natural gas. change must be an urgent global priority. The oil & gas and power It’s recognized, however, that methane The US is a strong example of how methane industries have a responsibility, emissions are very difficult to measure and emissions can be addressed. Methane and the technical capability, to could be significantly higher than estimated. emissions from the energy sector in the US Accurate measurement is a key tool in have declined despite a massive increase take significant steps to quickly reducing methane emissions, and improved in natural gas production. According to reduce methane emissions. technology including satellite imagery the US Environmental Protection Agency, is being deployed to quantify methane

Reducing methane emissions is a powerful and cost-effective way to act on climate change, providing an essential

complement to action on reducing CO2

SOURCE: IEA METHANE TRACKER 2021

Gas-fired Power Methane Emissions 2 GREENHOUSE GASES – Greenhouse gases absorb infrared Methane, or CH4, or natural gas, is also WHAT ARE THEY AND radiation emitted from the earth’s surface emitted from both natural and man-made WHERE DO THEY COME and reradiate it back to the earth’s surface, sources. Methane’s lifetime in the atmosphere FROM? contributing to global warming. This is is much shorter (about 12 years) than CO2, similar to how an actual greenhouse works. but over a 100-year period its impact pound- Greenhouse gases are emitted at different Greenhouse gases act like the windows of for-pound is about 25 times greater than CO2 rates, with differing levels of intensity with a greenhouse, allowing light through but due to its efficiency in trapping radiation. which they absorb and reradiate infrared trapping heat inside. radiation, and with differing average lifetimes Nitrous Oxide, or N2O, can be naturally in which they remain in the atmosphere. In Water vapor is the most potent greenhouse occurring or man-made (e.g., agriculture, order to compare the relative impacts of gas but its effects can’t be significantly fuel combustion, wastewater management). each gas on global warming, they are often modified by human behavior. It is a These gases stay in the atmosphere an expressed on a CO -equivalent basis as 2 function of temperature, i.e., the higher average of 114 years, and pound-for-pound shown below. The values shown below are the temperature, the more evaporation are almost 300 times the global warming on a 100-year basis and it should be pointed occurs from the earth’s surface, creating impact of CO2. out that on a 20-year basis methane is more higher concentrations of water vapor in than 80X as potent at trapping the earth's the atmosphere. This reradiates more of Fluorinated Gases have no natural heat, meaning it has a more pronounced the earth’s radiation back to the earth’s sources and come only from human-related near-term effect. surface, which then causes temperatures activities (e.g., refrigerants, aluminum, and to rise yet further. semiconductor manufacturing). They last hundreds or even thousands of years in

Carbon Dioxide, or CO2, is the most the atmosphere and are tens of thousands Methane significant greenhouse gas and one most times more potent at contributing to global easily modified by human behavior. CO is warming than CO .1 ~25X CO equivalent 2 2 2 naturally present in the atmosphere and can

last for thousands of years. Human activities Using the CO2-equivalent approach over Nitrous Oxide are altering the carbon cycle by adding more a 100-year period, methane emissions

CO2 to the atmosphere and by affecting the contribute approximately 16 percent ~298X CO2 ability of natural CO2 sinks to absorb CO2. of global anthropogenic (i.e., caused equivalent by human activity) GHG emissions.2 See Figure 1 on the following page. Fluorinated Gases

up to 22,800X CO2 equivalent

Note: 100-year basis

Gas-fired Power Methane Emissions 3 SOURCES OF METHANE EMISSIONS

Sources of greenhouse gases (CO -eq basis) Of the nearly 600 Million metric tons per ² year of methane currently emitted globally, approximately 40 percent occurs naturally. The largest single source is natural wetlands, accounting for about one-third of the global total.3 Methane is produced in wetlands 65% through the anaerobic decomposition CO from fossil fuels & industry of organic material covered by water. 2 Other natural sources, representing about 7 percent of the global total, include methane produced by fresh waters, geologic seepage, wild animals, termites, wildfires, permafrost, and vegetation.

