Technology Demonstration Project

Technology demonstration and evaluation for the recovery of hydrocarbon liquids
Ongoing
started:
2015

The project seeks to recover high value and readily condensable liquids from vented or flared volatile organic compound (VOC) rich associated gas. The recovered liquids could be integrated into the existing liquids production and processing infrastructure and add potentially significant revenues and profits while measurably and verifiably reducing emissions of  short-lived climate pollutants (SCLPs), most notably black carbon and methane.

The project’s activities and associated information platform are designed to create lasting institutional capacity for awareness raising, capacity building, knowledge exchange, networking of sector actors and the development of a public and private infrastructure to enable catalytic change within the oil and gas sector in a manner that supports the continuous commitment to long-term emission reduction goals.

The project also supports scaling-up the commercial deployment and dissemination of emerging leading-edge technologies for hydrocarbon liquid recovery that would otherwise not be exploited due to the use of conventional equipment and a limited understanding of the field.

In addition, the project furthers the increased dissemination of knowledge regarding the emergence of increasingly cost-effective and scalable technologies for hydrocarbon liquid recovery at smaller operational nodes in the upstream production industry, where economically recoverable volumes of readily condensable liquid hydrocarbon commodities were not previously considered to exist.

A significant component of the demonstration phase of this project will involve addressing opportunities to cost-effectively reduce SLCP emissions, deploy liquid recovery technologies and emerging technologies to quantify the reduced SLCP emissions resulting from implementation, and apply rigorous petroleum accounting and economics practices to verify all costs and payback periods.

Approach

Technology and practice demonstrations at selected PEMEX and Ecopetrol facilities, carried out within the framework of the United Nations Framework Convention on Climate Change’s (UNFCCC) Nationally Appropriate Mitigation Actions (NAMA), produced mitigation and business plans that identified significant opportunities to reduce emissions by recovering high-value liquids from flare streams and avoiding millions of dollars in annual energy and production losses from these facilities.

The NAMA project’s approach to SLCP reduction activities in the oil and gas sector is an example of how public-private cooperation can improve the diffusion of existing technologies and introduce new technologies that could bolster existing efforts on near-term climate change and related public health, food and energy security, and environmental issues.

The projected reductions in SLCPs emissions have the potential to realize significant and measureable environmental, health and social co-benefits, which support the CCAC’s role as a transformative catalyst of change in the oil and gas sector.

Objectives

The Technology Demonstration Component seeks to work collaboratively with key public and private sector stakeholders to reduce methane and black carbon emissions from venting, leakage, and flaring of natural gas from operations worldwide by developing an increased regional capacity for SLCP reductions as well as working in partnership with the private sector.

The Technology Demonstration Component outlines a programme to measure and monitor the implementation of innovative technologies as well as emission mapping and visualization exercises that demonstrate, in a practical manner, that SLCPs could be minimized or eliminated with the implementation of a systemic approach that both decreases emissions and significantly lowers production costs.

The projected reductions in SLCPs emissions have the potential to realize significant and measureable environmental, health and social co-benefits, thus supporting transformative catalyst change in the oil and gas sector and filling a gap that is not currently addressed by international clean energy partnerships.

What CCAC is doing

The first round of projects from the CCAC Oil and Gas Initiative’s Technology Development Component noted that private sector companies attempting to scale-up their efforts to reduce SLCPs such as black carbon and methane face challenges in trying to emphasize energy efficiency in the production process in a manner that is reliable, affordable and supports emission reduction goals and objectives. 

In other words, one of the main barriers for the sector is to successfully demonstrate the net financial benefits derived from implementing technologies that would provide the highest practical level black carbon reductions achievable through short-term measures that either generate additional revenues or are self-sustaining.

The Technology Demonstration Component is also continuing to work with oil and gas companies to address the sector’s market barriers through sustainable medium to long-term financing approaches and strategies such as issuing green bonds based on verified Monitoring, Reporting and Verification (MRV) project data that has substantiated significant financial returns for capital investments in emission reductions.

Results

Since 2014, Coalition partners have implemented activities in three key areas:

  • Technology Demonstrations (Asia, Africa and Latin America): working with partner companies and countries on opportunities to reduce or eliminate the venting and fugitive leakage of VOC rich natural gas, and black carbon emissions from otherwise vented or flared VOC rich natural gas streams.
  • Business Cases (Asia, Africa and Latin America): developing economically sound and competitive business cases for the implementation of technologies and practices to recover methane and readily condensable volatile hydrocarbon liquids and reduce associated SLCP emissions.
  • Measurement and Reporting (Asia, Africa and Latin America): verifying increased hydrocarbon production and reduction to atmospheric emissions of methane, VOC and black carbon.

Who's involved

Lead Partner: A Coalition partner with an active role in coordinating, monitoring and guiding the work of an initiative.

Implementer: A Coalition partner or actor receiving Coalition funds to implement an activity or initiative.

Got it

Partners (8)

Resources & tools

2015 | Reports, Case Studies & Assessments
Clearstone Engineering Ltd.

This document presents a report on the technical workshop conducted in China (i.e., the final workshop). The purpose of the workshop was to demonstrate a measurement technology, the plume transect...

2015 | Guidelines, Tools & Platforms
Clearstone Engineering Ltd.

This document defines the course of action that has been taken to progressively work towards achieving real reductions in emissions of short lived climate pollutants at oil and gas facilities in...

2017 | Reports, Case Studies & Assessments
Cambridge, H.; Stockholm Environment Institute (SEI); Climate and Clean Air Coalition (CCAC)

The following report describes the technical development of a web platform for visualising global flaring activity. Flaring of associated gas by the oil and gas industry is still a major...

2016 | Reports, Case Studies & Assessments
Cambridge, H.; Stockholm Environment Institute (SEI); Climate & Clean Air Coalition (CCAC)

This report outlines the data needs, modelling and scenario development undertaken using the Long range Energy Alternatives Planning (LEAP) system with Integrated Benefits Calculator (LEAP-IBC) in...

Activity contact

Philip Swanson,
Oil & Gas Initiative coordinator
Philip.Swanson [at] un.org

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