The UK Oil & Gas Sector
Carnot was selected to join the UK Oil & Gas Technology Centre TechX Accelerator, run in partnership with BP, Equinor and KPMG, to pioneer the way to a net zero future for the UK’s Offshore industry.
The UK Oil and Gas Industry produces 15 Mtonnes of CO2 per year or 3% of the UK’s total CO2 emissions. The UK has legislated that all industries must be net zero by 2050. Carbon taxes are likely to be introduced in the near future which would result in extra costs of £480M at the proposed tariff of £20 per tonne of CO2.
Reducing Operating Costs
The rapid increase in US Shale Oil and Gas production and subsequent drop in oil price means UK Oil & Gas must adapt to remain competitive. Technologies are needed which maximise the economic recovery of the UK’s mature oil fields while driving down operating costs.
Even in the most ambitious scenarios, , Oil and Gas will continue to provide a vital contribution to meeting global energy demand. In this scenario, which is consistent with limiting global warming to less than 2°C, Oil and Gas would still be required to meet 48% of energy demand in 2040. Technologies must be developed which use hydrocarbon fuels more efficiently.
The Carnot Solution
Mass adoption of ultra-efficient Carnot gensets would reduce operating costs by ~£520M and save ~£480M in carbon taxes per year for the UK Continental Shelf. Carnot gensets will also be more reliable, not requiring cooling or oil systems which are the two most common points of failure in modern engines. Additionally, our gensets will consist of 300kW modules, ensuring continuity of operation if a single module fails. This guaranteed continuity of operation will reduce unplanned downtime and improve operating margins. When running on renewable hydrogen our gensets will enable zero-carbon operation of the UK continental shelf and a clean way to stabilise offshore renewable energy grids. In addition, our gensets will be used for long-term, bulk energy storage, converting surplus renewable energy into hydrogen for storage.
A rig consumes up to 2,000 gallons of diesel fuel per day amounting to daily costs of £6,000. Using double-efficiency Carnot gen-sets will lead to annual savings of £1.1M per rig.
Carnot gensets make the use of subsea pumps and other subsea equipment economically viable which will improve marginal development capability and increase the operator’s recovery factor.
Surplus renewable energy can be used in an electrolyser to generate renewable hydrogen which can be stored and used in Carnot’s ultra-efficient gensets to generate electricity in periods of low renewable energy supply.
Net Zero Operation
Operating on hydrogen, our gensets will ensure zero-carbon operation for the UK continental shelf, reducing emissions by 15 Mega Tonnes per year.
Carnot gensets can be integrated into off-shore renewable energy grids to ensure continuity of supply and enable remote operations.