2% 11% Approximately 350 Million metric tons Fluorinated per year of methane are believed to be 16% Gasses 6% CO2 from forestry anthropogenic. The largest portion of these Nitrous Methane & land use methane emissions, 25 percent, are from Oxide livestock and other agricultural activities, with about 14 percent produced from the digestive process of livestock (i.e., cattle, sheep, goats), and 10 percent produced primarily from rice Methane emission production utilizing man-made wetlands. sources Fossil fuels account for 19 percent of total global methane emissions. Sources of these emissions include methane released from the mining or extraction of coal, oil, and natural 33% 7% gas, leakage in the processing or distribution Wetlands Other of natural gas along pipelines, and through Natural Occurring the flaring of associated gas. 585 MT/y Sources Biomass Burning 3% (14.6 GT/y 233 MT/y (5.8 GT/y CO -eq.) Landfills create an anaerobic environment 2% ² Biofuels CO2-eq.) 25% where bacteria break down organic waste 12% Agriculture/ Anthropogenic Sources and create landfill gas (of which about 40–60 Landfill Livestock Waste 19% 352 MT/y percent is methane). These gases account for (8.8 GT/y CO -eq.) Fossil Fuels 2 12 percent of total global methane emissions. 113 Mt/y 5% Biofuels such as wood, charcoal, agricultural 7% Gas 7% Oil residues, and animal dung contribute 43 Mt Coal 2 Mt methane from activities such as domestic 41 Mt cooking or heating in stoves, boilers, or Methane emissions Methane emissions 3% 4% fireplaces, but mostly in open cooking from gas attributed 17 Mt from coal attributed to power sector: 3 26 Mt to power sector: 4 fires. More than 2 billion people, mostly in developing and emerging countries, use solid biofuels to cook and heat their homes. Biomass burning mainly results in the production of CO2, but when fires smolder and combustion is incomplete, methane FIGURE 1: Summary of methane emissions. is emitted as well, accounting for about 2 Sources: US Environmental Protection Agency and International Energy Agency, 2021 Methane Tracker percent of total global methane emissions.

Gas-fired Power Methane Emissions 4 There is considerable uncertainty around the Intentional venting is the Gas production, processing, and distribution science of measuring methane emissions. release of methane, often account for 38 percent of methane emissions The behavior of methane as a GHG is well for safety reasons, due to from fossil fuels. The methane emissions understood, but there is less scientific clarity the design of the facility, from gas production, processing, and about the sources, or the reasons for recent or for inspection and distribution are split between intentional increases in atmospheric concentrations. This maintenance, and accounts venting (57 percent) and fugitive sources genuine uncertainty can result in a lack of for more than 80 percent (43 percent). The methane emissions can public trust in information on the subject. As of the methane emissions also be split into upstream (extraction/ a starting point to address this lack of public from oil production and processing. This processing) and downstream (distribution trust, a commitment to obtain and provide occurs when the gases cannot be recycled pipelines and conversion to LNG). Upstream more data through support for scientific in the production process, readily stored/ accounts for two-thirds of the methane research and from more careful direct reinjected back into the source, or are a emissions from gas, while downstream measurement of methane emissions from byproduct that lacks a marketable value. accounts for one-third. industrial equipment is clearly necessary. This is under way, as the industry has much Fugitive emissions are Natural gas, or methane, is the cleanest to gain from an increase in knowledge and unintentional leaks not burning fossil fuel for power generation transparency. In addition to public mistrust, caught by a capture system, in terms of CO2, NOx,SOx, mercury, the lack of verifiable data can lead to policy often due to equipment leaks and particulate matter emissions. choices that are guided by perception more or evaporative processes. Approximately 40 percent of global natural than facts. Satellite imaging is a powerful tool This occurs most frequently gas consumption is for the power sector4, for identifying sources of methane emissions when the gases are under with the remainder dedicated primarily to and satellites such as the Environmental pressure and accounts for home heating, industrial process heating, Defense Fund’s MethaneSat are advancing less than 10 percent of the methane emissions and use as a chemical feedstock. Gas-fired the technology of methane leak detection. from oil production and processing. power generation therefore accounts for approximately 17 million metric tons of Flaring of associated methane emissions per year or 3 percent of METHANE EMISSIONS gases that are an unwanted total global methane emissions. To put this FROM FOSSIL FUELS byproduct of oil production in perspective, man-made wetlands for rice creates greenhouse gas farming are responsible for more than 3X Approximately 110 million metric tons per emissions in two ways. the methane emissions of the gas-fired year of methane are emitted globally due to First, the combusted gases power industry. Rice feeds an enormous the extraction, transportation, and use of create CO emissions, but portion of the world's population and fossil fuels. 2 additionally, some methane methane emissions from rice farming would is not fully combusted and escapes directly be very difficult to abate, whereas emissions Coal mining releases methane trapped to the atmosphere. This accounts for about from fossil fuel use can be largely addressed. between layers of coal during its formation 10 percent of the methane emissions and methane is released when coal mined, from oil production and processing. transported, and stored. Coal accounts for about one-third of the methane emissions associated with fossil fuels.

