The Hindu Business Line : ONGC set to get third project registered under CDM

New Delhi, July 6 Oil and Natural Gas Corporation (ONGC), which is targeting to achieve emission reduction of about 8,00,000 tonnes of carbon dioxide, is set to get another project registered under the Kyoto’s Clean Development Mechanism (CDM).

After successfully getting two projects registered under the CDM by the United Nations, the company is expecting to get a third project registered shortly, of the total 13 projects identified by ONGC for phase one.

According to Mr A.K. Hazarika, ONGC’s Director Onshore Assets and CDM business, “The company is targeting about 8,00,000 tonnes of carbon dioxide emission reduction. The company may like to generate about Rs 60 crore by selling the credits at the current rate of €14.5 per certified emission reduction (CER).”

Projects in phases

ONGC is the first state-owned company to gain credits it can sell under the Kyoto Protocol. The company has identified over 20 projects divided into phases. While for the first phase it has identified 13 projects, in phase two it has selected 16 projects to cut greenhouse gas emissions. ONGC’s first registered project was for waste heat recovery at its Mumbai High offshore fields, while the second was upgrading turbines at its Hazira gas processing plant to improve efficiency.

Companies or countries with targets to cut emissions under Kyoto can invest in or buy credits from projects to cut emissions in developing countries. Although India is not required to cut its own rising emissions under Kyoto, it has become a major destination for niche investors seeking industrial carbon projects.

Mr Hazarika told Business Line that the company hopes to get the 11 remaining projects identified for phase one by the end of this year. The projects mostly focused on reduction gas flaring. This will not only help ONGC join the league of environmentally sensitive companies concerned with climate change, but also to reap benefits from carbon credits. “ONGC has many projects which are eligible to get carbon credits,” he said.

Declining to give names due to commercial reasons, Mr Hazarika said, ONGC was seeing buying interest for the credits from various traders and banks. ONGC is yet to decide on trading of the CERs in the market.

“We are looking at implementing CDM projects in our other joint venture projects and overseas projects through ONGC Videsh Ltd,” he said.

More Stories on : Outlook | Petroleum | Environment | Oil & Natural Gas Corporation Ltd

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page