Energy Now - Feb 2021

Opinion | Mark Loquan

Opinion | Melanie Richards Page 15 Impactmatters

Towardsacleanerfuture-anewagendaforthe NGCGroup Page 14

A publication of the Energy Chamber of Trinidad and Tobago Issue 35 February 2021 • Free Copy

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NewGen hydrogen project update ONE year ago, NewGen Energy Limited (NewGen) was publicly launched at the Trinidad and Tobago Energy Conference, hosted by the Energy Chamber of T&T.

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New Fortress Energy to acquire Hygo Energy Transition Ltd. and Golar LNG Partners LP in combined $5B transaction

New Fortress Energy Inc announced that it has entered into definitive agreements to acquire Hygo Energy Transition Ltd. (“Hygo”), a 50-50 joint venture between Golar LNG Limited (“GLNG”) and Stonepeak Infrastructure Fund II Cayman (G) Ltd....

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Maersk Drilling awarded two Suriname floater contracts by Total Based on the previously announced Conditional Letter of Award, Maersk Drilling has been awarded contracts for the deepwater rigs ...

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Doing the obvious Philip Julien, Managing Director, NewGen

NEWGEN HYDROGEN PROJECT UPDATE

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ENCOURAGING RESULTS FROM PREDATOR CO2 ENHANCED OIL RECOVERY PILOT

DNV GL CHANGES NAME TO DNV AS IT GEARS UP FOR DECADE OF TRANSFORMATION GETTING TO NET ZERO NEWS

OPINION

EFFICIENCY

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ENERGY DATA page 19

INTERNATIONAL NEWS page 20

At most major Energy Chamber conferences, I find that there is one simple phrase that really sticks with me and I end up thinking about a lot in the days and weeks after the event. At the 2021 Energy Efficiency and Renewables Conference it was a simple statement from Prof. Avinash Persaud, advisor to the Prime Minister of Barbados, who reminded us all that “just because something is obvious, does not mean it will happen”.

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| February 2021

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NewGen hydrogen project update Staff Writer | Energy Chamber NewGen, headed by Philip Julien, promises to be the first hydrogen production facility in Trinidad and the first green field facility in Pt Lisas in many years.

Since then, the company has gained significant momentum, and has been riding the wave of interest in hydrogen production around the world.

In June 2020, during the Energy Chamber’s Energy Efficiency and Renewables Conference, NewGen announced that they were securing seed funding from local investors. This led to the subsequent award and completion of a detailed bankable feasibility study which was carried out

by IO Consulting. IO’s parent companies, Baker Hughes and McDermott have long been involved in the energy sector in T&T. According to Julien, the study not only confirmed the technical viability of the project, but it also defined a band of capital expenditure and operational cost window that is achievable.

He added that “All the pieces are there to allow us to proceed at pace with the project. We will award Pre-FEED work in the next few months and, on the back of that, we intend to move into FEED in the second half of the year.

Julien also indicated that as a result of the feasibility study they were currently engaging with the top tiers of electrolyzer suppliers in the world. He said that “The level of attention that the electrolyzer suppliers are placing on the T&T market is very telling – there is genuine interest”.

NewGen already has a MOU with Tringen in

relation to securing their off-take of the hydrogen from NewGen. This opens up the possibility of producing carbon neutral and green ammonia.

The nameplate hydrogen off-take supply capability is in the order of approximately 27,000 metric tonnes per year.

Acknowledging that while there remained a number of items to be fully lined up, such as finalizing financing arrangements, Julien still believes that the production of carbon neutral and green hydrogen from NewGen can begin in 2024.

Julien also indicated that everything that NewGen does will be aspiring to be ‘green’ (low carbon) in nature. As such he said that NewGen will be encouraging local service providers in the supply chain to start giving some thought as to how they would green their offering for the project. “The intent is for NewGen’s entire project lifecycle - from concept to construction and operation - will be green in its make up.”

Kenesjay Systems, NewGen’s founding company has established a new affiliate company called Kenesjay Green Ltd (www.kenesjaygreen. com) according to Julien. He said the new company will be focused on transforming and decarbonizing existing industrial facilities. The new company will seek to optimize make up and operation of those facilities to embrace and be part of the energy transition.

Julien said that “Kenesjay Green will be in service of helping the country, region and the world to transition into this greener space, either through the greening of brownfield projects or the enhancing of greenfield projects. We will do this in a partnership approach with the local public and private sector as appropriate.”

(continued)

Julien said that NewGen is “Project One” of a portfolio of projects that are being developed

by Kenesjay Green to support the green agenda, and that NewGen is locally owned by Kenesjay Green. Julien committed to providing more details about Kenesjay Green at the Trinidad and Tobago Energy Conference 2021 being hosted by the Energy Chamber of Trinidad and Tobago later this year in June.

Speaking at the Energy Efficiency and Renewables Conference 2021, NewGen Managing Director, Philip Julien announced a new partnership with Fisterra Energy and Kenesjay Green to pursue the development of the NewGen project.

Headquartered in Spain, Fisterra brings over 20 years of technical expertise in successfully developing, constructing, and operating over 30GW of conventional and renewable energy projects in Europe and Latin America. Fisterra is a portfolio company of funds managed by Blackstone Energy Partners, a part of the global investment firm, Blackstone.

In a press release, Fisterra indicated that over the coming months, the companies will work together to finalise the technical and commercial arrangements for the carbon neutral & green hydrogen plant to be located at Tringen’s ammonia facilities. Upon successful execution of the project agreements, the parties currently anticipate first hydrogen production by December 2023.

Addressing the new partnership, Pedro Barriuso, Fisterra’s CEO said, “Fisterra believes that the NewGen project offers an exciting opportunity to demonstrate the viability of Hydrogen as a key contributor to solutions in

global energy transition. We are confident that Trinidad and Tobago’s long pioneering legacy in hydrocarbon-based industrialisation offers the necessary capabilities and enabling conditions to make this project a success. Kenesjay Green’s deep understanding of the local business context and natural gas energy experience will complement our own significant expertise in managing and financing large scale power projects.”

Philip Julien, Chairman of Kenesjay Green Limited and Managing Director of NewGen, recognised the involvement of Fisterra as an important achievement, stating that, “the interest of a global investor such as Fisterra affirms our belief in hydrogen’s role in the decarbonisation of the energy mix. Partnering with Fisterra allows us to further deliver on our objective of maintaining Trinidad & Tobago’s competitiveness in the Petrochemical Sector while reducing our global carbon footprint. With Tringen identified as our first intended customer in Point Lisas, the onboarding of this high-quality investor with experience in renewable projects reinforces our ability to bring the NewGen project to fruition on schedule. This partnership is further proof that the local energy sector remains fertile ground for world leading investments and serves the national efforts at reducing carbon emissions.”

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BHP Ruby Project: 62% complete – on schedule and budget Staff Writer | Energy Chamber BHP announced in its operational review that the Ruby project in Trinidad is on schedule and budget.

The Ruby project is intended to be five production wells tied back into existing operated processing facilities, with capacity to produce up to 16,000 gross barrels of oil per day and 80 million gross standard cubic feet of natural gas per day.

The project will bring relief to the decline in oil production in T&T. The latest data from the Ministry of Energy and Energy Industries, states that national production in T&T is just over 56,000 barrels of oil per day.

BHP has indicated that the Ruby project is now 62% complete.

The project is expected to be completed in CY21.

The capital expenditure on the Ruby project is Deepwater Invictus which carried out the BHP’s deepwater campaign

expected to be US$283m (approximately TT$1.8b ) Deepwater Update In the operational review, the company has confirmed that the drilling of the Broadside well drilled in late 2020 was a dry hole. BHP indicated that the exploration well in the Southern Licence reached the main reservoir on 22 October 2020 and did not encounter hydrocarbons. The well was a dry hole and was plugged and abandoned on 8 November 2020.

The results are under evaluation to determine next steps on the Southern Licences.

The well was drilled by the Transocean Deepwater Invictus.

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Encouraging results from Predator CO2 enhanced oil recovery pilot Staff Writer | Energy Chamber

PREDATOR Oil & Gas Holdings Plc (Predator), the Jersey-based Oil and Gas Company with operations in Trinidad, Morocco and Ireland, announced the results of its Pilot CO2 EOR Project in the InnissTrinity field onshore Trinidad.

According to Predator, the Pilot CO2 EOR programme is designed to demonstrate safe injection of anthropogenic CO2 ; to allow for sufficient lag time postinjection for reservoir pressure to stabilise; to collect oil viscosity data; and to use the results to evaluate and calibrate the pre-injection desk-top production forecast and the CO2 EOR commercial model. Pilot CO2 EOR is focussed on a single reservoir sand of the five producing Herrera reservoirs in the Inniss-Trinity Field, the Herrera #2 Sand, and a part of the field, the "AT-4 Block", representing approximately 10% of the total area potentially available for CO2 EOR injection.

The objectives of the Pilot CO2 EOR have been successfully achieved, despite the unforeseen COVID-19 pandemic; electrical power outages influencing the efficiency of the Inniss-Trinity field operations, the understandable regulatory delays

due equally to COVID-19 and the introduction of a new CO2 EOR operating system being employed for the first time in Trinidad at the Inniss-Trinity field, the requirement for flexible operations to find solutions to overcome well integrity issues in some of the wells in the AT-4 Block that were drilled over 60 years ago, and the increasing competition for workover rig time.

During the period of the Pilot CO2 EOR operations, the commercial model has been strengthened by optimising operating costs, the rise in WTI oil price from US$30.74/brl on 18 May 2020 to US$53.02/brl on 15 January 2021, and the increased threshold to US$75/brl before Supplementary Petroleum Profit Tax is applied to operating profits.

During the period 18 May 2020 to 7 January 2021, 443.58 metric tonnes of CO2 was injected over a planned cumulative period of 45 days. This represents 2% of the pre-Pilot desktop volume estimated to be required to recover 459,000 barrels of oil from the Herrera #2 Sand over the five year life of a full-scale CO2 EOR operation in the AT-4 Block.

According to Predator, the pre-Pilot CO2 EOR

success has de-risked CO2 EOR in Trinidad and has provided the commercial, environmental and technical model for future projects.

Capitalising upon this proven, fully integrated, working business model, expertise, and the exclusivity of liquid CO2 supply by introducing a fee-paying and profits-sharing service under the commercial model established by the company for Inniss-Trinity CO2 EOR, is now a practical near-term objective of the company. Five in-country operators and two international State oil companies have made initial exploratory approaches to assess suitability of CO2 EOR for some of their producing, mature, oil field assets.

The company added that enhanced oil recovery is likely to become a key component of work programme commitments required to extend Incremental Production Service Contracts. The successful CO2 EOR Pilot has demonstrated a practical and potentially more efficient alternative to waterflood and has established the Company as the leading services provider for mobile CO2 injection for enhanced oil recovery. The successful development of the CO2 EOR business in Trinidad

allows the business to be valued on the basis of its assets, invested project costs, existing contracts, goodwill and CO2 EOR operational experience.

The company’s CEO, Paul Griffiths said, "The excellent results from the Pilot CO2 EOR project, despite a challenging operational environment due to COVID-19, has derisked the case for CO2 EOR and established the company as the ground-breaking leader in CO2 EOR expertise and delivery onshore Trinidad and within the wider Caribbean region.

Results more than just support pre-Pilot CO2 EOR forecasts and create a solid foundation for expanding production growth over the next twelve months.

Expanding our successful CO2 EOR business can be achieved by increasing production revenues and also by offering fee-paying services to other operators with profit-sharing entitlements."

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NGC signs MoU with Orbital Eye to monitor GHGs Staff Writer | Energy Chamber IT is not business as usual at NGC as the company seeks innovative ways to institute its Green Agenda through not only the way it operates, but through strategic partnerships.

The company signed an agreement with Orbital Eye B.V. to conduct research, via satellite data, and monitor greenhouse gas (GHG) and methane (CH4) emissions, both locally and regionally. Orbital Eye B.V., headquartered in Delft, is a technology solutions provider that monitors critical oil and gas infrastructure using unique technologies.

According to NGC, the MOU which spans three

years, activates the following: (a) Research and development of solutions to measure and monitor GHG and CH4 emissions using satellite and other data for Trinidad & Tobago’s industrial assets, with the option to expand regionally; (b) Promotion of further cooperation between the signatories in GHG and CH4 emissions measurement research; (c) Exchange of information on GHG and CH4 emissions measurement technologies, research, and strategies.

Erik Zoutman, Director at Orbital Eye B.V. noted that, “Methane is the primary component of natural gas and has 84 times more impact on climate change than CO2. Because it is so potent, addressing

methane is a fast and very effective way to slow the rate of climate change. We are excited to work with NGC to use satellite imagery to prevent gas pipeline leakages from happening and to monitor local methane emissions.”