Oil production and processing accounts for about one-quarter of methane emissions from fossil fuels, primarily through intentional venting, fugitive emissions, and flaring of associated gases.

Gas-fired Power Methane Emissions 5 IMMEDIATE AND when absolutely necessary for safety reasons. throughout the oil & gas supply chain. COST-EFFECTIVE Flares can be installed at oil & gas production Installing Plungers – Install plunger ACTIONS TO REDUCE sites, and components expected to emit lifts to more efficiently extract liquids METHANE EMISSIONS methane can be routed to these devices. and limit the escape of methane. ARE AVAILABLE TODAY Vapor Recovery Units (VRUs) – Blowdown Capture – Blowdowns can The IEA has identified abatement technologies These are small compressors designed to be triggered by emergency signals or and practices which could yield significant capture emissions that build up in pieces routine start up or shut down procedures. reductions in methane emissions. These of equipment. VRUs can pull off gases Emissions are mitigated when excess gas solutions mainly apply to exploration, that accumulate in oil storage tanks and is recovered and used on site or sent to production, and transportation in the oil & are otherwise periodically vented to the market, instead of being vented or flared. gas sector. The IEA evaluated the potential atmosphere to prevent explosion. impact of each to global sector emissions Other – Includes techniques such as and the associated net costs to deploy Electric Motors – Replace gas- capturing unburned methane from gas the abatement actions. In many instances, powered devices with electric motors burning engines and turbines using a catalyst, the actions cost less than the value of the to minimize possibility of leaks. deploying small prime movers that locally methane saved, so they pay for themselves. use associated gas, improved pipe/system The specific amount that can be abated Replace Pumps and Instrument Air blowdown practices, conducting a pipeline with no net cost depends, of course, on the Systems – Emissions can be eliminated by pumpdown before maintenance, and “green” prevailing price of natural gas. See Figure replacing pumps and controllers pressurized completions that capture gases normally 2, which according to the IEA is based on by natural gas with those that are powered released when reworking or completing a well. the unusually low gas prices in 2020 due by instrument air systems or electricity. to the COVID 19 pandemic. Recommended The IEA notes that the cost of abatement abatement technologies or actions include: Early Replacement of Devices – measures and the value of the captured Replace primarily “high bleed” methane will vary by location and Leak Detection and Repair (LDAR) – pneumatic devices used throughout prevailing natural gas prices. The IEA This is the process of locating and production sites and compression analyzed the relationship between repairing fugitive upstream and/or facilities with “low bleed” devices. abatement costs and the value of the downstream leaks, sometimes using capture methane across more than 70 infrared cameras to make leaks visible. Replace Compressor Seals or Rods – countries in their 2021 Methane Tracker.5 Use improved technology to reduce Installing Flares – Flaring, while not ideal, is leaks from compressors that are used preferable to direct venting of methane gas

IEA Estimated Abatement Potential Total Possible Abatement: 5558 t (70%) At No Net Cost: 773 t (11%) 10.00

5.00

0.00 Cost (USD/MBtu)

-5.00

-10.00 0 5000 10000 15000 20000 25000 30000 35000 40000 45000 50000 55000

Replace with electric motor Upstream LDAR Vapor recovery units Replace pumps Downstream LDAR Install flares Early replacement of devices Replace compressor seal or rod

