Carbon Management Strategy

 
Rosanna Fusco – Operational Environment Manager

As Eni’s head of the Environment can you tell us what the principal elements in Eni’s strategy are in the fight against climate change?

Quite apart for the ongoing scientific debate on the causes of climate change, Eni is conscious of the need to act. The range of options available for reducing greenhouse gas emissions from fossil fuels is extensive: there are, for example, a great many technological solutions that can be adopted that are different in terms of cost, time frame for development and potential. Eni has decided to act on a number of fronts, putting in place a series of measures that together constitute an action plan for the mitigation of climate change. This includes actions, some of which give, or will give, results in the short term, such as the gradual elimination of gas flaring (the burning of associated gas from petroleum extraction) and a wide range of energy saving initiatives.

This is a concrete and relevant commitment if one considers that the project for the elimination of gas flaring on its own will lead to a reduction of 10 million tonnes of greenhouse gas emissions by 2012. Projects for the capture and sequestration of carbon dioxide, the development of renewables and new energy vectors are just some of the other examples of Eni’s commitment to the development of new technologies aimed at generating long-term benefits.

Moreover, Eni aims to expand its actions fro the reduction of greenhouse gas emissions also to the consumers of its “products‘. In fact, this is the aim of the energy saving awareness campaigns launched by Eni and aimed at both the general public and the company’s big clients. In particular, I’m thinking of the Eni 30perCento information and training campaign.

Among the elements that you have indicated, which, in your view, is the most fundamental; that on which the effectiveness of Eni’s actions ultimately depends?

The fact that, in the short and medium term, fossil fuels cannot be substituted is something that we absolutely cannot ignore in a strategy to mitigate the effects of climate change. A serious energy saving plan is therefore the most effective way of immediately reducing energy consumption with low investment, in some cases wholly marginal, costs, and with truly substantial potential. Eni is investing substantially on an issue that it considers a priority, while attempting to achieve ever-growing levels of efficiency.

A tangible demonstration can be seen in the energy saving programmes introduced at the production level and thanks to which we expect to see overall energy savings of around 470,000 tep over the four-year period 2009-2012, just in the refining and petrochemicals sectors.  Of similar importance are consulting and assistance activities aimed at end users and well as promotional activities for the spread of a energy saving culture.

In the future prospect of a gradual replacement of fossil fuels by new types of energy, Eni is promoting investments in research in the area of renewables such as solar energy and biomass, in the belief that these have greater potential for large-scale exploitation, in a way that is economically sustainable in the medium-long term.

The carbon management strategy for the coming years confirms and strengthens Eni’s commitment in the following fields:

• achievement of a target to reduce flaring emissions;
• ongoing reduction in GHG emission levels in the various areas of activity (hydrocarbons production, energy generation, refining, and gas transmission);
• design and implementation of programs aimed at achieving ongoing improvements in the efficiency of industrial plants, from processing to production;
• gradual replacement of high carbon content fuels with other cleaner fuels, promoting the use of natural gas in particular;
• research and development of technological options, such as geological confinement, biofixation of CO2 and renewable sources;
• promotion of energy-saving behavior among suppliers, consumers and customers.

The strengthening of the carbon management strategy described in the next business plan provides for an overall emission reduction target to be established.
Furthermore, in order to increase transparency to the outside world and boost the virtuous cycle of reducing emissions, control of indirect emissions (known as “scope 3‘ emissions) will no longer be limited only to emissions arising from Eni’s activities, but will also be extended to those linked to products purchased and core contracted activities. Eni will infact carry out an analysis of the supply chain, focusing on the carbon footprint of contractors with the highest impact, as part of a sustainable supplier management strategy.
In 2010, a calculation method will be established that can be applied to determining the indirect “scope 3‘ emissions from business trips.
As regards reductions in the exploration and production sector, Eni remains committed to reducing gas flaring associated with oil production, aiming to reduce gas flaring by 70% by 2012 compared to 2007 levels. For some of these projects, Eni is also promoting recognition in the context of the flexible mechanisms provided by the Kyoto Protocol, such as the Clean Development Mechanism (CDM). The corresponding gas flaring/venting emissions represent approximately 30% of Eni’s total greenhouse gas emissions.