NGC’s President Mark Loquan emphatically acknowledged the crucial role NGC can play in reducing CH4 emissions locally. He referenced the recently signed Climate Change Mitigation MOU with The University of Trinidad and Tobago (UTT) which “…provides The NGC Group members with the means to expand its ‘Green Agenda’ by validating the GHG emissions inventory for natural gas.”

Trinidad and Tobago committed, under the Paris

Climate Agreement, to reduce carbon dioxide (CO2) emissions by 15% by the year 2030. Mr. Loquan also stated that “… partnerships such as these, are critical in helping this country to deviate from the existing climate change trajectory. As a diversified state entity, climate change, energy efficiency, and renewable energy have been at the forefront of our business model transformation for the past five-plus years and we are positioning NGC to assist in the attainment of this national target.”

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CDM fix hands lifeline to offset projects worldwide Staff Writer | Energy Chamber THE International Emissions Trading Association (IETA) has indicated that it welcomes the decision by the Executive Board of the Clean Development Mechanism to temporarily extend CDM operations past the end of 2020. This means that projects can continue to operate while negotiators complete the rulebook for Article 6 of the Paris Climate Agreement and decide on the future of the CDM at COP26 in Glasgow next year.

Dirk Forrister, President and CEO of IETA said, “The decision offers a lifeline to CDM offset projects around the world.” In addition he said, “It brings a degree of clarity that will enable the continued flow of finance to greenhouse gas reduction projects in the world’s largest crediting system.”

IETA and other business observer groups have called repeatedly on UNFCCC negotiators to resolve CDM transition issues as part of the decisions on a rulebook for trading provisions of the Paris Climate Agreement.

But Article 6 negotiations stalled at COP25 in Madrid last year, adding pressure for resolution at COP26 in Glasgow this year.

However, the postponement of COP26 due to the Covid-19 pandemic left international negotiators with no opportunity to resolve the issue before the end of the second commitment period under the Kyoto Protocol on December 31, 2020.

A dispute arose when three CDM Executive Board members asked for a review of the issue as part of their consideration of requests for extensions of crediting periods for several operating projects.

This review process exacerbated uncertainties on the future of the CDM. The dispute threatened the continuation of operating projects and Programmes of Activities (PoAs), which could have led to project suspensions and investment cancellations worth tens of millions of dollars across the public and private sectors.

IETA, together with several other stakeholders, urged the CDM Executive Board to provide clarity on this issue and to take the necessary interim measures to ensure that, at a minimum, CDM projects and PoAs can continue to operate and issue CERs until a decision is taken on the issue at COP26.

The decision by the Board means that cleanenergy projects in developing and emerging economies can continue to earn UN-sanctioned offsets by reducing emissions after the Kyoto

Protocol’s commitment period ends on 31 December, pending a formal decision at COP26.

While the temporary fix is not perfect, as it still leaves uncertainty until a decision is taken at COP26, it probably is the best outcome we could have hoped for, considering the limits of CDM EB powers and the current challenges, said Stefano De Clara, IETA’s director of international policy.

“We want to thank the CDM EB Chair, EB members and the Secretariat for their hard work on this issue and we want to congratulate them on this outcome”.

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DNV GL changes name to DNV as it gears up for decade of transformation Staff Writer | Energy Chamber DNV GL, the assurance and risk management company, has announced that it will change its name to DNV on 1 March 2021. The move comes after a comprehensive review of the company’s strategy as it positions itself for a world in which many of DNV’s markets are undergoing fundamental change.

The present name has been in place since the 2013 merger between DNV (Det Norske Veritas) and GL (Germanischer Lloyd). The name simplification is a natural consequence of a successfully completed merger and of having operated as a fully integrated company for several years now.

Remi Eriksen, Group President and CEO, said, “We merged two leading companies with complementary strengths and market positions, and

combining the two names was the right solution in 2013. However, it was not a name that rolled off the tongue, and many customers already refer to the company as DNV. Our brand is used by many of our customers to build trust towards their stakeholders, and a simpler name will be an even stronger trust mark for our customers in the future, but still carries with it all our strengths and proud 157-year-old legacy with a purpose to safeguard life, property and the environment.”

The 2020s has been called the decade of transformation or the “exponential decade”, where the pace of the energy transition will be set and where food, health and transport systems will change immensely and digital technologies underpinning industry 4.0 will mature from experimentation into large-scale application. Most importantly, this is

the decade where humanity will succeed or fail to deliver on the Sustainable Development Goals.

As companies take on the complexities of digitalization and decarbonization, they need trust and assurance. Assurance is not only a service, but also the fundamental value created as a result of the services delivered by DNV. DNV’s ambition is to shape the future of assurance with more digitalized services and by leading the assurance of digitalization in the form of assuring data, digital twins and digitized processes.

“Our strategy not only positions us for significant growth in a world increasingly in need of a trusted voice, but also positions us to shape the future of assurance,” said Eriksen. “DNV will offer the best, most efficient and digitalized ways of delivering services - be it classification, certification, verification,

inspection, advisory, or digital solutions.”

Certification The company has indicated that all certificates with DNV GL name and logo will still be valid. For the issuing of new management system and product certificates following renewal of your certification, the transition to new DNV branded certificates will start from 1 March and be rolled out throughout 2021.

For issuing of new vessel certificates, the transition to new DNV branded certificates will follow a planned process, and will primarily be done at the first upcoming periodical survey for the vessels.

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Energy Sector Services Survey Q4 2020

Services companies report small improvements Staff Writer | Energy Chamber IN the previous quarter, energy services companies continued to report drastic falls in value and volume of business. In this quarter, the trend continued and 69% of responding companies indicated the value and volume of business was below normal. This is a slight improvement from 75% in last quarter.

When probed, companies indicated that the reason for the value of business being below normal, was due to decrease in demand for services and less business opportunities. A similar picture emerges for the reasons for declines in volume of business – 88% report decreases in demand for services.

Companies that did report value and volume of business increases, attributed it to additional contract or projects, increased activities in the upstream and opportunities in international markets.

48% of respondents indicated that they were less optimistic than they were in the previous quarter while 45% indicated that there was no change over the quarter. 86% of these companies indicated that it was largely due to the worsening of the overall economic environment.

Despite the relatively high number of respondents indicating that they were less optimistic about their business prospects, there was an improvement, since in the previous quarter, more than 75% of respondents indicated that they were less optimistic.

In terms of employment, 46% of companies reported that the total number of employees fell over the quarter. Thirty-nine percent report declines in fulltime employment and 36% reported declines in temporary employment.

We asked companies about their capex authorizations over the next 12 months. The respondents’ responses were spread fairly evenly in terms of what capex would be used for. Half of the respondents indicated that they would be investing to increase efficiency, speed and exploit new technologies. While others indicated that it would be used to provide new services, to reach new customers, for replacement and to expand capacity.

The Energy Chamber's Energy Services Sectors Survey (ESSS) is a quarterly survey of energy services contractors which allows for such an assessment.

Overall, a vibrant energy services sub-sector is integral to the overall health of the energy sector.

The ESSS attempts to map the performance and optimism of our energy services sector members, providing data on their business confidence and on some of the phenomena which impact their

Employment

Value of Business 80%

60%

70% 60%

50%

50% 40%

40%

30% 20% 10% 0%

30% Above normal

Below normal

Normal

20% 10%

Volume of Business

0% Total number employed

80% 70%

Full time

Temporary

Training/retraining expenditure

60% 50% 40%

Up

30%

No Change

Down

20% 10% 0%

Above normal

Normal

Why is the value of your business in this quarter below normal?

Below normal

90% 80% 70%

When probed, companies indicated that the reason for the value of business being below normal was

60% 50% 40% 30% 20% 10% 0% Decrease in average selling prices

due to decrease in demand for services and less business opportunities.

Decrease in demand for services

Forced to offer fewer services

Loss of contracts/projects

Less business opportunities

Other

Why is the volume of your business in this quarter below normal?

90% 80% 70% 60% 50%

operations and business prospects. The survey draws on information from survey participants, such as the level of confidence of service contractors and the value and volume of business in the current quarter, as well as what they project for the next quarter.

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40% 30% 20% 10% 0% Decrease in demand for services

Forced to offer fewer services

Loss of contracts/projects

Less business opportunities

Other

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| February 2021 energy.tt • @ttenergychamber

New Fortress Energy to acquire Hygo Energy Transition Ltd. and Golar LNG Partners LP in combined $5B transaction Staff Writer | Energy Chamber NEW Fortress Energy Inc announced that it has entered into definitive agreements to acquire Hygo Energy Transition Ltd. (“Hygo”), a 5050 joint venture between Golar LNG Limited (“GLNG”) and Stonepeak Infrastructure Fund II Cayman (G) Ltd., a fund managed by Stonepeak Infrastructure Partners (“Stonepeak”), and Golar LNG Partners, LP (“GMLP”).

“With a strong presence in Brazil and a world-class LNG shipping business, Hygo and GMLP are excellent additions to our efforts to accelerate the world’s energy transition,” said Wes Edens, Chairman and CEO of NFE. “The addition of Hygo will quickly expand our footprint in South America with three gas-to-power projects in Brazil’s large and fastgrowing market. With GMLP, we gain LNG ships and world-class operators that are an ideal fit to support our existing terminals and robust pipeline.”

“We are impressed with what Wes Edens and the NFE team have created and their commitment to changing the energy industry,” said Golar LNG Chairman Tor Olav Troim.

“They share our vision to provide cheaper and cleaner energy to a growing population. The consolidation of two of the entrepreneurial LNG downstream players gives the company improved access to capital and creates a unique world-leading energy transition company which Golar shareholders will benefit from being a part of going forward.”

“Tor Olav Trøim and his teams have been pioneers in the global shipping and energy industries,” continued Edens. “The addition of this great portfolio of assets enhances our fully integrated approach and we’re excited for them to become part of NFE. This is a great step towards our goal of finishing this year with fifteen to twenty terminals that bring more clean and affordable energy to growing markets around the world.”

With the acquisition of Hygo, NFE will acquire an operating floating storage and regasification unit (FSRU) terminal and a 50% interest in a 1500MW power plant in Sergipe, Brazil as well as two other FSRU terminals with 1200MW of power in advanced stages in Brazil.

Hygo’s fleet consists of a newbuild FSRU and two operating LNG carriers.

NFE will also acquire a leading owner of FSRUs and LNG carriers as well as a pioneer in floating liquefaction technologies with the GMLP transaction. The addition of GMLP’s fleet of six FSRUs, four LNG carriers and a 50% interest in Trains 1 and 2 of the Hilli, a floating liquefaction vessel, is expected to support both NFE’s existing facilities and international project pipeline.

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LNG Tanker

Academy

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| February 2021 energy.tt • @ttenergychamber

Getting to Net Zero

Staff Writer | Energy Chamber IN February last year, bp introduced its Net Zero ambition. That was followed by its announcement that the company intended to transition from an International Oil Company to an International Energy Company. Last July, bp VP of corporate operations Giselle Thompson spoke with Energy Now about the company’s Net Zero ambition. Here she speaks about how the transition is progressing and what has changed since July.

Q: A lot has changed globally since July. How has bp changed in that time?

From a global perspective, COVID-19 has continued to have an effect on economies and the energy sector in terms of inventories and prices.

What hasn’t changed is the focus on the environment.

If anything, the focus on climate change has gained momentum over the past few months with more companies making commitments to get to net zero by 2050 or sooner. bp CEO Bernard Looney and Global Optimism founder Christiana Figueres recently pointed out that over 100 countries have now pledged to achieve net zero emissions by 2050 or sooner and in their coauthored opinion piece for CNN.com they also urged governments, investors, employees and the public to get behind companies committed to a low carbon transition. bp has also laid out its strategy to achieve our Net Zero ambition. Central to the strategy is bp’s transition from an international oil company (IOC) to an international energy company (IEC). It’s a huge step for the company. We also introduced our sustainability framework which widens our focus from providing cleaner energy to caring for people and the planet.

Q: What does the transition from IOC to IEC mean?

It will mean a change in focus. The strategy calls on us to deliver solutions to customers in three areas – low carbon electricity and energy, convenience and mobility and resilient and focused hydrocarbons.

We will differentiate ourselves by integrating energy systems, partnering with countries, cities and industries and by driving digital innovation.

Globally, bp intends to increase low carbon investment and expect investment in hydrocarbons to be about 40 percent lower by the end of the decade.

However, we see hydrocarbons as integral to bp for decades to come and as enabling our strategy which calls for a focus on delivering resilient and focused hydrocarbons. This means focusing on being safe, competitive and aligned with our Net Zero ambition.