FIGURE 2: Oil & Gas Industry Global Abatement Opportunity.6

Gas-fired Power Methane Emissions 6 US: NATURAL GAS Methane emissions Administration and the Environmental PRODUCTION UP, Protection Agency, despite more than a 60 METHANE EMISSIONS from the US energy percent increase in natural gas production DOWN from 2000 through 2018, largely due to sector have come the introduction of hydraulic fracturing The three largest producers of natural gas in down 17% for techniques, methane emissions have come the world are the US, Russia, and Iran. These down by 9 percent overall and 17 percent in three countries are also the largest emitters of the period 2000 the energy sector. See Figure 3. Agriculture methane from oil and gas production, but the and land use are the only sectors with methane emissions intensity (i.e., the amount through 2018 increased methane emissions over this time of methane emitted per unit of oil and gas period, demonstrating the difficulty in abating produced) of the US is less than half that of SOURCE: US EPA emissions in these sectors and the ability to Iran and more than 50 percent lower than in abate emissions across all other sectors of Russia. The wide range of methane emissions the economy. As noted previously, measuring intensity is an indication that there is an methane emissions is very difficult and actual opportunity to share best practices with the methane emissions from all sectors may be goal of reducing total emissions. In fact, in the considerably higher. US according to the US Energy Information

800 40,000 Total US Methane Emissions (left axis) 700 35,000

600 30,000 Billions of Cubic Feet Equivalent ² 500 25,000 US Dry Natural Gas Production (right axis) 400 20,000

300 15,000 Energy Sector Methane Emissions (left axis) 200 10,000

Million Metric Tons CO Tons Million Metric 100 5,000

0 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

FIGURE 3: US Methane Emissions and Dry Natural Gas Production.7

Gas-fired Power Methane Emissions 7 Conclusion Despite this, methane is a powerful greenhouse and any comprehensive Reducing methane emissions from oil & gas operations is among the most strategy to reduce cost-effective and impactful actions greenhouse gas that governments can take to achieve emissions must global climate goals. address methane SOURCE: IEA REPORT: DRIVING DOWN METHANE LEAKS FROM THE OIL & GAS INDUSTRY, A REGULATORY emissions as well ROADMAP AND TOOLKIT, JANUARY 2021 as CO2 emissions.

Although approximately 40 percent of global emissions, and GE supports measures to more comprehensive and accurate data methane emissions are naturally occurring require producers and users of methane to are required to ensure that the problem from sources such as wetlands, geologic employ the best available technology to both is fully identified and that solutions to seepage, and wild animal emissions, the measure and prevent methane emissions. address it are effective. Satellite imaging remaining 60 percent are anthropogenic. is a powerful tool for identifying sources Accordingly, measures should be taken to The Oil & Gas Methane Partnership of methane emissions and satellites such reduce them. Fortunately, cost-effective developed a framework for reporting as the Environmental Defense Fund’s abatement measures are available to methane emissions that should provide MethaneSat are advancing the technology significantly reduce emissions from the the public with assurance that methane of methane leak detection. Significant oil & gas sector in the near term. emissions from member companies actions should be taken immediately are being managed responsibly. to address known sources of methane GE believes addressing climate change is emissions while a more comprehensive an urgent global priority. The oil & gas and Given the urgency of the climate crisis, it's policy framework and suitable measurement power industries have a responsibility and important that policies not be delayed until tools for each country are developed. the technical capability to take significant more detailed measurement and reporting steps quickly to reduce greenhouse gas data are available. That said, it is clear that

AUTHOR CONTRIBUTOR Jim Donohue John Catillaz gegaspower.com REFERENCES 1US Environmental Protection Agency, Overview of Greenhouse Gas Emissions, https://www.epa.gov/ghgemissions/overview-greenhouse-gases 2Inventory Data Explorer, https://cfpub.epa.gov/ghgdata/inventoryexplorer/#iallsectors/ methane/inventsect/current; US Energy Information Agency, Natural Gas Data, https://www.eia.gov/dnav/ng/hist/n9070us2A.htm 3,5,6International Energy Agency Methane Tracker 2021 https://www.iea.org/reports/methanetracker-2021 4International Energy Agency, World Energy Outlook 2021 7US Environmental Protection Agency, Greenhouse Gas Inventory Data Explorer, https://cfpub.epa.gov/ghgdata/inventoryexplorer/#iallsectors/ methane/inventsect/current; US Energy Information Agency, Natural Gas Data, https://www.eia.gov/dnav/ng/hist/n9070us2A.htm