In focus: Redefining the offshore energy environment

The global energy mix is still dominated by fossil fuels, but the energy transition is bringing with it an intricate mix of options for the offshore energy and shipping sectors as reported this week across Offshore Energy’s different markets.

Recognising the need for responsible development and production of hydrocarbons as well as lowering overall emissions, the fossil fuels sector is changing and a Houston-based oil and gas company is now working to redefine the role of traditional oil and gas companies.

Talos Energy, in partnership with Carbonvert, is joining a group of energy companies with a physical project site dedicated to carbon capture and storage after winning a bid for a carbon storage site located near Beaumont and Port Arthur, Texas.

The project site is located in close proximity to a large concentration of industrial emitters along the Texas and Louisiana Gulf Coast. Talos expects it can ultimately sequester approximately 225 to 275 million metric tons of carbon dioxide from industrial sources in the area.

Efforts to decarbonise the oil and gas sector are in motion in Scotland as the government is working on identifying opportunities for offshore wind to help in this process through the replacement of traditional energy sources with renewable energy.

The government put up for consultation its Planning Specification and Context Report where it is stated that floating wind technology is particularly well suited to the deeper water abundant around Scotland and in the vicinity of oil and gas infrastructure.

The collaboration between sectors is becoming crucial for the development of new technologies, which will enable the journey to net-zero. Seismic services player TGS and Magseis Renewables are collaborating on two new technology pilot projects for carbon capture and storage (CCS) and offshore wind.

The projects are located in Norway and Denmark and both will use 3D seismic acquisition. The first one will be at a carbon storage area and the second one over a wind farm with known near seabed challenges.

Both tests will combine TGS’ imaging software and Magseis Fairfield’s XHR acquisition configurations to demonstrate geophysical solutions that deliver the resolution needed at the cost level indicated by offshore wind and CCS players.

Speaking of Denmark, the Danish Energy Agency has opened a technology-neutral tender for 2021, where solar cell systems, wind turbines, wave energy plants and hydropower plants can all compete for support.

The agency’s third technology-neutral tender, where the total potential support will amount to DKK 1.2 billion (about $190 million), is open for bids for solar, both onshore and offshore wind turbines, as well as wave energy and hydropower until 22 October 2021.

It has become evident in the last couple of years that hydrogen is big in Japan. As part of its strategy to become carbon neutral by 2050, the country is working to create a commercial hydrogen fuel supply chain by 2030.

In line with these plans is JERA’s hydrogen utilisation demonstration project at an LNG thermal power plant in Japan, aiming to develop zero-emission thermal power.

JERA wants to reduce its use of fossil fuels and to develop thermal power that emits no CO2 during generation. The company plans to reduce emissions by gradually increasing the utilisation rates for hydrogen and ammonia as fuel.

Denmark’s shipping giant Maersk is also making a leap forward in its commitment to scale carbon-neutral solutions and lead the decarbonisation of container logistics. The company this week revealed plans to add eight large ocean-going container vessels capable of being operated on carbon-neutral methanol to its fleet.

South Korean shipbuilder Hyundai Heavy Industries (HHI) has been contracted to build the eight ships which will have a nominal capacity of about 16,000 TEU. The series will replace older vessels, generating annual CO2 emissions savings of around 1 million tonnes and offering “truly carbon neutral” transportation at scale on the high seas.

“The time to act is now, if we are to solve shipping’s climate challenge”, Soren Skou, CEO, A.P. Moller – Maersk, pointed out.