Energy transition in Nigeria: a decarbonisation strategy for the oil and gas value chain through integrated renewable energy technologies.

Nkang, D.; Iyalla, I.; Mahon, R.; Amber, I.

Abstract

The global energy landscape is transforming and is shifting toward cleaner energy sources to mitigate the effects of climate change. As such, traditional oil and gas operators are decarbonising and diversifying their existing oil and gas portfolios while transitioning toward becoming leaders of the energy transition. This work presents a downstream oil and gas supply chain (OGSC) decarbonisation strategy for a petrol filling station in Nigeria. It applies the Technique for Order Preference by Similarity to Ideal Solution (TOPSIS) and Weighted Aggregated Sum Product Assessment (WASPAS) decision-making techniques to identify the most appropriate renewable energy source (solar, wind, geothermal, hydropower, and bioenergy) technology to be adopted and a techno-economic analysis of the selected renewable energy source. Results revealed that a Solar Photovoltaics (PV) System is the most suitable renewable energy technology to be implemented based on technical, economic, environmental, and social factors. System modelling and analysis showed that the off-grid Solar PV System consisting of a 17 kW Solar PV and a 4500 Ah battery system can provide all the electricity requirements for the petrol filling station. Financial modelling results indicate that over a 15-year period, this decarbonisation strategy will be less expensive than grid purchased electricity. Additionally, this decarbonisation strategy has a positive impact on the environment as it eliminates the need for grid purchased electricity – a significant share of which is generated from natural gas. Overall, the result of this study supports Nigeria's Nationally Determined Contributions and Energy Transition Plan as it empirically demonstrates the use of Solar PV in decarbonising the downstream OGSC while being a financially and environmentally advantageous investment – a pathway helping to achieve Nigeria's Carbon Neutrality by 2060.

Citation

NKANG, D., IYALLA, I., MAHON, R. and AMBER, I. 2024. Energy transition in Nigeria: a decarbonisation strategy for the oil and gas value chain through integrated renewable energy technologies. In Proceedings of the 2024 Society of Petroleum Engineers (SPE) Nigeria annual international conference and exhibition (NAICE 2024), 5-7 August 2024, Lagos, Nigeria. Hosted on OnePetro [online], paper number SPE-223135-MS. Available from: https://doi.org/10.2118/223135-MS

• Presentation Conference Type: Conference Paper (published)
• Conference Name: 2024 Society of Petroleum Engineers (SPE) Nigeria annual international conference and exhibition (NAICE 2024)
• Start Date: Aug 5, 2024
• End Date: Aug 7, 2024
• Acceptance Date: May 20, 2024
• Online Publication Date: Aug 5, 2024
• Publication Date: Aug 5, 2024
• Deposit Date: Sep 12, 2024
• Publicly Available Date: Oct 8, 2024
• Publisher: Society of Petroleum Engineers
• Peer Reviewed: Peer Reviewed
• Article Number: SPE-223135-MS
• ISBN: 9781959025474
• DOI: https://doi.org/10.2118/223135-MS
• Keywords: Nigeria; Investment; Government; Social responsibility; Hydropower; Matrix; Method; Energy commission; Sustainable development; Emission
• Public URL: https://rgu-repository.worktribe.com/output/2474881
• Additional Information: The files accompanying this record are the presentation slides. The published full-text paper is available to purchase from OnePetro: https://doi.org/10.2118/223135-MS