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Oil Companies' Climate Group Makes First Investments
The Oil and Gas Climate Initiative -- a CEO-led initiative consisting of 10 oil and gas companies, including BP, Shell, and Total -- announced its first three investments on Oct. 27, saying it is advancing the organization's commitments into concrete action to spur the growth of promising low-carbon technologies. OGCI Climate Investments is a billion-dollar investment fund established last year by OGCI to invest in promising technologies and business models that have the potential to significantly reduce greenhouse gas emissions; the fund is building a network of partners and co-investors in key sectors.
These initial investments are in:
- Solidia Technologies, a Piscataway, N.J.-based cement and concrete production company that uses CO2 to cure the products; the technology has the potential to lower emissions in concrete production by up to 70 percent and water consumption by up to 80 percent
- San Diego-based Achates Power, which is developing high-efficiency vehicle engines
- An unidentified project that aims to design a full-scale gas power plant with carbon capture and storage, including industrial CO2 sequestration capability; 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 investors.
"The three investments we are announcing today have the potential to make a meaningful impact on greenhouse gas emissions," said Pratima Rangarajan, CEO of OGCI Climate Investments. "We look forward to working with these innovative teams to help them achieve commercial success on a global scale."
OGCI also released its third annual report Oct. 27 showing progress made and new partnership agreements. In a joint statement, the CEOs who lead OGCI said, "Natural gas is a vital part of the transition to a lower carbon future. Our aim is to work towards near zero methane emissions from the gas value chain. We are also committed to ensure that natural gas continues to deliver its clear climate and clean air benefit compared to coal."
OGCI also is partnering with United Nations Environment and the Environmental Defense Fund to provide financial and technical backing for a global methane study to fill gaps in identifying and quantifying global methane emissions. Erik Solheim, executive director of UN Environment, said 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. We are counting on groups such as OGCI to support the needed shift in the way we produce and consume energy. Partnerships like this are extremely important. They're not only about financial support, but concrete action – because this is how success will be measured."
The full report, "A Catalyst for Change," is available at www.oilandgasclimateinitiative/.