The use of alternate fuels, such as hydrogen, biofuels, ammonia, methanol, and others can serve as part of the decarbonization toolset. At a minimum these alternate fuels require new regulatory frameworks and infrastructure to become more commonly accepted and used. For instance, while there are certain similarities between hydrogen and natural gas in terms of infrastructure and potential to repurpose one for the other, there are also some key differences and specific challenges implementing a hydrogen production, transportation and storage network. These are the focus areas for IOGP in terms of safety standards and best practices.

What does good look like?

• Hydrogen production, transport, storage, and distribution networks develop safely and reliably at scale.
• Clear regulatory framework is implemented, along with standards and best practices.

How is it achieved?

• Along with a clear and expedient regulatory framework set by governments, signposts and signals must be closely observed on the demand and supply side to balance and transition smoothly into these developing markets. Given the investment required for material change, early failure could cause a spiraling effect to further delay transition.
• Given the inherent challenges against most alternative fuels competing in a free market against the security and affordability of fossil fuels, a swift transition to these alternate fuels must be aided by enduring and secure government incentives to balance the risk and uncertainty.

Upstream oil and gas companies can also consider other forms of energy supply, many of which have been around for decades, or even centuries, and advancements in novel design and technology continue to improve safety, performance, scalability, and economics. When considering the demands of traditional oil and gas facilities and operations, two potential energy alternatives include nuclear and geothermal.

Geothermal projects, particularly enhanced geothermal systems (EGS), hold adjacencies to core oil and gas skillsets, such as geoscience and reservoir engineering, drilling and completions, and surface facility process design. Many factors, such as proximity to operations, participation in power markets, and scalability, must be considered along with exposure to long-term risk, as niche factors significantly impact the viability and economics of geothermal applications.

Regarding nuclear, safety improvements which come with the enhanced design of Generation 3.5 and Generation 4 reactors, along with ways to improve the economics via modularization and scale, have made fission more acceptable for consideration in scope 1 and 2 emissions reduction for power and heating.

Fusion has gained more headlines as more venture capital and government funds get funnelled into massive scale pilots, start-ups, and R&D in universities. While this merits some attention, realistically, oil and gas companies should consider fusion as an option much later down the decarbonization pathway.

Alternative Fuels could be considered in the future.