Rosneft: Announces Climate Goals Until 2035
The Rosneft Board of Directors reviewed the Company’s Carbon Management Plan until 2035. The document has been drafted over several months, takes into account the position of the Company’s key shareholders and will form the basis of Rosneft’s environmental agenda in the context of low-carbon development of the economy, including climate risk management and identification of opportunities related to future energy demand.
On December 17, 2020, the Board of Directors considered the “Carbon Management Plan until 2035”. The plan has the following key objectives:
1. Prevention of greenhouse gas emissions in the amount of 20 million tons of CO 2 -equivalent;
2. Reducing the intensity of emissions in oil and gas production by 30%;
3. Achieving the intensity of methane emissions below 0.25%;
4. Zero routine flaring of associated gas.
Rosneft has consistently prioritized health, environment and industrial safety. and contributes to the fulfillment of a number of obligations assumed by Russia under the Paris Agreement. The company evaluates its long-term plans in various scenarios, including the scenario of achieving the goals of the Paris Agreement.
One of the key activities of the Company as part of the implementation of the Carbon Management Plan will be to reduce the intensity of emissions in exploration and production by 30% by 2035 and to prevent greenhouse gas emissions in the amount of 20 million tons of CO 2 -equivalent. Rosneft will also continue to implement its energy saving and associated petroleum gas utilization program, aiming to achieve zero routine APG flaring. At the same time, Rosneft plans to increase the share of gas in the total portfolio of the Company to more than 25%.
Another area will be the optimization of emissions from power generation, including the study of possibilities to replace electricity from traditional CHP plants with electricity generated using low-carbon and renewable energy sources.
The high potential of using underground storage facilities and Rosneft’s own depleted fields for CO 2 capture and storage projects – CCUS (carbon capture, utilization and storage,) will allow the Company to use the existing infrastructure for capture, as well as to implement measures along the entire CCUS chain. including chemical neutralization, transportation and storage of carbon.
Another important area is to reduce methane emissions – a gas with many times higher potential for climate impact than CO 2 . Since 2019, the Company has been implementing a comprehensive program to improve production processes and initiatives to reduce methane emissions. The expansion of this program, as well as the introduction of innovative technologies: unmanned aerial vehicles, laser and thermal imaging devices for scanning, ultrasonic detectors, will help reduce the intensity of methane emissions to less than 0.25%.
Realizing the need to reduce also emissions from the use of the Company’s products, we continue to implement the existing program of commissioning filling stations with compressed natural gas, and are also considering projects for the production of new environmentally friendly fuels such as hydrogen, biofuel and environmentally friendly aviation fuel.
Another important aspect of reducing the carbon footprint is the mechanism of natural absorption. Planting more than a million trees a year on average, Rosneft is already making a significant contribution to the absorption of greenhouse gas emissions by forests. By 2035, the Company sets itself an even larger goal: unlocking the potential of the absorptive capacity of forests in Russia and developing a large-scale program for afforestation and maintenance of forest ecosystems to offset emissions.
The company goes beyond its 2035 targets and will continue to seek additional opportunities to achieve net carbon neutrality through 2050.
Commenting on the developed Carbon Management Plan until 2035, Chairman of the Management Board and Chief Executive Officer of Rosneft, II. Sechin noted: Rosneft is uniquely positioned to supply low carbon footprint hydrocarbons to meet the growing global energy demand. As one of the leaders in the global energy sector, with an extensive and efficient resource base and a strategic position in the global hydrocarbon market, the Company aims to reduce greenhouse gas emissions by 2035 and produce more energy with less impact on the climate and the environment. “
