Technology and Innovation: How to deliver a Net Zero Offshore Industry

SPE Simplified Series 4th December 2019 Outline

Human activity: Energy Roadmap to 2050: demand + Carbon Target: Net Zero Technology & emissions Innovation

Technology and Innovation: how to deliver a Net Zero Offshore Industry Human activity & Energy demand Growing population Energy demand increasing by 25% to 2040 Social & economic opportunities improving CO2 emissions rising to record values A brief history of CO2 emissions: https://www.youtube.com/watch?v=EQ7S0D1iucY Carbon Emissions: What is the problem?

Climate Spirals: https://openclimatedata.net/climate-spirals/from-emissions-to-global-warming-line-chart/

Robert Gieseke and Malte Meinshausen, www.pik-potsdam.de/primap-live

Ed Hawkins, https://www.climate-lab-book.ac.uk/2018/warming-stripes/ Where are we now?

Published September 2019 Net Zero what & why

Sequestration: capture and utilisation or long-term storage.

Emissions Offsets Mitigation: lowering the rate of emissions into the UK Government Targets: atmosphere Scotland: Net Zero by 2045 UK : Net Zero by 2050 Wales: 95% reduction in GHG by 2050

Carbon Balance Oil & Gas Problem or Solution?

Tracking emissions:

Operational Emissions:

Consumption emissions

Offshore Installations Terminals Transport & logistics 15 Mt Operational emissions

Carbon Emissions Oil & Gas Problem or Solution?

Many players contribute to an innovation system. Processes needed simultaneously to develop an Well established in the O&G sector. innovation system:

Key processes for development of innovation systems: Analysis on CCS. Source: K. Alphen, M. Hekkert, W. Turkenburg

A Model for an Innovation System Source: E. Arnold and S. Kuhlman

Oil & Gas: Companion Industry, supporting the development of the integrated offshore industry of tomorrow Energy transition: an opportunity to shape the future of the energy system

UKCS now: Future UKCS: • Integrated energy industry in the North Sea • Mature basin • Net zero emissions • 250 assets • Expanded offshore wind / renewables industry • 45,000 km of pipelines • O&G production powered by • £58bn forecast decommissioning costs • Carbon storage hub connected to industrial clusters • 45,000 directly employed • Hydrogen industry driven by O&G infrastructure reuse & • 300,000 jobs sustained by Industry renewable power Roadmap to 2050

Net Zero Basin

Net Zero UK Economy enabled by the UK Hydrogen production CCUS from industrial Net Zero emission O&G Offshore Renewables Continental Shelf Industries, including Oil leveraging the O&G clusters + blue hydrogen Offshore Operations Integration & Gas Industry production

Key Programmes timeline by 2025 by 2035 by 2050

Plant Optimisation Net Zero emission O&G Zero Emission Offshore Power Offshore Operations Venting and Flaring Fugitive Emissions

Hydrogen Production

Net Zero Basin CO2 Capture technology

Hydrogen and CO2 transportation and Storage technology

Ambition: A carbon neutral basin developing, testing and exporting technology Roadmap to 2050 A Net Zero UK Economy enabled by the UK Continental Shelf Industries, including Oil & Gas.

ENABLING Hydrogen production CCUS from industrial Net Zero emission O&G Offshore Renewables leveraging the O&G clusters and blue Offshore Operations Integration Industry hydrogen production

Roadmap 2035 production x today’s oil & gas prices CCC wind x £40/MWH CCC H2 x £2/kg CCC CCS x £50/t

£24 £2 2020 Bn Bn £26Bn

£20 £5 £1 £2 2030 Bn Bn Bn Bn £28Bn

£16 £11 £5 £4 2040 Bn Bn Bn Bn £36Bn

£11 £16 £13 £9 2050 Bn Bn Bn Bn £49Bn Innovation Approach

Collaborative Innovation Model – Bringing the Outside In The model in action

Start from the top: Industry problems Start from the bottom: technology trends • Problems known and understood, • Technology Trends emerging from other sectors / but not well solved yet. industries. • Looking for solutions from within and • Looking for applications in Oil & Gas that would outside the Industry provide benefits / opportunities.

Extend the reach beyond Industry networks Horizon Scanning to identify Tech trends with a by engaging with: possible impact in O&G and • Innovation Networks. E.g. NCUB, KTN, • Inform / educate the Industry about the EIC, Academic Panel & Network, etc. technology key features. • Specific networks / CoPs based on the • Engage / connect experts in the technology with technology theme industry expert to identify use cases and co- develop potential applications for O&G

End result: End result: Projects to solve the initial challenge Projects to define and develop the opportunity

Two main roads to innovate – converging Technology Vision

Fix today Maximise recovery Transform tomorrow

Data Asset Tieback of Integrated Low carbon Reusable access inspection the Future energy operations infrastructure

Revitalise Remote Hydrogen Data Production optimisation Automation exploration operations delivery driven

Efficient Alternative Artificial New Unmanned Zero carbon decommissioning well barriers intelligence materials facilities developments

Transforming the industry for the low carbon future Technology on the Horizon

Short Mid Long

Direct Air Capture Hydrogen from old fields

Zero Emission Fuels Blue Hydrogen Production

Transforming the industry for the low carbon future Summary • Human activity and energy consumption are interlinked • emissions will continue to rise to 2030 • Target: reaching Net-zero emissions by 2050 • Oil & Gas can contribute to the development of other UKCS industries and support development of a net zero economy • Joint action required to develop effective solutions • Innovation will contribute to the development of new technologies and industrial strategies.

Ana Pires de Almeida [email protected]