Navigating a cleaner energy future – how does the oil and gas industry survivie and thrive?
The opportunities around hydrogen becoming a key low-carbon emission export for Australia was a key feature of the discussions at APPEA 2019 today, as was the important role collaboration will play in moving to a diverse and secure energy economy.
Our lead plenary commenced with Dr Alan Finkel AO, Chief Scientist, Office of the Chief Scientist, Department of Industry, Innovation and Science giving an overview of how technology is evolving to allow hydrogen to be used as fuel.
He said hydrogen had long been heralded as a clean-fuel solution, however the opportunity for Australia to be a leader in the supply of hydrogen is now ripe for the picking, for three major reasons:
- Australia has customers, such as Japan wanting to buy clean hydrogen for the long-term
- Plummeting production costs of electricity especially in solar
- Plummeting utilisation costs, as it is used for trains, trucks, cars and in the near future ferries.
are sizeable but Dr Finkel says not insurmountable, as Australia has ‘done it
before’ referencing the commencement of our LNG industry which has now gone on
to become the largest exporter in the world.
The biggest challenges above safety, costs and scale, include how we secure the big demand projects, serving both supplier and buyer, and developing efficient transport solutions.
Gardiner Hill, VP Carbon Management BP introduced the work of the Oil and Gas Climate Initiative (OGCI), a voluntary CEO-led oil and gas industry initiative, founded in 2014 to drive collaboration in developing sustainable and proactive energy solutions to reduce carbon emissions. OGCI is made up of 13 of the world’s largest companies who combined, span 130 countries and have 2 million employees. Together they committed $6B over 10 years to spearhead research, technology and policy.
Hill announced OGCI is focused on setting a methane target, sharing methodologies and developing consistent reporting, developing nature-based solutions, defining a Carbon, Capture, Use and Storage (CCUS) roadmap and low-emission pathways amongst their initiatives.
However, the most influential component of OGCI is the driving of collaboration: “To move the energy economy forward and for us to be successful in a low carbon transition we have to collaborate with industry and government and also with NGOs.
“Only with this collaboration will we come up with the right technical solutions, business models and policies that will allow for and attract investment for a true win-win for industry, society and regional governments that will allow us all to meet carbon reduction targets.”
Emma Herd, CEO, Investor Group on Climate Change provided a different perspective on the transiting energy economy sharing that investors all over the world have already ‘mainstreamed sustainable investments’. Herd said investors are looking for global policies to mitigate climate change risks and want to see companies demonstrating serious accountability at senior and board levels, renumeration linked to outcomes, company-wide consistency around sustainability action (not just centralised in one project) and greater transparency.
APPEA Daily Digest by Deloitte
Read a snapshot of the latest themes and insights from APPEA 2019 as seen from Deloitte.
From resilience to transformation, navigating the future to harnessing opportunities, the Daily Digest brings to life a short, sharp and succinct overview of the headline themes.