OTC 2019 ENERGY SYSTEM INTEGRATION NORTH SEA ENERGY SYSTEM - - PowerPoint PPT Presentation

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OTC 2019 ENERGY SYSTEM INTEGRATION NORTH SEA ENERGY SYSTEM - - PowerPoint PPT Presentation

Jan 06, 2024 161 likes •423 views

OTC 2019 ENERGY SYSTEM INTEGRATION NORTH SEA ENERGY SYSTEM INTEGRATION IN THE NETHERLANDS OVERVIEW SYSTEM INTEGRATION Offshore oil & gas infrastructure Offshore wind energy infrastructure Integration options: legal aspects Gas

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OTC 2019 ENERGY SYSTEM INTEGRATION

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NORTH SEA ENERGY SYSTEM INTEGRATION IN THE NETHERLANDS

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SYSTEM INTEGRATION

  • Offshore oil & gas infrastructure
  • Offshore wind energy infrastructure
  • Integration options: legal aspects

OVERVIEW

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  • Approx. 160 oil & gas E&P platforms
  • (93% for gas extraction, 7% for oil)
  • Approx. 4500 km of pipelines
  • 3 main offshore trunk pipelines - WGT, NGT,

NOGAT

OFFSHORE OIL & GAS SYSTEM

Gas fields Oil fields Gas pipeline Oil pipeline Gas & Oil fields and pipelines

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END OF ECONOMIC LIFETIME

  • oil & gas fields nearing end economic lifetime
  • timing depends on: costs & gas price

development 10 YEARS TIME

  • Expectation: Acceleration of decommissioned

gas fields

  • also in view of current negative investment

climate

  • Risk of premature decommissioning

OFFSHORE OIL & GAS INFRASTRUCTURE

Number installed Number removed / re-used

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SCALING UP OF OFFSHORE WIND

Current wind farms in operation: TOTAL CAPACITY: 957 MW Gemini 600 MW Princes Amalia 120 MW Luchterduinen 129 MW Egmond aan Zee 108 MW

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4 operational OWFs 957 MW Roadmap 2023: 5 tenders 3500 MW Roadmap 2030 7000 MW 2030 11.5 GW TenneT (TSO) Connects OWFs to new offshore grid IJmuiden Ver Hollandse Kust (west) Ten Noorden van de Waddeneilanden

FUTURE OFFSHORE WIND FARMS

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LEGAL FRAMEWORK OFFSHORE SYSTEM INTEGRATION

Water Act / National Water Plan: applicable to water systems, applies in EEZ Dutch Mining Act: applicable to mining activities, applies in EEZ Offshore Wind Energy Act: legal framework for development wind energy projects within EEZ Electricity Act: applies in EEZ, only offshore wind farms, electricity generated by offshore wind farms and grid at sea

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Electrification existing gas platforms Power to Gas (H2): re-use of platforms Power to Gas (H2): re-use for storage Power to Gas (H2): re-use of pipelines

SYSTEM INTEGRATION LEGAL ASPECTS

1 2 3 4

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ELECTRIFICATION GAS PLATFORMS

Important condition: → to enable re-use of platform as H2 production and/or CO2 storage, platform requires fuel even when gas production has ceased. 3 power connection options:

  • 1. onshore transformer (Q13a-A platform)
  • 2. OWF
  • 3. grid at sea

1

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ELECTRIFICATION LEGAL ISSUES

Connection to OWF

  • Direct line
  • cable ⟶ no legal qualification,

not regulated / permitting issues

  • Existing OWF PPAs
  • may ‘prohibit’ supply to platform
  • Post-2016 OWFs
  • connected to substation ⟶ part of grid at

sea operated by TenneT

1

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ELECTRIFICATION LEGAL ISSUES

Connection to grid at sea

  • TenneT’s statutory task to connect limited

to OWFs

  • i.e. does not extend to platforms
  • TenneT prohibited carrying out activities
  • ther than statutory tasks
  • TenneT liable for transmission interruptions

! new connection = additional risk

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POWER TO GAS GREEN HYDROGEN

2

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PRODUCTION OF GREEN HYDROGEN RE-USE OF INFRASTRUCTURE

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Water Purification Storage Compression Electrolyses

