Reducing Supply Will Not Solve Climate Change – ExxonMobil  

Oil major ExxonMobil Corp has warned that attempting to limit the supply of fossil fuels will impede progress toward achieving net zero emissions as well as potentially perpetuating poverty for millions in the developing world. Speaking at the Asia Pacific Economic Cooperation CEO Summit in San Francisco, ExxonMobil CEO Darren Woods, insisted that the solution to climate change has been too focused on reducing supply, noting that it’s “a recipe for human hardship and a poorer world.” Woods said that attacking oil and gas companies for their role in climate change will only serve to keep net zero as an “aspiration” rather than a reality Woods called for governments to “harness the industry’s capabilities for change” by providing taxpayer support for emissions-reducing technologies like carbon capture before market forces can take over. Exxon has ramped up its energy transition efforts over the past two years after losing a bruising proxy battle with activist investor Engine No. 1 at the height of the ESG movement. It plans to spend $17 billion over six years on low-carbon initiatives, and it recently acquired Denbury Inc., the largest carbon dioxide pipeline operator in the US, for about $5 billion.  But Exxon is also spending big on oil and gas. It agreed to buy US shale driller Pioneer Natural Resources Co. last month in a deal valued at about $62 billion. Woods is adamant that Exxon won’t reduce oil and gas production or invest heavily in renewable energy as his European peers have done. Instead, the Texas oil giant will invest in low-carbon technologies that complement fossil fuels such as carbon capture and hydrogen.  “Oil and gas companies reliably provide affordable products essential to modern life,” he said. “Making them into villains is easy. But it does nothing – absolutely nothing – to accomplish the goal of reducing emissions.” In unusually personal remarks, Woods talked about his commitment to the environment.  “I’m a father and grandfather – who cares about his family, their quality of life, and their futures. Which means I care very much about our environment and the health of our planet,” he said. He also attempted to draw a line under the multiple climate lawsuits that have dogged Exxon for much of the last decade.  “I’m fully aware that there are many who question ExxonMobil’s commitment because of what was said over 30 years ago – or what they think Exxon knew back then,” he said.  “Frankly, I’m more interested in what ExxonMobil knows today. Climate change is real. Human activity plays a major role,” he added.

Kaduna Refinery Ready By Q4 2024, Lokpobiri Assures

The Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, has revealed that the ongoing quick-fix project at the Kaduna Refinery and Petrochemicals Company Limited, KRPC, will be back on stream by the end of 2024. The Minister disclosed this during an inspection tour of Kaduna Refinery & Petrochemicals while assessing the progress of work on the ongoing quick-fix project of the Refinery in Kaduna on Saturday. A statement signed by the NNPC Limited management on its official X handle, formerly Twitter, Lokpobiri said he is confident that the refinery will be restreamed by the end of 2024, considering the “significant level of progress” he has witnessed on the tour. The Minister, who observed that he would continue to hold key players involved in the rehabilitation process of the nation’s refineries accountable, also pledged Federal Government support in ensuring the timely delivery of the project. According to the Minister, there is an urgent need to get the refinery back on stream for the nation’s economic prosperity and energy security, which are both paths to sustainable development.  Speaking earlier, Group Chief Executive Officer of NNPC Ltd., Mele Kyari, reassured the minister that the fuel plant at the refinery will be delivered by the end of 2024. Kyari said that all hands are on deck to bring the refinery back on stream, stressing that the contractor has since mobilized to the site and the needed equipment for the quick-fix activities is already in place. “We are very confident that we will get the appropriate financing to get to the end of it, and ultimately, we will start to deliver value to Nigerians again. We plan the quick fix for 60,000 barrels per day so that we can start making money from this plant and we can continue the other part of the refinery to bring it up to its full-fledged capacity. This will also tally with the completion of the Build, Operate, and Transfer (BOT) on the pipeline so as to have a reliable pipeline delivery infrastructure,” the GCEO stated. The inspection tour, which was preceded by the 14th refineries rehabilitation steering committee meeting, also had in attendance NNPC Limited’s Executive Vice President, Downstream, Adedapo Segun; Executive Vice President, Upstream, Oritsemeyiwa Eyesan; Managing Directors of the three refineries; and a host of other members of the Committee.

