Guyana is actively pitching selling carbon credits to states and multinational petroleum operators.
“We are having discussions with all stakeholders. We just had a meeting with the Energy Minister of Saudi Arabia and the president would have made that pitch that we have carbon credits that we could market. Very soon we are looking to start this, though the LCDS (Low Carbon Development Strategy) of course, and of course ExxonMobil will be someone we will discuss that along with all the other operators,” Minister of Natural Resources Vickram Bharrat yesterday told Stabroek News.
“I think there is allocation with most of these oil companies now in their budget to offset. So definitely we will pursue. Discussions are on but nothing agreed to as yet,” he added.
Bharrat’s posture comes following the address by Chief Executive Officer of ExxonMobil, Darren Woods, who yesterday told the Energy Conference and Expo that with the company setting aside millions towards its carbon capture plan, Guyana will be a part of it.
To achieve the company’s net-zero Scope 1 and 2 greenhouse gas emissions from its operations across the globe, Woods said that ExxonMobil is taking a comprehensive approach centred on developing emission-reduction road-maps for major operated assets.
“We’re also exploring additional lower-emission solutions for Guyana, such as carbon capture-and-storage which is aligned with the government’s sustainability objectives,” he said.
“ExxonMobil is a world leader in carbon capture-and-storage and has cumulatively captured more human-made CO2 than any other company. This technology is at the heart of our Low Carbon Solutions Business that we launched last year. This new business leverages our capabilities, technical strengths and market experience. It’s working to commercialise carbon capture-and-storage, hydrogen and biofuels, all key to reducing emissions in the economy’s hard-to-decarbonise sectors. To reduce our own emissions and expand the Low Carbon Solutions business…we’re investing more than 15 billion dollars through 2027. With supportive government policies, we can accelerate these efforts and invest even more,” he added.
According to Woods, “These actions demonstrate our commitment to help address climate change, while providing the energy and products that billions of people depend on every day.”
But while ExxonMobil boasts of clean energy solutions, the Liza Destiny which has been producing oil since December 2019 has been plagued by technical problems with its flash gas compressor system, leading to millions of cubic feet of climate-endangering gas being pumped into the atmosphere on a daily basis. These problems have not yet been resolved.
The company last week reassured that better gas compression technology will be available on the Liza Unity.
Woods pointed to the Liza Unity FPSO as an example of new technology saying that it was first vessel of its kind to achieve the American Bureau of Shipping’s recognition for sustainability for both its design and operating procedures.
“Of course, that includes our operations here in Guyana where we’re applying critical technology for reducing greenhouse gas emissions,” he also said of works being done in the area of sustainability.
The company, Woods asserted, understands Guyana’s stance on the environment and it was why it has contributed to green and conservation initiatives.
“We know that conservation is a critical priority in Guyana. And it’s certainly easy to understand when you consider the incredible beauty… and biodiversity of the world-famous rainforest, which covers more than 87 per cent of the country. That’s why the ExxonMobil Foundation last year announced a $7 million dollar donation to support the conservation work of the Iwokrama International Centre, named for the massive forest located in the heart of the Guiana Shield. The Foundation is also supporting University of Guyana scholarships to develop future leaders in conservation, sustainable development and economic diversification.
“We also share Guyana’s focus on reducing greenhouse gas emissions and advancing the energy transition. ExxonMobil is working to play a leading role in this global cause… and is committed to extending our leadership to Guyana, in support of the country’s own climate ambitions,” he added.
And echoing what he had told the company’s 4th quarter 2021 earnings call last month, he said that in 2020, they had set emission-reduction plans to be achieved by 2025. When last year’s results are finalised later this quarter, it is expected that they meet those objectives… four years early.
“This is a testament to the intense focus and hard work of our people. Our success led us to set even more aggressive plans for 2030. That should reduce our greenhouse gas intensity by 20-30% and reduce our absolute emissions by 20%, compared to 2016 levels. The experience that we gained developing these reduction plans gives us confidence for what we can ultimately achieve …and helped form the basis of our recently announced net-zero ambition.”
