Oil and gas companies are adopting offshore solar and hybrid power systems, overcoming challenges with new technological advancements.
As the global push for renewable energy intensifies, oil and gas companies are increasingly exploring solutions to transition from fossil fuels to more sustainable energy sources for supporting their operations. One promising avenue is the integration of offshore solar power systems and hybrid power systems on production platforms. Despite the challenges, such as higher installation and maintenance costs due to harsh marine conditions, advancements in technology and marine-friendly designs are making offshore solar and hybrid power systems viable and attractive options.
Reduced Emissions and Environmental Impact
Integrating offshore solar and hybrid power systems into oil and gas operations allows companies to diversify their energy portfolio. This transition helps lower the carbon footprint and greenhouse gas emissions, contributing to a cleaner environment. At JCE, we have firsthand experience with such transformation projects as we have supported clients worldwide with manufacture, installation and deployment of such hybrid powers systems. For example, our project on offshore wellhead platforms in Indonesia showcases how switching from diesel generators to offshore solar power systems eliminates the need for on-site fuel storage, transportation, and maintenance, further reducing emissions and the environmental impact.
Our most recent offshore modular solar power system for a client’s wellhead platform in South N’Dola is designed to effectively reduce emissions and operational costs while enhancing energy reliability. The system is projected to achieve a 90% reduction in CO2 emissions by replacing diesel generators with over 100 solar panels. This transition from diesel to hybrid will significantly lower the environmental footprint of the platform and demonstrate how renewable energy solutions can support unmanned operations efficiently.
Cost Savings and Operational Efficiency
One of the most compelling advantages of offshore solar and hybrid power systems is the potential for substantial cost savings. At JCE, we’ve observed that electrification through offshore solar and hybrid power systems not only cuts down on fuel costs but also simplifies logistics by removing the need for on-site fuel storage. For example, the project for the South N’dola wellhead platform demonstrated a significant reduction in maintenance costs. The platform’s power supply maintenance requirements will be drastically reduced from 552 man-hours per year to just 114 man-hours, resulting in an efficiency improvement of 79% per year. This translates to long-term savings for our clients. While the initial Capital Expenditure (CAPEX) on the project was slightly higher than a traditional diesel generator would require, the long-term Operating Expenditure (OPEX) is expected to be significantly reduced, leading to substantial cost savings of around £4,500,000 over the 30-year lifespan of the platform.
The South N’dola project further exemplifies these benefits. By implementing a scalable solar power system, the platform is forecasted to see a 36% reduction in overall expenditure and extended the equipment lifespan by at least 100%. The system also facilitates significant maintenance cost reductions, decreasing the platform power supply maintenance requirements from 552 man-hours per year to 114 man-hours.
In another case, JCE’s engineers faced the complex challenge of powering an unmanned oil production rig destined for operation in the harsh offshore environment of Norway, with renewable energy. The primary issues included ensuring continuous energy supply throughout the year, accommodating the power system within limited space on the rig, and minimizing disruption to the construction and operation of the oil platform.
We provided a bespoke modular renewable energy solution, including a Solar Power Package installed separately from the main oil platform construction. This solution powered essential operational loads such as well monitoring, eliminating the need for diesel generators and fuel tanks. This approach significantly reduced maintenance and refilling costs, as it avoided the necessity of sending personnel via boats to maintain and top up fuel tanks. Additionally, the Solar Power Package enabled secure, reliable remote communications and powered Navigational Aids, enhancing the safety and operational efficiency of the unmanned platform.
Increased Energy Output and Reliability
Energy storage systems, such as batteries, can store excess solar energy, providing a consistent and reliable power supply during peak usage periods or when renewable energy output is restricted. This capability ensures that offshore solar and hybrid power systems have a dependable power source, which is crucial for maintaining continuous operations. At JCE, our projects have demonstrated the effectiveness of integrating energy storage with offshore solar power systems to ensure reliable energy supply even in challenging marine environments.
In the South N’dola project, the solar power system included advanced energy storage solutions to guarantee a reliable power supply, even during periods of low sunlight. This ensures continuous and dependable operations, a critical requirement for unmanned platforms where reliability is paramount.
In the Norway project, the solar panels were arranged along the perimeter of the platform to optimise space usage and were angled to capture maximum sunlight throughout the day. The system was engineered to operate 24/7, 365 days a year, and withstand the challenging North Sea weather conditions. Notably, the design included features allowing the panels to recharge even during the minimal daylight hours of December. The container unit within the Solar Power Package housed all necessary controllers, PLCs, and batteries, fully assembled and pre-wired to ensure rapid and efficient installation on the platform.
Compliance with Regulations and Climate Targets
Offshore solar power systems can help oil and gas companies meet stringent greenhouse gas reduction targets and comply with international climate agreements and national regulations aimed at reducing emissions from the sector. Many companies have also set their own voluntary emissions reduction targets as part of their Environmental, Social, and Governance (ESG) commitments. Offshore solar power systems offer a viable pathway to achieve these goals. Investors and financial institutions are increasingly scrutinising the climate risks and transition plans of fossil fuel companies. Adopting offshore solar or hybrid power systems demonstrates a company’s commitment to decarbonisation, which can improve access to sustainable finance and investment opportunities. Through our projects at JCE, we have seen how transitioning to renewable energy sources can positively impact a company's reputation and financial standing.
Compliance with Emissions Trading Schemes
The European Union's Emissions Trading System (EU ETS) and other regional schemes require companies to obtain allowances for their greenhouse gas emissions. By integrating offshore solar power systems, oil and gas companies can reduce their emissions and the need to purchase additional allowances, thereby cutting compliance costs. This strategy also aids in complying with schemes like the UK Emissions Trading Scheme. At JCE, we understand the importance of meeting regulatory requirements and have successfully helped our clients reduce compliance costs through the implementation of offshore solar power systems.
Leveraging Existing Expertise
Oil and gas companies possess substantial expertise in offshore operations, engineering, and infrastructure. This knowledge can be leveraged to transition into offshore renewable energy technologies, such as wind and solar power systems. By upgrading existing offshore infrastructure, companies can reduce costs and capitalise on their existing assets and expertise. At JCE, we specialise in adapting and upgrading offshore infrastructure to incorporate renewable energy technologies, thereby helping our clients make the most of their existing investments and expertise.
Supporting Energy Transition
Both offshore solar and hybrid power systems present a significant opportunity for oil and gas companies to transition towards more sustainable energy sources. Despite the challenges, the benefits of reduced emissions, cost savings, increased reliability, regulatory compliance, and leveraging existing expertise make it a compelling option. As technology continues to advance and the push for renewable energy intensifies, offshore solar power systems are poised to play a crucial role in the future of energy production while supporting energy transition.