Q: What does that mean for bp’s Trinidad operations?

For Trinidad and Tobago, that means continuing to focus on being safe and cost competitive, maximizing recovery from existing fields, bringing sanctioned projects online, lowering emissions in our operations and looking for opportunities to decarbonize the gas value chain. . There’s still a lot of work to do in T&T, including bringing on our Cassia C and Matapal projects. The Cypre project is moving through the project approval process and this project is also being designed to be a “greener” facility with carbon emissions of 20% of traditional offshore platforms.

Q: How are you progressing with your Net Zero ambition in T&T? We are making good progress with our efforts to lower emissions in our operations, actually

Giselle Thompson , bp VP of corporate operations surpassing our target in 2020. In our Trinidad operations, we were able to deliver 21.1k tonnes of sustainable CO2 reductions in 2020 and we have a target of 28k tonnes in 2021. We will continue to pursue projects aimed at sustainably reducing emissions in our operations and implementing a methane measurement system to improve the quality of data capture and report using digital tools.

We plan to maintain this focus while we deliver activities to sustain our gas business, including bringing our next two sanctioned projects online.

Our partnerships are also progressing well.

The solar project – a partnership with Shell and Lightsource bp is progressing and we have already had initial public consultations.

The schools science and conservation programme has been a hit with both teachers and students. The programme is a collaboration between the Ministry of Public Utilities, Pennacool, bpTT and Shell. It’s been very exciting to see the younger generation get into the conservation and low carbon conversation.

We’re also continuing to look at longer term pathways or opportunities for Trinidad and Tobago

as we navigate the energy transition. bp’s Advancing the Energy Transition (AET) team has been studying existing energy systems in T&T for the past year to identify opportunities and pathways to a low carbon future and we are engaging with stakeholders to share what we have learnt.

Q: How will you know if the transition has been successful? bp’s Net Zero aims are clear in terms of what we want to achieve. Ultimately, we want to be a net zero company by 2050 or sooner and help the world get to net zero. But success goes beyond that to ‘how’ we will achieve our ambition. Our strategy and sustainability framework lay out the ‘how’ so we will be successful not only by achieving our aims but by doing so in a sustainable manner and one that benefits not only bp but the wider society.

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bp completes entry into offshore wind, with strategic partner Equinor Staff Writer | Energy Chamber BP and Equinor completed the formation of their strategic US offshore wind partnership. This includes bp’s $1.1 billion purchase from Equinor of a 50% interest in two major lease areas off the US East Coast. The new partnership will develop up to 4.4GW through two projects – Empire Wind and Beacon Wind – and together pursue further growth in the US offshore wind market.

The completion of the partnership follows the recent success of the Empire Wind 2 and Beacon Wind 1 projects in being selected to provide New York State with 2.5GW of power. This is the biggest US offshore wind award to date. Together with the existing award to supply 816MW from the

Empire Wind 1 development, this represents a total commitment to provide 3.3GW of renewable offshore wind energy to the State of New York.

Dev Sanyal, bp’s executive vice president of gas and low carbon energy, said, “We see significant opportunities by rapidly growing bp’s offshore wind business, making a major contribution to our strategic goals and developing assets that will provide long-term, stable returns.

“Partnering with Equinor, we look forward to developing these world class assets in the fastest growing energy sector. We will work with communities and authorities in New York to develop a leading offshore wind industry hub, including the South Brooklyn Marine Terminal and the Port of Albany. The partnership will continue to identify

new opportunities elsewhere in the US and is committed to providing people with the energy they need in the way they want it.”

The partnership will leverage both companies’ capabilities and decades of experience in delivering projects on time and within budget, in some of the most challenging offshore environments. The staffing levels for the projects will evolve over time so that, once in operation, they will be staffed equally from both companies.

The Empire Wind lease area, awarded to Equinor in 2016, is 15-30 miles southeast of Long Island and has a total area of 80,000 acres. Its two phases of development have a potential generation capacity of 2GW. The Beacon Wind lease area covers a total area of 128,000 acres, approximately 20 miles

south of Nantucket and 60 miles east of Montauk Point. When fully developed, its two phases are expected to have a total generating capacity of 2.4GW. Today’s completion is an important part of bp delivering its strategy and plans to become an integrated energy company. Under these plans bp aims to grow its net renewable generating capacity from 2.5GW in 2019 to 20GW by 2025 and to around 50GW by 2030. It also aims to increase annual low carbon investment 10-fold by 2030 to around $5 billion a year.

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09

| February 2021

regional

energy.tt • @ttenergychamber

Maersk Drilling awarded two Suriname floater contracts Staff Writer | Energy Chamber BASED on the previously announced Conditional Letter of Award, Maersk Drilling has been awarded contracts for the deepwater rigs Maersk Valiant and Mærsk Developer from Total E&P Suriname, Suriname Branch, for Total’s exploration and appraisal project in Suriname’s Block 58.

According to Maersk, the Developer and the Valiant will be employed for an estimated combined total duration of 500 days. Mærsk Developer is expected to commence operations in January 2021, while Maersk Valiant is expected to commence operations in March 2021.

The total value of the firm contracts is approximately USD 100m, including rig modifications, integrated services provided, and a mobilisation fee for Maersk Valiant. The contracts include various extension options.

“We’re thrilled to firm up these contracts, adding further to our longstanding relationship with Total for whom we have a great track record from our collaboration on a number of deepwater

Exxon to add another Stena vessel for Guyana offshore work Staff Writer | Energy Chamber UPSTREAM reports that industry sources have signaled that Exxon has engaged Stena Drilling for the charter of the ultradeepwater drillship Stena DrillMax. This will bring the number of drillships supporting Exxon’s work in Guyana to 6.

The other ships currently at work for Exxon in Guyana are: Stena Caron, Noble Don Taylor, Noble Bob Douglas, Noble Tom Madden and Noble Sam Croft.

The Stena DrillMax is a harsh environment, dynamically positioned DP Class 3 drillship, capable of drilling in water depths up to 10,000ft. Exxon has already made 18 discoveries offshore Guyana.

exploration projects. We’re happy to add to our presence in the exciting SurinameGuyana basin and will be able to leverage the fact that Mærsk Developer is already operating offshore Suriname to quickly start up operations including provision of a range of integrated services to maximise efficiency,” says COO Morten Kelstrup of Maersk Drilling.

Mærsk Developer is a DSS21 column-stabilised dynamically positioned semi-submersible rig, able to operate in water depths up to 10,000 ft.

It was delivered in 2009 and is currently mobilising for the Total campaign after recently completing a contract offshore Suriname.

Maersk Valiant is a high-specification 7th generation drillship with integrated Managed Pressure Drilling capability which was delivered in 2013. It is currently warm-stacked in Aruba after finishing a campaign offshore Mexico in June 2020.

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Learn more and have your say online: fb.com/ttenergychamber · #energynow Maersk Developer

Stena DrillMax

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10

news

| February 2021 energy.tt • @ttenergychamber

Trinity seeks to move forward on Galeota Asset Development Project Staff Writer | Energy Chamber TRINITY Exploration and Production (Galeota) conducted its second Public Consultation for the proposed Galeota Asset Development (GAD) Project as part of the certificate of environmental process (CEC). Trinity has made the application to the regulator in Trinidad and Tobago, the Environmental Management Authority (EMA).

The proposed project will take place in the Galeota block, off the south east coast of Trinidad.

The project entails the installation of two (2) offshore platforms (Normally Unmanned Installations), the drilling of a maximum of twenty-nine

(29) development wells and one (1) open water exploration well.

The two platforms will be the Trintes Echo and Trintes South West.

Trintes Echo, based on the proposed schedule will be the first platform to be installed. This will be located 12 km from shore. It is anticipated that if approvals are secured, the installation of Trintes Echo can take place in Q3 2022 and first oil can happen in Q4 2022. It is estimated that this platform can produce 6,000 bopd and 2.5mmscf/d.

After completion of Trintes Echo, Trintes South West will be installed in Q2 2024 and first oil in that quarter as well.

The project also encompasses the installation of three (3) subsea pipelines and three (3) subsea power cables and decommissioning and installation of new crude oil storage tanks at the Galeota Point Tank Farm.

According to Trinity, the Galeota Block is within the established oil play of the Columbus Basin and is surrounded by Teak, Poui and Samaan mature oil fields. Exploration and development activity in the Galeota Block began in 1953 with the acquisition of seismic data, and the subsequent drilling of Galeota-1 exploration well in 1961. Ninety-two (92) wells have since been drilled, targeting Pliocene and Pleistocene age reservoirs. Although several hydrocarbon

discoveries have been made within the lease, only the Trintes Field, discovered in 1963, was considered to have encountered sufficient volumes to justify development at the time.

At this time, Trinity operates 4 production platforms on the Trintes field: Alpha, Bravo, Delta and Charlie. The two new platforms will be on this field as well. Currently twenty-three (23) wells are producing from the Alpha and Bravo platforms.

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(L-R): Mr. Anthony Holder, Director NewGen Energy Limited; Dr. Vernon Paltoo, President, National Energy Corporation; Mr. Mark Loquan, President, The National Gas Company of Trinidad and Tobago Ltd.; Mr. Philip Julien, Chairman, Kenesjay Green Limited.

NGC signs MoU with Kenesjay Green, Newgen for Carbon-Neutral Hydrogen Staff Writer | Energy Chamber THE National Gas Company (NGC), National Energy Corporation (NE) and Kenesjay Green Limited (KGL) have signed a Memorandum of Understanding to work collaboratively on the creation of a sustainable hydrogen economy for the energy sector of Trinidad and Tobago. The partnership includes the exploring of the feasibility of joint development of viable projects and related initiatives in Trinidad and Tobago, regionally, and internationally.

The MOU serves to affirm the parties’ commitment to seek viable avenues to transition to a lower carbon future through low carbon and green hydrogen production and will meaningfully contribute to the country’s fulfilment of the Paris

Agreement commitments.

Under the MOU, all parties aim to actively support advocacy efforts to raise public awareness and engagement towards the development of a national policy framework for Energy Efficient & Green (EE&G) Hydrogen and examine the impact of EE &G Hydrogen on gas and power operations. The carbon saving impacts arising from these initiatives can be documented in the parties’ Sustainability Reports.

Further, the MOU drives a commitment to help transition Trinidad and Tobago’s existing natural gas-based industries to greener operations and a greener footprint. In service of this objective, NGC, NE and KGL will explore the development of viable, low carbon & EE&G hydrogen-related industrial energy projects and their associated renewable and

energy-efficient feedstock supply.

In commenting on the MOU, Mark Loquan, NGC President stated, “NGC considers this MOU a significant step forward in our efforts as a country to respond to the global climate change crisis. As a pivotal player in the local natural gas energy business, NGC is taking the lead in building awareness and supporting efforts to move our natural gas-based industries to respond to the lower carbon challenge.

We see Energy Efficient & Green Hydrogen production as a key enabler to integrating renewable options into the existing plants. Together with NE and KGL, we will work to support a policy framework for Hydrogen and identify "green" opportunities for integration into the current facilities".

“We are pleased that Kenesjay Green Limited (KGL) is collaborating with NGC and NE on this

pressing global issue with significant implications for our local energy sector”, said Philip Julien, the Founder and Chairman of KGL. He further stated, “This MOU is a crucial step in our national response, focusing on the transformation and decarbonisation of the existing brownfield energy-based industrial sector of T&T and the region, and the introduction of new green industrial projects, such as the NewGen Project, which is the first of a pipeline of such projects being identified by KGL. We expect that as Trinidad and Tobago did with the first phase of our natural gas development, we as a country can strengthen our pioneering position as we pursue Hydrogen as a transition pathway to a low carbon future”.

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11

| February 2021

opinion

energy.tt • @ttenergychamber

Doing the obvious Dax Driver Energy Chamber CEO @dax_driver

A

Pt Lisas Industrial Estate

Time to end the natural gas subsidy to the T&T electricity sector I

T is time to bring an end to the subsidy provided by the natural gas industry to Trinidad & Tobago’s electricity sector. While it is the National Gas Company who must provide the gas to T&TEC at rates way below the market price, the cost of this subsidy is indirectly borne by all of the players in the gas value chain. And while households, businesses and Government departments have all enjoyed the benefits of this subsidy, cheap electricity has meant that people are very wasteful in using electricity and the economy is very energy inefficient.

The electricity sector consumes a significant volume of natural gas, around 250 million standard cubic feet per day, and this gas is provided to the country at rates that are significantly below the prevalent prices in the petrochemical and LNG sectors. This imposes a significant burden on the gas industry which, under current market conditions, is proving to be too heavy a load to carry and is contributing to the sustainability challenges faced by the industry.

