Petronas announces pathway to net zero
SUMMARY
The company is allocating 20% of its capital expenditure for decarbonisation projects and expansion into cleaner energy solutions from 2022 to 2026.
By Shardul SharmaPOSTED IN:
Malaysian energy company Petronas on November 1 announced its Net Zero Carbon Emissions by 2050 (NZCE 2050) pathway to accelerate and advance groupwide actions and commitment towards achieving net zero future ambitions.
The pathway - with short-, medium- and long-term targets - will steer and provide a trajectory for the group and its stakeholders to progress towards the NZCE 2050 aspiration that was announced earlier in November 2020, it said.
"The pathway will see us address emissions from our integrated energy portfolio at pace in order to ensure our customers have safer, reliable, cost-optimised, and emissions-abated energy solutions. As we progress towards NZCE 2050, Petronas' priority is to remain in step with the societies we serve, and address energy transition in a just and responsible manner,” Petronas CEO Tengku Muhammad Taufik said.
The company’s short-term target for 2024 is to cap its greenhouse gas emissions at 49.5mn metric tons of carbon dioxide equivalent (MtCO₂e) for Scope 1 and Scope 2 emissions in Malaysia. By 2025, the target is to achieve a 50% reduction in methane emissions from the natural gas value chain.
In the medium-term, Petronas targets to achieve GHG emissions reductions of 25% by 2030 from 2019 levels of 57.73 MtCO₂e to reach 43.29 MtCO₂e for groupwide operations based on an equity share approach, where the GHG emissions reflect the economic interest of its operations.
Part of this effort includes a methane emissions reduction target of 70% set for assets where Petronas has operational control, as well as a 50% reduction in methane emissions from Malaysia's natural gas value chain in support of the country's Global Methane Pledge.
With these targets in place, the company is allocating 20% of its capital expenditure for decarbonisation projects and expansion into cleaner energy solutions from 2022 to 2026.
As of 2021, Petronas has achieved a reduction of about 17.5 MtCO₂e through various groupwide projects and initiatives since the organisation introduced its carbon commitments in 2012, it said.
Petronas’ decarbonisation efforts will anchor on four levers: zero routine flaring and venting, energy efficiency, electrification, and carbon capture and storage to reduce GHG emissions from its operations.
The company said it will continue to pursue public-private collaboration and cross-industry partnerships to stimulate green growth development of new value chains in carbon capture and storage and opportunities in renewables, hydrogen and green mobility under the newly launched Gentari.
