Deprecated: explode(): Passing null to parameter #2 ($string) of type string is deprecated in /var/www/joomla/plugins/system/advga/advga.php on line 115

Deprecated: str_ireplace(): Passing null to parameter #3 ($subject) of type array|string is deprecated in /var/www/joomla/plugins/system/advga/advga.php on line 116
Energy

twitteryou tubefacebookfacebookacp

Energy

<br /> Deprecated: htmlspecialchars(): Passing null to parameter #1 ($string) of type string is deprecated in /var/www/trme/templates/ja_teline_v/html/layouts/joomla/content/image/image.php on line 37
" itemprop="url"/>

The agreement was witnessed by His Highness Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and chairman of the Abu Dhabi Executive Council. (Image source: ADNOC)

ADNOC has signed an agreement to acquire a 35% equity stake in ExxonMobil's proposed low-carbon hydrogen and ammonia production facility in Baytown, Texas

The facility is expected to be the world’s largest of its kind upon startup, capable of producing up to one billion cubic feet (bcf) daily of low-carbon hydrogen and more than one million tons of low-carbon ammonia per year. A final investment decision (FID) is expected in 2025 with anticipated startup in 2029. The facility will help reduce greenhouse gas emissions across hard-to-abate sectors, including industry, energy and transportation, meet rising demand for lower-carbon fuels, and support both companies' net zero ambitions.

The facility will leverage advanced carbon capture and storage technologies to reduce emissions associated with hydrogen production. The project will also support US job creation and community development initiatives, bringing substantial economic benefits to Baytown, the Houston area and Texas.

Strategic investment

His Excellency Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology and ADNOC managing director and Group CEO, said, "This strategic investment is a significant step for ADNOC as we grow our portfolio of lower-carbon energy sources and deliver on our international growth strategy. We look forward to partnering with ExxonMobil on this low carbon-intensity and technologically advanced project to meet rising demand and help decarbonise heavy-emitting sectors.”

Darren Woods, ExxonMobil Chairman and CEO, added, “This is a world-scale project in a new global energy value chain. Bringing on the right partners is key to accelerating market development, and we’re pleased to add ADNOC’s proven experience and global market insights to our Baytown facility.”

<br /> Deprecated: htmlspecialchars(): Passing null to parameter #1 ($string) of type string is deprecated in /var/www/trme/templates/ja_teline_v/html/layouts/joomla/content/image/image.php on line 37
" itemprop="url"/>

Premium energy basins hold the potential for upstream players to decarbonise while continuing to meet oil and gas demand. (Image source: Rystad Energy)

Middle Eastern basins will play a pivotal role in meeting global energy demand while decarbonising, according to new research from Rystad Energy

Despite the accelerating energy transition, oil and gas will remain central to the global energy mix for the foreseeable future given the growth in energy demand. Rystad Energy estimates that by 2030, more than 75% of total demand will be met by fossil fuels, with emissions climbing as a result. This underscores the continuing importance of hydrocarbons, while also highlighting the need for oil and gas companies to build sustainable portfolios and reduce their Scope 1 and Scope 2 emissions to meet medium and long-term targets. As oil companies work to transform into integrated energy players and decarbonise their operations, it is crucial not only to achieve transition goals but also to minimise the carbon footprint of upstream activities, with the extraction of these resources accounting for more than 800mn tonnes of CO2e every year.

Premium energy basins (PEB) – a term coined by Rystad Energy – are particularly valuable because they are rich in hydrocarbon reserves and offer the potential for integrating low-carbon energy sources. As such, they provide an ideal platform for addressing emission challenges by combining substantial hydrocarbon volumes with opportunities for incorporating low-carbon solutions to reduce overall emissions.

“A select few basins hold the potential for upstream players to decarbonise while continuing to meet oil and gas demand. However, the race to decarbonise hinges on three crucial factors: accelerating investment, overcoming geographical challenges and modifying existing infrastructure. These changes are essential for unlocking the full potential of these basins and for upstream players to achieve their decarbonisation targets,” said Palzor Shenga, vice president, Upstream Research at Rystad Energy.

