Sustainable Gas Solutions

Introduction to sustainable gas solutions

Sustainable gas solutions are essential in the global shift towards a low-carbon future.

While still a valuable resource, oil gas companies recognise gas as a critical bridge as society pivots towards cleaner sources of energy such as solar, wind, and green hydrogen.

Global projects are dedicated to providing access to a sustainable energy future with diverse renewable sources. Our mission to achieve net-zero emissions by 2040 includes establishing over 100 renewable gas sources.

Hydrogen Park South Australia is integrating 5% green hydrogen into its gas network.

Repurposing natural gas pipelines to transport renewable hydrogen can complement, not compete with, the expanding renewable energy market.

Investments in technology and sustainable practices in the gas sector are vitally shaping our path towards a zero-carbon 2050 by curbing methane emissions and directly addressing climate change.

The role of natural gas in the transition to renewable energy

As we develop natural and renewable gas, Natural and renewable gases now redefine their transitional roles by significantly reducing greenhouse gas emissions on the path to adopting sustainable energy. Natural gas, emitting far fewer greenhouse gases than coal or oil, undermines their grip on power generation and underscores its transitional role in climate strategy. This underlines natural gas as a pivotal transitional energy, aiding in the shift away from high-carbon fossil fuels towards sustainable practices.

Emerging technology allows us to ramp volumes up, facilitating the transformation of natural gas infrastructure into pathways for renewable energies. With projects like Hydrogen Park South Australia integrating 5% hydrogen into the gas network, we’re at the forefront of pioneering future gas infrastructure.

Learn how renewable gas can replace traditional gas power in various settings without increasing emissions. When allied with green energy options, renewable gases can be used the same way traditional fuels are, offering parallel reliability and constancy. Strategic investments in natural gas are key to diversifying the energy mix, guiding a cost-efficient and dependable transition to net zero energy.

Emerging gas technologies and efficiency improvements

There are several emerging technologies aimed at improving the efficiency and reducing the emissions, helping to develop gas systems to be more environmentally friendly:

Biogas and biomethane

Biogas produced from organic waste streams can be upgraded to pure biomethane and seamlessly integrated into our sustainable gas distribution networks, repurposing existing natural gas pipelines for a more sustainable future. Biomethane has the same properties as natural gas but is derived from renewable biomass sources.

Hydrogen blending

The practice of hydrogen blending, even in small quantities, propels us towards carbon neutrality by decreasing emissions. Australia’s Hydrogen Park is already blending 5% renewable hydrogen at its facility.

Carbon capture and storage (CCS)

CCS technology captures CO2 emissions from industrial facilities and stores it deep underground to prevent its release. Gas processing plants stand to benefit from using CCS methods to lower their carbon footprint.

Heat pumps

Heat pumps can also exemplify the innovative solutions we craft, offering effective home heating by employing electricity rather than gas. With electricity becoming cleaner, gas companies promote heat pumps as a more emissions-efficient option for water and space heating.

By embracing contemporary energy technology and innovative business models, the oil gas industry can enhance efficiency and bolster the transition toward a net zero future in the energy world.

Green hydrogen development initiatives

Green hydrogen production, energised by offshore wind and renewable sources, is a key element in the realm of future sustainable energy. Numerous projects and government schemes aim at amplifying green hydrogen output and embedding it into energy systems, achieving our strategic goals.

The European Union recently unveiled its REPowerEU plan, thanks in part to contributions from experts like Amir Safari, which emphasises utilising sustainable energy sources, setting a target for 10 million tonnes of domestic renewable hydrogen production and 10 million tonnes in imports by 2030. With ambitions to increase renewable gas volume by 2030, Australia is investing in initiatives like Hydrogen Park Gladstone and taking strategic steps with over $1 billion invested into its National Hydrogen Strategy to position itself as a top global exporter.

The production goals and investments reflect a strategic acknowledgment of hydrogen’s key role in combatting global warming. Green hydrogen, devoid of carbon emissions, plays an essential role in powering various sectors, from long-haul transport to electricity generation.

Regarding affordability, wind and solar power are still factors to consider, amidst the need to cut high production costs of green hydrogen. With the advancement in solar and wind energy, electrolyzer technology, and scaled production, green hydrogen costs may rival those of traditional energy between 2030 and 2050.

