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Category: Energy

  • Sierra Leone Seeks Upstream Partners to Fast-Track Exploration, says Petroleum Directorate

    Sierra Leone Seeks Upstream Partners to Fast-Track Exploration, says Petroleum Directorate

    In an exclusive interview with the African Energy Chamber, Foday B. L. Mansaray, Director General of Sierra Leone’s Petroleum Directorate, spoke on the country’s exploration agenda to develop its hydrocarbon-rich, ultra-deep basins
    JOHANNESBURG, South Africa, March 27, 2023/ — The African Energy Chamber (http://www.EnergyChamber.org) – the voice of the African energy sector – spoke with Foday B. L. Mansaray, Director General of the Petroleum Directorate of Sierra Leone, in an exclusive interview on the country’s latest oil and gas developments. These include a fifth licensing round launched last May, ongoing evaluation of its gas prospects, streamlined concession terms, and an upcoming wildcat and appraisal well to be drilled later this year.

    What is the current state of Sierra Leone’s oil and gas industry?

    We are still a nation in its infancy and we want to get to a stage where we can commercialize our oil and gas reserves. Over the past years, we have managed to streamline the process for application to conduct exploration works. So far, we have a Nigerian independent in our basin which – in its first evaluation conducted last year – has highlighted gas prospects. With the energy transition taking center stage, having gas in our energy mix will be crucial in driving energy security and sustainability.

    Last year, Sierra Leone launched its fifth licensing round to kickstart new exploration in the country. How has engagement with operators been to date?  

    The licensing round closes at the end of September and has been an excellent round so far, with very strong interest from majors, IOCs and independents that have already looked at our data and are conducting data and financial evaluation. We have 56 graticules and 63,000 ㎢ in area on offer. We also have hydrocarbon-rich, ultra-deep basins on offer through direct negotiations. We want technically-sound companies to partner with – those that can drill and have the capability to progress our exploration agenda. Our entire basin is covered with 3D and 2D data, hence there is a strong foundation for companies to advance and fast-track exploration.

    How does your latest licensing round differ from previous rounds and from others being launched across the continent?

    We are determined to make this round the most successful licensing round we have ever had. The conversation around energy transition is shifting slightly, with major companies approaching us to participate. We have reduced the red tape for companies to come in with very simple and straightforward terms. We have only three non-negotiable terms: a corporate income tax of 25%; a 10% royalty for oil and 5% royalty for gas; and a petroleum resources tax. The barriers to entry are very low. The period from application to ratification is 85 days, hence we have heavily improved our application period. We are also positioned within the Office of the Presidency and are very quick and nimble at making decisions.

    Sierra Leone’s basins are similar to Guyana’s where huge discoveries have been made, and we are positive that we will attract major IOCs and a few independents. Once we open our doors for them to enter, we expect more firms to flood into our sector. We are willing to learn from neighbors such as Namibia and Angola to enhance our sector growth.

    How is Sierra Leone prioritizing local content and skills development as its energy sector develops?

    Our local content laws are very strong and the area is a very important aspect regarding how we want to develop our industry. We have existing Memoranda of Understanding (MoU) with Equatorial Guinea, The Gambia and Ghana. Last year, we sent 18 people for training in Ghana from different departments. We want to capacitate local content into our sector and ensure that we have as many qualified Sierra Leoneans as possible wherever there is a gap. We also want to focus on African local content with our neighbors because local content is key to driving industry growth. We have many programs and training that we offer around petroleum engineering and geology.

    How is Sierra Leone balancing the energy transition with its need for energy security?

    Our plan is to not leave our oil and gas resources in the ground. A key part of industrialization is driving access to energy. We are aware of climate change, and as we develop our resources, we will make sure our sector is ready for future business models and low-carbon operations. Our resources are more useful in shaping the energy transition and economic development when they are on the surface than in the ground, hence we will continue with drilling, development and monetization of our resources.

    How is the Petroleum Directorate serving to attract new investment?  

    We are very active in terms of attracting investments and promoting opportunities within Sierra Leone. We are not just waiting for investments to come to us – we are going where they are. We had very fruitful meetings and conversations with companies in Qatar around natural gas, and we will be chatting with two Italian IOCs. The industry is competitive and we need to be actively seeking investors.

    What are the key investment opportunities within Sierra Leone’s energy value chain?

