Energean pledges to Net-Zero Emissions by 2050!
On December 2nd of 2019, Energean became the first independent Exploration and Production company in the world to commit on becoming a net zero carbon emitter by 2050. More specifically, our company pledged to set science-based targets across Energean’s operated assets on scope 1 and scope 2 emissions and use our best endeavors to reach a state in which the activities within our entire value chain result in net-zero emissions by 2050. It was our response to the United Nations campaign that calls on business leaders to set emissions reduction targets with the highest ambition for their companies, according to the report on 1.5°C by the Intergovernmental Panel on Climate Change (IPCC), and to reach net-zero emissions by no later than 2050.
Our vision is to become the leading independent E&P company in the Mediterranean and to drive the energy transition in the markets we operate in. Energean’s strategy for net-zero from own operations is related to both Scope 1 (direct) and Scope 2 (indirect) emissions. In Scope 1 we focus on fuel combustion while in Scope 2 we focus on purchased electricity for our sites. As far as Scope 3 (indirect emissions from not owned assets and sold products) we aim at strengthening transition to a low carbon future by producing mainly gas, minimizing our indirect activities emissions and engaging with our value-chain partners, suppliers and customers to support and motivate them to a low-carbon future.
Our company’s gas-focused strategy allows us to play our part in supporting the global fuel transition away from coal and oil, in the drive to reduce emissions of carbon dioxide and protect our environment for future generations.
Energean’s Strategy to Net-Zero emissions by 2050
Energean has already switched from oil to gas. In 2007, the company started its operations as a 100% oil producer, while in 2019 its reserves and production are app. 70% gas, inclusive of the acquisition of Edison E&P assets.
Our company’s Climate Ambition and Net-Zero Emissions plan has three phases.
Short-term plan (next 5 years)
- Get engaged in the Carbon Disclosure Project (CDP) in 2020.
- Disclosure of climate related information following the Task Force on Climate-related Financial Disclosures (TCFD) recommendations in 2020.
- Engage with organizations working on the transition to a low carbon future.
- Support and motivate costumers and contractors to a low carbon utilization future.
- Increase the efficiency of production installations by optimizing performance.
- Increase the use of zero carbon electricity.
- Strengthen our low carbon portfolio by increasing gas production to 80%, following close of the Edison E&P transaction.
- Reduce our carbon emissions intensity by 70% by 2022, following close of the Edison E&P transaction.
Medium-term plan (by 2035)
- Development of Carbon Capture Utilization and Storage.
- Hydrogen Production.
- Use of zero carbon electricity.
Long-term plan (by 2050)
- Further develop of Carbon Capture Utilization and Storage.
- Increase hydrogen Production.
- Reforestation, Afforestation and Forests Conservation.
- Use of Negative Emissions Technologies.
Steps completed towards the emissions reduction direction
Energean has already started the transition towards green and clean energy and focuses its transition operations towards a low carbon future by producing mainly gas.
As mentioned above, our company has put in place a plan to reduce its carbon intensity by more than 70% between 2019 and 2022. As part of this commitment to reduce our environmental impact, it is working along with the Israeli government to support its efforts to reduce the use of carbon. Energean’s biggest investment related to energy transition is the Karish Development Project, offshore Israel, which substantially contributes to Israel’s effort to decarbonize the energy sector. The company has already signed with private power producers and industrial customers for 7.0 BCM per year, meaning that its production will be covering app. 50% of gas consumption in the Israeli market in the years to come. Gas production from Energean’s fields will substantially contribute to the efforts of the Israeli government to switch 4 coal plants to natural gas and reduction of 3.6 MTCo2, and gradually shut down all coal power plants with reduction of 12.8 MTCo2. It is worth noting that CO2 emissions from the Israeli gas fields will be app. 6kg/boe, compared to an average of 18kg/boe in the Exploration & Production sector globally.
Furthermore, Energean has recently reached an agreement with the Public Power Corporation (PPC) of Greece, that ensures that 100% of electricity needs in the “Prinos-Kavala” assets will be generated by “green” sources (renewable energy). This constitutes an absolute Carbon Emissions Reduction of 100% of Scope 2 emissions and about 45% of the total Scope 1 & 2 emissions from the currently operated assets and results in an annual reduction in carbon emissions of about 25,000 tCO2.
A few months ago, our company proudly responded to the Carbon Disclosure Project, by submitting its first CDP Climate Change Questionnaire. CDP Global is an international non-profit organization that runs the global environmental disclosure system and measures the environmental impact. Each year CDP supports thousands of companies, cities, states and regions to measure and manage their risks and opportunities on climate change, water security and deforestation. Through this process, Energean aims to obtain a clear understanding of our company’s emissions and enable our company to enhance its emission reduction efforts.
Finally, it is important to mention that Energean’s management is engaged with the company’s Climate Change Ambitions. Remuneration of senior executives is linked to specific carbon emissions targets and ESG ratings.
