BP acquires 35% stake in NFLD Bay du Nord project good to see European O&G companies investing in green hydrogen projects in NFLD
LETTER: Oil can grease N.L.'s transition to a zero-emission future
Contributed | Posted: 15 hours ago | Updated: 11 hours ago | Our oil and gas industry can provide a starting point in a transition to a greener future.
Although we still need oil and gas in time to come there is no doubt that we must move into a future based on different energy supplies. Renewables based on offshore wind, hydrogen, hydro-electric power, and battery technology are key elements. In this context, Newfoundland and Labrador is in a favourable position. We have offshore oil, a surplus of hydroelectric power, and our wind conditions are second to none.
Windmills convert wind to electric power. Electrical power is and will be an extremely attractive commodity in the future. It can be exported, applied in different industries, and used to create green hydrogen through electrolysis of water.
Green hydrogen will be part of a future climate change energy mix, as it will reduce both air pollution and CO2emissions. Offshore wind farms are gaining momentum and the technology is rapidly progressing. Larger windmill generators, higher towers, longer and lighter blades are factors that make the recent windmills more effective.
Where can we install windmills? The industry is looking for locations with high and constant wind speed. One possibility is therefore out in the ocean. Attractive locations to be developed in the North Sea have a wind speed in the order of 10 metres per second. The average annual mean wind speed on the Hibernia oil field at the Grand Banks is close to 14 metres per second, 40 per cent higher than on the North Sea locations. The experience from oil platforms will be valuable, as offshore wind farms require similar skill sets and safety standards.
Oil companies could invest in renewable energy by receiving tax credits and favourable conditions on oil field leases. Financial support from Ottawa may be negotiated with a surplus of green hydroelectricity as bargaining power. Technical expertise can be acquired through research and development activities focused on hydrogen storage, electrolysis, fuelling stations, batteries, and fuel cell technology.
BP’s acquisition of 35 per cent stake in the Bay du Nord project and opening office in St. John’s is good news for Newfoundland and Labrador. BP’s focus on growth here opens opportunities for our government to find a new partner in our transition efforts to meet climate change targets. Both BP and Equinor have strategies that coincide with our governments ambition in that respect.
BP’s focus on growth here opens opportunities for our government to find a new partner in our transition efforts to meet climate change targets.
The transition into a zero-emission future will benefit from partnering with heavy-weight international players. And now we have two large energy companies here with ambitions to be in the forefront of the transition to greener energy.
By 2030, BP’s aim is to be a different kind of energy company. They intend to decarbonize and diversify their business, reduce their oil, and gas production and lower emissions. BP will invest in low carbon energy to rapidly scale up in solar and offshore wind and develop new opportunities in carbon capture and hydrogen.
Equinor’s strategy consists of carbon-efficient oil and gas production, expansion in renewables and new low-carbon technologies. A central element in this effort is a goal to become a leading global player in offshore wind. The plan is to allocate more than half of their annual capital expenditure to renewables and low carbon solutions by 2030. Part of their strategy is to partner with governments with similar ambitions.
There is no doubt that fossil fuel is on its way out, but we will still need it until alternatives are available. We have an attractive setting for offshore wind development. Now we also have two oil companies with similar strategies in our backyard. Oil can grease our transition into renewables.
The way forward is electrification, and we can and should be an active player. Political initiatives today can form the basis for future prosperity and employment opportunities. But timing is important and the clock is ticking….
Tor Naess,
St. John’s