BP leads the way on decarbonisation projects
BP has announced a partnership with fellow oil and gas majors ENI , Equinor , National Grid , Total and Shell for a new initiative , the Northern Endurance Partnership ( NEP ), to develop offshore carbon dioxide transport and storage infrastructure in the North Sea .
BP will lead and operate the carbon capture , utilisation and storage initiative which will serve the Net Zero Teeside ( NZT ) and Zero Carbon Humber ( ZCH ) projects . These two projects are set to become the world ’ s first net zero industrial clusters , with the hope that their successful at-scale launch will kick-start decarbonisation of industry and power in Teeside and Humberside , two towns which have historically depended upon energy-intensive industries for economic livelihood .
The projects aim to be up and running by 2026 , with realistic pathways to achieve net zero emissions as early as 2030 through a combination of carbon capture , hydrogen and fuel-switching technologies . If successful , NEP ’ s contribution to NZT and ZCH will enable the decarbonisation of nearly half of the UK ’ s industrial emissions .
Grete Tveit , senior vice president for low carbon solutions at Equinor , said ;
“ Carbon capture and storage is a crucial technology for reaching the goals of the Paris Agreement and we are committed to working with others to create real change . We believe that , with our partners in the Humber , Teesside and the Northern Endurance Partnership , we can deliver deep decarbonisation of these major UK industrial clusters using CCUS and hydrogen , safeguarding jobs and helping develop world-leading low carbon expertise that can play a leading role in the UK ’ s journey to net zero by 2050 .”
UKPIA proposes net zero pathway in ground-breaking report
Meeting net zero in the downstream oil sector , and in society at large , has been described by UKPIA as “ one of the greatest challenges we face ”.
The association ’ s ground-breaking report , titled “ Transition , Transformation , and Innovation : Our role in the Net-Zero Challenge ”, looks at credible scenarios and proposes an illustrative pathway for the UK downstream sector to achieve government mandated net zero targets , with practical policy solutions to help overcome this challenge .
The three key findings are :
Low carbon liquid fuels Can play a key role in the UK ’ s decarbonisation – and are doing so already .
There are a number of technological pathways for the downstream oil sector to deliver further decarbonisation of products and their manufacture . Biofuel content in existing road fuels already reduces vehicle carbon emissions and , with further investment in development of clean fuels , net zero could be achieved more readily because they mainly use existing vehicles and infrastructure .
Hydrogen A major opportunity for both industrial and transport decarbonisation . The downstream oil sector is the largest industrial producer and user of hydrogen , as part of the reforming process and as a power source in refineries , and can maintain and grow its role in producing and delivering zero-carbon emitting hydrogen . Hydrogen has the potential for many roles in decarbonisation especially in some sectors , like heavy industry , that may struggle to deliver electricity-only solutions .
A systems-based approach is needed Society is more interconnected than ever before , so delivering net zero will be difficult without considering those interdependencies An enabling policy framework is required to produce low carbon - and eventually net zero - liquid fuels . Bespoke approaches will be necessary in sectors with limited decarbonisation options like aviation .
Following publication of the report , UKPIA director-general , Stephen Marcos Jones said ;
“ This is an exciting yet challenging period of evolution for the downstream oil sector – we are committed to action on climate change – and this report shows that , within the right policy framework , this sector can transform and deliver Net-Zero .
“ We see hydrogen as a critical component of meeting Net-Zero – and while this is only now coming on many people ’ s radar , it is an area where the sector is the largest producer of hydrogen in the UK and can use that experience to maintain and grow its role in the emerging hydrogen economy .
“ Only with industry and government working hand-in-hand in a systems-based approach will the task of Net-Zero be achieved in the UK – as such , this report urges ongoing and rigorous dialogue to ensure optimal results . We want to work now across government to make this report a reality .”
We will be taking a more in-depth look at the UKPIA report in the January issue of Fuel Oil News .
Top points for gender diversity
In a historically male-dominated industry , we are delighted to be featuring some very successful women in this issue of Fuel Oil News . We are equally pleased to see that gender diversity in this sector is on the rise . A recent review of FTSE 100 companies by Debut has found that oil and gas producers are ranked 2nd in the top five most diverse FTSE 100 sectors in the UK .
The review also found improvements in terms of gender diversity generally on the boards of the FTSE 100 companies , with woman taking 36 % of current board roles . Although this hits the diversity target recommended by the Government five years ago , it is still a way away from a 50 / 50 split , which is achieved by just nine of the 100 companies .
Royal Dutch Shell is one of the nine companies with a 50 / 50 split , and the oil and gas sector as a whole is close to the target , with 54 % male board members and 46 % female board members .
We ’ d love to hear about your own gender and diversity policy . Contact : stephanie @ fueloilnews . co . uk .
Fuel Oil News | December 2020 5