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POWER TO GAS: RE-USE OF PLATFORM LEGAL ISSUES

OWF generated power transported to electrolyser on offshore platform LEGAL ISSUES

  • a. OWF must connect to grid at sea
  • b. TenneT cannot connect platform

to grid at sea

  • c. Disused platform must be removed

2

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POWER TO GAS: RE-USE OF PLATFORM AN OWF MUST CURRENTLY CONNECT GRID AT SEA

2a

Proposed amendments to Offshore Wind Energy Act OWF not only electricity, but wind energy wind energy “energy carrier that originates after conversion of wind” (e.g. electricity, hydrogen, ammonia) connection point point where a connection is made to the grid at sea or to an installation CONSEQUENCES

  • Offshore Wind Energy Act conversion offshore power to H2 ⟶ important for site permit
  • Connection of OWF to installation ⟶ possible (onshore / offshore)
  • Connection of H2 production platform to grid at sea ⟶ not possible under amended Offshore Wind

Energy Act, i.e. legal issue B still not resolved.

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National law: Dutch Mining Act “A mining installation that is no longer in use is removed.” no longer in use ⟶ no longer used for E&P or storage of substances. Hydrogen production not a mining activity ⟶ gas platform considered no longer in use International law: UNCLOS, IMO Guidelines, OSPAR treaty

  • All international treaties provide removal obligation
  • Possibilities coastal states to allow re-use

POWER TO GAS: RE-USE OF PLATFORM REMOVAL OBLIGATION

2c

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POWER TO GAS: RE-USE OF PLATFORM REMOVAL OBLIGATION

  • Amendment to Mining Act has been announced to cater for re-use, including hydrogen
  • Recent first draft legislative proposal (consultation phase)
  • Re-use explicitly included in Mining Act
  • Minister may grant temporary exemption from removal obligation in case of re-use
  • Re-use may be another activity under the Mining Act (eg CO2 storage) or another activity (eg

hydrogen production)

  • Hydrogen production platform will have to apply for a permit under the Water Act
  • This permit may provide for a removal obligation if taken out of operation
  • The operator / permit holder of the gas platform will however not be released from its removal
  • bligation under the Mining Act. If operator of H2 platform is a different party, this may lead to legal

issues.

2c

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  • CCS covered by Dutch Mining Act, mining

activity: depleted gas reservoir still considered “in use”?

  • However: different permit under Mining Act
  • Timing issues: gap? Then removal obligation

gas production permit holder

  • CO2 storage permit may however already

be granted if a production license is still in effect.

  • H2 storage permit: Mining Act. No permit as

long as gas production permit is in force.

POWER TO GAS: RE-USE GAS FIELDS FOR CCS / H2 STORAGE

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POWER TO GAS: RE-USE PIPELINES FOR TRANSPORT

  • Re-use of offshore gas pipelines for the transportation of H2?
  • Offshore gas pipelines owned and operated by private parties (operators and owners of gas

production sites). Permits for pipelines granted under the Mining Act, in principle not restricted to the use of a substance

  • Removal obligation after the end of the use of the pipeline: rule that pipelines do not always have to

be removed, but may be left behind in a clean and safe manner

  • If H2 transported to the Dutch coast: direct supply to industry? Or injected in onshore gas transport

system? Operated by TSO, regulated by the Dutch Gas Act. Maximum H2 content permitted in gas fed-in to gas grid is very limited (0.5%). Other countries higher percentages, EU has not (yet) defined a safe level of hydrogen admixture to the gas grid

  • Separate H2 grid? Group company of TSO may construct/operate H2 grid. Competition with existing

H2 networks in the Netherlands owned by private parties?

4

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ANY QUESTIONS?

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CONTACT

KIRSTEN BERGER T +31 20 605 61 73 M +31 6 1296 7383 k.berger@houthoff.com ADVOCAAT | PARTNER

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AMSTERDAM ROTTERDAM BRUSSELS LONDON NEW YORK HOUSTON SINGAPORE

www.houthoff.com