OG21 Strategy - A New Chapter

Petroleum and integration with the power system

Electrification is a key measure to meet the petroleum industry's ambition of 50% reduction of GHG emissions by 2030. It will require 11-13 TWh of electrical energy, which is less than the normal surplus energy of the Norwegian energy system today (normal demand is 135 TWh as compared to the current 153 TWh capacity). Other new energy-intensive industries such as battery factories and green hydrogen production, as well as a continued electrification of the transport sector, will however also create a higher energy demand, and by 2030 the total demand could reach 170-190 TWh. (NHO/LO, 2021).

The increased demand for energy will not only require investments in new production capacity, it will also create the need for de-bottlenecking and investments in the electricity grid system. 

OG21 fully supports the call from NHO and LO in their "Common energy and industry political platform" on an energy policy that stimulates ambitious industry development, and a holistic electrification strategy that combine industrial opportunities, climate goals and improvements in the power system. (NHO/LO, 2021)

The Governmental White Paper on the Norwegian energy resources (Meld.St.36 (2021-2021)) includes such a holistic electrification strategy. It addresses among others the need for power from shore to electrify offshore installations, and the need for evaluation of the power grid system in the light of the increasing electrification of industries and the society.

Recommendation: OG21 presents in Section 4.3 of this strategy a number of ideas and measures that should be considered when evaluating electrification of offshore installations:

  • Develop offshore grids that connect offshore facilities and enable power exchange with onshore systems.
  • Integration with offshore renewables such as offshore wind,
  • Offshore CCS to de-carbonize operations.
  • "Gas to-X" technologies, such as hydrogen production and power production combined with CSS.

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