Climate scientists are warning that 2024 is on track to be the warmest year on record. Global temperatures are likely to exceed those in 2023 and every single month since June 2023 has ranked as the world’s warmest compared to pre-industrial levels.
This is not a record any of us wants.
Despite agreed country-specific plans and legally binding commitments to limit global warming by 2050 or earlier as part of the United Nations COP process, nations are not on track to reduce their greenhouse gas emissions fast enough.
Failure to do so will risk jeopardising our collective ability to stay within safe limits and mitigate the worst impacts of climate change.
With fossil fuels accounting for more than 75% of global greenhouse gas emissions and over 90% of all carbon dioxide emissions, it is no surprise that the industry is firmly in the spotlight to do more to accelerate the journey to net zero.
‘Decaf’ gas
As part of the solution, there is something we can learn from the beverage industry. With over 2 billion cups of coffee consumed daily, coffee is one of the most popular drinks worldwide. Given the health concerns relating to caffeine, great strides have been made to create decaf coffee.
Imagine if we could do something similar for the fossil fuel industry. Keep the good bits with the benefits they bring but remove the polluting parts. This would be a real ‘win-win’ and could significantly accelerate the journey to net zero. Producing cost-effective “decaf gas” at scale, by splitting natural gas into hydrogen and carbon dioxide (CO2) should be a key part of the net zero solution.
Although there are close to 195 countries in the world, around 70% of the world’s gas is produced in only ten countries, while circa 60% of the world’s gas is consumed in ten countries.
Six countries – the US, Russia, Iran, Canada, China, and Saudi Arabia – feature both in the top 10 producer and consumer list.
Decarbonisation of natural gas at source, combined with associated carbon capture and storage (CCS) in these six countries, would be a major lever to reduce global CO2 emissions, whilst also helping to accelerate the global energy transition.
Where decarbonisation at source is not a workable or economically viable option, natural gas can be decarbonised instead at key landing points in specific user countries (e.g. at liquified natural gas (LNG) terminals, pipeline connection points, or at gas-gathering plants), with the hydrogen produced used as a fuel for heat, transport or power.
With LNG now accounting for nearly 60% of all globally traded gas and with a fleet of over 710 LNG tankers connecting the international markets, the combination of using existing natural gas infrastructure and decarbonisation at the destination has the potential to significantly reduce greenhouse gas emissions before alternative, lower carbon sources can be put in place.
Decarbonisation
Decarbonising at source or key landing points can also help to significantly accelerate net zero because it can’t be oil and gas versus renewables. It has to be about using all the world’s resources in a more environmentally sensitive, socially acceptable, collaborative, and economically beneficial way.
The global energy sector has a significant role to play in shaping, building, and delivering a cleaner and greener energy future. The sector has the assets, skills, and capabilities to deliver new, lower-carbon solutions at scale and pace.
With the US, Australia, and Qatar representing almost two-thirds of global LNG exports, the upcoming United Nations COP29 summit in Azerbaijan and international industry gatherings such as Gastech in the US, and ADIPEC in the United Arab Emirates will be key to increasing the industry’s commitment to deliver net zero and to accelerate investment in the projects and technologies that will decarbonise the global energy system.
The energy industry has the capital and global reach to ensure that new technology and best practices are shared, enabling other sectors and regions to decarbonise faster and more efficiently.
Industry is a fundamental part of the solution and the role of the sector in the energy transition should reflect this. This will ensure that the sector continues to attract the best and brightest people to truly help deliver and accelerate our net zero future.
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