The Energy Chamber recognizes that dealing with the electricity subsidy is not an easy political decision, but there are measures that can mitigate the impact.

Firstly, it is important to recognise that the challenge is not the subsidy to low-income households. There are around 80,000 households in Trinidad & Tobago that use under 400 kwH of electricity in a two-month billing period – these are households that have electricity bills of under TT$ 104 (US$ 15.00). These households only use about 1 percent of the natural gas consumed by the electricity sector. The subsidy to these households is not a heavy burden to carry and there are

very good social and economic reasons to ensure that every household is able to access basic electricity services. The Energy Chamber’s view is that the subsidy should continue for low-income households.

Secondly, higher electricity rates do not automatically translate into higher bills, if people become more efficient at managing electricity use. There have been studies in Trinidad that show that electricity consumption can be cut by 40% in most government and commercial buildings, through the simplest of electricity management programmes. There is no doubt that significant savings can be realized in the private sector and domestic market as well. As electricity prices increase with the reduction or removal of subsidies, the public and private sectors and individuals will not be faced with higher bills if they alter their consumption patterns.

An added national benefit is that there are many opportunities that exist for small and medium-sized businesses, if consumers decide to actively reduce their electricity consumption. This includes things like retrofitting buildings to make them more energy efficient, installing solar water heaters and more efficient air-conditioning systems.

In the Energy Chamber’s view, the public and private sector entities, as well as individuals, need to accept that the across-the-board subsidies on natural gas for electricity generation are not sustainable. If we are simultaneously going to meet the global climate change commitments and maintain a sustainable gas industry into the future, we must urgently move to remove the subsidy on natural gas for electricity.

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President and Chief Executive Officer: Dr. Thackwray ‘Dax’ Driver Business inquiries: P (868) 6-ENERGY • F (868) 679-4242 . dax@energy.tt Suite B2.03, Atlantic Plaza, Atlantic Avenue, Point Lisas, Trinidad and Tobago

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T most major Energy Chamber conferences, I find that there is one simple phrase that really sticks with me and I end up thinking about a lot in the days and weeks after the event. At the 2021 Energy Efficiency and Renewables Conference it was a simple statement from Prof.

Avinash Persaud, advisor to the Prime Minister of Barbados, who reminded us all that “just because something is obvious, does not mean it will happen”.

Avinash was talking about the abundant solar and wind resources that we have in the region and the fact that this makes renewable energy from these sources an obvious choice.

He actually gave a specific example of rooftop solar water heaters, widespread in Barbados but absent in most other countries, even with excellent sunshine. It seems such an obvious thing to do, yet in most places it has not happened. But the statement could equally be applied to many other issues that we addressed over the threeday conference.

Avinash’s phrase came to mind during Aleeya Ali’s presentation on Proman’s plans for low carbon fuels. I find it difficult to understand why we have not moved to implement the simplest 5% methanol fuel blending concept, especially since the closure of the refinery and the fact that we now import all of our transport fuels. Blending locally manufactured methanol into our gasoline would result in lower foreign exchange outflows and lower carbon emissions, with no need for any changes to the existing fuel infrastructure. It seems like an obvious thing to do – but just because it is obvious does not mean it will happen.

Avinash’s phrase also came to mind when we were discussing the decarbonisation of the transport sector.

Dr. Graham King, of UWI and Dr. Curtis Boodhoo of UTT, presented on the transition to electric mobility for Trinidad & Tobago and the wider Caribbean, respectively, but Dr. Rae Furlonge made the crucial point that all the discussion on decarbonisation of transport is meaningless without an overall transport policy (Curtis added a sustainable transport policy). Rae made a plea that if we’re really interested in decarbonisation, we need to get people out of cars and into public transport and especially to move under their own power, either on foot or on bicycles.

This needs an integrated sustainable transport policy with measures to get people out of their cars, such as creating pedestrianised zones in major urban centres. Again, this seems like an obvious thing to do – but just because it is obvious does not mean it will happen.

The transport panel was one of the most active sessions in terms of comments in the meeting chat platform, with the session on how energy service companies can also play a role in the energy transition also generating a lot of interest. Much of this was sparked by Ian Boon’s presentation and his central point that even after years of discussion, there was still no system in

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obvious, does not mean it will happen. – Prof Avinash Persaud Trinidad & Tobago to allow households or businesses to connect rooftop solar PV systems to the grid. There have been promises made that this will be put in place during 2021, but as Ian pointed out, these promises have been made many times before.

Colm De Freitas, speaking in the same session, reminded the conference that the Government had introduced a tax credit for energy efficiency audits back in 2010, but these audits needed to be conducted by an energy services company certified by the Ministry of Energy in order to access the credit. The Energy Chamber has long offered to conduct the certification role on behalf of the Ministry, as we do for safety management systems through STOW, but we have never received the approval. Again, it seems an obvious thing to use an industry body with certification capabilities to do the necessary certification – but just because it is obvious does not mean it will happen.

There were many other times during the conference when I thought to myself that just because this is obvious it does not mean it will happen, from the waste to methanol project, to the implementation of a carbon credit scheme able to integrate with other markets, to the widespread adoption of CCS, to the phasing out of natural gas subsidies for electricity, to the implementation of time of use adjusted electricity tariffs.

Of course, there are always reasons why the obvious has not been implemented, be it stakeholders vested interest or administrative inertia or lack of a shared understanding. I anticipate that keeping in mind the phrase “just because something is obvious does not mean it will happen” is going to be a useful lens for me to think about the Energy Chamber’s advocacy work.

Our job is not just to state the obvious – which is an easy thing to do – but to identify in detail why the obvious is not happening and then, based on that knowledge, drive through the needed changes. It seems like an obvious thing to do.

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Disclaimer: Except for the editorial on this page, all opinions are those of the authors or interviewees and do not necessarily reflect the views of the Energy Chamber.

12

opinion

| February 2021 energy.tt • @ttenergychamber

Talent Vision: Developing National Talent Strategy Professor Sterling Frost| Contributor

T

RINIDAD and Tobago (TT) can no longer speculate on diversification, competitiveness and culture transformation as the realities of Fourth Industrial Revolution (4IR) have been exacerbated by the COVID-19 pandemic and have actualized these imperatives. In this light, meaningful institutional reform and competitiveness cannot precede the Talent agenda. Thus far, the National Development Strategy (NDS) Vision 2030 has identified “Putting People first” (PPF) as one of five strategic themes, as TT’s greatest asset in socioeconomic transformation.

PPF speaks to both the rights (equal opportunity and access to social services) and the responsibilities of the citizens via their behaviours, skills and culture.

Each NDS theme is decomposed into goals with PPF identifying long-term goals for a diversely educated, innovative and entrepreneurial population and a culture of discipline, productivity, tolerance, respect and civic mindedness. Achievement of these goals can be linked to goals of the other NDS themes, for example, PPF is a driver for theme 2 – Strong Institutions and Modern Public Services and theme 4 – Global Competiveness. Theme 2 stresses competency and flexibility in the public sector (TT’s largest employer).

The NDS further highlights that tethered to these objectives are the current issues of corruption, low productivity and poor work ethos. Moreover, global indices and reports point to a workforce that is not prepared for the 4IR. TT’s deficient technical competencies illustrated by the World Economic Forum Global Competitiveness Index (GCI) 2019, ranked TT at 98/141 countries for skills of future workforce, with critical thinking in teaching ranking at 107/141; Digital Skills among active population at 92/141; Quality of vocational training at 70/141 and Flexibility at 130/141. TT is also rated as below expectations on the 2020 GCI in relation to its level of income with an overall ranking of 90/131 with innovation inputs at 87/131 and innovation outputs at 111/131, incidentally the 11th highest difference amongst all countries.

This inability to convert inputs to outputs should be addressed by a National Talent Strategy (NTS) to supplement the NDS. Any NTS should start with a Competency Framework (CF). Behavioral and technical competencies should align to the NDS, which will then inform the initiatives required to develop TT’s talent base.

Competency and Strategy Competency Framework and Industry 5.0 A single competency encapsulates Knowledge, Skills, Abilities and Attitude (KSAA). These KSAAs

interrelate to give rise to the behaviours needed for effectiveness and results. Without alignment to the desired results and a strategic vision, KSAAs cannot be considered a competency. A Competency model is a combination of competencies needed for effective job performance. Competencies can be classified and modelled along several lines including core, technical, cognitive, behavioral and job specific. An example of a cognitive competency would be conceptual thinking, a technical competency is computer programming, and a behavioral competency example is customer orientation. A Competency Framework (CF) integrates a philosophy and set of principles with a taxonomy of competencies and proficiency scales; mappings of competencies to job families and measurement tools and business rules for applying competencies.

It would be useful for a National Competency Policy (NCP) to be developed in alignment with the NDS. Such a policy should incorporate the findings of the 4IR and insights on the emerging 5IR. While Industry 4.0 marks an era of automation, artificial intelligence and autonomous actions without human intervention; Industry 5.0 puts the focus back on people. The COVID-19 pandemic has been a main driver for the 5IR as it has accelerated a re-imagining of work spaces and operating models with a human touch. As TT moves towards mass customization, inorder to remain competitive, its CF should integrate empathy with creative and critical thinking toward creating specialized human experiences.

The National Competency Policy should develop and address: 1. Competencies aligned to Industry 5.0 with the desired culture and sectors of the economy being targeted.

2. Principles and guidelines for industry and academia on developing and implementing a CF. 3. Principles and guidelines for identifying and developing talent in the school system and industry.

4. Guidelines on Institutional reform in the public sector, education system and social services.

Strategic Workforce Planning Transitive to the National Competency Policy is Strategic Workforce Planning.

Organizations play a major role in the national talent equation.

The national vision should inform industry growth, as such, the strategic plans of companies should be aligned to national development. Organizations can develop a CF that aligns to the NCP. Guided by a CF, corporate Strategic Workforce Planning should set out a roadmap for talent in the organization. This roadmap should be predicated on the principles of Buy, Build, Borrow, Bounce, Bind and Boost which can be executed through various HR processes: Buy. This strategy is about recruiting talent from outside the organization instead of focusing on developing current employees.

Build. This strategy is about the organization focusing on building its talent pipeline from within.

Borrow. Similar to outsourcing the organization hires temporary/seasonal employees as a solution for meeting its time-sensitive or short-term needs.

Bounce. The organization adopts an outplacing strategy that can either be voluntary (voluntary early retirement, normal retirement) or involuntary (dismissal due to unsatisfactory performance).

Bind. This strategy focuses on employee retention. Companies can offer a range of incentives, rewards and recognition programs in an attempt to retain their top performers.

Boost. This is a strategy for promotion which includes upward progression, job enrichment, job enlargement, job rotation, and high-potential development programs.

2030 is less than a decade away. The intersection of the NCP and NTS requires a holistic examination of the primary, secondary, vocational and tertiary education system. Curricula design and development should be aligned to the national competency requirements, including the incorporation of values and behaviours that would bolster TT’s work ethic culture and adherence to the principles of accountability and professional standards.

The future of work is here. A Vision for Talent requires a bias for action. TT’s ability to achieve its long term development goals requires the undertaking of key actions that hinge on our human resource capability and capacity to undertake and successfully implement initiatives for the realization of the NDS stated outcomes. Building the human resource capacity to implement Vision 2030 must be addressed on a national scale.

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opinion

| February 2021

13

energy.tt • @ttenergychamber

Vision 2050: Our Choice Christiana Figueres | Contributor

W

E have 10 years to save the world. We’ve heard that said so many times that it can feel like it’s lost all meaning, but reflect on this for a moment and how fast the previous 10 years have passed. Ten years go by in the blink of an eye. This decade is critical to the climate fight. These 10 years are our last best chance to avert calamitous climate change. The choices we make now will determine our collective future.

In our book The Future We Choose, Tom RivettCarnac and I laid out two different versions of 2050: one where we gave up on trying to reduce emissions after 2015 and one where managed to halve global emissions every decade since 2020. In the first, respiratory diseases are rampant, wildfires rage, sea levels are rising, food security is a lost ideal, and civil unrest and conflict are rife around the world.

In the second, public transport has largely displaced private vehicle use, trees and flora are ubiquitous, the standard of living in the world’s cities has never been better, people are healthier, fossil fuels are a thing of the past, and communities are working together to grow and procure food.

The determining factor in which of these comes to pass is the choices we make in the next decade.

We know from UNEP’s 2019 emissions gap report1 that we need to cut global GHG emissions by 7.6% each year until 2030 if we are to meet the goal to limit the increase in global average temperatures to 1.5°C. And this is a goal we need to meet – and we can meet. Leadership – in government, business, and our communities – is the key to securing the future we say we want.

