By Navratan Sharma
India’s decarbonization journey is ambitious yet pragmatic, – and the country has rightly emphasized the necessity of enabling energy transition in tandem with energy security. Now, with electricity consumption set to increase at least three times the per capita levels of 1255 kWh, as of 2021-22, investing in a robust energy infrastructure is imperative to combat the growing demand.
Specific to the oil and gas sector, the clean energy transition comes with a fair share of challenges – that are indeed opportunities. Globally, energy transition will require huge investment. Simultaneously, inflation and escalating supply chain costs are stymieing the efforts of many energy majors to make pivotal changes to their operations. Yet, through innovative approaches, the oil and gas sector can navigate the complexities.
The industry has been consistently taking a pioneering role in implementing such sustainable practices and embracing cutting-edge technologies to reduce the carbon footprint and achieve Net Zero Carbon.
Exploring low-carbon trajectories
The opportunities to expedite the energy transition are galore. For instance, oil and gas companies can incorporate on-site and feasible renewable power sources, enhance logistics to reduce fuel consumption, and integrate digital tools such as IoT sensors and digital twins to optimize operations. Driven by commitment, the industry giants have made a head start in each of these areas, helping to advance the net zero targets.
A significant driver in decarbonizing India’s oil and gas value chain is focusing on flaring reduction. It is estimated that domestic producers in India tend to flare at least 3 million standard cubic meters of gas per day – equivalent to producing 750MWh of electricity. Flaring some gas is inevitable to ensure safety and environmental protection. However, there are solutions for tapping the gas beyond technical flaring to avoid emissions in line with World Bank Goal – Zero Routine Flaring by 2030.
Gas cascading or bottling of gas and the installation of gas-based power-generating equipment such as gas engine generators that can power satellites and fields are other efficient ways of generating comparatively clean power. Oil and gas companies should incorporate LDAR (leak detection and repair) studies, along with installing vapor-recovery units, to control fugitive emissions. To ensure effectiveness, these measures should be periodically evaluated through optimal imaging or infrared scanning of assets.
Few oil and gas fields also produce non-potential associated gas; for instance, natural gas with high carbon dioxide levels of over 80 percent, which makes the gas unfit for power generation. But by passing this through thermal oxidizers, energy producers ensure that no unburnt hydrocarbon is released into the atmosphere. Further, possibilities for utilization of this non-potential gas through carbon capture utilization and storage (CCUS), Enhanced Oil recovery, and alternate use are also being explored globally.
There is also a compelling need to accelerate the decarbonization journey by investing in efficient low-carbon technologies, CCUS technologies, upsurging energy efficiency as well as promoting the recycling of residues. Energy producers can also explore alternative routes such as tapping geothermal energy by repurposing hydrocarbon wells, adopting cleaner fuels like Hydrogen, Biofuel etc. and installing solar panels on building structures as well as installing solar or energy-efficient lighting solutions.
Integrating solutions
Nature-based solutions are also playing a key role in promoting climate action. Duly, effective decarbonization strategies must include initiatives for harboring local biodiversity, developing carbon sinks, as well as preserving precious carbon reserves such as mangroves that are abundant on India’s coastline and in proximity to many offshore oil and gas sites. Current studies suggest that mangroves and coastal wetlands annually sequester carbon at a rate ten times greater than mature tropical forests and store three to five times more carbon per equivalent area than tropical forests.
The final, and perhaps most significant, low-carbon trajectory is to focus on enhancing energy efficiency measures across the value chain. These could include easy-to-implement solutions such as using efficient lighting systems, converting induction motors to permanent magnetic motors, optimizing turbine operations to save fuel, converting steam-driven pumps into electric-driven and accelerating electrical mobility.
As India moves towards becoming the third-largest economy in the world by 2030, energy demand will continue to rise. The oil and gas sector with integrated strategies of decarbonization will play a driving role here, and it must remain steadfast in the commitment to driving both energy security and energy transition for India – home to the richest ideals of diversity, talent, and prosperity.
(The author is Navratan Sharma, Interim Chief HSE Officer, Cairn Oil & Gas, Vedanta Ltd, and the views expressed in this article are his own)
