H2Tech - Q4 2022 - 16

SPECIAL FOCUS: FUTURE OF HYDROGEN ENERGY
The energy transition
for the oil and gas industry
M. AL-MAHMOOD, A. AL-QAHTANI and F. ALWARTHAN, Saudi Aramco, Dhahran, Saudi Arabia
The energy transition is a pathway
to achieve net-zero by transforming the
energy sector into one that is low carbon
while maintaining energy sustainability
and security-increasing and utilizing
the demand in oil and gas throughout
the transition while reducing greenhouse
gas emissions. The industry is
facing challenges to produce energy in
an economical and sustainable way as
policy makers seek emissions reductions
through carbon pricing and trading.
According to an International Energy
Agency (IEA) report, the transition of
oil and gas should consider three main
focus levers: rising demand for energy
due to a growing global population; affordable
and reliable supplies of liquid
and gas, since the industry plays a critical
role in economic systems; and reducing
the energy emissions contribution in
line with the decarbonization movement
to achieve net-zero emissions.
The authors' company is not new to
the decarbonization industry, as it has
built conventional gas plants to treat the
gas from the oil wells, resulting in the
cleanest gas to replace oil in the power
sector. The company has also invested in
recovering waste gas to reduce emissions
for environmental purposes. The technologies
installed to support emissions
reduction were mature and feasible both
technically and economically. Improving
on previous efforts to further the
movement toward transition will require
governance and policies to control emissions
reduction, clean energy product
demand, and technologies that are financially
mature.
In line with the energy transition
movement, the oil and gas industry
should consider investment in carbon
capture and utilization (CCU), and produce
low-carbon products like hydrogen
(H2
capture will
) and ammonia (NH3
support emissions
), nitrogen oxide (NOx
dioxide (CO2
). Carbon
reduction
through flare systems, sulfur oxides
(SOx
) and carbon
) in the boilers, and sulfur
recovery unit (SRU) thermal oxidizer
stacks. Utilizing emissions to produce
low-carbon products will require innovative
thinking to support the increasing
demand. Carbon capture will also allow
the production of blue H2
as a byproduct
from steam methane reformers (SMRs)
or H2
production technologies. H2
can
be utilized either for refueling or to reduce
the emissions in the power sector.
Analyses show that a beneficial energy
transition is more difficult without a supporting
government policy shift.
According to the Atlantic Council,
recommended steps to support and lead
the transition movement in the oil and
gas industry include:
* Develop strategies for
decarbonization to reduce
emissions and ensure profitability
* Support policy development of
clear objectives for investors
* Invest in promising projects,
technologies, etc., that support
achieving net-zero
* Implement approaches to
transition oil and gas products
to low-carbon products like H2
FIG. 1. The four levers of the supply chain toward the energy transition: energy efficiency,
a H2
system, carbon capture and low-carbon fuels.
16 Q4 2022 | H2-Tech.com
.
A supply chain toward the energy
transition has been developed that will
focus on four levers, shown in FIG. 1: energy
efficiency, a H2
system, carbon capture
and low-carbon fuels.

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