INDUSTRY ANALYSIS
Top down : How is the industry driving change from the supply end ?
“ The downstream oil sector has a golden opportunity to achieve both sustainability and economic growth .” ( UKPIA )
UKPIA ’ s Future Vision Report outlines how the downstream oil sector can become an essential part of society ’ s drive to decarbonise to net zero emissions by 2050 , while still supporting jobs , skills and economic growth .
As companies create and adopt new ways of lowering emissions from their products and processes across the refining and fuel supply sectors , we take a closer look at advancements at the cutting edge of our industry . How is the supply end getting involved with the development of low-carbon industrial clusters around refineries to reduce their environmental impact and place themselves at the forefront of the UK ’ s zero-carbon economy ? Has its workforce got the necessary skills to effect this change ? And what are the possible implications for the supply chain moving forward ?
UKPIA Members - a big part to play Following the announcement earlier this year of £ 171 million of UK Research and Innovation ( UKRI ) funding towards major decarbonisation projects across the country , we are already seeing significant progress and the heavy involvement of several UKPIA members who are crucial to the achievement of net zero . Stephen Marcos Jones , UKPIA ’ s director general , explains : “ UKPIA members and the wider downstream sector have a significant role to play in the journey to net zero . We know that , as an energy-intensive industrial sector , our emissions will need to be reduced . We , like all parts of society , are contributing to today ’ s emissions , however , we know that we can be part of the solution too .
“ By working collaboratively with the Government and other parts of the energy sector , we can substantially reduce our process and product emissions to deliver the rapid decarbonisation that is necessary to meet net zero by 2050 .”
There are many ways in which the sector can contribute to successfully achieve this .
“ As a producer of net zero hydrogen and low-carbon fuels and by adapting our fuel stations to offer EV charging alongside other zero-emission transport fuels , UKPIA ’ s members can continue reducing emissions while developing and deploying the technologies required to meet net zero ,” says Stephen .
“ Most of our members are central to emerging plans in the decarbonisation of industrial clusters . Low-carbon clusters are being developed around the country and , in the North-East region alone , our members are involved in projects such as Gigastack , the Northern Endurance Partnership , Humber Zero , and Net Zero Teesside . Across the UK , members are also major partners in HyNet North West in Cheshire , Scotland ’ s ACORN project , and the South Wales Industrial Cluster , all of which have ambitious plans for cluster decarbonisation via hydrogen , CCUS , and other technologies .”
Essar ’ s Stanlow refinery is central to the HyNet consortium ’ s plan of creating blue hydrogen and capturing carbon under the
Liverpool Bay . Prashant Ruia , chairman of Essar Oil UK commented : “ Essar is committed to playing its part in the decarbonisation of the region and the two hydrogen production plants to be built at Stanlow are absolutely fundamental to the Hynet project . Together with our plans for the manufacture of biofuels from waste , HyNet North West will be key to our ambition of being a long-term provider of sustainable energy solutions for the UK .”
Phillips 66 is active in the Humber Zero project which plans to create a carbon capture and hydrogen hub to help reduce industrial emissions while Prax ’ s Lindsey Refinery is the latest organisation to join the V Net Zero Humber Cluster and is aiming to capture 1.1 million tonnes of CO2 per year from its heaters and process units for transport and storage by Harbour Energy .
Valero ’ s Pembroke refinery is located on the west of the South Wales Industrial Cluster , which is considering hydrogen and carbon capture deployment options to decarbonise heavy industry across South Wales .
Meanwhile in the North East , BP is leading as the operator on Net Zero Teeside , a Carbon Capture , Utilisation and Storage ( CCUS ) project , while Shell is part of the group of companies which plans to store captured carbon from the Teesside and Humber clusters in the Endurance field in the North Sea .
Across the industry there ’ s more good news as we are seeing investment in renewable fuels to reduce emissions in road vehicles and the development of sustainable aviation fuels from feedstocks such as waste oil at the Fulcrum BioEnergy plant , which is expected to be operational in 2024 . Phillips 66 tripled its renewable diesel capacity last year and is considering further expansion .
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