Sustainable Energy Future

Our expansive energy infrastructure and midstream operating expertise position us well to play a vital role in a sustainable energy future. ONEOK's long-term business strategy includes potential renewable energy and low-carbon investment opportunities that contribute to long-term growth, profitability and business diversification.

Our assets and key market positions provide the ability to use current infrastructure for future alternative energy projects. In 2020, we created the Renewables and International Business Development Group to focus on the commercial development of renewable energy and lower-carbon projects. The leadership of this group reports directly to our chief operating officer and is actively evaluating opportunities that are designed to complement our extensive midstream assets and expertise, lower ONEOK's greenhouse gas emissions and provide platforms for sustainable future growth.

Opportunities under evaluation include the further electrification of compression assets that are currently powered by natural gas; potential carbon capture, use and storage (CCUS) opportunities; sourcing renewable energy for operations; and other longer-term opportunities such as hydrogen blending, transportation and storage.

Electrification of compression assets: Compression assets are vital to efficiently flowing natural gas through ONEOK's pipelines. We utilize a significant amount of electric-powered compression across our operations. ONEOK's natural gas gathering and processing segment compression is currently more than 60% electric, with Rockies region compression more than 90% electric. Electric-powered compressors produce no Scope 1 combustion emissions and provide opportunities to reduce ONEOK's total GHG emissions where renewable energy is available to power our compressors.

For natural gas liquids pipelines, pump stations are the equivalent of compressor stations, helping NGLs to efficiently flow through pipeline systems. In ONEOK's natural gas liquids segment, more than 95% of pump station power is electric.

CCUS opportunities: We are currently evaluating the potential for CCUS technology in North Dakota, Oklahoma, Kansas and Texas, where several of our assets are located near formations that could potentially be used for carbon storage.

Sourcing renewable energy for operations: ONEOK's existing assets and extensive operations position us to take advantage of energy produced from wind and solar. We already purchase solar energy to power a portion of our operations in Texas. In addition, we are evaluating other opportunities, such as the installation of solar panels at our processing plants, pump stations and compressor stations. Approximately 25% of our current electrical supply is sourced from renewables.

Hydrogen transportation and storage: Our existing assets and operational infrastructure also position us to participate in the potential transition to a hydrogen economy. While we believe there is a potential future opportunity for us, the technologies and markets to support a hydrogen economy are still being developed, and we are in the early stages of participating in U.S. Department of Energy-sponsored studies and exploring the scope of hydrogen opportunities.