Offshore Noreg, which is an interest organization for companies on the Norwegian continental shelf, presented a report on the global climate effect of electrifying the oil and gas sector on Thursday morning. The government was represented by state secretary Amund Vik (Ap) in the Ministry of Oil and Energy. He referred to the debate about electrifying the continental shelf as “upsetting” and added that he was looking forward to delving deeply into the question “which has plagued the Norwegian public for several decades”: What is – actually – the climate benefit of electrifying the continental shelf? A common objection to the idea of power from land is that electrification only gives “paper profit” since the gas that is “saved” is burned elsewhere. The reasoning is based on the fact that the Norwegian shelf is covered by the quota system in the EU, and that Norwegian cuts are “zeroed out” of emissions on the continent. State Secretary Amund Vik (Ap) says that the “open” electrification works out well in the Norwegian climate calculation, but that the effect within the entire European allowance market was more uncertain. Photo: Christine Fagerbakke / news. – Electrification at home provides global emission reductions – Some have raised doubts as to whether electrification of the oil and gas sector has a climate effect beyond Norway’s borders. This report clearly shows that electrification at home provides global emission reductions, says Benedicte Solaas, as director of climate and environment at Offshore Norway. In the main conclusion, it is stated that “the dynamism of the market” and “deletion of quotas and further tightening of the quota ceiling” means that Norwegian cuts also affect European level – with an effect of 80 per cent. (See more details from the report, which was prepared by Thema Consulting, below.) The main conclusions in the report: • Emissions in Europe will be reduced by around 80 percent of the emissions cut that we get from electrifying oil and gas installations in Norway because, among other things, it increases the chances of deletion of quotas and a further tightening of the quota ceiling. • Globally, emissions are further reduced because the gas released by electrification is exported and leads to reduced LNG production. LNG has higher emissions in the production and transport chain than flue gas. • Electrifying the oil and gas sector reduces emissions in Norway and is decisive for reaching Norwegian climate targets. • The electrification projects that have been carried out are profitable and the power is used as efficiently as when projects are electrified in land-based industry and the transport sector. • If profitable electrification projects are not carried out, it will be more difficult and more expensive to reach the climate targets. – Some have raised doubts about electrification of the oil and gas sector having a climate effect beyond Norway’s borders. We are therefore pleased that Thema Consulting, which is recognized for its analyzes of energy and climate, clearly shows that electrification at home provides global emission reductions, says Benedicte Solaas, director of climate and environment at Offshore Norway. Norwegian oil and gas extraction currently accounts for more than a quarter (27 per cent) of Norwegian greenhouse gas emissions. The Norwegian oil and gas industry must halve its own emissions in 2030 and further down towards zero in 2050. Offshore Norway therefore interprets the report as a marching order: – If profitable electrification projects are not carried out, it will be more difficult and expensive to reach the climate goals, says Solaas. In E24, the FRP characterizes the new report as “a commissioned work”. – Are such analyzes useful? Well, Cicero researcher Asbjørn Torvanger has previously calculated that the Johan Sverdrup field will on average emit greenhouse gases equivalent to 40 per cent of Norway’s total emissions. – Are such analyzes useful? My answer is yes, he says. He was invited as an opponent during the presentation, and opposed what he characterized as an “unrealistic” and “inconsistent” plan. – The report is too optimistic with regard to the power situation. It doesn’t help to carpet bomb Europe with wind power if you don’t have balancing power. Head of department at the environmental foundation Zero, Stig Schjølset, added that “the industry should take responsibility for more power production, such as Hywind Tampen and Trollvind”. – But those who say that climate measures within the sector subject to quotas have no effect – they have not understood how the quota system works. Faktisk.no: “Electrification can cut Norwegian climate emissions, but the global effect is more controversial.” As of today, a handful of fields on the Norwegian continental shelf receive power from the Norwegian power grid, and there will be more. During the winter, new platforms on the Utsira hill will be connected to the mains. According to Dagens Næringsliv, electrification will require 5.1 TWh of power before the end of 2023. For comparison, 1.8 TWh of electricity was used in Stavanger in 2021. Projections from the Norwegian Petroleum Directorate show that around half of Norwegian petroleum production will be driven by land-based power in the mid-2020s. Photo: Rolv Christian Topdahl Facts about electrification The oil and gas installations on the Norwegian continental shelf release around 13 million tonnes of CO₂ equivalent. Over 160 gas turbines that are used to produce power on the platforms together with flaring make up 84.6 per cent of the total CO₂ emissions on the Norwegian continental shelf. In 2018, the petroleum industry on the Norwegian continental shelf accounted for around 28 per cent of Norway’s total greenhouse gas emissions. The operators on the shelf pay a fee on the discharge. In addition to climate quotas, the operators also have to pay their own fee of around NOK 500 per tonne. The Johan Sverdrup field has 0.67 kg CO₂ emissions per barrel, compared with the average of 9 kilos. In the report Power from land (2020) it is stated that “an important prerequisite for this (electrification) to be carried out is that the power system on land can handle the increase in consumption, without affecting the security of supply to existing customers”. It has been decided that 16 platforms will receive power from shore. This will reduce emissions by 3.2 million tonnes of CO₂. Until 2030, the target is a cut of between six and 7 million tonnes a year. In 2020, there were eight fields on the Norwegian continental shelf receiving power from the Norwegian power grid: Troll A, Gjøa, Ormen Lange, Valhall, Goliat, Johan Sverdrup, Vega and Hod. After the start-up in 2021, Martin Linge received power from land. According to the plan, Edvard Grieg, Ivar Aasen, Gina Krog, Solveig and Hanz will receive power from the area solution on Utsirahøyden through the second construction stage of the Johan Sverdrup field. The fields Duva and the newly started Nova will be operated with power from land via Gjøa. Sources: Equinor, Bellona, Enerwe, University of Bergen Power shortage and pressure on transmission capacity With reference to the strained power situation, the parliamentary deputy leader of the Center Party, Geir Pollestad, stated in the autumn that it would be “very strange” if the nation did not take a step back and consider the electrification tank again. Behind the turnaround is a lack of power and pressure on transmission capacity, but also more fundamental doubts about how useful electrification is. Symbolized by a letter from 2021 in which the Ministry of Petroleum and Energy (OED) acknowledges that “the effect on global emissions of increased use of power from land is uncertain”. There are also forces in SV, MDG and among a bunch of Høgre representatives who no longer want to use power from shore to the platforms. – A crazy invention, says parliamentary representative for MDG, Rasmus Hansson. In 2014, MDG was with a united opposition in the Storting “pressuring” the Solberg government to electrify the Utsira hill. Oil and Energy Minister Terje Aasland, for his part, has reiterated that he “stands firm on the goal” formulated in the Hurdalsplattforma, where it is stated that the government will ensure further electrification of the shelf, but “to the greatest extent possible with offshore wind”. Kari Nessa Nordtun, who is the new leader of the Labor Party’s energy committee, says the same. Terje Lien Aasland (Ap), Heikki Holmås (SV) and Jon Evang from the environmental foundation Zero celebrate the decision to electrify the Utsira hill with a cake in 2014. Photo: Marte Christensen / NTB scanpix
ttn-69
Electrification of the continental shelf has a massive climate effect – news Vestland