    We have recently made a discovery with a small-to-medium upstream company and are looking for companies willing to develop that to meet our in-country energy needs. We have also signed an MoU for the development of the Nigeria-Morocco-Niger Gas Pipeline for us to tap into – as well as feed into – that pipeline to meet our demands. In the downstream sector, we are ensuring fuel security with the development of more pipes to import more fuels. The key area that will give us energy independence is exploration.

    With the 2023 edition of African Energy Week being held this October, what message will you be sharing during the event and what deals do you hope to be signed?

    We are closing the licensing round around the time of African Energy Week (AEW) and we plan to sign the agreements during the event. We are currently speaking to one supermajor and we want AEW to be the platform where we make a huge announcement. With the Nigerian company that is already in the basin, it will start drilling a wildcat and appraisal well later this year, so we also plan to announce the size and scope of its discovery at AEW.

    Distributed by APO Group on behalf of African Energy Chamber.

    SOURCE
    African Energy Chamber

     

     

  • Enhancing Quality of Service Delivery in Ghana

    Enhancing Quality of Service Delivery in Ghana

    ECG to Embark on Capacity Building for Electrical Contractors

    Report: Mohammed Abu

    The Electric Company of Ghana (ECG) is set to embark on mandatory capacity building training for all local electrical contractors in the country.

    Aimed at improving the skills and knowledge of electrical contractors so as to enhance the quality of service delivery, the training which date will soon be communicated, would cover a wide range of topics.

    They include, power overhead line construction, underground cable construction, operation and maintenance of substation equipment, ECG Construction standards, safety and health policies.

    These were contained in a Press Release issued in Accra, Thursday, by Mr. Awal Sakib Mohammed, President of the Ghana Electrical Contractors Association(GECA).

    The ECG, the release said, is very particular about ensuring that its power distribution Infrastructure, is designed to standards and poses no danger to its technical staff and contractors.

    Electrical contractors it added, therefore have to stay abreast with the latest advancement in the field and ensure they are working within the regulations and providing safe installation.

    The Press Release further added that while the leadership of the Ghana Electrical Contractors Association implores membership to prepare themselves for the program, it is also sounding a warning that, members who would exempt themselves would not be allowed to work on the ECG distribution network.

     

  • A Just Transition: Making Energy Poverty History with an Energy Mix Hits #1 Bestseller on Amazon

    A Just Transition: Making Energy Poverty History with an Energy Mix Hits #1 Bestseller on Amazon

    NJ Ayuk’s most recent publication, A Just Transition: Making Energy Poverty History with an Energy Mix, has debuted as a #1 bestseller on Amazon’s US store

    JOHANNESBURG, South Africa, March 9, 2023/ — Following its release on Wednesday 8 March, NJ Ayuk’s most recent publication, A Just Transition: Making Energy Poverty History with an Energy Mix, has debuted as the #1 bestselling book on Amazon’s U.S. store, a testament to its significance in the current energy transition climate. Representing an in-depth analysis of Africa’s energy sector and the threat an immediate transition to renewables poses on the continent’s ability to develop, reaching bestseller status speaks to the value the book holds.

    The release of the book follows years of research and analysis, as well as meetings with prominent stakeholders, with the end product shedding light on the sobering reality that is unfolding in Africa. The bestselling publication reaffirms what African stakeholders believe is the right way to transition to a cleaner energy future. Rather than abandon the very resources that serve as the solution to developing, industrializing and electrifying the continent, the book brings attention to a different approach: an African approach.

    By providing key insight into the disastrous impacts transitioning away from oil and gas will have on the continent, the book offers a drill-focused approach, essentially defending the continent’s right to develop and utilize its oil and gas resources. By drawing attention to the need to end resource nationalism as well as critical role large-scale oil and gas developments such as the East African Crude Oil Pipeline, Mozambique’s three sizeable Liquefied Natural Gas (LNG) developments and South Africa’s natural gas projects, to name a few, will play in alleviating energy poverty while increasing the supply of clean energy, the book makes a strong case for what Africa needs to develop and mitigate climate change.

    At a time when African countries have aligned their policies to attract more investment into upcoming oil and gas developments, world leaders continue to call for the end of oil and gas utilization. For Africa, developing oil and gas is no longer an interesting prospect, but rather, it has turned into a critical solution for developing economies. Across the continent projects continue to take off. These include Senegal and Mauritania’s Greater Tortue Ahemyim development; Nigeria’s floating LNG train; Uganda’s Lake Albert development; Namibia’s trifecta of oil discoveries and many more. If these projects were to end, what chance does the continent have to make energy poverty history?

