Decarbonisation Technology - February 2025 Issue

companies operating in the production of oil and gas to set 1.5ºC-aligned science-based emission reduction targets across scopes 1,2 and 3.” (SBTI, 2023) . While this project is underway, SBTi has put a pause on validations and commitments from companies in the fossil fuels sector. In advance of the requirements of the forthcoming SBTi standard and in line with pledges made under the OGDC, O&G companies should be looking to their own infrastructure, operational activities and logistics: the avenues where incremental steps can make a difference. To set targets and measure progress in the absence of a new sector standard, O&G companies that prioritise data and digitisation can gain significant advantage by managing decarbonisation strategies and measuring and documenting success. decarbonisation strategies, harnessing data and implementing AI-driven technologies can improve operational performance, reducing Scope 1 and 2 emissions while lowering energy costs. For example, better and greater data acquisition and usage can inform preventive maintenance, helping to reduce the risk of unexpected equipment failure. This can cut downtime for greater production efficiency while helping avoid unnecessary equipment replacement, thereby impacting on both production costs and emissions. As a feature from EY notes, “the most competitive and successful oil and gas companies will be those that accelerate the digitization trend: adopting new tools and techniques, including the Industrial Internet of Things (IIoT), analytics, big data, and robotic process automation (RPA) to transform operations from the wellbore to the back office” (Adomaitis, 2022) . In this context, AI-driven energy management, Data and digital assets to inform a decarbonisation strategy Looking to energy efficiency and when incorporated into a microgrid (see Figure 1 ), can provide critical data to drive energy efficiencies. A digital twin can offer the ideal environment in which to test and assess the efficacy of energy infrastructure projects, harnessing data for evaluation and mitigating potential issues before they occur through advanced modelling and simulation.

Figure 1 Microgrid controller

Electrification for emission reduction: How a microgrid fits into a net-zero strategy The International Energy Association (IEA) estimates that electrifying upstream facilities could reduce total upstream CO₂ emissions by 60% (IEA, 2024 p77) . Hence, O&G companies committed to decarbonisation should be exploring the technologies that make electrification more feasible. This makes investment in a microgrid a compelling proposition. Implementing a microgrid solution is a complex project. However, the exponential growth in the market – estimated at $37.6 billion this year and projected to reach $87.8 billion before 2030 – indicates the extent to which microgrids are becoming an increasingly important element in the energy transformation toolkit. This technology has three significant benefits: u Critical resilience for emergency power, which can be area-wide.  Reduced emissions through better energy management.  Potential to incorporate renewables, together with better cost efficiencies through sophisticated data and energy management software. For O&G companies implementing electrification projects, the IEA notes that it is “important to ensure a continuous, reliable source of energy to maintain operations and ensure safety; several solutions are available to do so, including the use of batteries, hybrid systems or the retention of existing assets for back-up power” (IEA, 2024 p77) . As an essential element of a microgrid, a battery energy storage system (BESS) (see Figure 2 ) can provide this essential reliable power supply in an emergency if it incorporates uninterruptible