The Oil & Gas Technology Center, in partnership with industry, will create a new Net Zero Solution Center to accelerate the development and deployment of technologies to decarbonize offshore operations and develop the UKCS as the first net zero oil and gas basin globally, supporting the industry’s Roadmap 2035.
The new center has the backing of major companies including BP, Shell, Wood, Chrysaor, Aker Solutions, INEOS, CNOOC International, Total, Siemens and Equinor, who recognize the critical contribution the oil and gas industry can make to the net zero economy, while continuing to meet demand from UK homes and businesses.
Launching the Net Zero Solution Center at Offshore Europe 2019, Colette Cohen, CEO of the Oil & Gas Technology Center said, “The UK offshore oil and gas industry is a dynamic system of infrastructure, supply chains, expert workforce, research activity and technology development and deployment. This diverse industrial ecosystem must play a fundamental role in the creation of a net zero carbon economy.
“With the backing of industry and government, and strong track of delivery, the OGTC is committed to moving the dial on carbon reduction and enabling the UK Continental Shelf to become the first net zero hydrocarbon basin in the world.
“Our focus will be on developing technologies to reduce operational carbon emissions, working with other parts of the energy sector to create integrated solutions and repurposing infrastructure to accelerate carbon capture usage and storage, hydrogen production and gas-to-wire capacity.
Earlier this year, the UK and Scottish Governments set binding net zero carbon targets, for 2050 and 2045 respectively. This followed the publication of a comprehensive report by the Committee on Climate Change, which identified growing demand for oil and gas and the need for immediate action to address growing emissions while balancing the needs of the UK economy.
The Net Zero Solution Center will work with government and industry to address the UK offshore oil and gas industry’s emission footprint, while also developing technologies that will contribute to the growing demand for hydrogen production and carbon sequestration. This evolution of the industry, repurposing of facilities and partnering with companion industries such as renewables, will create a new future for the UKCS, while also supporting the creation of net zero carbon economy.
To transform the UKCS into a net zero oil and gas basin, the Center will champion the creation of an integrated offshore energy system, partnering with companies to accelerate the development of carbon capture, utilization and storage, hydrogen capability and other net zero technologies.
The Center has developed a roadmap and will work with a range of academia institutions and industry sectors to identify shared challenges and lead cross-sector collaboration on technologies to help accelerate carbon reduction and create export opportunities for the UK supply chain.
Scotland’s Minister for Energy, Paul Wheelhouse, said, “We welcome the Oil & Gas Technology Center's plans and look forward to working with them to establish a new Net Zero Solution Center. The Center supports the sector’s ambition to become the first net zero hydrocarbon basin in the world, a key element of a sustainable, secure and inclusive energy transition.”
UK Minister of State for Energy and Clean Growth, Kwasi Kwarteng, said, “The UK’s oil and gas sector has a pivotal role to play in the UK’s journey towards becoming a net-zero economy by 2050. Support from companies within the industry is vital to us making this energy transition to a greener future.
“The UK Government warmly welcomes this initiative to find innovative technological solutions to decarbonizing the offshore production of gas and oil from the North Sea and wider UK Continental Shelf.”
Andy Samuel, Chief Executive of the Oil and Gas Authority said, “The OGA warmly welcomes this important step forward. We believe the oil and gas industry, with its long history of engineering excellence, infrastructure, subsurface expertise and world-class supply chain, should play a leading role in the drive to Net Zero. We’re excited by the opportunities to use technology to enable carbon capture and storage, offshore energy integration and hydrogen production, while we maximize economic recovery from the UKCS to meet continuing energy demands and reduce reliance on hydrocarbon imports.”
The Net Zero Solution Center will be officially launched at 1245 on Tuesday 3 September at Offshore Europe 2019 during a leadership panel discussion on the OGTC stand. Colette Cohen will be joined by Sian Lloyd-Rees, Head of UK and SVP Europe & Africa at Aker, Ariel Flores, Regional President of BP North Sea, Phil Kirk, CEO of Chrysaor and Geir Tuft, CEO of Ineos Oil & Gas.
“This is positive news for the energy sector as we have a role to play in delivering the net zero target for the UK. We’ve seen an increase in the pace and nature of the discussion and the OGTC’s NetZero Solution Center is a welcome focal point and catalyst for our progression towards a lower carbon economy,” said, Sian Lloyd-Rees, UK country manager, Aker Solutions.
Steve Phimister, Vice President Shell UK Upstream said, “We believe this Center, working with companies like Shell, can make a difference and assist the industry in delivering the UK’s targets on emissions reduction and in moving towards a Net Zero Carbon basin.”
Ariel Flores, Regional President, BP North Sea said, “BP is a significant supporter of the OGTC through our participation in the existing solution centers and funding of the TechX technology accelerator program. The Net Zero Solution Center aligns well with our strategy to reduce emissions in our own operations, improve our products and create low carbon businesses.”
Ray Riddoch, UK MD and SVP Europe and Africa for CNOOC International, said, “CNOOC International is delighted to support the new Net Zero Solution Center. It is essential that industry, academia and government work together on new technologies and solutions that can help turn the dream of a net zero oil and gas industry into reality.”
Jean-Luc Guiziou, Managing Director of Total E&P UK said, “Climate is at the heart of Total’s strategy and we support the creation of the Oil & Gas Technology Center's Net-Zero Solution Center. New technologies such as Carbon Capture, Utilization and Storage are going to be essential to the future of energy and the climate. This new initiative from the OGTC is a welcome contribution to meeting that challenge.”
Phil Kirk, Chief Executive Officer, Chrysaor, said “We are an active member of the Oil & Gas Technology Center, working on multiple projects and field trials. This new clarity of focus on the UKCS carbon footprint aligns well Chrysaor’s intent to minimize any negative impact of its business activities. As a result, we are supportive of the creation of the Net Zero Solution Center and look forward to continuing our collaborative working relationship with the OGTC, industry and government.”
OGUK Chief Executive Deirdre Michie said, “This is a clear statement of intent from an industry rooted in finding solutions to some really complex problems, and we look forward to setting out our plans in more detail when we publish Roadmap 2035 later this week. The Net Zero Solutions Center will help to identify some of the practical steps we can take as we look to net zero, and further establish the UK oil and gas industry as a center of excellence at a time when the UK is looking for answers.”
Dave Stewart, CEO, Wood’s Asset Solutions business in Europe, Africa, Asia & Australia said, “As an active member of the Oil & Gas Technology Center, we are delighted to support the new solution center which will bring companies and bodies from across the sector together to work towards a net zero carbon basin. The aim of the center aligns with Wood’s focus on developing new technologies, introducing new software and pioneering new commercial models designed to ensure the energy industry is safe, sustainable and committed to delivering Vision 2035.”
Steve Scrimshaw, Managing Director, Siemens Gas and Power UK said, “This is an excellent initiative and is much needed. If we are to reach net zero, we need to be able to demonstrate the benefits of new technologies, and to understand how these will all work together to decarbonize our energy mix.”
The project program for the Net Zero Solution Center is now being developed with industry partners and recruitment is ongoing for a Manager to lead the new center. The first few projects are likely to be announced by the end of 2019, alongside a high-level plan for 2020.
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