Energy Transition

E-methane set to transform the energy landscape

E-methane is gaining global attention. (Image source: Synergy)

E-methane, a synthetic gas that holds immense potential for the future of energy, is quickly gaining global attention

Although the commercial production of e-methane has yet to begin, the momentum behind this innovative technology is growing rapidly.

E-methane is produced through a process that combines low-emission hydrogen with a carbon source, such as captured CO2 or biomass. This process results in a synthetic gas that closely mimics the physical and chemical properties of conventional natural gas.

The growing interest in e-methane is driven by its potential to play a critical role in the energy transition. As the world seeks to reduce its reliance on fossil fuels and lower greenhouse gas emissions, the need for low-emission alternatives to natural gas is becoming increasingly urgent. E-methane offers a unique advantage in this regard. It can be used within the existing methane network, providing a way to decarbonise natural gas without the immediate need for new infrastructure investments.

Furthermore, e-methane could serve as a bridge between today’s methane networks and the hydrogen networks of the future. Hydrogen is often touted as a key component of the future energy system, but its widespread adoption is hindered by challenges related to storage, transportation, and infrastructure compatibility. E-methane, which behaves almost identically to natural gas, could ease the transition to a hydrogen-based energy system by allowing for a gradual integration of hydrogen into existing gas grids.

Unlike hydrogen, which requires advanced and costly storage solutions, e-methane can be stored on a large scale in existing infrastructure, such as depleted natural gas fields and underground aquifers. This ability to store e-methane in significant quantities makes it an ideal solution for addressing seasonal energy demand variations. During periods of high demand, stored e-methane can be released into the grid, ensuring a reliable supply of energy even when renewable sources like wind and solar are not producing at full capacity.

The economic challenge

Despite its many advantages, e-methane faces a significant hurdle: cost. The current levelised cost of e-methane is estimated to range between US$50 and US$200 per million British thermal units (MMBtu), which is substantially higher than traditional natural gas prices or landed LNG prices. For e-methane to become a viable alternative to natural gas, substantial reductions in production costs are necessary.

This cost challenge is not insurmountable, but it will require significant advancements in technology and economies of scale. By 2040 or 2050, it is anticipated that the cost of e-methane could be reduced to a level that makes it competitive with traditional natural gas, particularly as carbon pricing and other regulatory measures increasingly penalise the use of fossil fuels.

In the meantime, the first e-methane projects are beginning to take shape. Japan has emerged as a leading proponent of e-methane, viewing it as a critical component of its energy strategy. The country has set an ambitious target: by 2050, 90% of city gas demand is expected to be met by e-methane. This commitment is driven by Japan’s need to secure a stable and low-carbon energy supply, as the country seeks to reduce its dependence on imported fossil fuels and meet its climate goals.

E-methane looks to become a key player in the global energy transition. Its compatibility with existing gas infrastructure, ability to serve as a bridge to a hydrogen-based energy system, and potential for large-scale storage make it an attractive option for decarbonising the natural gas sector.

This article is authored by Synergy Consulting IFA

SLB launches carbon storage well integrity assessment solution

Picture of two people looking at a screen

The new solution helps carbon storage developers quantify the risks associated with wells at prospective storage sites. (Image source: SLB)

SLB has launched a well integrity assessment solution that helps carbon storage developers quantify the risks associated with wells at prospective storage sites with previous drilling activity

Establishing secure storage sites is essential to enabling growth of CCUS and creating a low carbon energy ecosystem. However, many prospective carbon storage sites are located in either mature or retired oil and gas fields. Having a large number of wells at a site can increase the risk of potential leakage pathways for the stored carbon.

Understanding the risks

SLB’s new methodology for quantifying the probability and potential impact of carbon leakage helps customers understand the risks associated with each well, informing remediation strategies and ultimately estimating the project's long-term viability. The solution incorporates advanced failure mode effect and criticality analysis (FMECA) to assess potential leakage pathways, well barrier, failure mechanisms and resulting consequences. Using advanced multi-physics 3D modeling, SLB can assess the volume and flow rates of brine and carbon leakage over time to better estimate risk.

“The significance of the risks associated with each well and the costs of remediation to mitigate leakage risks can make a project economically unfeasible,” said Frederik Majkut, senior vice president of Industrial Decarbonization, SLB. “By addressing potential well integrity issues early in the development process, SLB’s well integrity assessment solution can help storage developers avoid costly delays or operational disruptions, and drive companies toward their net zero ambitions.”