    Rather than place oil and gas stakeholders against environmentalists, a trend which continues to be done by world leaders, the book posits a collaborative approach to addressing dual challenges of energy poverty and climate change in Africa, making clear the value of cooperation among energy players and environmentalists alike. Rather than picking sides, Ayuk takes on a new approach to the climate debate, introducing the concept of integration and cooperation above opposition.

    Additionally, the book makes clear the need for an energy mix-approach. For Africa, adopting an energy mix represents the only and best method of making energy poverty history while addressing climate change concerns. In addition to over 125 billion barrels of crude oil reserves and 620 trillion cubic feet of natural gas, Africa holds significant renewable energy potential, and energy stakeholders are already working towards capitalizing on these resources. In this area, the book identifies a particularly interesting and highly lucrative space: green hydrogen. While global markets begin to turn their attention to global hydrogen, Africa’s untapped renewable energy resources and position as a future green hydrogen hub have made it a top investment destination, however capital remains slow in this area.

    As such, the book introduces a key solution to raising the funds needed to develop this sector: oil and gas. If Africa immediately transitions away from these resources, how will the continent finance its future? The book points to this very notion, emphasizing that a Western idea of the energy transition will do more harm than good in Africa: that a rushed transition will be even more disastrous; and that relying on foreign aid, rather than developing resources, will cause long-term harm, preventing any meaningful economic progress from taking place.

    There is still time to secure your copy of A Just Transition: Making Energy Poverty History with an Energy Mix. Purchase your copy on Amazon at https://apo-opa.info/3ynv5Ev

    Distributed by APO Group on behalf of African Energy Chamber.

    SOURCE
    African Energy Chamber
  • United Arab Emirates (UAE)-Africa Partnerships to be Solidified at Invest in African Energy Dubai Edition

    United Arab Emirates (UAE)-Africa Partnerships to be Solidified at Invest in African Energy Dubai Edition

    The Dubai leg of the Invest in African Energy roadshow offers UAE investors the chance to connect with African opportunities, while African executives the chance to connect to international financial markets with Dubai as a trade center

    JOHANNESBURG, South Africa, March 9, 2023/ — The next leg of the African Energy Chamber’s (http://www.EnergyChamber.org) Invest in African Energy roadshow is drawing near, bringing with it new opportunities for UAE investors and project developers to tap into emerging energy markets in Africa. Taking place on March 30 at the Ritz-Carlton, International Financial Center in Dubai – a trade center within easy reach of major international financial capitals – the edition is set to unlock a new era of economic ties between the Middle East and Africa, propelled by unique networking opportunities and facilitated investment meetings.

    Recently, the dynamics between Middle Eastern investors and Africa have shifted dramatically, with UAE energy players in particular moving to establish deeper, longer-term and mutually beneficial commitments with African countries. For UAE stakeholders, Africa offers a wealth of opportunities whereby investing in the continent will advance goals of diversification, energy and food security as well as bilateral trade. As a region heavily dependent on oil and gas, investing in African energy markets will enable the UAE to not only advance its own development agenda but accelerate Africa’s overall socioeconomic progress, driving electrification, infrastructure development and industrialization all on the back of strengthened bilateral ties.

    Meanwhile, for Africa, the UAE has long-been an important investment partner, with the country representing the fourth-largest investor into the continent globally. Between January 2016 and July 2021 alone, the UAE invested approximately $1.2 billion into sub-Saharan Africa, and with an agenda to increase these investments multi-fold, the UAE is set to play an increasingly important role in unlocking resource monetization and development in Africa. At a time when Africa is pursuing widespread energy expansion on the back of 125 billion barrels of largely untapped oil reserves, 620 trillion cubic feet of gas and unparalleled renewable energy resources, increased UAE investment across key segments of the African energy sector will help unlock a new era of resource maximization, and by proxy, long-term and sustainable economic growth.

    On the gas front, a critical industry for both Africa and the global energy sector at large, UAE expertise across this field will help advance the continent’s gas agenda, ensuring investments translate into large-scale projects that are highly rewarding, impactful across regional economies and reap tangible benefits for local populations. By leveraging the UAE’s experience as a major oil and gas producer, Africa can unlock the full potential of its burgeoning gas sector with projects such as Mozambique’s three-fold Liquefied Natural Gas (LNG) projects; Senegal and Mauritania’s Greater Tortue Ahmeyim LNG development; the Nigeria Floating LNG project; and many more leading the way.