The Central Arabian and Rub Al Khali basins stand out as carbon-efficient, resource-rich basins with significant potential, according to Rystad. These Middle Eastern basins are at the forefront of PEBs and play a pivotal role in global conventional discovered volumes, especially as global discoveries decline and exploration activity peaks. Separately, these basins also score highly in terms of renewable potential, with both offering more than 6.2 gigawatts (GW) combined of installed and upcoming solar capacity.

Since 2015, these basins have contributed approximately 40bn bbl of oil equivalent (boe) in newly discovered volumes, evenly divided between liquids and gas. Egypt’s Nile Delta, driven by Eni’s giant Zohr gas discovery in the Mediterranean Sea, ranks third with about 5bn boe discovered during this period, followed by the US Gulf Deepwater (3.7bn boe) and the Central Asian Amu-Darya (3.6bn boe) basins.

With a combined capital expenditure of US$638bn, the Rub Al Khali, US Gulf Deepwater and Central Arabian basins have seen the highest greenfield investments since 2000. Due to the vast volumes discovered, the unit cost of development in the two Middle Eastern basins has been under US$2 per boe. In contrast, the smaller average resource size in the exclusively offshore US Gulf Deepwater Basin has driven development costs to over US$9 per boe, with only the Viking Graben Basin (US$11 per boe) in Northwest Europe having a higher development cost. Significant investments have also been made in resource development in Brazil’s Santos Basin (US$153bn) and Australia’s North Carnarvon Basin (US$140bn).

Several PEBs offer significant potential for carbon storage, particularly in late-life or abandoned oil and gas fields, which are suitable for enhanced oil recovery or permanent storage. These basins are increasingly being utilised for carbon capture and storage due to their geological properties.

To contain the growth of greenhouse gas emissions and make global gas market equilibrium resilient, it is critical to enhance investment in natural gas supply. (Image source: Adobe Stock)

A potential global gas supply shortfall along with the likelihood of failing to meet sustainability goals are highlighted in a new report from the International Gas Union, Snam and Rystad Energy, as energy demand continues to rise

The 2024 Global Gas Report (GGR) released at the ONS Conference, reveals that global gas markets are in fragile equilibrium, with supply growth limited while demand is expected to accelerate to 2.1% by the end of 2024.

Asia continues to be the key engine of the demand growth, while North America and the Middle East are in the lead on the exports.

Should gas demand continue to grow as in the last four years, without additional production development, a 22% global supply shortfall is expected by 2030 the report says, underscoring the urgent need to scale up investments.

Energy demand has continued to rise in developed and developing regions, while coal burning increased more than ever in 2023, remaining the biggest source of global energy emissions. If current energy demand and supply trends persist, 2030 targets outlined in policy driven decarbonisation scenarios will most likely be missed. Despite efforts to enhance efficiency and ongoing industrial decline, Europe has experienced energy demand growth. In North America, energy demand has surpassed 2019 levels and continues to climb, fuelled by the transport sector and AI data centres. Asia's demand is also surging, particularly in the industrial sectors of India and China. Meanwhile, Africa's energy demand is growing faster than in most regions, driven by urban development, though it still falls short of the levels required for full energy access.

Enhanced investment in natural gas needed

To contain the growth of greenhouse gas emissions and to make global gas market equilibrium resilient, it is critical to both enhance investment in natural gas supply and scale up biomethane, carbon capture and storage (CCS), and low-carbon hydrogen technologies, the report says. Natural gas today provides an immediate opportunity to cut emissions from coal by 50% and from oil by 30% through cost-effective switching. Biomethane is a direct substitution for natural gas. Today, its scale is significantly below potential at roughly 1% of the natural gas market, and it is primarily produced in North America and Europe. However, new centres of production are emerging in hubs like China and India. CO2 capture capacity, a crucial technology for a successful energy transition, is also gaining momentum, but needs to be scaled up, as for biomethane and low-carbon hydrogen. These technologies will play a critical role in decarbonising energy supply (especially in hard-to-abate sectors) and ensuring its resilience. Scaling them is essential, requiring urgent investment and enabling policies to start building the growing volumes of project proposals.

