MoP&NG receives report from ETAC Committee, suggestions given to oil & gas PSUs to achieve net zero targets

New Delhi: Ministry of Petroleum and Natural Gas in a tweet posted on Tuesday announced that it has received the report from the Energy Transition Advisory Committee (ETAC). However, the government has not accepted the report yet, the tweet added. In the report titled, "The Green Shift", ETAC has shared various suggestions for oil and gas PSUs for achieving their net zero emissions target.

India is committed to achieving net zero emissions by 2070, said the Ministry. The Ministry also noted that consultation with other stakeholders will be initiated soon to comment on the findings of this report. Further, it said that no decision has been taken on the recommendations made by the ETAC.

Oil & gas PSUs need to transition to cleaner energy sources: Kapoor

The draft report said that it has been compiled by the ETAC to draw an energy transition pathway for oil and gas PSUs. Further, it said that the report focuses on increasing adoption of clean energy solutions. Commenting on the role of oil and gas PSUs and other private companies, Tarun Kapoor, Chairman, ETAC said, "In India, we have large Public Sector Undertakings and some private companies which control most of the energy sector, be it power, coal or oil and gas. These large companies, primarily PSUs, need to transition to cleaner energy sources. The existing oil and gas majors have a good network all over the country, with suitable infrastructural might and financial strength. Therefore, if these companies take the lead in India's energy transition, the task would be much easier."

Energy transition plans of oil & gas PSUs

In Chapter 3 of the report, major energy plans by oil and gas PSUs have been discussed. As per the report, ONGC has a dedicated Carbon Management and Sustainability Group which is the nodal point for all activities pertaining to energy transition and emission reduction. The group has a specialised cell that is guiding the company’s net zero strategy. Apart from this, the company is in the process of conducting a scientific study for setting total Emissions Targets and strategies for achieving net zero by 2050. In addition to various efforts underway to reduce emissions by reducing Gas flaring, use of renewable energy, promoting green buildings, paperless office, the PSU is also conducting sensitisation for its employees.

OIL sees a CO2 reduction of 0.27 MMTCO2e through renewable energy generation, making them carbon positive, said the report. Further, the reported suggested, "As a part of short-term transition strategy, the company shall try to replace the smaller engines, vehicles etc. running on HSD with natural gas or CNG to alternative green fuels like green hydrogen, batteries, etc. In the long term, OIL may plan to replace the equipment in different static installations running on fossil fuels with new equipment running on alternative fuels depending on emergence of new technologies."

The report said that IOCL (standalone) witnessed an emission of 21.54 MMTCO2e of total emissions in FY22 primarily from its refinery and petrochemical business. Further, it added that IOCL avoided 3.36 MMTCO2e emissions in FY22 by implementing measures such as switching to natural gas, promoting pipeline transport, energy efficiency, sourcing renewable power, and plantation of trees. IOCL has identified a two-way strategy to achieve net zero footprint. The company plans to use CCUS and generate or purchase carbon credits.

BPCL had a GHG inventory of 9.5 MMTCO2e, said the report. Further, it said that the company aims to reduce target emissions by FY30 from 12.4 to 9.8 and achieve net zero by FY40. To achieve the same, "BPCL has outlined a multi-year roadmap combining increased operational efficiency and collaborations with investments in renewable power, biofuels, Carbon Capture, Utilization and Storage (CCUS) and green hydrogen generation," it added.

The report then discussed HPCL's progress and said that the company GHG inventory of 4.61 MMTCO2e. However, it aims to achieve net zero emission by 2040. For this, Boston Consulting Group was engaged in the development of an environmental strategy and roadmap including the net zero plan by September 2022.

GAIL had a GHG footprint of 3.72 MMTCO2e of total emissions in FY21, said the report. "The company’s Net-Zero strategy is based on four strategic pillars including Operational Decarbonisation, Energy transition, Carbon Capture and Utilisation (CCUS) and Offsetting backed by a robust Governance structure," it said. "To reduce methane emissions, the company has taken various initiatives like installing, Flare Gas Recovery units (FGRU), increasing natural gas flaring rather than direct venting where possible, and implementing leak detection systems," it added.

The draft report also highlighted the measures taken by Engineers India Limited and said that EIL's net operational emission was approximately 8 TMTCO2e for FY22. "The company has declared to become a Net Zero corporate by the year 2035 and formed a team to assess and implement relevant technological interventions in two phases to achieve this target," it added.

Recommendations to PSUs

The draft report gave certain recommendations to PSUs and said that they should formalise organisational structure for energy transition, integrate ESG in corporate reviews, introduce formal training module with a focus on energy transition, carbon footprint and ESG compliances. The report also asked organisations to build their organisational capabilities.

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