The Methane Dilemma: Climate Risk and Energy Opportunity in Ghana

Ghana's thermal power plants, largely fueled by natural gas, are facing a critical challenge as methane emissions rise, posing a significant threat to climate action and energy security. Despite the country's growing reliance on gas and efforts to secure a stable and affordable energy source, methane emissions have increased by about 260 percent between 1990 and 2022. This surge in emissions not only contributes to climate change but also impacts air quality, respiratory health, and agricultural productivity. As Ghana seeks to balance climate action and energy development, addressing methane emissions and leveraging gas commercialization offers a dual advantage: environmental protection and enhanced energy security.

Key Takeaways:

• Methane emissions in Ghana have increased by about 260 percent between 1990 and 2022, mainly driven by developments in the energy and waste sectors.
• Methane plays a significant role in Ghana's energy system, powering the majority of the country's thermal generation capacity, and its efficient management is crucial for ensuring energy reliability and economic resilience.
• Ghana's experience in transitioning from liquid fuels to natural gas, coupled with the development of the Gas Master Plan and the National Climate Change Policy, provides valuable lessons for effective gas commercialization and methane reduction.
• The Atuabo Gas Processing Plant, established in 2014, has processed an average of 72 million standard cubic feet per day and has contributed significantly to reducing routine gas flaring in the country.
• However, the limited capacity of the existing Atuabo plant constrains Ghana's ability to fully commercialize increasing gas volumes from the Jubilee and TEN fields, resulting in the flaring of substantial quantities of gas that could otherwise support domestic power generation.
• The impact of gas flaring on energy security is significant, with the country requiring approximately US$1.2 billion in 2025 to procure liquid fuels to meet power generation needs.
• Investing in expanded gas processing capacity is crucial for Ghana to reduce methane emissions, optimize its domestic energy resources, and save significant fiscal resources currently spent on expensive liquid fuels.

Statistics:

• Methane emissions in Ghana increased by about 260 percent between 1990 and 2022.
• The Atuabo Gas Processing Plant processed an average of 72 million standard cubic feet per day in 2015.
• The percentage of flared gas relative to total natural gas production declined from an average of 38.6 percent before 2014 to 13 percent by 2018.
• Between 2020 and 2024, approximately 102 billion cubic feet (bcf) of gas were flared from the Jubilee and TEN fields.
• The 2025 Energy Supply Plan projected a demand of approximately 544 mmscfd of gas, but actual availability is about 415 mmscfd, exposing a substantial supply gap.

Sources:

• The Business and Financial Times
• Africa Centre for Energy Policy (ACEP)
• Clean Air Task Force (CATF)
• The Lemelson Foundation
• Environmental Protection Agency (EPA)
• Public Interest and Accountability Committee (PIAC)
• Government of Ghana
• Volta River Authority (VRA)
• Abu Dhabi National Energy Company PJSC (TAQA)