The Hindu Business Line : ONGC may tie up with Norwegian co for green tech

New Delhi, Feb. 1 Oil & Natural Gas Corporation (ONGC) is likely to ink an agreement with Norway’s StatoilHydro for carbon capture and sequestration (CCS) technology.

“Use of CCS technology will help in reducing greenhouse gas emission. Besides, enhanced technology will also enable the company to earn carbon credits,” a senior ONGC official said.

CCS is an approach to mitigate global warming by capturing carbon dioxide from large point sources and storing it instead of releasing it into the atmosphere. “The agreement is expected to be signed sometime next week. ONGC is also likely to sign some other agreements with the Norwegian company including one on technology transfer and fields development,” he told Business Line.

Technology for large-scale capture of carbon dioxide is already commercially available and fairly well developed. Under the CCS mechanism, the gas is not emitted in the environment, but after processing, it is again injected into a geological formation.

ONGC recently got its third clean development mechanism project registered with the United Nations Framework Convention for Climate Change.

The project ‘flare gas recovery project at Uran plant’ involved reducing gas flaring from ONGC’s Uran plant and qualified for a CDM project under fuel substitution category.

“This is a large-scale project with an estimated annual carbon credits of 97,740, equivalent to an annual earning of around Rs 9.3 crore of green revenue,” he said.

Under the CDM, an industrialised country with a greenhouse gas reduction target can invest in a project in a developing country without a target and claim credit for the emissions that the project achieves. Thus, the mechanism opens up an excellent opportunity to the companies of the developing nations for earning revenues through mitigation of green houses gases. The reduction in green house gas emission achieved through a registered project is quantified as certified emission reduction, commonly known as carbon credits, which is a tradable commodity.

The other two projects of ONGC that already been registered with UNFCC are “waste heat recovery and using the recovered heat for heating oil” at MS platform in Mumbai High and the ‘upgradation of gas turbine 1 and gas turbine 2 at co-generation plant of Hazira gas processing complex’.

These are the three projects of the 13 projects ONGC has developed as potential CDM projects in the first phase. The remaining projects are also expected to be registered soon. In the second phase, ONGC is developing 17 more CDM projects.

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