In Focus: Lowering the environmental footprint of the offshore energy sector

Lowering the environmental footprint of the offshore energy sector – a key concern in the 21st century – plays a huge role in combating the climate change.

Energy efficiency, carbon storage, renewable energies and alternative fuels are just some of the ways to tackle this problem.

A few of the latest initiatives, like the one from oil and gas company Neptune Energy and Norway’s CapeOmega who have joined forces for a cross-border CO₂ transport and storage development project, are definitely proof that the industry is changing for the better.

The two players announced on Wednesday, 22 February 2023, that the project, called NoordKaap, would involve transporting CO2 via vessels suitable for directly injecting the CO₂ at offshore locations and for terminal offloading.

According to Neptune, NoordKaap will examine the potential for a network-based approach to carbon capture and storage (CCS) via marine transport, and could make “a crucial contribution” to Dutch, Norwegian and European climate and energy goals.

Also, Horisont Energi and Neptune Energy have signed a Memorandum of Understanding (MoU) with E.ON for the development of a European carbon capture and storage (CCS) value chain.

With the agreement, Horisont Energi aims to strengthen the existing cooperation with E.ON, and by bringing in Errai partner Neptune Energy to expand the cooperation towards joint development of the European CCS value chain.

The MoU covers the development, financing, and funding of a complete value chain for CO2 handling.

Next, US giant Chevron and Egyptian Ministry of Petroleum and Mineral Resources (MOPMR) have inked a memorandum of understanding (MoU) to share best practices and expertise related to the reduction of methane emissions from the country’s oil and gas sector.

“Decarbonisation is a core element of the Egyptian Ministry of Petroleum and Mineral Resources’ strategy. Due to its significant global warming potential, reducing methane emissions is key to supporting positive climate action,” commented Tarek El Molla, Egypt’s Minister of Petroleum and Mineral Resources.

On the other hand, Canadian company Algoma Central Corporation and UK-based CSL Group, which together form the CSL International Pool, have placed an order for the construction of four new methanol-ready Kamsarmax-based ocean belt self-unloading vessels.

As disclosed, the new ships, which will be built by Chinese shipbuilder Jiangsu Yangzi-Mitsui Shipbuilding, will replace the CSL International Pool’s oldest vessels and become the model for its next generation of ocean self-unloaders.

In line with Algoma’s decarbonisation efforts, the ships are expected to be 40% more efficient than the ships they will replace owing to a combination of fuel efficiency and optimized cargo lift.

Similarly, China Classification Society (CCS), Singapore’s SDTR Marine and Shanghai’s Merchant Ship Design & Research Institute (SDARI) have jointly developed an 85,000 dwt ammonia-fueled bulk carrier.

Said to be the world’s first, the vessel has also obtained approval in principle (AiP) from the Chinese classification society in a cloud certification ceremony.

For this project, the three partners set up a joint development team in which SDTR shared crucial and key operational data while SDARI conducted the design with CCS’ support and reviews.

When it comes to the hydrogen, Spanish multinational energy company Cepsa has signed a Memorandum of Understanding (MoU) with the ACE Terminal in the Port of Rotterdam, the Netherlands to create a green hydrogen supply chain.

Namely, Cepsa is developing 2GW of green hydrogen at its two Energy Parks in Andalusia, southern Spain, as part of its 2030 Positive Motion strategy focusing on the production of renewable hydrogen and advanced biofuels.

The company has two hydrogen plants, an investment worth EUR 3 billion euro, which will form part of the Andalusian Green Hydrogen Valley, the largest green hydrogen hub in Europe. Cepsa has signed a number of partnership agreements across the hydrogen value chain in relation to the green hydrogen hub.

Also, DNV is launching the second phase of a joint industry project (JIP) aiming to develop the first guideline for the transport of hydrogen in existing and new offshore pipelines.

The second phase of the H2Pipe project will see the development of a new code for the design, re-qualification, construction and operation of offshore pipelines to transport hydrogen, either pure or blended with natural gas.

Phase 2, planned to start in March and last two years, will consist of a comprehensive experimental test program to enhance the understanding of the governing hydrogen embrittlement mechanisms and how hydrogen affects the integrity of the line pipe material.

In its new report ‘Blue Hydrogen Production and Markets 2023-2033: Technologies, Forecasts, Players,’ technology company IDTechEx has forecasted that the global blue hydrogen market will grow to reach $34 billion by 2033.

The company predicted that future blue hydrogen demand will be mainly driven by industrial clusters, encompassing many industries in one area, refining, ammonia, and methanol. In addition, other applications, such as steel production and mobility, will also begin to emerge.

Finally, we cannot forget to mention the new record that was set by MeyGen. The MeyGen tidal energy project, developed by SIMEC Atlantis Energy, has become the first tidal stream array in the world to generate 50GWh of clean electricity from tidal energy.

The achievement represents a significant milestone in delivering tidal stream power at scale, according to SIMEC Atlantis Energy. Total global generation from all other tidal energy devices and sites is less than 50% of the record-setting 50GWh achieved by MeyGen.