Repurposing an Offshore Oil and Gas Platform for Green Hydrogen Production: A North Sea Case Study

Abstract

Abstract Over the next decade, 100 oil and gas platforms, 2,100 North Sea wells, and 7,500 km of pipeline on the UK Continental Shelf are forecast for decommissioning with costs estimated to be £59 billion by 2050. 10% of oil and gas expenditure in the UKCS went into decommissioning in 2021, and that figure rose to 14% in 2022 and is set to rise even further to 19% in 2031. The oil and gas industry aims to reduce these costs by repurposing some of the soon-to-be decommissioned assets for renewable energy generation. This paper presents the findings of a feasibility study conducted to identify opportunities and risks associated with repurposing an offshore oil and gas platform in the North Sea for green hydrogen production. Various technical scenarios were investigated for the case study platform and their profitability was determined using economic calculations. In addition, the results of the techno-economic models were compared with standard decommissioning costs for improved decision making and recommendation purposes. The results of the study highlight the importance of considering various factors such as transmission systems, platform repurposing costs, and long-term financial implications when evaluating the techno-economic viability of different scenarios for offshore hydrogen production. Despite the initial investment for repurposing being three times the cost of decommissioning, the profitability forecast over a 20-year period using net present value analysis at a discount rate of 5% revealed that one of the scenarios holds potential economic benefits if the produced green hydrogen is sold at a price of £6.08/kg.