There are clear calls for and a push towards a cleaner energy future, but it is also generally acknowledged that the huge and growing demand for electricity in the UK cannot yet be reliably delivered by renewable energy sources alone. Therefore, a transition period is necessary, during which it makes sense to maximise the use of gas, the cleanest fossil fuel, while further work is undertaken on the development of cost-effective renewable generation and storage technologies.
Gas to wire offers an ideal means by which to do this, since facilities can be operated cost-effectively at lower production rates than is the case for traditional gas production and export facilities, meaning greater volumes can be recovered economically. In addition, there could be opportunities in future to leverage infrastructure installed for gas to wire projects in the development of offshore renewables projects.
When you add in the benefits to operators and the taxpayer of deferring the expensive decommissioning of offshore infrastructure that would otherwise be reaching the end of its useful life, it seems that gas to wire represents a win-win solution, offering a ‘cleaner2greener’ path to a lower carbon future – but we’d be interested to hear what you think…
Looking forward in hearing more about the specifics that are involved in the projects.
This is a great addition to the shareholder experience.
Typically how much more Gas would be recoverable using GTW than the traditional methods and over time the cost savings are we taking in the millions of operational expenditure
It’s hard to give a meaningful answer on how much more gas would typically be recovered – the key is that operations can continue cost-effectively at lower flow rates and if, for example, production can continue for an additional 8-10 years its clear that the increase in recovery will be significant.
Obviously, with an extended project, the OPEX through-life might not be lower but again, the key is reducing cost such that operations can continue.
Thank you for the response.
What is the criteria that the company is looking for when assessing if a particular gas field is suitable for GTW solution.
Typical what kind of reserves would be still recoverable ie 40-60bcf. Per field. What would be the minimum requirement to make it economical viable.
I completey agree, but the scope for this is massive, i.e. in Africa oil companies have been burning off the gas for decades yet, in the main, most countries on the continent have limited electricity supply. This, once proved, technology has endless opportunities. The main objective now, is to prove to the world G2W is a serious contender to the coal burning powerstations. This can only be done quickly with a proven working system. I would like to think you can deliver this in the near future?
There’s been a lot of the positive support in the UK, in particular from the UK regulator which sees the potential for use in the SNS or EIS, but while the UKCS is an ideal location given the prevalence of ageing gas fields and increasing offshore renewables infrastructure, GTW is in no way limited to ageing fields or one particular location – the market for GTW is indeed global.
Africa, of course, provides a significant opportunity for G2W which, if harnessed correctly (including working with local partners who know the region and mitigating regional risks) could also assist in providing economic growth and societal benefits to such regions.
The spillover of solar home systems (SHS) and communal PV and battery storage into Sub-Saharan Africa has highlighted two interdependent factors as the nexus of a sustainable energy infrastructure expansion strategy in the region: decentralized generation and the need for a “balancing fuel”.
Decentralized renewable energy solutions represent theoretically the least-cost and most effective way of producing low voltage distribution connections to reach unelectrified rural and remote communities. However, to improve supply to the grid-connected but underserved markets; to ensure sustained high-quality power for modern energy and industrial services; to meet the continued growth in demand; or to develop export capacity; requires the development of several distributed utility scale mini-grids (integrated generation and distribution systems). This requires each energy generation source to provide stable baseload capacity with the in-built flexibility to fast ramp up and down to demand fluctuations. The intermittency and variability of renewables like solar and wind cannot guarantee baseload. Large hydropower, monolithic natural gas plants and geothermal sources can supply both these requirements but are either technically, economically and/or geographically unfeasible to underpin distributed mini-grid development.
The Gas-To-Wire model of on-site electricity (and hence distributed) generation presents a new dynamic that not only disrupts the linearity of centralized power generation but addresses several security of supply and power system reliability considerations:
1. It negates (or mitigates) the dependence on costly and sabotage-prone pipeline infrastructure and high voltage transmission lines and could essentially deliver lower cost but higher-quality power than competing fuel sources; and
2. Finite gas reserves can be programmed to deliver reliable base or peak electricity loads over a set period of time.
Perhaps the real value for Gas-To-Wire technology is that it can integrate and operate in concert with renewable resources.
For those Sub-Saharan African nations with domestic gas resources like Nigeria, Ghana, Cote d’Ivoire, Tanzania and Mozambique, Gas-To-Wire Assets can help redefine their clean energy transition plans by successfully balancing the integration of large shares of renewable resources into utility scale mini grid systems. Consequently, with the enhancement of smart grid, ICT and storage technologies, support the transition to zero carbon power systems in a relatively seamless way
Interesting read. Great opportunity/potential to leverage GTW assets/tech to generate electricity at scale – cost effective model too.