Big Oil Sinks $1 Billion Into Climate Fund

The Oil and Gas Climate Initiative (OGCI)—the voluntary alliance of some of the biggest oil companies in the world—said on Friday that it had made its first three investments in supporting the low-carbon industry and more efficient engine technology, in its first specific action aimed at supporting the growth of low-carbon technologies.

In November last year, OGCI—which includes BP, Shell, Saudi Aramco, Total, Eni, Statoil, Repsol, CNPC, Pemex, and Reliance Industries—said it would allocate US$1 billion for fighting climate change over the next ten years. The investment vehicle, Climate Investments, pledged to focus on investing in carbon capture, utilization, and storage (CCUS); reducing methane emissions; reducing transport emissions; and improving energy efficiency in industry.

Today, the fund announced its first three investments, without giving details on how much money it is putting in the ventures.

One is in U.S. cement and concrete maker Solidia Technologies, whose patented technology allows for the production of cement in a way that generates fewer emissions. According to OGCI, Solidia’s technology has the potential to reduce emissions in concrete production by up to 70 percent and cut water consumption by up to 80 percent.

The second investment was made in Achates Power--a company that develops more efficient vehicle engines. The high-efficiency opposed-piston engines that Achates Power is developing have the potential to materially cut greenhouse gas emissions produced by vehicles. OGCI is backing the company with investment to help it speed up the technology deployment worldwide.

Related: Canada’s Oil Output To Grow For Decades To Come

The third project that OGCI is backing is one to design a full-scale gas power plant with carbon capture and storage, including industrial CO2 sequestration capability. In this project, OGCI will support the team in developing a commercially viable concept and basic engineering design that could be attractive to private investors and receive government support.   

In a joint statement, the ten CEOs of Big Oil who lead OGCI said: “Our aim is to work towards near zero methane emissions from the gas value chain. We are also committed to ensure natural gas continues to deliver a clear climate and clean air benefit compared to coal.”

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:

• Iraq Conflict Won’t Trigger Oil Rally
• Why Are Oil And Gas Prices Diverging?
• Venezuela Could Default In The Next 48 Hours