Tech integration is at the heart of the energy transition: Siemens [LNG2023]
Speaking to NGW at the LNG2023 conference in Vancouver, July 11, Richard Voorberg, President North America, Siemens Energy, said many technologies were required to build sustainable energy systems, using a wide range of energy sources from renewable electricity generation to low carbon gas provision.
A prime example, he said, is the electrification of the gas liquefaction process, an area where Siemens are involved with a number of North American LNG projects such as Woodfibre LNG and Western LNG.
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Electric drive trains and compressors can drastically reduce greenhouse gas (GHG) emissions from the liquefaction process and free up more gas for delivery as LNG. Companies providing low carbon LNG can often achieve premium pricing, boosting further the commercial case for electrification.
But the emissions savings depend critically on the carbon intensity of the electricity provided, and on transmission infrastructure to deliver clean power to the LNG plant, which represents a major new load on a grid. Wider LNG decarbonisation therefore depends on power sector decarbonisation and grid infrastructure investment, highlighting the interconnectedness of the energy transition and the need for services which span gas and electrical engineering, according to Voorberg.
In British Columbia, where power generation is dominated by clean hydro- power, this works well. LNG Canada Phase I and Woodfibre LNG will both use BC Hydro’s low carbon grid electricity to power their liquefaction processes. However, LNG Canada Phase 2 is more uncertain as it depends on new transmission infrastructure.
Further south in the Gulf of Mexico, where the bulk of existing and under construction US liquefaction capacity is located, gas turbines proliferate, owing to the lack of low carbon power generation and transmission infrastructure. Voorberg says if the infrastructure and low carbon power were in place, the GoM would present major opportunities for electric retrofits, reducing the US LNG industry’s carbon footprint significantly.
Hydrogen and CCS need system integration
Voorberg sees further potential for technology integration, for example with hydrogen. LNG plants need consistent power and hydrogen could be used as a storage medium to address renewable energies’ variability. Costs need to fall some way before this can become a reality, and economies of scale are key to cost reductions, Voorberg says, estimating that electro-H2 production will not become competitive with natural gas until the early 2030s.
However, that is not stopping companies from taking the plunge now in areas such as e-fuel production. Siemens Energy offers an 18-MW PEM technology electrolyser, one of the largest of its kind. Interest in the electrolysers has rocketed since the introduction of the Bipartisan Infrastructure Law and the Inflation Reduction Act, according to Voorberg.
Interest in Carbon Capture and Storage (CCS) has also jumped as a result of the new incentives. Capturing and storing emissions from the liquefaction process again reduces the carbon footprint of LNG production. CCS, whether from Direct Air Capture or industrial processes like liquefaction, requires efficient compressors and integrated solutions to keep costs low, Voorberg said.
This feature was originally published in the LNG2023 Daily, produced by NGW during the LNG2023 conference in Vancouver July 10-13.