The energy transition – the rejection of fossil energy sources – is often assessed negatively in the context of the development of the Russian economy in terms of filling the budget.
However, firstly, even according to the most optimistic “green” forecasts, hydrocarbons will retain their importance in the global energy balance until 2050. Therefore, domestic oil and gas companies have time to prepare for new operating conditions, which they are doing now. Secondly, our country can make good money on the energy transition. It has the resources, territories and competencies to take a significant share of the growing clean energy and CO2 recovery market.2.
During the transition period, which is at least 30 years, the importance of the environmental friendliness of the extracted raw materials and the impact of its production and processing on the environment will grow. Natural gas is considered the cleanest of hydrocarbons. In terms of its reserves, Russia ranks first in the world, with about 73 trillion cubic meters. This wealth will last for more than 100 years, based on the 2018 production record of 725 billion cubic meters.
CO emissions2 the country can compensate with technologies of binding and storage of carbon dioxide.
The potential for CO2 storage in Russia exceeds 1.2 billion gigatons, says Daria Kozlova, director of the State Regulation of Fuel and Energy Complex practice at VYGON Consulting. With the development of such technologies, six billion tons of CO emissions can be saved2 and attract more than $ 200 billion in investment by 2050.
CO emissions2 Russia can compensate with technologies of binding and storage of carbon dioxide. Burial potential exceeds 1.2 billion gigatons
We are talking about the creation of high-tech enterprises, training, ordering for industry, as well as the development of regions. In Yamal, Novatek is considering CO disposal projects2… The technologies for this already exist, but they are still very expensive, Kozlova notes. For example, according to the International Energy Agency (IEA), the cost of carbon capture varies in the energy sector – $ 40-80 per tonne of CO2, in metallurgy – $ 40-100, in the cement industry – $ 60-120. Transportation cost from emission source to storage is about $ 10 per tonne of CO2.
As for the cleanliness of oil and gas production and processing, all domestic companies are moving in this direction. As Gazprom Neft told RG, a 1 MW solar power plant has been built at the Omsk oil refinery. It is located on an area of 2.5 hectares and consists of 2.5 thousand solar panels produced by the domestic company Hevel. Plans are now being discussed to increase the facility’s capacity to 20 MW. Solar panels are also used by the company’s gas stations. The company’s goal is to reduce the carbon intensity of its business by 30 percent by 2030. It is planned to achieve it by increasing the share of gas in the total production volume, continuing modernization, and ensuring the maximum possible level of useful use of associated petroleum gas.
In the last century, the world abandoned coal, and now its share in the global energy balance reaches 40%.
Lukoil has several projects related to renewable energy sources: four hydroelectric power plants with a total capacity of 291 MW, three solar power plants with a capacity of 20.3 MW, a wind farm in Romania with 84 MW.
A separate story is the production of hydrogen. According to Kozlova, Russian blue has export potential – from gas with CO capture2 and green – on renewable energy sources. The cost of producing such hydrogen in our country is much lower due to cheap raw materials.
Getting hydrogen is a simple but expensive process. The cost of producing blue hydrogen is about $ 1.50 per kilogram, and green hydrogen is $ 5.40. However, it’s not just about the price. So far there are no technologies for its transportation and storage safety issues have not been resolved.
Rosneft this year signed a cooperation agreement with the Norwegian company Equinor to develop low-carbon technologies and reduce the carbon footprint in joint projects, including hydrogen. The Russian company has similar agreements with British BP and the American oilfield services corporation Baker Hughes. Also at the 2021 Eastern Economic Forum, Gazprom, Rosatom and the Sakhalin Region signed an agreement on cooperation in the field of hydrogen energy.
In general, the low-carbon course of Europe can be a good incentive for the development of new industries in our industry. The point is not that oil and gas will not be needed. In the last century, the world tried to ditch coal in favor of oil and gas. But now coal occupies 40 percent of the world energy balance, and its exports from Russia have increased sixfold since 2000 with the prospect of growth. The rules of the game in the global market cannot be ignored. But throwing yourself into the abyss of renewable energy, giving up the wealth of your bowels, is not worth it. Another proof of this is the energy crisis in Asia and Europe.
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