Managing Energy Transition - Adapting Power to Gas Technology PTG - Project Management Review of Complexity, Technology and Integration Aspects

Abstract

Managing climate change is a growing global concern. The Paris Agreement, the first ever legally binding global climate change agreement, enforced longer term actions for energy firms in terms of implementing newer means and technologies to reduce reliance on fossil fuel-based energy. In this regard, much attention is drawn to commercialized Power-To-Gas (PTG) - Hydrogen generated from renewable energy-based electrolysis can be introduced into natural gas utilities, thereby ensuring "Greener" natural gas mix. The integration of PTG plants and natural gas-fired power plants presents an attractive model to implement this. This paper analyzes the associated project management challenges, ranging from complexity issues to technology management and with a view on better integration and risk reduction. Power-to-Gas (PTG) is the process of converting surplus renewable energy into hydrogen gas through electrolysis. PTG plants and natural gas-fired power plants can form a closed loop between an electric power system and an interconnected multi-energy system, and this is believed to be a sustainable solution towards environment friendly energy systems. Power-to-Gas (PTG) technology is yet to mature in terms of its commercial viability. As such, traditional project management processes and methodologies also need to be reviewed and adapted to suit the economic and execution models needed for project success. The dimensions that will be analyzed in this paper include project integration management, project complexity management, technology management and risk management strategies. A model for Joint Venture management will also be proposed. PTG projects, as an effective means of transitioning to a ‘greener’ natural gas mix and the associated project life cycle process will be defined based on an integrated FEL (iFEL) model. Project risk management perspectives, its stakeholder influences and methods to mitigate risks towards better decision-making process shall be explored. This work proposes establishment of a dedicated, technically competent and scalable Global PMO to oversee the PTG projects’ prioritization, concept/technology selection, JV management, contracting strategies, formulation of a proactive management response system and overall value assurance.