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The global energy transition is underway, and with it comes the critical question of what to do with existing natural gas infrastructure. Siemens Energy, a leading provider of energy technology, believes these assets aren't destined to become 'stranded' but can, in fact, play a vital role in a sustainable future. Je Jun Oh, Head of Gas Services for Asia Pacific at Siemens Energy, outlines the company's strategy to adapt and optimise gas technology to meet this challenge, particularly within the dynamic Asia Pacific region.

The Challenge of Stranded Assets

As the world moves towards renewable energy sources, there's a growing concern that substantial investments in gas-fired power plants and related infrastructure will become obsolete, leading to significant financial losses – the dreaded 'stranded asset' scenario. However, Siemens Energy argues that a premature abandonment of these assets is not only economically inefficient but also potentially counterproductive to a stable energy transition.

Repurposing and Retrofitting: The Siemens Energy Approach

“We don’t see existing gas assets as liabilities,” states Je Jun Oh. “Instead, we view them as valuable resources that can be adapted and integrated into a decarbonised energy system.” Siemens Energy’s approach centres on two key strategies: repurposing and retrofitting.

Repurposing involves transitioning gas infrastructure to support hydrogen production and transportation. Gas turbines can be adapted to burn hydrogen, either pure or blended with natural gas, significantly reducing carbon emissions. This allows existing plants to continue operating while contributing to a cleaner energy mix. The Asia Pacific region, with its growing focus on hydrogen economies, presents a particularly promising market for this approach.

Retrofitting focuses on enhancing the efficiency and reducing the emissions of existing gas plants. This includes incorporating technologies like advanced combustion systems, carbon capture and storage (CCS), and digital solutions for optimized performance. Siemens Energy's portfolio offers a range of retrofit solutions tailored to specific plant configurations and operational requirements.

Asia Pacific: A Region of Opportunity

The Asia Pacific region faces a unique set of challenges and opportunities in the energy transition. The region’s rapid economic growth and increasing energy demand necessitate a diversified energy mix, and natural gas is expected to continue playing a significant role for the foreseeable future. However, many countries in the region are also committed to reducing their carbon footprint and investing in renewable energy.

Siemens Energy sees this as a sweet spot for its technology. By enabling the efficient and low-emission operation of existing gas assets, the company can help Asia Pacific countries meet their energy needs while simultaneously progressing towards their climate goals. Furthermore, the region's burgeoning hydrogen sector presents a significant opportunity for Siemens Energy to leverage its expertise in gas technology to create a hydrogen-powered future.

Looking Ahead

Siemens Energy's vision is a future where gas infrastructure is not a relic of the past but a vital component of a sustainable energy system. By embracing innovation and collaborating with industry partners, the company is actively shaping this future, demonstrating that existing gas assets can have a long and productive life in the evolving energy landscape. The key is adaptability, and Siemens Energy is committed to providing the technology and expertise to make that adaptation a reality, particularly in the strategically important Asia Pacific market. Their approach offers a pragmatic and economically sound path toward a cleaner, more secure energy future.