    However, the UAE’s role in Africa transcends direct investments, with the Emirates offering the continent the unique opportunity to tap into international markets, and specifically, financial capitals. Having been positioned as a trade center within easy reach of global markets, Dubai is well-connected to both global markets as well as emerging markets seeking investment and capital partners. As such, the Invest in African Energy Dubai edition will leverage this position to strengthen UAE-Africa connections and enable African stakeholders to tap into global financial markets.

    “The Invest in African Energy Dubai edition represents a not-to-be missed event. On the back of a series of successful roadshows that preceded it, the Dubai event will focus on the opportunities for UAE investors and project developers in Africa. Africa’s energy sector offers stakeholders a wealth of opportunities covering every segment of the energy value chain, and levering already-strong relations and economic ties established between the UAE and African countries, the Dubai event will create new opportunities for deals and bilateral connections, ensuring UAE stakeholders capitalize on Africa’s energy prospects in a way that is mutually beneficial and on a long-term basis,” states NJ Ayuk, Executive Chairman of the AEC, adding that, “If you are a UAE energy players looking at expanding your presence across the African continent, or an investors looking at reaping high returns on investment in global markets, the Invest in African Energy Dubai edition is the place to be. We look forward to seeing you all in Dubai at the end of this month.”

    The Dubai Invest in African Energy roadshow offers UAE players the chance to connect with a suite of high-level African stakeholders, providing a suitable platform where discussions can commence regarding UAE-Africa relations and new deals to be signed that will advance both the UAE and Africa’s objectives. Representing a form of prelude to the continent’s premier event for the oil and gas sector, African Energy Week (AEW) 2023, the event will kickstart discussions that will translate into tangible deals during the AEW conference. Don’t miss this important event.

    Distributed by APO Group on behalf of African Energy Chamber.

    SOURCE
    African Energy Chamber
  • Equatorial Guinea’s New Minister of Mines & Hydrocarbons Is a Competent Leader Taking the Reins in a Challenging Era — Here’s What Needs to Happen Next

    Equatorial Guinea’s New Minister of Mines & Hydrocarbons Is a Competent Leader Taking the Reins in a Challenging Era — Here’s What Needs to Happen Next

    Antonio Oburu Ondo, former Managing Director of national oil company, GEPetrol, has been named Minister of Mines and Hydrocarbons. He is succeeding well-respected leader Gabriel Mbaga Obiang Lima, who assumed the role of Ministry of Economy and Planning.

    By NJ Ayuk, Executive Chairman, African Energy Chamber

    Equatorial Guinea’s cabinet has seen a changing of the guard.

    Antonio Oburu Ondo, former Managing Director of national oil company, GEPetrol, has been named Minister of Mines and Hydrocarbons. He is succeeding well-respected leader Gabriel Mbaga Obiang Lima, who assumed the role of Ministry of Economy and Planning.

    We at the African Energy Chamber are confident that Minister Ondo will do an excellent job. He brings years of industry experience to the table and has worked extremely hard to strengthen Equatorial Guinea’s national oil company. We do not doubt that Minister Ondo will be successful in fostering growth in the energy sector and the national economy as a whole provided that energy industry stakeholders — from international oil companies (IOCs) to the government to other African energy ministers —  join us in supporting him.

    We Need a Strategic Response to Natural Decline of Maturing Oil Fields

    It’s no secret that Equatorial Guinea’s energy industry faces some challenges. For one, production in existing oil and gas fields has been in decline. It is not because of the action, or the inaction of anybody: This is a natural decline and to be expected in any production site.

    What is needed right now is reinvestment in energy growth. And to achieve that, Equatorial Guinea will need to create an enabling environment for new oil and natural gas exploration projects. Equatorial Guinea must remember that it is competing for capital and investment with Gabon, Guyana, and other countries that offer attractive fiscal terms to entice IOCs. If Equatorial Guinea can’t match that alluring environment, it will be difficult to sustain oil and gas production.