This year will forever be remembered for the

COVID-19 pandemic and its domino effect of global lockdowns and economic strife, bookended by a devastating hurricane season in the Americas and rampant wildfires in Australia and America, plus wetland fires in Brazil. These fires and storms are giant alarm bells ringing that the climate crisis isn’t some far off problem for our kids or grandkids to solve. It’s here, it’s now, and it’s on us to make good choices.

A good choice is one which moves you closer to your goal. Before making a firm choice, all options must be evaluated for how they help – or hinder – progress towards your goal. Net-zero emissions by 2050 pledge yet permitting more gas-fired power plants in 2020? Scrapping incentives for renewable energy yet continuing to subsidise fossil fuels?

Turning fields into car parks? Cognitive dissonance, know thy name.

Despite these policy disconnects we see around the world, I remain optimistic that we will make the right choices to avert the worst effects of climate change. It is within our reach. We already see the transition happening in energy, with the cost of renewable technologies below those of fossil fuels in many countries. We see governments striving to be more ambitious in renewable energy goals, phasing out combustion-based vehicles, enhancing public transport, thinking about the industries, jobs and skills of the future. Many are using the severe economic disruption the coronavirus outbreak has wrought to reset, recalibrate and refocus their policy goals.

We need policies that recognise and incentivise decarbonisation. We need policies which value nature and public health above profit. We need policies which encourage cooperation and collaboration, not

competition. We need to think about the climate crisis not as a problem on its own, but one which cuts across gender equality, social justice, mental health, food security, and jobs.

New Zealand’s decision in 2018 to no longer issue permits for offshore oil and gas exploration could have been a blow to the Taranaki region. Instead, the government created a dedicated Just Transition unit which has drawn up a plan for the region in 2050 in consultation with the local community and Maori iwi.

South Africa’s government in September approved its Low Emissions Development Strategy and waste management strategy, with a focus on creating a circular economy. South Korea’s COVID-19 recovery plan has an emphasis on hydrogen development.

These are just a few examples of the kinds of policies we need.

Carbon markets are a useful tool to drive the change we need. The more widespread carbon pricing is, the faster we can move towards our cleaner future.

By assigning an external cost to emissions, business can make the right choices: faced with an ongoing cost which can be avoided, innovation increases.

This eases the burden on the public purse to finance changes.

There is no one-size-fits-all blueprint for how we get to the clean, healthy, climate stabilised future we want. Everyone is coming from different starting points and with different challenges. Some, like Costa Rica, are already well on their way to decarbonisation and neutrality; some, like Australia, are blessed with ample renewable energy potential yet are far too slow in transitioning; while others still have their efforts stymied by ideological clashes.

What is universal is that there are more and more

calls to act every day, from investors, from businesses, and from the public. It is encouraging to see so many youths engaging with this issue and putting pressure on politicians to act now to preserve their futures.

These activists might be teenagers now, but it won’t be long until they can vote. Climate change is their Vietnam, and they will not go gentle into the night.

They know the most vulnerable will be, and are being, hit the hardest by climate change and that their quality of life will be very different from that of their parents and grandparents. This isn’t the future they choose.

Much has been written about the parallels between the COVID-19 pandemic and the climate crisis. Both are devastating families, businesses, economies. Both are stressors to all our systems, from health to financial. Both disproportionately affect those who bear the least responsibility for them. And both require an urgent, rapid, and global response.

The Paris Agreement sets out a framework and our vision of the future we collectively want. But it is incumbent on governments, business and society to ensure that we make the right choices to fulfil its goals. Rather than slowing us down, the public health crisis this year should be the wake-up call that we can’t keep doing the same things and expecting better results – we need to make positive changes to not just preserve but improve our futures. We can build back better and move faster towards our goals. That’s the future I want.

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14

opinion

| February 2021 energy.tt • @ttenergychamber

Towards a cleaner future - a new agenda for the NGC Group

Mark Loquan | NGC President

W

E have officially rounded the corner into a new decade, and a watershed period in modern history. We stand at a position, where our consumption habits and energy choices will either rescue us from the existential threat of climate change or lead us down a path of no return.

The decade ahead must be one of transition away from wasteful, irresponsible and pollutant production and consumption. We must not only find cleaner ways to grow, manufacture, heat, power and transport, but there must be an attendant cultural shift towards efficiency and mindful consumption.

The NGC Group has recognised the need for transformative thinking and decisive action in this regard, especially within a sector shouldering much of the burden of change. Accordingly, there is a revolution currently underway at the organisation, with a broad sustainability agenda reframing business objectives and growth strategies. Today, no decision is taken without questions being asked about wider impact on people and planet.

NGC and its subsidiaries have been investing heavily in causes that support the clean energy agenda, including energy efficiency, renewable energy, methane and GHG emissions reduction, alternative fuel and energy education. Notable investments over the past few years include development of an app to raise consumer awareness around energy efficiency in the home; a Super ESCO project to improve efficiency within the operations of small industrial consumers; partnership with several NGOs to increase energy education among youth; implementation of new technologies to detect and reduce methane emissions; exploration of several renewable energy projects through National Energy; marketing of CNG as a cleaner transport fuel; and a carbon sequestration study to measure the impact of NGC’s large-scale reforestation project.

New pathways Within the past few months, even amidst the disruption of COVID-19, the Group has amplified efforts to push its sustainability agenda forward, in new and impactful directions.

Methane, a more potent greenhouse gas (GHG) than carbon dioxide, is the primary component of natural gas. Addressing natural gas leaks and methane emissions has therefore become a priority at NGC. In 2020, the Company invested in an optical and infrared camera capable of detecting and visualising fugitive hydrocarbon emissions at its facilities. Starting 2021, this equipment will allow NGC and it’s subsidiaries to identify and repair vulnerabilities in its infrastructure and close in on its operational target of near-zero methane emissions.

The focus on methane is being further reinforced by an exciting new partnership with a Netherlandsbased technology solutions provider, Orbital Eye. Through satellite data and algorithms, this company is able to monitor infrastructure such as transmission pipelines, roads, railways and power lines, and measure the GHG output associated with these assets.

NGC’s partnership with Orbital Eye will allow it to access critical research and emissions information about Trinidad and Tobago’s industrial on-shore and off-shore assets over the next three years. This data can then be used to develop mitigation and asset

integrity management plans. Moreover, there is scope for growth as the intention is to extend this exercise across the Caribbean where feasible.

It is noteworthy that the scope of this latter initiative is not limited to NGC Group operations, but rather allows for survey of the entire energy landscape of Trinidad and Tobago and wider region, and for knowledge sharing across the value chain.

This underscores the Group’s commitment to collaboration, and its interest in securing the future of the energy ecosystem as a whole.

This spirit of collaboration and the need for knowledge transfer also underpin another new initiative. Combating climate change will require, among other things, a coordinated effort between industry and academia, to establish baselines, build mitigation plans, devise practical solutions to current challenges and generate data.

In recognition of this need, NGC signed an MOU with the University of Trinidad and Tobago (UTT) in December 2020, to commence work on a Climate Change Mitigation Project. The objectives of this agreement are the joint identification and development of commercially-viable climate change initiatives; production of data and reports for public awareness and education campaigns on climate change, renewable energy, energy efficiency, GHG emissions, flood mapping, and sustainable land use; development and exchange of information on GHG reduction technologies and strategies; and the transfer of experience and industry learnings.

This collaboration with UTT will build on NGC’s longstanding relationship and exchange with academia. NGC has engaged with other tertiary level institutions in the past to share knowledge, support development of the industry and commission critical research projects. A notable example of the latter was a carbon sequestration study conducted by The University of the West Indies (UWI) in 2018 at NGC’s reforestation sites. The aim of that study was to determine the carbon mitigation impact of the Company’s large-scale reforestation exercise. Based

on the results of that study, which focused on aboveground biomass, NGC decided to expand the scope to assess the actual and potential carbon storage of below-ground biomass at replanted sites. This new phase of the Carbon Sequestration Study is underway, and will provide a more holistic and accurate dataset around the carbon-trapping potential of local tree species. The results can then be used to encourage investment in broader-scale afforestation initiatives to help offset GHG emissions.

These developments over the last few months give an indication of the new ethos of business for the NGC Group, and its intentions to support the global fight against climate change in concrete ways. Of course, developing and managing the relevant partnerships and projects will require dedicated resources. In service of this need, the Group has now introduced a specialist department within its organisational structure to explore and spearhead sustainability initiatives. In addition, all functional areas will be enlisted to support the new agenda, as sustainability metrics are being integrated into performance plans across the Group.

Looking forward Looking ahead into 2021, The NGC Group is poised to make a difference in the national landscape as far as the energy transition is concerned. The Group also intends to seek inter-sectoral synergies, and find ways to leverage its experience in energy to support other development goals such as food security and access to water.

Without a doubt, this decade of global transition will also see The NGC Group evolve in unprecedented but exciting ways, in pursuit of sustainable national development and a cleaner future for all.

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opinion

| February 2021

15

energy.tt • @ttenergychamber

Impact matters Melanie Richards | Contributor

E

nergy sector companies in Trinidad and Tobago have traditionally made significant contributions in areas of social development and the environment and continue to play an important role in national development. Within recent years however, with continued volatility in the sector, these contributions have been shrinking, and now with the challenges of a global pandemic the downward trends are expected to continue. Latest data available from the Trinidad and Tobago Extractive Industries Transparency Initiative (TTEITI) shows approximately 46% decline in Total Social Payments reported by the sector in 2016 from 2015 and almost 50% percent decline in 2017

Social Payments

from the 2016 figure.

Anecdotal evidence would suggest that there was a small upsurge in spending in the last half of 2020, as many organisations engaged in efforts to support pandemic related challenges at both a community and national level.

2017

2016

2015

State Owned Enterprises (SOE) Non-State Companies

24,028,618 10,664,078

40,181,715 27,920,626

92,042,261 34,206,352

TOTAL

34,692,696

68,102,341

126,248,613

Spending was seen being allocated to support the efforts of the health sector and in smoothening the transition to online work and school. It is however unlikely that this upsurge in spending can be or will be maintained.

Non-governmental organistions and communities, both fence-line and national have come to rely (arguably too much) on energy sector contributions, and with projected continued declines in these discretionary social payments, as well as reduced government subventions from many Ministries, the void is increasing a time when support is needed the most.

Additionally, despite large investments made in the past, it continues to be difficult to demonstrate the impact of this spending both and a company level as well as cumulatively for the sector. Now, perhaps more than ever impact matters; ensuring that limited resources are being allocated where they are most needed.

To do this organisations need to rethink their approaches to philanthropy, social responsibility and sustainability in

general, appreciating that sustainability at an organizational level cannot be separated from sustainability at a national and global level. One thing that the pandemic has highlighted, is the interconnectedness of organisations to the societies and environments in which they operate and that organisations cannot prosper in a society that is crumbling.

Organisations can take some simple steps towards improving impact:

Development Goals (SDG) making use of best practice frameworks and measurement indicators.

3. Improve Sector Collaboration especially in Fenceline Spending Organisations in the sector need to use more collaborative approaches to ensure that a little goes a long way and to avoid the duplication of effort and resources.

Establish or improve governance systems around the social spend Treat the social spend just as you would any other important area of business by enlisting support at a board level, and ensuring that structures are in place with formal and appropriate systems and procedures to ensure accountability;

4. Explore opportunities for Crosssector collaboration Private, public and nongovernmental organisations alike need to increase collaboration and cooperation and explore innovate approaches to partnerships and hybrid approaches to harness the power of the private sector to deliver on national development goals.

2. Leverage the social spend to achieve Development Goals Align the organisation’s social spend with both National Development Goals and Sustainable

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1.

Carbon markets and carbon pricing: an explainer (conclusion) Tamara Bujhawan | Contributor

T

HE previous part of this article (see EnergyNow Issue 34) introduced terminology related to carbon pricing and associated markets. It differentiated between compliance or mandatory systems and the voluntary market. It also outlined the difference between allowances (essentially a permission to pollute), carbon taxes, and credits.

This article focuses primarily on carbon credits and how they can be sold on the voluntary, and in some instances, compliance markets. To recap, a carbon credit is a tradable permit that usually represents one ton of carbon dioxide equivalent (CO2e) that is either sequestered or reduced from an emission reduction project, using a scientifically sound methodology where emission reductions are measured against a business-as-usual (BAU) scenario.

Carbon credits are sold on the markets to be used as offsets, whereby offsetting is the process in which an entity purchases the right to claim CO2e has been sequestered or reduced from its operations. The purchasing entity is “compensating” its emissions. By selling the credit, the project developer no longer has any right to count that unit of sequestered or reduced emission. The World Bank provides a useful high-level snapshot of how the process works.

Once based on scientifically sound methodologies, carbon credits can be particularly useful in achieving climate goals while presenting an avenue for financing the decarbonisation transition.

