ENVIRONMENT, SOCIAL AND GOVERNANCE • DEPARTMENTS
North Sea emissions down
nearly 22% since 2018
US Energy Secretary Jennifer Granholm announced the DOE’s Enhanced Geo-
thermal Shot at a launch event in Houston on 8 September. This is the fourth
Shot in the DOE’s Energy Earthshots Initiative .

US DOE aims to cut geothermal costs by 90% by 2035,
make enhanced geothermal systems widespread
The US Department of Energy (DOE)
recently announced a goal to make
enhanced geothermal systems (EGS) a
widespread renewable energy option in
the US, with aims to cut its cost by 90%
to $45 per megawatt hour by 2035. It’s
estimated that the US has more than 5
terawatts of heat resources – enough
to meet the world’s electricity needs .

Geothermal energy currently generates
about 3.7 GW of electricity in the US.

Recent DOE investments include
$44 million to help spur EGS innova-
tions for DOE’s Frontier Observatory for
Geothermal Energy Research field labo-
ratory and up to $165 million to trans-
fer best practices from oil and gas to
advance both EGS and conventional geo-
thermal. The Bipartisan Infrastructure
Law also supports work to advance EGS
with $84 million in funding to support
four pilot EGS demonstration projects
that will provide valuable information
about EGS in different geographies and
geologies. The DOE also recognizes that the geo-
thermal industry and workforce are sim-
ilar to oil and gas, presenting an opportu-
nity to transition skilled workers as well
as existing equipment.

The Enhanced Geothermal Shot is the
fourth Shot in the Energy Earthshots
Initiative , which support the US goal
of achieving net-zero carbon emissions
by 2050. Previously announced Energy
Earthshots focus on hydrogen, carbon
negative solutions and long-term energy
storage. Equinor report calls for more burden sharing in sustainability
To address long-term sustainability
challenges , the world needs to establish
more trust, cooperation and burden shar-
ing , according to Equinor’s 2022 Energy
Perspectives report .

It describes two scenarios that high-
light the challenges the world needs to
overcome in order move from the slow,
incremental changes that characterize
the energy transition today (Walls sce-
nario), to the radical changes needed to
align with the 1.5°C ambition of the Paris
Agreement (Bridges scenario).

In the Walls scenario, gas demand
will continue to grow before peaking in
2041. By 2050, it will be approximately
10% higher than today’s level. Demand for
fossil fuels will peak in 2026, followed by
a “gentle” downward trajectory.

In the Bridges scenario, gas demand
will peak in 2025 and fall to around a
quarter of today’s level by 2050. Demand
for fossil fuels will also decline rapidly
after 2025. By 2050, all remaining fossil
fuel use will be either fully abated or
compensated by carbon removal.

The latest Emissions Monitoring Report
from the North Sea Transition Authority
(NSTA) shows that the North Sea oil and
gas industry cut its greenhouse gas emis-
sions by an estimated 14.6% to 14.3 million
tonnes of CO 2 e last year . This adds up to an
overall reduction of 21.5% since 2018.

The large number of platform mainte-
nance shutdowns, timed to coincide with
temporary pipeline closures, contributed
to a substantial fall in production and
associated emissions last year.

Encouragingly, NSTA projections indi-
cate the sector is on track to meet interim
emissions reduction targets of 10% by 2025
and 25% by 2027 – which were agreed in
the North Sea Transition Deal between the
sector and UK government in 2021.

However, bold measures, such as
upgrading platforms to run on alterna-
tive fuels instead of gas or diesel, will be
needed to hit the 2030 goal of halving
emissions , according to the NSTA.

In 2021, the NSTA started requiring
licensees to implement emissions reduc-
tion plans for new and existing projects
and introduced guidance to reduce flaring
and venting.

Chevron, MOECO to explore
geothermal in Japan
Chevron New Energies International
and Mitsui Oil Exploration Co (MOECO)
announced a collaboration agreement
to explore the technical and commercial
feasibility of advanced geothermal power
generation in Japan. The collaboration
will study geothermal resource potential
across Japan and evaluate the effective-
ness of advanced closed loop (ACL) tech-
nology for a pilot project . The companies
may also assess potential collaboration for
advanced geothermal technology opportu-
nities using ACL globally.

Unlike conventional geothermal proj-
ects, which use traditional steam turbines
requiring high temperatures often found
in concentrated locations limited by geo-
logical characteristics, ACL can potentially
enable access to geothermal resources at
a wider range of temperatures and geolo-
gies through the application of alternative
technology above and below the surface.

DRILLING CONTRACTOR • NOVEMBER/DECEMBER 2022
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