Majors' Climate Fund Invests in Low Carbon Projects
The $1bn Oil and Gas Climate Initiative (OGCI) has made its first three investments which have the potential to make a "meaningful impact on greenhouse gas emissions," CEO Pratima Rangarajan said October 27.
One of them aims to "design a full scale gas power plant with carbon capture and storage, including industrial CO2 sequestration capability. OGCI Climate Investments will work with the project team on a commercially viable concept and basic engineering design that can receive government support and attract private sector investors."
It gave no further details in the statement, such as the country or the means of carbon storage. But the implication is that, without some kind of capacity mechanism or carbon price floor, investment might not be forthcoming.
The other two investments are in US companies. One has patented technology that uses CO2 in concrete manufacturing instead of water (Solidia); and the other is working on more efficient piston-engines for vehicles (Achates).
OGCI also released its third annual report that day, saying it "shows the progress made towards tackling some of the industry’s biggest challenges and shares new partnership agreements that support OGCI’s ambitions."
OGCI is aiming at lower-carbon, not zero-carbon, emissions: "We are also committed to ensure that natural gas continues to deliver its clear climate and clean air benefit compared to coal,” it said. The report can be found here: www.oilandgasclimateinitiative.com/newsroom/
William Powell