Kent and the Energy Institute are collaborating to develop guidelines for decarbonization economics in greenhouse-gas (GHG) emission reduction projects for the upstream oil and gas industries.
The guidelines will be prepared under the guidance of Graham Filsell, Kent’s asset decarbonization lead.
"We have seen the challenges of presenting decarbonization projects against standard project economics,” he explained, “with the only justification being the reduced opex related to Emission Trading Scheme credits and potential increased revenue from an increase in sales gas quantities from reducing fuel and flare gas.
"With the changes proposed in the North Sea Transition Authority’s consultation on the draft OGA plan to reduce UKCS GHG emissions, there is a strong case for the societal cost of carbon and potentially an individual asset marginal abatement cost to form part of the project economics for decarbonization projects."