A climate investment strategy backed by major oil and gas companies is focusing on flare gas abatement to help reduce greenhouse gas emissions.
OGCI Climate Investments has acquired an undisclosed stake in a project in Oman that seeks to capture excess methane emissions that are typically burned at sites where oil and gas is drilled, according to a statement. Flare2Value, an energy solutions company specialising in flare abatement, is leading the project’s development, with support from the Omani Ministry of Energy and Minerals.
Capital from OGCI CI’s preferred equity investment will be used to develop this flare gas capture project, located in the Mukhaizna oil field, as well as five other potential projects.
“We invest in projects that can deliver near-term reductions in emissions and have the ability to scale – F2V’s project pipeline has the potential to do both,” Pratima Rangarajan, OGCI CI’s chief executive, said in the statement.
OGCI CI is the investment arm of the Oil and Gas Climate Initiative, which launched in 2016 with backing from energy majors including Aramco, BP, ExxonMobil, Petrobras and Shell. The flare gas investment was made through the group’s OGCI Climate Investments Catalyst Fund I, a vehicle managing more than $1 billion and targeting 10 percent net returns. Overall, OGCI CI has made 25 investments, including eight deals related to methane detection and mitigation technologies.