OGCI announces $1 billion investment in low emissions technologies

Nov 04 2016

The Oil and Gas Climate Initiative (OGCI) will invest $1 billion over the next ten years, to develop and accelerate the commercial deployment of low emissions technologies including CCS.

In a joint statement, the heads of the 10 oil and gas companies that comprise the OGCI said: “The creation of OGCI Climate Investments shows our collective determination to deliver technology on a large-scale that will create a step change to help tackle the climate challenge. We are personally committed to ensuring that by working with others our companies play a key role in reducing the emissions of greenhouse gases, while still providing the energy the world needs.”

Through discussions with stakeholders and detailed technical work, the OGCI has identified two initial focus areas: accelerating the deployment of carbon capture, use and storage; and reducing methane emissions from the global oil and gas industry in order to maximize the climate benefits of natural gas. The OGCI believes that these are areas where the oil and gas industry has meaningful influence and where its collaborative work can have the greatest impact.

Beyond this, OGCI CI will make investments that support improving energy and operational efficiencies in energy-intensive industries. OGCI CI will also work closely with manufacturers to increase energy efficiency in all modes of transportation.

A CEO and management team for OGCI Climate Investments will be announced in the near future. The closing of OGCI Climate Investments is subject to customary conditions including regulatory clearances as required.

The Global CCS Institute commented, "The $1 billion investment in low-emissions technologies committed by OGCI’s member companies reflects the confidence of the world’s energy leadership in carbon capture and storage to mitigate climate change." 

"Private sector investment, coupled with government support equivalent to that afforded to renewables, will fully realize the vital contribution of CCS technology to achieving the Paris Agreement’s goal of limiting global warming to 2°.  The transition to a low carbon future requires CCS, and OGCI’s financial commitment will accelerate an affordable path to its widespread deployment."

Dr. Luke Warren, Chief Executive of the CCSA, commented, “Following Norway’s recent announcement to push forward with three industrial CCS projects, as well as new projects such as the Petra Nova CCS plant in the US which is due to begin operation by the end of the year, the fund launched today by the OGCI shows that there is no lack of international interest in delivering CCS."

"This is a historical announcement by the heads of ten of the world’s largest oil and gas companies and demonstrates their commitment to reducing their carbon footprint and playing an important role in meeting the Paris Agreement."

"The world’s leading climate change experts all agree that CCS is vital to reducing emissions; the IPCC has estimated that the cost of meeting global targets without CCS would increase by almost 140%. We owe it to the world to ensure there is sufficient energy for all, whilst tackling climate change and keeping costs as low as possible”.

Global CCS Institute

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