Net Zero Facilities – A Tenet for Survival or a Pipedream
Authors: Dyson Richard , Varney James , Khan Vaseem , Dartnell Chris 
Published: August 2021

Abstract
To meet global climate targets, it is critical that the oil and gas industry address greenhouse gas (GHG) emissions attributable to its operations. According to the IEA, 15% of global energy-related GHG emissions arise from the process of hydrocarbon extraction and distribution. Production facilities built today may operate for 20-30 years, by which time industries, governments and countries have committed to significant reductions in emissions. If facilities are not designed with carbon neutrality in mind, there is a risk that carbon pricing may cause projects to become uneconomic before their planned end-of-life - an expensive folly. To meet GHG emission targets and de-risk projects it is essential that operators design and construct facilities with carbon neutrality in mind. This will future-proof their operations, ensuring that operators are active participants in a carbon neutral future. In fact, this is a tenet for survival in a world with pressure to decarbonise from shareholders, financial institutions, and society itself. This paper presents a pathway to the carbon neutral upstream facility. A methodology to achieve net-zero emissions for an offshore compression platform is proposed.
The project team used a Decision Quality framework to identify methods for achieving carbon neutrality, including:
Power import and electrification Renewable micro-grids Integration with hydrogen networks Reduction of fugitive emissions Flare system removal Facility demanning and access method Engineered offsetting methods (excluding nature-based offsetting) Digital Transformation of design and operations - remote operation and monitoring.
Design concepts were created to test carbon neutral facilities feasibility. Expertise gained from demanning projects, along with specialist Electrical & Instrumentation experience were used, to perform a techno-economic assessment. Class 5 CAPEX and OPEX estimates were prepared and compared against a Reference Case "traditional" facility design. Traditional approaches to facility design were challenged at every level and an optimal, carbon neutral design was identified based on the above assessments integrating the latest techniques and technology. The study team determined the facilities lifecycle cost, identifying breakeven carbon pricing required to ensure cost-competitiveness.
This paper demonstrates what is achievable with current technology, and opportunities for further technology development. Breakeven carbon pricing for carbon neutral facilities is presented within a range of economic scenarios. A hierarchy of technologies show those which have the biggest impact per dollar spent. This will allow operators to make informed decisions on areas that present the biggest targets for emissions reduction. The methodology can be adapted to any geographical region, considering local infrastructure and carbon pricing.
The approach presented can be applied across many industries. Long lifespan, capital intensive projects with large GHG footprints are particularly vulnerable to carbon taxes. These projects have much to gain from adopting carbon neutrality early in system design.