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The Greek island of Thasos is located in the northern Aegean Sea near Bulgaria and North Macedonia and is considered the largest island in the region. The economy of Thasos is largely based on lumber, being a densely-wooded island, as well as honey and olive oil. And there is something else happening on Thasos - Energean’s Green Prinos project.
The project is unique to the Mediterranean Basin and in fact takes an opposite approach to everything we know about CO²: instead of natural emission flows, the CO² is injected into old depleted reservoirs. It sounds like science fiction but it’s what Energean plans to do over the coming years in order to take another significant step towards reducing the company’s carbon footprint and meeting its target of net zero emissions by 2050. In numbers, this requires reducing 1 billion tons of CO² per year.
Energean CEO Mathios Rigas
Energean CEO Mathios Rigas
Our world - our responsibility
Energean has become a significant player in the Israeli gas market in recent years. The company’s headquarters are based in London and it operates in a number of countries across the Mediterranean Basin, including Greece, Italy, Montenegro, Cyprus and Israel.
Natural gas production from the Karish reservoir will be carried out by Energean using an FPSO - a vessel used by the oil and gas industry to produce and process gas and liquid hydrocarbons in offshore reservoirs. After processing, the gas will be flowed via pipeline to the national transmission system and the liquid hydrocarbons will be stored in the FPSO facility 90 km offshore before being offloaded by special-purpose vessels.
In other words, the liquid hydrocarbons will not reach shore, which significantly reduces the risk of environmental hazards.
When talking to the company’s workers and senior-most executives, they repeat the ethos of "our world - our responsibility," a motto that relates to ESG and first and foremost reflects the company’s environmental policy. And there is no denying that it is catchy. The company just recently reported that 2021 was a record year for its operating profit and revenues, all while continuing to maintain corporate responsibility and its commitment to the environment. Energean CEO Mathios Rigas emphasized to investors that "as always, we continue to focus on the intensive reduction of emissions and accelrating the progress towards the net zero emissions target in 2050. Accordingly, we are looking into the use of a number of carbon capture and storage units, and a number of eco-friendly hydrogen projects."
The path to net zero
Meeting the net zero target by 2050 is at the core of Energean’s activities as it continues to search for solutions that will help achieve this purpose, such as reducing greenhouse gas emissions and strengthening low-carbon assets with the goal of transforming the energy system in the Mediterranean. This approach stems from the understanding that the world undoubtedly requires natural gas as a key energy source over the coming decades and that it is considerably less polluting than the old energy sources. We can clearly minimize damages and make the world better as far as possible out of awareness and a true undertaking that integrates with all of the activities Energean engages in. The path to net zero starts with short-term measures and continues with long-term targets, and Energean continues to search for means to help meet this goal.
And indeed, by 2025 Energean will see an 89% decline in carbon emission per barrel of oil equivalent. Its carbon emissions in 2021 stood at only 17.9 kgCO2e/boe, significantly lower than the world average of 20 kgCO2e/boe. In 2024, the company expects an additional dramatic decrease in emissions to 7.7 kgCO2e/boe, which would mark a major breakthrough in relation to the global efforts underway. This accomplishment stems and will continue to stem from a series of ongoing steps, including the continued increase in the natural gas share of production compared with oil, efficient operating procedures, purchase of green electricity and of course - the deep sea CO² storage project.
Record year in finance
"Energean introduced competition in Israel," says Shlomi Levy, CFO of Energean Israel. "We’ve been hearing recently about electricity suppliers in the world going bankrupt, even in strong western countries like the UK, and are seeing electricity and gas prices across Europe soar be tens of percent. And here in Israel, despite the slight rise in prices, we feel stability, largely thanks to long-term contracts that provide security for the entire industry. Financially, 2021 was a record year for financing in Energean: $3 billion were raised in bonds, of which 80% are for our operations in Israel, which demonstrates the market and investors’ confidence in Energean’s vision."
The motto "our world, our responsibility" is manifested in multiple other policy measures and obliges Energean’s workers and executives as one to support corporate responsibility and contribution to the community. Inter alia, the company has focused on forming a connection with the communities it operates in around the world, volunteer work initiatives, transparency by the board of directors towards all employees and the adoption of corporate responsibility as a managerial approach. All that remains now is to wait for the start of gas production by Energean later this year, which will reinforce Israel’s status as a regional gas power - but also one where companies are deeply-committed to the world and the environment.
Energean Israel CFO Shlomi Levi
Energean Israel CFO Shlomi Levi
Energean’s climate strategy - Three steps towards net zero emissions
Short-term targets by 2025:
* Participation in declaration project regarding CO2 (CPD)
*Adjusting financial reporting on climate issues
*Increasing natural gas share of production to 80%
*Optimizing and streamlining operating procedures
*Purchasing electricity from renewable energy
*Reducing carbon emission intensity by 89%
*Natural and green solution-based projects
Medium-term targets by 2035:
*Purchasing electricity from renewable energy
*Optimizing and streamlining operating procedures
*Carbon capture and storage
*Green hydrogen
*Natural and green solution-based projects
Long-term targets by 2050:
*Carbon capture and storage
*Green hydrogen
*Natural and green solution-based projects