The Paris Agreement seeks to limit global warming to 1.5°C. This necessitates rapid and broad-ranging action to achieve a reduction in global greenhouse gas (GHG) emissions of 50 percent of current levels by 2030. Given this context, a triple win (economic, environmental, social) exists for the development of low-carbon projects in Trinidad and Tobago. The demand for voluntary

offsetting is very likely to increase in the coming years as the drive to decarbonise the global economy accelerates. An increasing number of organisations are setting internal emission reduction or carbon neutral targets. A large-scale, voluntary carbon market is therefore required to ensure demand is met and assist organisations in achieving emission reduction goals. When done correctly, these low-carbon projects will benefit the environment and society as well.

The first win is financial for both the project developer and the offsetting organisation. The voluntary carbon market will help the private sector mobilise capital to finance the low-carbon transition. For instance, an organisation seeking to decarbonise their operations and value chain can use carbon credits purchased voluntarily to offset emissions that are not yet eliminated, thereby financing emission reduction projects from other sources e.g., in Trinidad. This makes economic sense because direct emission reductions from some sources may be prohibitively expensive to reduce completely with existing technologies, while other emissions may not be able to be eliminated at all. Supporting emission reduction projects through the purchase of carbon credits also allows organisations to manage both physical and transition risk associated with climate change. For project developers, access to a carbon market has the potential to help support financial flows as activities and projects located in Trinidad and Tobago can potentially be a cost-effective source of carbon emission

World Bank (2020) 1 World Bank. “State and Trends of Carbon Pricing 2020” (2020), World Bank, Washington, DC. Doi: 10.1596/978-1-4648-1586-7. reductions and subsequently, support the feasibility of adopting low-carbon technologies locally.

The voluntary carbon market has evolved, in the nascent days of trading a credit was a credit – it represented one ton of avoided or sequestered emissions with one of the main driving factors for the buyer being price. Nowadays, cobenefits are just as important, if not more so than solely reduced or sequestered CO2e. Demonstrating a project is based on decent work, improves livelihoods and quality of life, while maintaining

environmental integrity are attributes that buyers seek out in a carbon credit.

Implementing an emission reduction project that encompasses these aspects result not only in a more attractive option for buyers, but positively contributes to social and environmental well-being.

It would be remiss to imply the growth trajectory of the market is secure.

Demand, while growing, is not yet at the rate required to halve GHG emissions by 2020 and is still outstripped by supply.

Even so, carbon markets can still provide a way of increasing emissions reductions

by uncovering economically efficient ways of driving change that can reduce costs and increase ambition. Ensuring emission reduction projects are based on scientifically sound methodologies, are transparent and verifiable, and deliver co-benefits are some of the ways in which carbon credits can differentiate themselves, remove some uncertainty and attract finance.

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16

opinion

| February 2021 energy.tt • @ttenergychamber

The Marielitos any lessons for TT?

The UNHCR in 2020 estimated that there are 40,000 Venezuelans in

Dr. Roger Hosein | Contributor

A

FTER the Cuban revolution in 1959, there was a steady outflow of Cubans as Castro became more involved in the communist fold. The outflow was temporarily halted by the Cuban missile crisis but then in 1965 as economic conditions in Cuba started to deteriorate, the native Cubans began to oppose Castro even more. Castro

announced that the port of Camarioca would be opened to Cuban exiles who

wished to return to Cuba to pick up relatives. The then President of the USA was able, however, to negotiate a safer and more orderly use of commercial aircraft to ferry out the refugees. The flights lasted until August 1971 and a total of 263,540 Cubans migrated to the USA during this time period.

On the 1st of April 1980, six Cubans crashed the gate of the Peruvian Embassy

Table 1. Characteristics of those in Labor Force in Miami 1979.

Characteristic Estimated Number (1000’s)

Whites

Blacks

Cubans

Hispanics

All

241.3

166.6

194.7

70.8

678.2

Table 2. Characteristics of Mariel Immigrants and other Cubans: Tabulations from March 1985 CPS Characteristic

Pre Mariel (1979)

Education Attainment (Percent of Population in Each Category): No High School Some High School Completed High School Some College Completed College Percent Male Percent under 30 in 1980 Mean Age in 1980 (Years) Percent in Miami in 1985 Percent worked in 1984 Mean Log Hourly Earnings Occupation Distribution (Percent Employed in Each Category): Professional/ Managers (a) Technical (b) Sales Clerical Craftsmen Operatives Transportation Ops. Laborers Farm Workers Less-Skilled Service More-Skilled Service

Mariel Immigrants (%)

All other Cubans

56.5 9.1 9.5 6.8 18.1 55.6 38.7 34.9 53.9 60.6 1.37

25.4 13.3 33.4 12 15.8 50.7 29.6 38 52.4 73.4 1.71

19.5 8.6 7.8 19.1 15.1 19.4 5.4 4.7 0.4 6.1 4

19.3 0 4.5 2.5 9.5 19.1 3.8 10.8 0 26 4.6

21 1.5 11.2 13.5 19.9 13.8 4.3 3.3 1.8 7.4 2.3

Note: The sample consists of all Cubans in the March 1985 Current Population Survey age 21-66 (i.e., age 16-61 in 1980), Mariel immigrants are identified as those Cubans who stated that they lived outside the United States 5 years previously. a: in 1979 this category was labelled professional and technical b) was labelled mangers in 1979

Tables 3a. Unemployment rates of Individuals Age 16-61 in Miami and Four Comparison Cities,1979-85.

Group Miami Whites Blacks Cubans Hispanics

1979

Whites Blacks Hispanics

4.4 10.3 6.3

5.1 8.3 5.3 6.5

1980

1981

2.5 3.9 5.6 9.6 7.2 10.1 7.7 11.8 Comparison Cities 4.4 4.3 12.6 12.6 8.7 8.3

1982

1983

1984

1985

5.2 16 10.8 9.1

6.7 18.4 13.1 7.5

3.6 14.2 7.7 12.1

4.9 7.8 5.5 3.7

6.8 12.7 12.1

6.9 18.4 11.8

5.4 12.1 9.8

4.9 13.3 9.3

Table 3b. Logarithms of Real Hourly Earnings of Workers Age 16-61 in Miami and Four Comparison Cities, 1879-85 Group Miami: Whites Blacks Cubans Hispanics

1979

Whites Blacks Hispanics

1.93 1.74 1.65

1.85 1.59 1.58 1.52

1980

1981

1.83 1.85 1.55 1.61 1.54 1.51 1.54 1.54 Comparison Cities 1.9 1.91 1.7 1.72 1.63 1.61

1982

1983

1984

1985

1.82 1.48 1.49 1.53

1.82 1.48 1.49 1.48

1.82 1.57 1.53 1.59

1.82 1.6 1.49 1.54

1.91 1.71 1.61

1.9 1.69 1.58

1.91 1.67 1.6

1.92 1.65 1.58

T&T and given the wave of reports of illegal landings of Venezuelans since then, this note assumes that the true number is now at 50,000 of which (according to the state), 16,523 are registered. and requested asylum. Castro announced that anyone else wishing to go to Peru and leave Cuba could do so and by April 6th, there were 10,000 Cubans crowded onto the grounds of the Embassy. Again, Castro made contact with the Cubans exiled in the USA and indicated to them that they could come to the port of Mariel and collect their relatives as well as those from the Peruvian Embassy.

Some 125,000 Cubans took up the offer and left.

Many of the Marielitos settled in Miami (estimated at 55,000) not because of preexisting wage structures but rather because many of the Cuban Americans that organized the flotilla, were from South Florida.

To try and assess the impact of the Marielitos it is important to look at the labour force in Miami before the Marielitos arrived. Table 1 shows that in 1979 there were 241,300 whites, 166,600 blacks, 194,700 Cubans and 70,800 Hispanics, giving a total of 678,200 people in the labor force in the Miami area.

In terms of the characteristics of the Mariel immigrants and other Cubans, using data from the March 1985 CPS, note that 56.5% of the Mariel immigrants had no high school education, as compared to 25.4% of all the Cubans in Miami, before the arrival of the Marielitos.

9.1% of the Marielitos had “some” “High School” education as compared to 13.3% of Cubans before. A mere 9.5% of the Mariel immigrants completed college as compared to 33.4% of the Cuban population in Miami before the Marielitos. A high proportion of Mariel immigrants 18.1% as compared to 15.8% of all other Cubans completed college.

In terms of occupational distribution, 19.3% of the Mariel immigrants were employed as professional managers as compared to 21% for all other Cubans before (see Table 2). Mariel immigrants worked predominantly in three (3) areas as labourers, operatives and as less skilled service people.

In terms of the unemployment rate in 1979, 5.1% of whites were unemployed in Miami. In 1982, this dipped to 2.5% and this remained moderately under control until 1985 at 4.9%. The unemployment rates amongst blacks though, was significantly above that of the whites and reached as high as 18.4% in 1983 and 16% in 1983, up from 8.3% in 1979. For the Cubans in Miami, the unemployment rate in 1979 was 5.3% and this climbed to 13.1% in 1983, but thereafter tapered off slightly to 5.5% in 1985 (see Table 3).

Table 3b shows that the wages of Cuban workers in Miami dipped after 1980 with the inflow of the Marielitos.

The wages of whites remained relatively the same, whilst that of Blacks fluctuated between 1979 and 1982 and then by 1985 recovered to more than that of 1979.

The wages of Hispanics did decrease marginally, but then recovered. In comparison to other cities, the wages of whites in Miami were slightly lower and this was the case for each of the listed years from 1979 to 1985. Wages were also

higher for Blacks and Hispanics in other cities as compared to Miami.

George Borjas 2016, in “The Wage Impact of the Marielitos: A Reappraisal” investigated the impact of the Marielitos on the wages of high school dropouts in Miami. He noted that before the Marielitos arrived, the log of the wages of the of high school dropouts in Miami was 0.1 log points below that of workers in the rest of the country. By 1985, and with the arrival of the Marielitos of which a significant amount were high school dropouts, the gap had widened to 0.4 log points implying that the wages of low skilled workers in Miami had declined by 30%. Borjas went on to note that the low skilled wages of people in Miami recovered fully by 1990. (This wage rate again declined in 1995 as the little Mariel supply shock took place although by 2002 it recovered again to its pre-Mariel difference of 0.1 log points. Indeed after a series of empirical incursions Borjas 2016 noted that, "In sum, the wage trends observed in Miami consistently indicate that the economic well-being of the least educated workers in Miami took a downward turn shortly after 1980, reached its nadir around 1985-1986, and did not recover fully until 1990."

Lessons for TT Table 4 above shows that the nontradable (NT) sector of the TT economy has the lowest productivity (TT$96,354.5 per worker in 2016) and the highest employment share (89% in 2016).

Because of the language barrier, most Venezuelan workers tend to drift into the NT sector, and this asymptotically stifles the growth potential of the economy, by squeezing resources out of the nonbooming tradable (NBT) sector. This becomes more of a possibility if it is capital can move smoothly between the NBT and the NT sector.

The UNHCR in 2020 estimated that there are 40,000 Venezuelans in T&T and given the wave of reports of illegal landings of Venezuelans since then, this note assumes that the true number is now at 50,000 of which (according to the state), 16,523 are registered. If we assume that all of these Venezuelans are employed in the non-tradable sector, then this in turn means that the share of employment in this sector rises from 89% of total employment in 2016 to about 91% in 2021. Policy makers must ask and answer whether this country’s stock of reserves can sustain such a change?

Further policy makers would need to consider whether capital injections that are helping to facilitate the employment of the Venezuelans will lead to a fall in the size of the non-energy export sector and a decline in import substituting activities in TT? Finally, given the state of the economy, if the inflow of Venezuelans were to trigger an overall decline in the wages of unskilled workers ,are there any specific safety nets policy makers would need to put in place?

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efficiency

| February 2021

17

energy.tt • @ttenergychamber

Catch and Release – A Texas Case Study Gary Clyne | Contributor

technologies should be considered for CO2 capture in LNG plants. Of all these, post-combustion capture is considered to provide best case performance in comparison to other methods (i.e., oxyfuel and pre-combustion), with reduced technical risk and process complexity. This makes post-combustion capture appropriate for new LNG plants or as a retrofit to existing plants.

If we use reputable estimates in the literature for LNG capture plants with process CO2 (acid gas removal unit) and post-combustion and scale up accordingly for the volumes LNG production volumes expected in this port, a CAPEX of USD2400 million and an OPEX of USD1770 million can be reflective (over a 25-year lifetime). This refers to the capture cost only and results in a specific capture cost of USD41.7/ton.

It should be noted that the OPEX can be reduced to around USD1400 million if the propane and butane streams from the process are used to generate lower cost electricity (at approximately 50% the conventional rates).