Transcorp’s generating capacity to hit 1200MW by December

Transcorp Group has said it hopes to raise Nigeria’s power capacity by 300MW by the end of 2023.  Speaking on AriseTV, Group Chief Executive Officer of Transcorp Group, Owen Omogiafo, said that resounding the gas challenge will enable the company to achieve its milestone.  According to the Transcorp GCEO, despite the gas and transmission challenges, the company still witnessed an impressive improvement in its power business in the first six months of this year (2023). “Transcorp has an installed generation capacity of nearly 2000MW, and in the first half of the year, we focused greatly on improving our mechanical available capacity and we took our capacity to about 900MW.  “There were still some challenges with gas and transmission, but notwithstanding that, we saw a great improvement in our power business. Going by the strategy we are working with now, by year end, we will have about 1,200MW of available capacity.” On the Abuja Electricity Distribution Company (AEDC) acquisition, Omogiafo explained that Transcorp as part of a consortium that acquired a 60 per cent stake in AEDC was driven by the need to drive Nigeria’s economic recovery as no industry or sector can operate without power.  Experts have opined that lack of a stable power supply continues to be a drawback to the country’s development.  Manufacturers Association of Nigeria (MAN) has said that its members spent the sum of N144.5 billion on alternative power sources in 2022.  She noted that the power sector is critical if the country’s real sector is economic growth. 

Low carbon hydrogen to define energy transition – GlobalData

GlobalData, a leading data and analytics company, has said that low-carbon hydrogen is gaining traction as a critical component to achieving energy transition and long-term decarbonization goals. Experts say the hydrogen market has progressed rapidly in recent years due to its growing application in industries such as transport, industrial, energy, aerospace, defense, and construction sectors. According to GlobalData, the global demand for pure hydrogen stood at nearly 74MMT per year in 2021, of which low carbon hydrogen accounted for a minuscule share of 0.89%. Low-carbon hydrogen, including green hydrogen, has generated tremendous interest as a sustainable option to achieve long-term climate goals or net-zero targets. Power Analyst at GlobalData Srinwanti Kar, noted that “Various countries such as the US, Canada, Germany, Spain, France, Australia, and India have framed hydrogen roadmaps, strategies, mandates, and targets to develop a hydrogen economy in general and low carbon in particular. These plans are focused mainly on scaling up hydrogen production capacity, reducing costs, and bolstering supply chain infrastructure.” The company in its latest report “Low-Carbon Hydrogen Market Report, Update 2023 – Global Market Outlook, Trends, and Key Country Analysis,” observes that during 2021-2022, the low-carbon hydrogen sector took the first big strides as a number of projects were announced as part of the strategy towards energy transition. Kar continues: “Significant policy support and governments’ commitment to decarbonization is spurring investments in the hydrogen space. The momentum that has been built along the entire value chain is accelerating cost reduction in hydrogen production, retail, and end-applications.” In November 2022, at COP27, the World Bank Group announced the formation of the Hydrogen for Development Partnership (H4D), a new global project to increase the deployment of low carbon hydrogen in developing countries. “North America leads the market in terms of low carbon hydrogen active production capacity, followed by the Middle East and Africa, Europe, and Asia Pacific. As of February 2023, the global low carbon hydrogen production capacity was 1,698ktpa (Kilo Tonnes Per Annum), which is anticipated to reach 1,11,326ktpa in terms of high case scenario and 66,321ktpa in terms of low case scenario by 2030. Suitable planning at the funding level, constructive regulatory framework, and proper infrastructure may facilitate and accelerate the pace of projects,” Kar added. As of February 2023, a total of 152mtpa (Metric Tonnes Per Annum) of the low carbon hydrogen capacity is in the pipeline, of which 1.9mtpa is in construction, 136.7mtpa in feasibility, and 6.4mtpa in front end engineering design (FEED) stage.