Petrovietnam Outlines Plans To Use Carbon Capture Credits

Petrovietnam Outlines Plans To Use Carbon Capture Credits - Carbon Herald

According to a report in Vietnam News, the country’s The Vietnam Oil and Gas Group (Petrovietnam) is planning to adopt carbon capture technology at a large number of its operations and generate credits to cover the cost of implementation.

The announcement is in line with the country’s stated emission goals, Petrovietnam Exploration Production Corporation (PVEP) targets a 20 percent reduction in net emissions by 2030, a 50 percent reduction by 2040, and achieving Net Zero emissions by 2050. PVEP’s strategic approach includes implementing carbon capture and storage (CCS) from emission sources and transporting the captured CO2 to long-term storage facilities.

Carbon capture credits to become source of revenue

This initiative also provides Petrovietnam with an opportunity to diversify its business model by creating carbon credits through CO2 recovery and storage in offshore oil and gas fields. The company aims to be a pioneer in CCS deployment, generating revenue from selling credits and engaging in carbon markets.

Thirty-four offshore oil and gas fields in have already been assessed by Petrovietnam for their CO2 storage potential, providing scale for the initiative and a potentially a good level of liquidity for the carbon capture credits.

By 2025, Petrovietnam expects to reduce CO2 emissions by 15.55 million tonnes compared to the baseline levels in 2010. From 2031 to 2050, the company plans to implement measures to make coal power plants more environmentally friendly and advance carbon capture, utilization, and storage (CCUS) technologies.

Details of the exact percentage of captured CO2 from the respective operations and sites haven’t been provided but will likely become available as the regulatory framework takes shape.

The company is also committed to exploring clean energy projects such as hydrogen and green ammonia, aiming to participate in regional and global markets. Additionally, Petrovietnam will focus on transitioning to clean fuels for maritime transportation.

Afforestation efforts

“For businesses, planting trees and afforestation is not only a social responsibility but also brings benefits when being recognised and granted carbon credits to offset emissions,” Petrovietnam’s chairman Lê Mạnh Hùng said.

The country’s greenhouse gas emissions total approximately 400 million tonnes of CO2, with the energy sector contributing around two-thirds of this amount. Given the Vietnamese Government’s strong commitments made at COP26, the domestic carbon credit market is expected to expand rapidly in the near future. The timeline shared by the governments states that by the end of 2027 there will be regulatory system and policies to lay the groundwork for the market, establish a pilot carbon credit exchange, and it is expected to begin operations in 2028.

Read more: Vietnam Ramps Up Monitoring Of CO2 Credits To Meet National Goals

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