Kent to create guidelines for decarbonisation economics

The project will demystify decarbonisation economics. (Image source: Kent)

Kent is collaborating with the UK’s Energy Institute to create guidelines for decarbonisation economics in Greenhouse Gas (GHG) emission reduction projects in the upstream oil and gas industries

This report will provide clear, actionable guidance to help the sector achieve its environmental goals, demystifying the economics of decarbonisation, including the societal cost of carbon. While it will focus on the UK North Sea upstream sector, it will take a global view so that it can serve as a basis for future research across the world. It will involve the collaboration of Kent’s Environmental team, Asset Decarbonisation team, and Energy Environment Economic (E3) Modelling and Communications team.

Key objectives

The guidelines will address the following key objectives:

Demystifying Decarbonisation Economics: Provide clarity for energy professionals with limited exposure to project economics, such as environmental or sustainability managers.
Understanding Carbon Costs: Offer insights into how carbon costs are calculated and influenced by market forces, including societal costs.
Alternative Metrics: Recommend non-standard metrics beyond NPV to ensure that decarbonisation goals are met, delivered as a technical note to the industry.
Justification of Metrics: Articulate and justify the choice of both standard and non-standard metrics used in the guidance.
Upstream O&G Value Chain: Focus on the upstream sector of the O&G value chain affected by decarbonisation and assess the potential to broaden the scope to the full value chain.

"We have seen the challenges of presenting decarbonisation projects against standard project economics with the only justification being the reduced OPEX related to Emission Trading Scheme credits and potential increased revenue from an increase in sales gas quantities from reducing fuel and flare gas," said Graham Filsell, Kent’s Decarbonisation lead. "There is a strong case for the societal cost of carbon and potentially an individual asset marginal abatement cost to form part of the project economics for decarbonisation projects."

James Lawson, chair of USEG (Upstream Environmental Group) added, "Decarbonisation and GHG reduction projects are inherently holistic, involving a wide spectrum of energy professionals, many of whom have not previously engaged in economic assessments and project prioritisation. Furthermore, these projects compete for capital and resources with other industry sectors. Therefore, a clear, concise, and targeted document that all energy professionals can refer to will be invaluable for ensuring that capital and resources are allocated appropriately and in line with net zero commitments."

Trelleborg launches hydrogen sealing solutions

The range covers every application of the hydrogen value chain. (Image source: Trelleborg)

Trelleborg Sealing Solutions has launched the full H2Pro range of more than 20 sealing compounds for every application of the hydrogen value chain, from production to transport and storage and end-use

Proven to withstand challenging application environments, the materials are suitable for high pressures, low temperatures, and resist permeation, making them better able to withstand rapid gas decompression (RGD), while also demonstrating excellent wear and extrusion properties.

James Simpson, global segment director energy, said, “As the smallest and lightest molecule, hydrogen has the potential to drive the energy transition, but it is difficult and complex to seal.

“The lack of relevant industry standards to validate our materials against was a major challenge when developing the H2Pro range. Some in the nascent hydrogen industry rely on standards used typically for high-pressure gasses in the oil and gas sector, but these are often unsuitable for replicating real-world hydrogen application conditions.

“Trelleborg has developed proprietary testing protocols that replicate real-world hydrogen applications, providing customers with confidence in products to make the energy transition reliable, efficient and economic.”

Trelleborg's proprietary test standards cover hydrogen permeation, endurance validation and hydrogen compatibility, including the ability to withstand rapid gas compression (RGD). Occurring when hydrogen permeates into a seal under pressure, RGD can cause seals to blister and crack when pressure is rapidly relieved.

Masdar and TotalEnergies to collaborate on SAF project

Aviation is a key focus for Masdar's green hydrogen business. (Image source: Masdar)

Masdar has signed an agreement with TotalEnergies to look at developing a commercial green hydrogen to methanol to SAF (Sustainable Aviation Fuel) project

It follows a successful test flight conducted by the two companies during COP28 in December 2023 that demonstrated the potential for converting methanol to SAF.

The project will help decarbonise hard to abate, emission intensive sectors such as the aviation and maritime industries. The project will also capture and utilise CO2 from an industrial source to be used as a feedstock, in addition to green hydrogen from renewable energy powered electrolysis, for the production of green methanol and SAF.

Aviation is a key focus for Masdar’s Green Hydrogen business, and over the past three years the company has forged a number of strategic partnerships designed to support the development and growth of the SAF sector.

The UAE’s General Policy for Sustainable Aviation Fuel set a voluntary target of providing 1% of fuel supplied to national airlines at UAE airports using locally produced SAF by 2031 and seeks to develop a national regulatory framework for SAF by exploring potential policies to support the long-term economic operation of SAF facilities in the UAE.

The agreement aligns with Abu Dhabi’s Low Carbon Hydrogen Policy which is expected to significantly contribute to promoting low-carbon hydrogen as a future energy source, and the UAE’s National Hydrogen Strategy, which seeks to establish the UAE as a leading global producer of low carbon hydrogen by 2031. Masdar is looking to become a leading producer of green hydrogen by 2030.

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