Ten of the world’s most powerful oil CEOs will invest in three low-carbon tech firms
Big Oil’s $1bn climate fund to invest in cement, engines and gas
The Oil and Gas Climate Initiative (OGCI), headed by 10 chief executives from the world’s largest oil firms, has awarded part of its US$1 billion fund to three low carbon technology companies.
OGCI Climate Investments, the billion-dollar investment fund created last year by OGCI, selected three companies involved in promising technologies and business models that have the “potential to significantly reduce greenhouse gas emissions”.
“The three investments we are announcing today have the potential to make a meaningful impact on greenhouse gas emissions,” Pratima Rangarajan, chief executive of OGCI Climate Investments, said in a statement on Friday.
US firm Solidia Technologies was selected for its patented technology that allows for the production of cement that generates fewer emissions which has the potential to lower emissions in concrete production by up to 70 per cent and reduce water by up to 80 per cent.
The cement industry requires a great deal of power, so much that the US Energy Information Administration (EIA) said that it was the most energy-intensive of all manufacturing industries. The organisation said that the amount of power used by the cement industry was 10 times more than its share of GDP by 10 times.
The other selected companies include another American firm, Achates Power, to help create more efficient vehicle engines to reduce greenhouse gas emissions.
Lastly, a project for a full scale gas power plant with carbon capture and storage will also receive investment, though the company name was not disclosed. OGCI Climate Investments will work with the project team on a commercially viable concept and basic engineering design that can receive government support and attract private sector investors.
“We are also leveraging our global research and development network to demonstrate more efficient transport solutions, as well as, new technologies to capture carbon dioxide and transform it into high value products which produces low greenhouse gas footprint polymers,” said Saudi Aramco president, Amin Nasser.
OGCI began on the heels of the 2014 Paris Climate Agreement when 10 major oil and gas chiefs got together including BP, China national Petroleum Corporation, ENI, Petroleos Mexicanos, Reliance Industries, Repsol, Royal Dutch Shell, Saudi Aramco, Statoil and Total.
Seven of the member countries have invested more than $19bn in renewables over the past five years and more than $3bn has been spent on research and development.
“Oil and gas industry leaders have a critical role to play in our efforts to take on climate change and limit the global temperature rise,” said Erik Solheim, UN Environment executive director. “Partnerships like this are extremely important. They’re not only about financial support, but concrete action – because this is how success will be measured.”