Balancing APAC’s Energy Demand with Sustainable Solutions

Stewart Maxwell, Technical Director, Aquaterra Energy

Estimated read time: 9mins

Blog summary

Our Technical Director, Stewart Maxwell, explores how the Asia-Pacific (APAC) region is experiencing a surge in energy demand. This blog explores APAC’s growth and how the region is addressing its energy needs through expanding infrastructure, modular offshore technologies and carbon capture and storage. It highlights the importance of innovation, cross-border collaboration and regulatory advancements in ensuring a secure and sustainable energy future within APAC’s energy sector.

The dual challenge of APAC’s energy landscape

The APAC region’s rapid population growth, industrial expansion and economic development have propelled APAC’s energy demand to unprecedented levels, with the region projected to maintain a 50% share of global primary energy demand until 2050. But this growth is accompanied by the parallel challenge of meeting surging demand while staying committed to decarbonisation, with APAC also accounting for an expected 60% share of global carbon emissions until mid-century.

Expanding energy infrastructure to meet APAC’s growth

During my recent travels to the region, I spoke extensively with local partners and customers. From these conversations, it’s clear that significant efforts are underway to meet the energy market’s rapidly growing demand, showcasing both innovation and adaptability.

Over the next decade, APAC is expected to invest $3.3 trillion in power generation, with fossil fuels projected to retain a significant share of the energy mix. Despite the momentum in renewables, fossil fuels still account for nearly 85% of the region’s energy supply, underscoring the scale of the transition challenge.

Of course, matching APAC’s growth is also its complexity, with vast differences in infrastructure, resources and policy priorities between nations. Each country faces unique challenges shaped by its geography, industrial base and regulatory environment.

This variability is evident in energy transition strategies: while Indonesia is leveraging its 24GW geothermal potential alongside hydrogen and carbon capture, Vietnam has rapidly expanded solar and wind, with renewables making up nearly 50% of its installed power capacity in 2023.

Balancing growth with decarbonisation will require targeted investment, regulatory innovation and cross-border collaboration to ensure energy security while mitigating climate impacts. Whilst leveraging new technologies that align with both national priorities and global sustainability goals.

Unlocking APAC’s offshore potential with modular technologies

As APAC’s readily available fossil fuel reserves dwindle, the industry is shifting its focus to smaller, more complex resources. This transition requires moving beyond conventional approaches and adopting flexible, modular technologies – such as conductor-supported platforms, advanced drilling systems and enhanced riser designs – that make these challenging reserves both technically and economically feasible.

Take the shallow waters of Bohai Bay in the Gulf of China. With predominantly shallow depths, conventional infrastructure like semi-submersibles are impractical for developments in the field. Instead, modular solutions such as the Sea Swift platform, which can be installed directly from jack-up rigs, offer an efficient and safe alternative. By reducing the need for heavy-lift vessels, these platforms lower costs and improve project timelines while maintaining rigorous safety standards.

In markets like China and Japan, technologies such as subsea drilling from jack-up rigs are also gaining momentum for similar regions. While established in other regions, these innovations mark new ground for these countries, enhancing both operational efficiency and the potential to tap into previously economically infeasible fields, while reducing environmental impact.

By embracing these advanced technologies, the APAC region is positioning itself to efficiently develop remaining hydrocarbon resources, while addressing economic and environmental challenges inherent in offshore oil and gas production.

Carbon capture and storage – APAC’s decarbonisation catalyst

Since 2000, APAC’s energy emissions have risen by 151%, underscoring the need for decarbonisation solutions. Carbon capture and storage (CCS) is emerging as a critical piece of this puzzle.

With around 200 offshore fields in Southeast Asia expected to cease production by 2030, these could present an opportunity for repurposing as CCS, or even hydrogen, storage facilities which could increase APAC’s renewable energy development.

Malaysia is already moving in this direction, with Petronas identifying significant storage potential in depleted gas reservoirs offshore Peninsular Malaysia and Sarawak, with over 46 trillion cubic feet available. To capitalise on these opportunities, ExxonMobil and Petronas are collaborating to assess CO₂ storage sites and establish viable commercial frameworks.

Similarly, Indonesia has vast offshore storage potential and the country has approved CCS projects involving bp, INPEX and Repsol, signalling its readiness while also forging international relationships to accelerate deployment.

However, scaling up CCS comes with technical challenges, particularly ensuring the integrity of legacy well formations to prevent CO₂ leakage. Advanced well intervention technologies, like Aquaterra Energy’s Recoverable Abandonment Frame are pioneering cost-effective solutions to support the efficient re-entry of these wells, to establish an environmental and pressure-retaining barrier, ensuring safe re-abandonment and readiness for their long-term viability for carbon storage.

Equally important is ensuring that once CO₂ is stored, it remains securely in place, particularly in a region which is known for being geologically active. Advanced monitoring technologies such as our CO₂ monitoring platform can provide continuous, remote oversight of storage sites post-injection, detecting potential leaks or seismic activity throughout the lifecycle of a project. These innovations provide, long-term assurances that stored carbon stays safely in place.

Balancing energy security and decarbonisation in APAC

Having travelled extensively across the APAC region, I’ve had the opportunity to visit key energy hubs, explore diverse markets and engage in conversations with local industry leaders. This has allowed me to see firsthand the scale of the APAC energy challenge and the determination to meet it. From the rapid expansion of LNG infrastructure in China to Indonesia’s ambitious push for carbon capture, each country is navigating its own path, but a common theme emerges: the urgent need for balance between energy security and decarbonisation.

What’s clear is that success will require a collaborative approach that can bridge the gap between conventional and renewable energy. Having worked in offshore energy for years, I know that progress isn’t always linear, but the ambition and delivery capabilities I’ve seen across APAC are an excellent reason to be optimistic.

Aquaterra Energy stands ready to support the full spectrum of APAC energy opportunities. With expertise spanning late life solutions, offshore wind, CCS and hydrogen, we are committed to delivering innovative solutions that drive the energy transition.

Key takeaways: 

1. What is driving APAC’s growing energy demand?
   APAC’s rapid industrialisation and population growth have led to a surge in energy consumption. The region is projected to account for 50% of global primary energy demand and 60% of global carbon emissions until 2050.
2. How is APAC expanding its energy infrastructure?
   While renewable energy is gaining traction, fossil fuels still dominate APAC’s energy mix. Countries like Indonesia and Vietnam are implementing diverse strategies, including geothermal, hydrogen and offshore wind, to meet their energy needs.
3. What role do modular offshore technologies play in APAC’s energy transition?
   With easily accessible fossil fuel reserves depleting, APAC is adopting flexible and modular solutions, such as conductor-supported platforms and subsea drilling, to develop smaller and more complex oil and gas resources efficiently.
4. How is carbon capture and storage (CCS) shaping APAC’s decarbonisation efforts?
   CCS is emerging as a crucial technology for reducing emissions. Countries like Malaysia and Indonesia are repurposing depleted offshore fields for CO₂ storage, leveraging advanced well intervention and monitoring technologies to ensure safe, long-term containment.

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