As no data on pipeline distance and right of way from a source to sink are not available for this theoretical exercise, a very high-level rough pipeline transport distance of 1.000 miles can be estimated (a sensitivity can be done around this).

Based on the CO2 resource size estimation and this distance, the pipeline cost can be roughly estimated using the series of figures below.

Based on the information outlined in the preceding section, the following design standards and associated CAPEX were estimated using the following parameters below: • CO2 resource – 4 million metric tons per annum • Pipeline Diameter – 15 inches (based on CO2 resource above and per Figure 2) • Pipeline Length – 1,000 miles (based on estimated source-sink distance)

C

O2 is vented from LNG industrial hubs and because there is no incentive to monetize and store it, the resultant greenhouse gases are shared with the rest of the world. This is known in oil and gas circles as “catch and release”. Many first-generation CO2 capture and separation technologies have been deployed commercially for decades.

These are limited to applications that either have a direct use for captured CO2, such as beverages, Enhanced Oil Recovery (EOR), or pharmaceuticals, or applications in which product standards require separation of CO2 from the product. Because of the large footprint, high capital costs, environmental logistics associated with solvent disposal and several other challenges, CO2 capture technologies have primarily been focused onshore. This is unlikely to change.

CO2 is separated from natural gas, which typically contains 90% methane and hydrocarbons like ethane and propane, plus smaller amounts of nitrogen, oxygen, CO2, sulfur compounds, and water, where the exact composition will depend on the individual site. CO2 can be captured post-combustion from gas turbine and steam cycle emissions. Economics, space and weight constraints, and viability of other abatement strategies, such as fuelswitching or electrification, make postcombustion capture an option for new LNG clusters.

On and offshore wellhead associated gas fed into an LNG cluster will improve project economics and the environment for everyone alive on the planet. The business case for a centralized capture facility that collects, not only stripped out CO2 from LNG natural gas processing, but associated gas from regional wellheads and gathering stations, will attract advanced country loans and grants in addition to private investment.

CO2 can be produced from many operations in the LNG chain. Some of these are listed below: • natural gas transportation; • liquefaction, storage and loading of LNG; • LNG transportation; and • regasification.

Typical concentrations of these are reported below from two different points in the LNG operations, from scrubbers (also known as Acid Gas Removal Unit, AGRU) and from combustion.

For transport (ship, pipeline, railways, or trucks) in CCUS value chain, the CO2 would need to be compressed to about 86-155 bar and around 1343ºC and the associated impurities above should be lowered to conform with the recommended component concentrations seen in Table 2.

To do this, the LNG facility would have to be equipped with a carbon capture facility to treat with the additional combustion stream illustrated in Table 1.

Emissions from oilfields and offshore platforms can be collected locally, transported, and processed for sequester at the nearest centralized LNG CCUS facility. Such a system would circumvent space constraints and benefit from economies of scale for carbon capture from oilfields and LNG export gas processing. This concept and more robust low emission solutions have been proven to work in front-end engineering studies and can be further explored for large-scale feasibility, grant funding and investment secured by this author for CCUS. Carbon capture essentially produces a concentrated stream of CO2 at high pressure and can be readily transported for appropriate use and/or to storage sites.

Although theoretically the entire combination gas streams can be transported using various transportation modes, the cost associated with doing so is impractical. Extracting the CO2 in a more concentrated form and elevating it to the required high pressure is therefore an important component of the Carbon Capture, Utilization and Storage value chain.

During LNG processing, a relatively pure stream of CO2 is produced in the process via scrubbing. This stream typically consists of over 98% CO2 with mostly water vapor as the other impurity. However, further purification of these streams is needed. This often requires the subsequent removal via water vapor, of oxygen followed by pressurization. With respect to CCUS, this can be referred to as the cleaning and conditioning phase. A typical CO2 cleaning and conditioning facility as simulated on Aspen HYSYS1 can be seen

in the Figure 1 below (comprising mainly of separators, compressors, and coolers).

This system was simulated to ensure that the exiting stream from this facility would conform to the purity levels, pressures and temperatures needed for pipeline transport.

Typically, the major emissions emanate from the gas turbines that drive the refrigerant cycle compressors and power generation service. About 10% of

all incoming natural gas is used for these turbines, with the remaining 90% being liquefied. CO2 emissions for LNG plants are typically 0.2 – 0.28 t of CO2/t of LNG for industrial heavy-duty gas turbines (anticipated in the cases above).

In addition to the turbine related emissions, reservoir gas fed to liquefaction terminals typically contains around 2 mol% of CO2 resulting in combined emissions in the approximate range of 0.3 – 0.4 t of CO2/t of LNG for typical plants with relatively low CO2 content in feed gas (<2 mol%). However, this can trend upwards to approximately 0.7 t of CO2/t of LNG for plants with a high CO2 content (14 mol%, representative) in feed gas. As no specific data on feed gas quality is yet known for these cases, we can assume a conservative 0.33 t CO2/t LNG, and reasonably expect CO2 available resource volumes of around 4 million metric tonnes per annum.

Though specific data for this case was not yet known, the above plant was configured in the simulation to accept typical feed compositions and conditions from the scrubbing phase in LNG processing.

Due to the nature of the LNG industry, in order to minimize disruptions to the LNG production, only established

Accordingly, the associated CAPEX can be found in the table 3. It should be noted that the CAPEX for the cleaning and conditioning plant was estimated using the preliminary design and the Aspen HYSYS cost estimator.

Stabilizing atmospheric temperature below a 2°C increase will require halving global greenhouse gas (GHG) emissions by 2050, achieving net-zero emissions by 2055-2080, and pursuing net-negative emissions thereafter. Most credible scenarios to achieve this rate of decarbonization require widespread deployment of CCUS. So, in the best interests of the planet and in consideration of environmental justice, catch and release must go. The best way to get rid of this arcane practice is to develop centralized carbon dioxide farms. The farms can be developed before the LNG trains are operational. Allowing for certainty of a fossil fuel path toward net zero and carbon leakage verification.

It will also increase the marketability of LNG to those countries that are really concerned about climate change.

1

Aspen HYSYS is the energy industry's

leading process simulation software for process optimization in design and operations.

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3,000,000 600

2,500,000

500

2,000,000

400

1,500,000

300

1,000,000

200

500,000

100

0

0

100

80

60

40

20

Mar-2020

Feb-2020

Jan-2020

Dec-2019

Nov-2019

Oct-2019

Sep-2019

Aug-2019

Jul-2019

Jun-2019

May-2019

Oct-2020 Nov-2020

Oct-2020

Sep-2020

Sep-2020

Nov-2020

Aug-2020

Jul-2020

Nov-2020

Oct-2020

Sep-2020

Aug-2020

Jul-2020

Jun-2020

120

May-2020

140

Jun-2020

160

Apr-2020

180

Apr-2020

Number of Rig days

May-2020

Mar-2020

Feb-2020

Jan-2020

Dec-2019

Nov-2019

Oct-2019

Sep-2019

Aug-2019

Aug-2020

Production of Methanol (000's Tonnes) Jul-2020

Jun-2020

May-2020

Apr-2020

Mar-2020

Feb-2020

Jan-2020

Dec-2019

Nov-2019

Oct-2019

Liquefied Natural Gas Production (cu m)

Sep-2019

0 Jul-2019

Depth Drilled (ft)

Aug-2019

50,000 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0

Jul-2019

46

Jun-2019

0

Jun-2019

500

May-2019

1,000

May-2019

1,500

Apr-2019

54

Apr-2019

2,000

Apr-2019

56

Mar-2019

2,500

Feb-2019

58

Mar-2019

60

3,000

Feb-2019

energy.tt â&#x20AC;¢ @ttenergychamber

Mar-2019

3,500

Jan-2019

62

Jan-2019

Nov-2020

Oct-2020

Sep-2020

Aug-2020

Jul-2020

Jun-2020

May-2020

Apr-2020

Mar-2020

Feb-2020

Jan-2020

Dec-2019

Nov-2019

Oct-2019

Sep-2019

Aug-2019

Jul-2019

Jun-2019

May-2019

Apr-2019

Mar-2019

Feb-2019

Jan-2019

Natural Gas Production (mmcf/d)

Feb-2019

Nov-2020

Oct-2020

Sep-2020

Aug-2020

Jul-2020

Jun-2020

May-2020

Apr-2020

Mar-2020

Feb-2020

Jan-2020

Dec-2019

Nov-2019

Oct-2019

Sep-2019

Aug-2019

Jul-2019

Jun-2019

May-2019

Apr-2019

Mar-2019

Feb-2019

Jan-2019

4,000

Jan-2019

Nov-2020

Oct-2020

Sep-2020

Aug-2020

Jul-2020

Jun-2020

May-2020

Apr-2020

Mar-2020

Feb-2020

Jan-2020

Dec-2019

Nov-2019

Oct-2019

Sep-2019

Aug-2019

Jul-2019

Jun-2019

May-2019

Apr-2019

Mar-2019

Feb-2019

Jan-2019

| February 2021

energy update

19

Monthly Review

Crude Oil Production Daily Average (000's Barrels )

4,500

52

50

48

20

energy update

| February 2021

international news Kosmos exploration success in GOM Kosmos announced an oil discovery in the U.S. Gulf of Mexico at the Winterfell infrastructure-led exploration (“ILX”) well (Kosmos working interest 17.5%).

Winterfell was designed to test a sub-salt Upper Miocene prospect located in Green Canyon Block 944.

The well encountered approximately 26 meters (85 feet) of net oil pay in two intervals.

Andrew G. Inglis, Kosmos Energy’s chairman and chief executive officer said: “We are pleased to have started the New Year with exploration success at Winterfell validating our proven basin exploration strategy, which is focused on low cost, short cycle, low carbon development solutions. The Winterfell well was funded by a portion of the proceeds from the partial sale of our frontier exploration portfolio. The well in Green Canyon Block 944 de-risks prospectivity in several neighboring blocks held by Kosmos, with approximately 100 million barrels of gross potential within Kosmos’ acreage position.”

energy.tt • @ttenergychamber

Eni awarded a new Production Licence in the UK sector of the North Sea ENI announced the successful award of a new Production Licence, resulting from an application made in the 32nd UK Offshore Licensing Round.

The Licence, named P2511, covers an area of approximately 340 square kilometres and is located approximately 250 km offshore UK in the Northern North Sea in a water depth ranging from 100 to 130 m. It is situated near the UK/Norwegian border where several significant discoveries were recently made.

The Licence has an Initial Exploration Term of six years. Eni UK will assume the role of operator with a 100% participating interest.

Maersk Drilling secures one-well UK contract for Maersk Resolve MAERSK Drilling has been awarded a contract from Spirit Energy for the harsh-environment jack-up rig Maersk Resolve to drill one development well at Grove North East in the UK North Sea. The contract is expected to commence in March 2021, with an estimated duration of 131 days. The firm contract value is approximately USD 11.3m, including additional services, mobilisation and demobilisation.

The contract includes an option to add plugging and abandonment of one well.

“We’re excited to be able to build on our relationship with Spirit Energy with our first UK well for the customer, for whom we previously completed a highly successful subsea development campaign in Norway. We will surely be able to continue our close collaboration and mutual focus on operational excellence, and in addition the campaign at Grove will benefit from Maersk Resolve’s experience with safely and efficiently drilling challenging Zechstein formations as part of the rig’s latest assignment in Dutch waters,” says COO Morten Kelstrup of Maersk Drilling.

Maersk Resolve is a 350ft, Gusto-engineered MSC CJ50 high-efficiency jack-up rig which was delivered in 2009. It completed a campaign offshore the Netherlands in October 2020 and is currently warm-stacked in Esbjerg, Denmark.

Subsea 7 awarded contract offshore Angola SUBSEA 7 announced the award of a substantial(1) contract

by Cabinda Gulf Oil Company Limited (CABGOC). The contract is for the Sanha Lean Gas Connection (SLGC) project comprising the construction and installation of the Lean Gas Platform (LGP) system in Block-0 offshore Angola, at a water depth of approximately 70 metres.

Project management and engineering will be performed from Subsea 7’s offices in Paris and Lisbon.

Fabrication will take place at Sonamet’s yard in Lobito, Angola from 2021 to 2022, while offshore operations will occur from 2022 and 2023.

Gilles Lafaye, Senior Vice President Africa, Middle East and Caspian Region says: “We are delighted to have been awarded this contract by CABGOC, following a public tender. This is the result of a long-term collaboration with the client and a track record of delivering successful projects.

The project reinforces Subsea 7’s presence in Angola and our commitment to support Africa’s energy industry”.

