Fossil Fuels to Green Hydrogen: A Paradigm Shift? An Examination of Capital Project Management Perspectives in the Post-Pandemic Era

Abstract

Abstract OBJECTIVE/SCOPE Hydrogen based economy is real? Are the oil producers being pressurized to curtail greenhouse gas emissions? While several organizations are revisiting its means to shift the business basics from fossil to hydrogen, there are several questions to be answered. Terms such as "hydrogen", "wind" and "solar" are getting more popular in the project management dictionary. In addition, the post pandemic era could be of greater challenge, especially for managing mega projects. A fundamental realignment in project management discipline is inevitable. While managing the transition, the project management functions also require a better "redefinition" in line with such paradigm shift. This paper investigates the project management changes and challenges from a large, Joint Ventured project context, in the post pandemic era in terms of redefining better project success. METHODS, PROCEDURES, PROCESS The Paris Agreement, the international treaty on climate change, is litigating the need for adopting low carbon energy sources; its longer term impacts will be studied. The transition of energy basics to hydrogen, which is imminent, to be treated as very fundamental, its implications from project complexity management aspects will be investigated. Technological maturity and economical feasibility along with its stakeholder's influences will be reviewed. The high level interface aspects from technology integration viewpoints will be analyzed. Project Human Resource Management challenges will be evaluated. Second change driver is the impacts of Covid-19, which has several lessons to be investigated and captured from project management perspectives. Improvisation of risk management practices during post pandemic period will be documented as part of project execution strategies. Key aspects such as contracting, procurement and supply chain strategies will be evaluated as an effective methodology for risk reduction. RESULTS, OBSERVATIONS, CONCLUSIONS The fundamental changes in oil based capital project management will be elaborated based on two critical change drivers. Project configuration, integration and risk management perspectives will be analyzed from decision marker's view points. The considerations of additional critical success factors from capital project management will be defined. Project Definition Parameters defined through integrated Front End Loading, iFEL will be elaborated. Project decision model and leadership model from PMO perspective will be detailed. An overall strategy for changed conditions beyond project triple constraints will be outlined. NOVEL/ADDITIVE INFORMATION The strategic redefinition of project management functions and its implementation aspects will be administered through a competent Project Management Office (PMO) function. Authors identify the PMO's leading roles from a change management perspective while implementing capital projects.