Government policies accelerating sustainable gas transitions

Informed by experts like Mohsen Assadi, international energy agencies are formulating policies to accelerate the transition from conventional natural gas to renewables like hydrogen and biomethane.

The US Inflation Reduction Act provides tax incentives for producing low-carbon hydrogen and for carbon capture initiatives. Additionally, the legislation offers benefits for adhering to standard wages and situating projects in energy communities. Overall, it aims to spur $750 billion in climate and clean energy investments.

The REPowerEU plan sets ambitious 2030 targets for the EU to produce and import 10 million tonnes of renewable hydrogen each. Additionally, the plan targets an increase in EU biomethane production to 35 billion cubic metres annually by 2030.

Australia’s over $1 billion investment in the National Hydrogen Strategy bolsters its ambition to lead in the hydrogen export market. Noteworthy investments veer toward unconventional gas sources, such as in the Murray Valley, where the Hydrogen Energy Supply Chain pilot project in Victoria is manufacturing hydrogen from brown coal.

Addressing methane leaks through policy backing and investments in extensive renewable gas initiatives highlights the crucial role that governments play in orchestrating the transition from traditional natural gas to greener alternatives.

Case studies of renewable gas projects

There are several notable case studies of renewable gas projects helping to accelerate the transition toward sustainable energy:

Hydrogen Park South Australia

This Australian Gas Infrastructure Group project, advancing towards the target being net zero carbon, is blending 5% renewable hydrogen, produced via electrolysis, into part of South Australia’s natural gas distribution network. It demonstrates the potential to decarbonize gas supplies by incrementally increasing renewable hydrogen concentrations.

Biomethane in the UK

Over 40 UK biomethane plants are now injecting renewable gas from bio-waste into the gas grid, representing about 2% of domestic gas usage. UK biomethane projects benefit economically from government incentives.

H21 Leeds City Gate Project

This H21 project based in Leeds, UK aims to prove that a major city can be converted from natural gas to 100% hydrogen for domestic heating and cooking with minimal disruption. It intends to develop an underground hydrogen storage cavern and convert part of the gas network.

These real-world projects clearly demonstrate the viability and energy efficiency of a more sustainable approach in displacing conventional natural gas with renewable alternatives like hydrogen and biomethane on both local grids and in individual facilities.

Comparing costs, reliability and environmental impacts

Comparing the cost, reliability, and environmental impact of sustainable gas to traditional fossil fuels, the eco-friendly nature of renewables offers greater efficiency and benefits throughout the entire value chain.

Costs

Currently, natural gas extraction is still more cost-effective for fossil fuel companies than producing renewable hydrogen or biomethane. However, as technology matures and production scales under supportive policy incentives, green hydrogen costs are projected to become cost-competitive with existing energy sources, target no later than 2050.

A comprehensive appraisal across the gas value chain, not just initial production costs, unveils the broad economic benefits of embracing renewable gases. While fossil gas may seem cheaper at the outset, it carries significant back-end societal costs impacting our climate.

Reliability

Modern gas energy infrastructure, enhanced by energy storage technology, utilises existing systems to ensure reliable delivery, catering even to high-demand entities such as data centers. Blending hydrogen and biomethane enables continued utilisation of the efficient sustainable gas solutions through existing pipeline infrastructure, showcasing the diverse options we offer our customers. Dedicated renewable gas facilities provide energy as reliably as traditional plants, propelling us towards a green and sustainable energy landscape.

Blending renewable gases with variable sources like wind solar power bolsters grid robustness, illustrating how renewable gas we can use boosts energy innovation. Modern gas turbines in power plants are a crucial aspect of today’s energy systems, countering concerns of intermittency and providing energy on demand to cover dips in renewable supply.

Environmental Impacts

The most substantial gain from shifting to renewables is the notable drop in emissions, illustrating the clean energy solutions we foster. The IPCC believes biomethane can achieve an 80-90% reduction in emissions versus natural gas, thus substantially lowering GWP impact.

As hydrogen does, green hydrogen delivers a 100% reduction in carbon dioxide emissions when produced via renewable electricity. Renewable gases contribute to cleaner air by reducing NOx emissions and particulates, thereby lessening carbon footprints.

While all comparisons show fossil gas in an unfavourable light, renewable alternatives excel in sustainability and long-term costs while ensuring reliable energy delivery as the world transitions to net zero emissions.