LONDON (Reuters) – A $1 billion fund put together by top energy companies to curb coffee announced its first three investments on Friday and said two newbies could be poised join the scheme.
The Oil and Gas Climate Initiative (OGCI) was create not too long ago and includes Saudi Aramco and Royal Dutch Shell (L:RDSa).
Pratima Rangarajan, OGCI us president, said she expected more companies to sign up and therefore Brazil’s Petrobras (SA:PETR4) and Abu Dhabi National Oil Co (ADNOC) were amongst those interested.
“They’re potentially joining and were observing today,” she said within a interview with Reuters.
Other participants include BP (L:BP), Total (PA:TOTF), Eni (MI:ENI), Repsol (MC:REP), Statoil (OL:STL), CNPC, Pemex [PEMX.UL] and Reliance Industries (NS:RELI).
Together, the ten firms produce around Twenty percent on the world’s oil and coal and recently pledged obtain $1 billion over Ten years on technologies to curb our planets atmosphere.
Rangarajan said sign ups might be likely pledge an added $100 million each.
In the main investments, U.S. firm Solidia Technologies gets funding in making cement with co2 in lieu of water, potentially lowering emissions by 70 % and water use by Eighty percent, the OGCI said.
It will help U.S.-based Achates Power, which develops vehicle engines that produce fewer greenhouse gas emissions, to roll out its technology worldwide.
Financial details are not revealed.
Neither of the U.S. oil majors, Exxon (N:XOM) or Chevron (N:CVX), undoubtedly are a area of the initiative. Rangarajan said the venue of that members weren’t an issue in deciding where investments is made.
“We will have to most probably to looking from any location for the very best ideas,” she said.
The OGCI also wants to help design a full-scale gas power plant with carbon capture and storage technology (CCS), though it would not specify the spot that the project can be built, or what amount funding can be allocated.
The International Energy Association (IEA) said CCS technology is vital in case the target to limit some sort of increase in temperatures to 2 degrees Celsius, as determined within the Paris climate agreement, is usually to be met.
However, CCS project developers have struggled to lower costs. There are currently lower than 40 large-scale CCS projects globally and quite a few these are pilot schemes.