IGU president, Mme Li Yalan, commented, “Energy and gas demand continue to grow, driven by improving living standards in the developing world, new demand trends, and ongoing growth in developed regions. We must look for a realistic way to balance these trends with long-term sustainability goals, such as building a diversified energy system, and comprehensive approaches to tackle climate change. Embracing innovative solutions and flexible policies will be key to navigate this highly uncertain energy landscape.”

Snam CEO, Stefano Venier, said, “The energy transition represents a unique challenge for mankind. A journey that will not be linear, marked by great aspirations and many hurdles, from geopolitical tensions to technology disruptions and unforeseeable global economy developments. In this continuously evolving transformation, natural gas and related infrastructure represents a critical element of sustainable resiliency for the global energy system, while new green and low carbon molecules will play an essential role to achieve a just and technologically neutral transition.”

Rystad Energy CEO, Jarand Rystad, added, “Natural gas, now 30% of the fossil fuel mix, is cheaper and cleaner than oil and coal, with emissions significantly lower than both. As global LNG access expands, natural gas is on track to surpass coal by 2030 and oil by 2050.”

DUBAL Extrusion Investment has completed the rooftop solar power generation project (phase I) at OSE Industries, a local aluminium extrusion company owned by DEI.

The rooftop solar power project, implemented by Emirates Electrical Engineering LLC, became operational at the beginning of July and is situated on the rooftops of buildings 1 and 2 of the OSE plant.

With a rated capacity of 633 kilowatts peak (kWp), the system is anticipated to generate 1.1 gigawatt-hours (GWh) of clean electricity annually, potentially covering up to 12% of OSE Industries’ annual electricity needs. Environmentally, the annual generation of 1.1 GWh of clean energy could power a small town for several days to a week, reducing carbon emissions by 440,000 kg CO2e and promoting sustainable practices.

The project was carried out under a Solar Lease Agreement, removing upfront costs and providing a hassle-free approach to operation, maintenance, and affordable energy rates.

The supplier is responsible for monitoring the system’s performance, maintaining its cleanliness, and ensuring the availability of spare components. Preliminary data for July 2024 shows that the solar system generated 109.5 megawatt-hours (MWh) of electricity, meeting 12% of the monthly demand and contributing to a reduction of 43,800 kg CO2e in carbon emissions.

Phase II of the project, which will extend to the remaining buildings and service areas, is planned for commissioning in 2025. This project reflects DEI’s dedication to advancing the UAE’s sustainability goals, including the DEWA SHAMS Dubai Initiative, Dubai Clean Energy Strategy 2050, and UAE Net Zero 2050.

 

Ahmad Bin Shafar, CEO of Empower. (Image source: Empower)

Emirates Central Cooling Systems Corporation PJSC (Empower) has secured a contract to design its second district cooling plant in Jumeirah Village.

The company has also revealed that construction of this new facility is set to commence in the first quarter of 2025.

The Jumeirah Village initiative stands as one of Empower’s most significant district cooling projects, with plans to construct six advanced plants to support the growing community with a combined cooling capacity of 256,000 tons.

This project spans two main areas: Jumeirah Village Circle (JVC), which covers 560 hectares, and Jumeirah Village Triangle (JVT), encompassing 242 hectares. The forthcoming plant, the second in the area, will augment the existing world’s first unmanned district cooling facility, currently serving around 114 buildings with a capacity of 49,000 refrigeration tons (RT).

The new plant will be equipped with state-of-the-art cooling technologies aimed at maximising energy efficiency and minimising water usage. With an expected capacity of approximately 37,000 RT, it will cater to a wide range of properties, including residential buildings, commercial centres, hotels, and other facilities within the Jumeirah Village development.

His Excellency Ahmad Bin Shafar, CEO of Empower, said, “Jumeirah Village is witnessing a surge in investor interest in developing multi-use buildings. The awarding of this new contract aligns with our strategic plans to address the growing demand for sustainable district cooling services. Empower is well-positioned to meet the future needs of the Jumeirah Village community."

He further stated that the company continues to steadily implement its expansion plans to provide its services to various major, multi-use projects across different areas of Dubai, ensuring its leadership in the district cooling industry and delivering high-quality, environmentally friendly services to its clients.

More Articles …