To address the challenge of limiting global warming to 1.5°C, the oil and gas sector must evolve from reactive observers to active participants in the energy transition.
The ambition to limit global warming to 1.5°C is sliding out of reach. Even if it remains below 2°C, annual global emissions will need to drop to another 15-20 GT by 2050. One serious consideration is the integration of oil and gas assets with pressurized oxygen fuel (POF) generation to create economically viable low-emission energy systems.
Trigen Energy proposes a two-stage roadmap to decarbonisation of mature oil and gas assets while maintaining energy security and commercial returns.
Phase 1: Profitable decarbonization of mature assets (2025-2040)
Trigen’s short-term strategy focuses on using POF technology to build integrated carbon capture, utilization, and storage (CCUS) value chains. This includes redeveloping low-quality gas fields to fuel and fuel POF plants that generate clean, dispatchable electricity. The CO released from these plants is used to enhance oil recovery with residual gases that are permanently stored in depleted reservoirs.
This integrated approach would look like this:
Carbon avoidance of up to 50% at the value chain level increases oil production by up to 20%, filling commercially attractive projects with diverse asset types and regions
CO₂-EOR is a method that has been established in the US, accounting for around 180,000 barrels per day. CO₂ storage requires only modest changes to field operations, indicating minimal technical risk. Cost-effective capture of CO2, the main barrier, can be addressed with POF.
POF burns hydrocarbons with pure oxygen, producing only steam and CO2, making it easy to separate without complicated chemical processes. The system can also produce marketable by-products such as nitrogen, high purity water and argon while treating contaminated low-quality gases. Integrating these outputs with oil field operations will improve both project viability and efficiency.
The generated clean electricity is flexible and dispatchable, important in a grid with a large number of intermittent renewable energy stocks, and usually orders premium pricing. Operators benefit from reducing scope 1 emissions and lower operating costs. If clean power usage is not prioritized, stored CO₂ can be monetized through carbon credits or “blue barrels” sales. Lifecycle emissions are captured in advance, contributing to the reduction of Scope 3 emissions.
Trigen has conducted over 20 feasibility studies worldwide. The results show that typical projects designed to avoid around 800,000 tonnes of CO2 and provide 150 MW of clean power are financially competitive and often outweigh renewable renewables in terms of costs per tonne of CO ($30-60/ton). Perhaps more importantly, these projects will utilize existing infrastructure and organizational capabilities to lay the foundation for further decarbonization.
Phase 2: Complete conversion to clean power (2040-2050)
The second phase envisages a transition from oil and gas production for combustion to using hydrocarbons only as raw materials for POF-based clean power generation. In this model, CO₂ is reinjected into the same reservoir where the hydrocarbons were extracted, completing a closed-loop circular system.
This dual-phase approach provides a realistic route to long-term decarbonization for the oil and gas industry. It opens new opportunities for value creation that aligns with net-zero goals while retaining the core competencies of the sector.
If deployed on a large scale, this model can avoid CO2 up to 5 GTs per year by 2050. Recognizing this vision requires the construction of 4,000-5,000 integrated POF-CCUS facilities, supported by approximately $250 billion in annual investment. Ambitious, this investment is comparable to the global aviation industry and is technically feasible.
Towards a new operating license for oil and gas producers
The momentum behind the CCU is built. Regulatory trends such as the emergence of mandatory Range 3 tracking and the “carbon take-away obligation” reflect an increased expectation for oil and gas producers to address emissions across the full value chain. Public and investor acceptance of carbon management solutions is also increasing.
Trigen’s model presents a practical short-term strategy to reduce emissions while maintaining economic viability. Use existing assets, infrastructure and expertise to help operators meet both the environment and shareholder expectations.
This is no longer a theoretical exercise. Trigen is currently working with several (national) oil companies to develop and implement first-generation POF projects. The necessary technology has been proven. The business case is healthy. The timing is urgent.
The current challenge is to reconfigure oil and gas as a clean energy delivery platform, part of a wider system that balances environmental responsibility, energy security and affordability. When done correctly, this will ensure that sectors are licensed to operate in the world of decarbonization.
To learn more or explore collaboration opportunities, contact Trigen Energy.
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