Charting a path to low-carbon leadership: unlocking up to 90% emissions reductions in greenfield LNG

Abstract

The liquefied natural gas (LNG) industry stands at the cusp of a transformation driven by the climate imperative. Focussing on the Middle Arm Industrial Precinct, this paper shows how carbon dioxide (CO2) emissions are being reduced in a proposed world-class LNG project by assessing, screening and selecting known technologies using a Marginal Abatement philosophy linked to key emissions drivers. (1) We propose a new breed of electrified LNG facilities that could deliver an up to 90% reduction in CO2 intensity. (2) We show that through developing strategic partnerships in upstream renewable power, hydrogen supply, and enabled downstream carbon capture and storage (CCS), the significant low carbon energy requirements of an LNG facility can be delivered. (3) We discuss a Marginal Abatement assessment strategy which ensures a pathway to viable lowest cost opportunities selected in an ‘Avoid & Mitigate’ first approach. This proposed strategy ensures that CO2 emission reduction opportunities are assessed and selected consistently to determine both a lifecycle cost ($) and volume (tons CO2e) of emission reduction. These innovative strategies collectively articulate a roadmap for a low carbon future for LNG and other heavy industrial industries, underlining Australia’s potential to become a leading provider of low-carbon natural resources.