In a week where climate change is on everyone’s mind, we are still at risk of ‘failing to see the bigger picture in pursuit of short-term goals,’ an excellent quote from the great Sir David Attenborough’s speech at COP26. We live in a world of quick fixes because quick fixes can make quick bucks, but now it is time to change that approach and build for the long-term future. We need to shift the perception that all we do is talk and start to deliver the changes that will secure a sustainable future.
Solutions not problems
The oil and gas industry has the skills and the technology to phase out carbon emissions and create a sustainable future. So, we need to stop treating the industry as the problem and encourage it to develop the solutions. An increase in natural gas storage, development of hydrogen supply and storage and the capture and storage of CO2 will all play key roles in our drive to a sustainable future. A renewed focus and investment in these technologies are required to progress towards our Net Zero ambition.
We should view the move towards Net Zero as an evolution, not a revolution, and certainly a transition not achievable with quick fix, short term solutions. There is a growing perception that change to a carbon-free energy system in the UK will and can happen far quicker than is likely, which has started to influence public opinion and that of policy makers. We need a realistic way forward, otherwise public opinion, government policies, taxation systems and the way in which our society operates will be poorly prepared for the journey ahead.
Without a clear road map, we run the risk of removing vital fossil fuel resources before more sustainable alternatives are commercially available and operational. Regardless of some opinion, realistically we will need natural gas for many years to come, to be used as a transition fuel and enabler of the sustainable energy generation systems. Therefore, as good stewards of today’s energy supply, we must be a lot smarter in how we use fossil fuels, ensuring we minimise or remove any associated emissions.
Energy Security
This year, we head into the winter season with increased uncertainty in the availability of gas supply across Europe. In 2017, Centrica made the decision to close the Rough facility situated off the east coast of England and bring to an end more than 30 years of gas storage there. Although the Rough field is still producing gas today, the UK lost its largest storage asset, leaving only four to five days of gas storage available during a typical winter period compared with 14 days in 2004. In comparison, the Netherlands has approximately nine times more storage capacity than the UK, and Germany has 16 times more.
This problem is only made worse by a reduction in gas exploration on the UK continental shelf and investors reluctant to fund projects related to the development of fossil fuels. The UK has gone from a net gas exporter to a large importer, which with limited storage capacity, leads the UK to greater exposure to continental gas price fluctuations. The stark reality is that we need natural gas in the short to medium term because we live in a country which relies on natural gas for over 50% of annual electricity generation needs.
Sustainable Initiatives
The East Coast Cluster (ECC) is just one very exciting UK initiative which will target the reduction of up to 50% of the UK’s industrial emissions of CO2, using carbon capture technology and a dedicated infrastructure to transport emissions to storage facilities beneath the North Sea. Initiatives like the ECC reflect the drive to make the existing heavy industries, vital to our economy and lives, more sustainable by safely capturing and storing the emissions that are causing the climate crisis. When combined with sustainable energy sources to feed the industry the path to achieving net zero emissions becomes clearer.
The ECC will require innovation in many industries and the development of new infrastructure such as hydrogen production facilities to convert renewable wind-generated electricity into ‘green’ hydrogen via electrolysis, and facilities to convert natural gas into ‘blue’ hydrogen. All of which will need a gas network suitable for hydrogen distribution and storage, which will enable the blending of hydrogen with natural gas for the domestic market and gas fired power stations, further reducing CO2 emissions.
The big switch to future energy sources doesn’t suddenly remove our need for fossil fuels, and especially natural gas. But, with a wide scale application of carbon capture technology and the much need infrastructure and storage capability we can responsibly continue to use fossil fuels and capture the emissions and lock them away, instead of pushing them into the atmosphere.
When considering energy security within the UK today, it is undeniable that the UK needs more natural gas storage. As we look to the future with possible hydrogen gas storage, we must also consider that the energy density of hydrogen is significantly lower than natural gas, with approximately four times the volumes of hydrogen required over natural gas for the same energy output. In the case of hydrogen, using today’s gas storage facilities would yield only one day of national energy demand, clearly nowhere nearly enough.
Now it’s time to recognise the bigger picture and act. Significant capital investment in the construction of new storage facilities as part of a future strategy is just one area to consider, where our existing expertise in gas storage will be vital. We need to rethink our current approach to storage, infrastructure and policy, and establish a future-focused industry which will help pave the way to a sustainable tomorrow. The journey to net zero is going to be one huge-combined effort for the UK, a journey which existing UK industry must lead, take action and play its part to capitalise on existing capabilities and efficiently manage the transition.
I believe that the immediate development of storage facilities must be part of the bigger picture for a sustainable future, what do you think?
Steve Windass is Head of Technical Services at Telos. Telos has extensive operator, gas storage and energy production experience and specialises in guiding operators and service companies through their own energy transition journey.
