A roadmap to net-zero emissions in offshore oil and gas

Ports and vessel electrification

Mr Morton feels that vessel operators need to apply more pressure on ports to “move the infrastructure in the harbour towards the 21^st century.” This means adding shoreside electrification and cold-ironing facilities to allow vessels to plug in when they are in port. Shoreside electrification would allow OSVs to leverage power produced by the UK’s renewable energy sector. Renewables supplied 40% of the UK’s electricity as of Q3 2019. Already the world’s largest offshore wind developer, with approximately 8.4 GW of offshore capacity, the UK expects offshore wind capacity to grow to 30 GW by 2030.

Initially Mr Morton envisages battery packs in 20-ft containers being fitted on vessels to provide clean ship power when the OSVs are in port.

“When I worked at Shell, we employed the first generation of vessels with hybrid power sources,” says Mr Morton. “I think now we need to look beyond that. It is not about fuel saving, but rather CO₂ emission reduction.”

With 2025 fast approaching, OSV owners are going to be called upon to make investments in zero-emission technology.

“In the very near future, when we go out for tenders, they will contain clear statements of principle that the preferred vessels will have some form of hybrid propulsion,” Mr Morton says.

Vessel electrification poses its own challenges for investment, operations and shore-side infrastructure and the power grid. “How can we safely operate these vessels and protect our offshore assets and all of the people on board of them?” he emphasises. To do so means adhering to the UK Maritime & Coastguard Agency’s Marine Guidance Note, MGN 550, Electrical Installations, Guidance for Safe Design, Installation and Operation of Lithium-Ion Batteries, UK ship construction rules, class guidance and lessons learned from previous battery-hybrid vessel operations.

“What’s the optimal weight to operate a vessel and what’s the best hybrid system to support that? The more efficient we can make the vessel the better it is for everyone,” he says.

And while alternative fuels will play a significant role in the energy transition for a net-zero emissions future, research commissioned by the UK government estimates that UK ports are still likely to see total electricity demand increase significantly by 2050. Without any further policy intervention, says the Clean Maritime Plan, this research estimates that the total annual electricity demand at UK ports could rise from 20 GWh in 2016 to around 250 GWh by around 2050, largely driven by demand for shore power from container vessels. In contrast, under a scenario in which there are very ambitious assumptions about maritime electrification, this research estimates that annual electrical demand at UK major ports could rise to over 4,000 GWh by around 2050, predominantly driven by demand for electric propulsion, but with demand for shore-side power also expected to increase significantly.

This research explains that a significant increase in electricity demand in ports would require them to invest in charging infrastructure and potentially to apply for increased capacity from the electricity network. The scale of connection required to a port will be influenced by the forecasted peak load (maximum energy demand within a certain timeframe that needs to be accommodated). The research estimates that the potential peak load could range from around 9 MW for a small port to around 79 MW for a large port.

Still, against a background of climate change and the world’s increasing energy needs, Mr Morton is clearly passionate about the need and urgency of transforming the oil and gas business into a more sustainable enterprise. “There is a commercial upside and a carbon upside. How do we help this business moving towards a smaller carbon footprint? This is an opportunity we must take. We must work with our OSV providers. We must work with ports and harbours.”

Mr Morton is one of four panellists from leading oil companies who will discuss how the upstream oil and gas industry has changed since the downturn in 2014, energy transition, and the role of offshore support vessel operators at the Annual Offshore Support Journal Conference, Awards and Exhibition, which will take place 5-6 February 2020 in London. Click here for more details on the programme and for registration information.