TechnipFMC commences work on the New Hydrocracking Complex in Egypt TECHNIPFMC has successfully completed the remaining conditions required to enable work to commence on the Engineering, Procurement, and Construction (EPC) contract with Assiut National Oil Processing Company (ANOPC) for the construction of a new Hydrocracking Complex for the Assiut refinery in Egypt.

This major EPC contract covers new process units such as a Vacuum Distillation Unit, a Diesel Hydrocracking Unit, a Delayed Coker Unit, a Distillate Hydrotreating Unit as well as a Hydrogen Production Facility Unit using TechnipFMC’s steam reforming proprietary technology. The project also includes other process units, interconnecting, offsites and utilities.

Apex International Energy discovers oil in Egypt’s western desert APEX International Energy (Apex) announced a new oil discovery in Southeast Meleiha Concession (SEM), located in the Western Desert of Egypt.

The discovery was achieved at the SEMZ-11X well located 10 kilometers west of Zarif field, the nearest producing field. The well was drilled to a total depth of 5,700 feet and encountered 65 feet of oil pay in the Cretaceous sandstones of the Bahariya and Abu Roash G formations. Testing of the Bahariya resulted in a peak rate of 2,100 barrels of oil per day with no water. Additional uphole pay exists in the Bahariya and Abu Roash G formations that can be added to the production stream in the future.

The SEMZ-11X was Apex’s second exploration well in an ongoing three-well program following the acquisition and processing of 1,342 square kilometers of 3D seismic data in 2019-2020. The first well, the SEMZ-1X drilled last month, also discovered Bahariya oil with 17 feet of indicated pay. Located 23 kilometers west of Zarif field, it was also drilled to 5,700 feet and tested at a rate of 100 barrels of oil per day. Apex plans to fracture stimulate the 1X in the future to increase the producing rate.

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| February 2021

efficiency

energy.tt • @ttenergychamber

Making Green Hydrogen a Cost-Competitive Climate Solution Staff Writer | Energy Chamber HYDROGEN produced with renewable electricity could compete on costs with fossil fuel alternatives by 2030, according to a new report published

by International Renewable Energy Agency (IRENA). A combination of falling costs for solar and wind power, improved performance as well as economies of scale for electrolysers could make it possible. ‘Green Hydrogen Cost Reduction: scaling up electrolysers to meet the 1.5 C climate goal’ looks at drivers for innovation and presents strategies that governments can peruse to reduce the cost of electrolysers by 40% in the short term and by up to 80% in the long term.

Green hydrogen could play a critical role in decarbonisation strategies, particularly so where direct electrification is challenging in harderto-abate sectors, such as steel, chemicals, longhaul transport, shipping and aviation. However,

regulations, market design and the costs of power and electrolyser production are still major barrier to the uptake of green hydrogen.

“Renewable hydrogen can be a game-changer in global efforts to decarbonise our economies”, said Francesco La Camera, Director-General of IRENA. “Levelling the playing field to close the cost gap between fossil fuels and green hydrogen is necessary. Cost-competitive green hydrogen can help us build a resilient energy system that thrives on modern technologies and embraces innovative solutions fit for the 21st century.”

Today, green hydrogen is 2-3 times more expensive than blue hydrogen, produced from fossil fuels in combination with carbon capture and storage (CCS). The production cost for green hydrogen is determined by the renewable electricity price, the investment cost of the electrolyser and its operating hours. Renewables have already become the cheapest source of power in many parts of the

world, with auctions reaching record price-lows below USD 20 per megawatt-hour (MWh). While low-cost electricity is a necessary condition for competitive green hydrogen, investment costs for electrolysis facilities must fall significantly too.

IRENA’s new study identifies key strategies and policies to reduce costs for electrolysers through innovation and improved performance aiming to scale up electrolysers from today’s megawatt to multi-gigawatt (GW) levels. Standardisation and mass-manufacturing of the electrolyser stacks, efficiency in operation as well as the optimisation of material procurement and supply chains will be equally important to bring down costs. For that, today’s manufacturing capacity of less than 1 GW would have to massively grow beyond 100 GW in the next 10 to 15 years.

In the best-case scenario, using low-cost renewable electricity at USD 20 USD/MWh in large, cost-competitive electrolyser facilities could

produce green hydrogen at a competitive cost with blue hydrogen already today. If rapid scale-up and aggressive electrolysers deployment take place in the next decade, green hydrogen could then start competing on costs with blue hydrogen by 2030 in many countries, making it cheaper than other lowcarbon alternatives before 2040, IRENA’s analysis shows.

IRENA has also recently published “Green hydrogen: A guide to policy making” that outlines the main barriers inhibiting green hydrogen uptake and the policies needed to address these. It offers insights on how to kickstart the green hydrogen sector as a key enabler of the energy transition at the national or regional level.

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Proman-UWI launch Waste-to-Energy Research Project Staff Writer | Energy Chamber PROMAN and The University of the West Indies (The UWI) announced the launch of an exciting new study to examine the potential of a biogas supply chain for Trinidad and Tobago, in line with national decarbonisation and waste-reduction efforts.

The multi-phase collaborative project will identify viable local sources of waste for an Anaerobic Digestion Project, and examine how these technologies and resources could be integrated into Trinidad and Tobago’s wider energy supply chain.

Anaerobic Digestion is a process in which organic wastes are broken down by microorganisms in an oxygen-free environment. The waste is converted to biogas, a sustainable alternative to natural gas, and digestate, which can be used as a fertiliser.

In doing so, this process reduces greenhouse gas emissions, by recycling waste that would otherwise go to landfill and converting it into a sustainable alternative energy source.

This study will analyse the viability of various local waste options for this process, including agricultural by-products such as poultry waste and manure; food waste; wastewater; and sargassum (seaweed).

Today’s announcement builds on Proman’s longstanding support for The UWI and its students, as part of Proman’s commitment to promoting youth education and skills development. Alongside a range of other research partnerships and grants, Proman and its subsidiary Methanol Holdings (Trinidad) Limited (MHTL) have proudly sponsored the Campus’ Dennis Patrick Chair in Petroleum Engineering since 2003, currently held by Professor Andrew Jupiter.

Claus Cronberger, Managing Director, Proman Trinidad, said, “Proman is delighted to partner with The UWI on this study. By bringing together the university’s academic expertise with Proman’s industry experience, we hope to develop new and practical avenues towards more sustainable energy. Innovative projects like this will play a crucial role in facilitating our country’s lower-carbon transition, in line with the ParisAccord which reached its five-year anniversary last month. We look forward to sharing our findings and collaborating further on potential Waste to Energy projects in Trinidad and Tobago, which have significant potential to generate investment and skilled employment opportunities as part of our national post-COVID recovery.”

UWI Professor John Agard, Director of the St. Augustine Centre for Innovation and Entrepreneurship (STACIE) said: “The UWI is excited to work alongside Proman Trinidad on this study. This work provides new scope and direction on developing and informing innovative sustainable initiatives within the current downstream sector through a resource-circular value chain.” He added that the project not only has significant and direct relevance to the national, regional and international climate change mitigation strategies, but also promotes The UWI’s Triple-A strategy which augments greater alignment between industry, public service and academic excellence in research and development.

Proman is committed to supporting Trinidad and Tobago’s lower-carbon agenda and strengthening the pathway towards sustainable methanol and ammonia.

Learn more and have your say online: fb.com/ttenergychamber · #energynow Proman facility in Pt Lisas

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renewables

| February 2021 energy.tt • @ttenergychamber

Lightsource bp solar panels

Lightsource bp completes $380M financing, mobilises construction on 316 megawatts of solar in Texas Staff Writer | Energy Chamber LIGHTSOURCE bp has successfully closed on a $380 million financing package and mobilized construction on its Elm Branch and Briar Creek solar projects in Texas, both located about 40 miles south of Dallas. Tax equity financing for the projects was secured from Bank of America. The debt for the facilities was provided by the following mandated lead arrangers: •

•

ING Capital LLC, a financial services firm offering a full array of wholesale financial lending products and advisory services to its corporate and institutional clients. ING Capital LLC is an indirect U.S. subsidiary of ING Bank NV, part of ING Group NV (NYSE: ING), a global financial institution.

Societe Generale, one of the leading European financial services groups, employing over

138,000 members of staff in 62 countries and supporting on a daily basis 29 million individual clients, businesses and institutional investors around the world.

The balance of the equity requirements will be invested by Lightsource bp. CohnReznick Capital was engaged as the tax equity advisor for the transaction.

Kevin Smith, CEO of the Americas, Lightsource bp said: “This transaction is a demonstration of the low risk and stable yield opportunities that renewable energy projects offer to investors, the quality and bankability of our developed assets, and the confidence that top tier investors have in Lightsource bp. Despite challenges posed with COVID-19, Lightsource bp reached financial close on over $1.2 billion in transactions in the US in 2020, a substantial increase from 2019.”

Power contracts secured with energy partners played a key role in supporting investment and

financing of this new clean energy infrastructure in Texas: • a virtual power purchase agreement (VPPA) with L3Harris for up to 100 megawatts of capacity from Elm Branch, and • a proxy generation power purchase agreement (pgPPA) with the Capital Solutions unit of Allianz Global Corporate & Specialty (AGCS) with respect to the electricity generated by Briar Creek.

Construction has started, with commercial operation of both projects expected by late 2021.

McCarthy Building Companies was selected by Lightsource bp as their Engineering, Procurement, and Construction (EPC) Contractor for the project.

The McCarthy team was selected for both their track record in successfully building large-scale solar projects and their commitment to recruiting and hiring from the local workforce.

Scott Canada, Executive Vice President of

McCarthy’s Renewable Energy & Storage team said “We are honored to be part of the team that is bringing clean energy to these Texas communities.

Around the country we are seeing the positive impact that solar energy can have on communities as they embrace clean energy solutions to attract large companies with renewable energy goals, and serve to provide career opportunities in the growing solar construction sector. Through our well-structured training program and rigorous design-phase planning we’re able to help those in the local workforce while also building some of the most efficient solar facilities that provide longterm reliable energy to its customers, which is why we do what we do. It’s very rewarding!”

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bp acquires majority stake in largest US forest carbon offset developer Finite Carbon Staff Writer | Energy Chamber bp has acquired a majority stake in carbon offset developer Finite Carbon, building on its existing interest in the company. Finite Carbon is the largest developer of forest carbon offsets in the US. bp will bring the firm into its in-house business accelerator, bp Launchpad. Together with bp’s additional investment, this is expected to bolster Finite Carbon’s expansion, including into new geographical markets.

Finite Carbon identifies and develops projects that enable landowners to generate revenue from the protection, restoration, and sustainable management of forests. These actions increase carbon stored in forests and generate carbon offsets that are verified against industry-recognized standards and can be traded on markets.

Sean Carney, founder of Finite Carbon added:

“Putting a price on carbon can make it possible for anyone with the ability to protect, plant, or improve forests to generate revenue from their efforts.

However, there is currently limited infrastructure to quantify, monitor, and verify these actions at scale. Thanks to this unique partnership with bp, Finite Carbon now has the resources of a global energy company behind it to help address this enormous environmental challenge and help small landowners access this market.”

Finite Carbon now has 50 carbon projects on three million acres in the US which have registered more than 70 million independently-verified offsets and generated more than $500 million in revenue for landowners. The increased investment will aid the delivery of a further $1 billion to landowners by 2030 from its existing business lines and its new CORE CarbonSM platform.

David Eyton, bp’s executive vice president of

innovation and engineering, added: “Finite Carbon has the potential to build a global platform for managing and financing natural climate solutions (NCS). Deepening our partnership will allow them to accelerate their development and expansion.

Finite Carbon’s progression through bp - from venturing investment to majority ownership and introduction to Launchpad – is a great example of how we are applying our unique innovation ecosystem to foster innovation and build material energy businesses in support of our net zero ambition.” bp Launchpad focuses on providing multiyear funding and support for rapid start-up development with bp as a majority shareholder.

It offers founders and teams business building capabilities and expertise in operations, finance, tech, growth marketing, talent, and corporate development, alongside long-term growth with

an incentivized exit path. Finite Carbon will be able to leverage bp’s global footprint to support expanding its operations internationally and to access bp’s technological infrastructure to scale up the voluntary carbon market, while also supporting efforts to restore, maintain, and enhance biodiversity.

CORE Carbon is the first web-based platform designed to enable small landowners to access the carbon offset market. The technology removes barriers, including high transaction monitoring and reporting costs, which prevent small landowners from accessing the carbon market and instead enable them to generate new annual income through long-term commitments to good land stewardship.

Learn more and have your say online: fb.com/ttenergychamber · #energynow

| December 2020 energy.tt â&#x20AC;˘ @ttenergychamber

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| December 2020 energy.tt â&#x20AC;˘ @ttenergychamber