Aggreko, the world-leading provider of mobile, modular power, temperature control and energy services, said Oct. 20 that it has surpassed 1GW of installed power capacity through flare gas to power projects across the world. This is enough to power one million U.K. homes every hour.
The energy industry wastes billions of cubic feet of Associated Petroleum Gas (APG) each year in a process known as gas flaring, whereby gas released during oil production is burned, releasing carbon emissions into the atmosphere and wasting energy that could otherwise be put to good use. The latest International Energy Agency (IEA) data shows that the volume of gas flared annually is equivalent to the gas demand of the continent of Africa. This results in annual CO2 emissions greater than those which are produced by Spain every year.
Aggreko’s solutions allow oil and gas operators to repurpose this gas to provide power for their operations, saving money on fuel costs and reducing their net carbon emissions. The company has now reached 1 GW of installed power capacity projects using these technologies, which has converted around 9.5 million standard cubic feet (MMscf) per mw/h of APG, with a major flare gas to power contract in the Middle East taking it over this threshold.
The IEA has called flared gas a “wasted economic opportunity”, and flare to power technologies are set to grow in popularity as companies and oil-producing nations look to cut carbon emissions. Flare-to-power schemes can help operators to avoid fines and other legislative measures that oil-producing countries are putting in place to discourage gas flaring, while allowing oil companies to set up quickly in areas where access to power could delay operations, including off-grid and remote sites.
“Flare gas to power is an incredibly exciting growth area for us, and an important way for us to help our customers use their resources in the most efficient way,” Stephen Beynon, president of power solutions at Aggreko, said. “It is also an effective method of reducing business’ net carbon emissions, and we’re proud to be helping the sector as it works to decarbonize. Crossing the threshold of 1GW of installed capacity is just the beginning for Aggreko’s ambition in this area, and we look forward to working with more operators to help them maximize the potential of this currently under-used resource.”
Last year, Aggreko called attention to the problem of gas flaring through an interactive infographic which highlighted the scope of the problem globally.
Recommended Reading
SLB Earnings Rise, But Weakened 4Q and 2025 Ahead Due to Oil Glut
2024-10-22 - SLB, like Liberty Energy, revised guidance lower for the coming months, analysts said, as oilfield service companies grapple with concerns over an oversupplied global oil market.
ConocoPhillips Hits Permian, Eagle Ford Records as Marathon Closing Nears
2024-11-01 - ConocoPhillips anticipates closing its $17.1 billion acquisition of Marathon Oil before year-end, adding assets in the Eagle Ford, the Bakken and the Permian Basin.
Woodside Reports Record Q3 Production, Narrows Guidance for 2024
2024-10-17 - Australia’s Woodside Energy reported record production of 577,000 boe/d in the third quarter of 2024, an 18% increase due to the start of the Sangomar project offshore Senegal. The Aussie company has narrowed its production guidance for 2024 as a result.
OMS Energy Files for IPO, Reports Revenue Growth
2024-11-06 - Singapore-based OMS Energy, a wellhead system manufacturer, has not yet determined its price range and number of shares.
Private Equity Gears Up for Big Opportunities
2024-10-04 - The private equity sector is having a moment in the upstream space.