Reliable cost-efficient distributed energy systems with a high renewable penetration: a techno-economic case study for remote off-grid regional coal seam gas extraction

Abstract

As our energy systems evolve with the adoption of more variable renewable energy resources, so will our oil and gas industry play a pivotal role in what is expected to be a lengthy transitional phase to a greater mix of renewables with a reliance on fast, reliable gas peaking power generation, which have lower greenhouse gas emissions, and short delivery periods to construct. Oil and gas companies are also rapidly moving towards becoming integrated energy companies supplying a mix of gas, oil, photovoltaic power, wind power and hydrogen, coupling these into the electrical and gas grids. We discuss some of the components and tasks of a distributed energy system in its various system guises that contribute to a more cost effective, reliable and resilient energy system with lower greenhouse gas emissions. We discuss the role that hydrogen will play in the future as oil and gas companies explore alternatives to fossil fuels to address their need to reduce their carbon footprint, substituting or supplementing their conventional gas supply with renewably produced hydrogen. We talk about how Australia with its excellent renewable resources and the opportunity to potentially develop a new industry around the production of renewable fuels, power-to-X, such as hydrogen, with the potential for the oil and gas industry to leverage its existing assets (i.e. gas pipelines) and future embedded renewable assets to produce hydrogen through electrolysis with the intention of supplementing their liquefied natural gas exports with a portion of renewably produced hydrogen.