    Consider this: There have been no major discoveries in Equatorial Guinea since the introduction of the 2006 hydrocarbon law. In late 2021, Obiang Lima said Equatorial Guinea was revising that law. He recognized that fact that the country needed to give greater consideration to the needs of, and current challenges, facing energy companies if it was going to convince them to make significant investments there.

    “Our hope is that it will enable us to attract more regional and international energy participants and incentivize investment across the entire value chain,” Obiang Lima said at the time. “That will allow us to realize the potential of our offshore natural gas industry and become increasingly competitive in the gas sector.”

    The decision to revise the law was the right choice. I encourage Equatorial Guinea to complete those efforts promptly. Meanwhile, the Ministry of Hydrocarbons and Mines should be taking practical steps to demonstrate that Equatorial Guinea is investor friendly. Oil majors will notice, for example, how the ministry handles the upcoming departure of ExxonMobil, which has announced plans to leave the country, and West Africa, after its license expires in 2026.

    While it may be hard to watch the departure of this excellent partner for the country, it is equally important that Minister Ondo recognize the value of a clean break and an orderly transition to their successor. A diplomatic response will enhance Equatorial Guinea’s reputation as a good country for energy companies.

    What’s more, while there’s no question of sunsetting wells, let’s not overlook the successful producers in the country who are working to ensure the longevity of aging fields and investigating new finds. Trident Energy and Kosmos Energy, for instance, continue to have successful output in the Ceiba conventional oil field: Although production peaked in 2002 at 51.7 thousand barrels per day (bpd) of crude oil and condensate, the field continues to account for some 4% of the country’s daily output. Meanwhile, U.S.-based VAALCO Energy and Atlas Petroleum are successfully proceeding with the development of the Venus discovery in Block P and there is no longer an exclusive operation. All signs point to a promising yield: The results of its initial discovery well and reservoir modeling anticipate 15,000 bpd from the two development wells and injector well.

    Minister Ondo must continue to establish and promote fiscal incentives for investors like these to drive up further production in Block P and other promising hydrocarbon-rich zones. Creating and maintaining ongoing positive relations with these and other companies can go a long way toward developing a reputation as a country serious about its hydrocarbon industry.

    Gas Is the Way Forward

    I believe Equatorial Guinea’s 1.5 trillion cubic feet of natural gas will become the driving force in the country’s energy industry. To enable natural gas production and monetization to lead to economic development and industrialization, Minister Ondo needs to embrace a pragmatic approach to welcoming credible investors, eliminating red tape, and making good deals.

    With this in mind, Minister Ondo will likely find that closing the deal with Chevron regarding a joint development of the YoYo and Yolonda natural gas fields in Equatorial Guinea and Cameroon is going to be critical. Developing this cross-border gas mega-hub could truly transform the economy of both the nation and the region. The LNG market continues to be important and Equatorial Guinea is well positioned to be an active player.

    Let’s also consider Golar LNG and the Fortuna floating liquefied natural gas (FLNG) vessel owned by New Fortress Energy. The partners are negotiating about EG-27 (formerly Block R) to develop an easier, fast-tracked system for moving LNG into the market. This a difficult project and requires really highly skilled companies and deep financial pockets to make this work.  The discussions center around bringing LNG from Nigeria or Cameroon to be processed in Equatorial Guinea. Such developments are critical now more than ever, and the ministry would be wise to do everything in its power to make them happen.

    Keep it Local… But Balanced

    Another challenge Minister Ondo faces is to prioritize keeping markets stable, taking a very market-driven approach both at home and abroad. It’s a delicate balancing act: creating an atmosphere where companies will want to invest in Equatorial Guinea while, at the same time, advocating for the needs of local people and businesses.

    This is not the time to leave local content behind. Minister Ondo will want to make certain that his country establishes a platform that develops its homegrown businesses and businesspeople. This is more than just enabling the local residents and businesses to take commissions from service companies – it is about ensuring that they become an integral part of the industry. Indeed, local content should be seen more as enterprise building and management.

    At the same time, Minister Ondo will be wise to follow in his predecessor’s footsteps in denouncing the currency control rules that the Bank of Central African States (BEAC) adopted in June 2019. While the BEAC’s intention was to promote financial transparency and ensure that oil revenues stay within local economies and local banks, these stringent restrictions create a very unwelcoming environment for foreign investors by causing transaction delays and preventing the repatriation of proceeds. These are job killing regulations and it is bad for jobs, bad for local companies and bad for investments.

    “The FX regulations adopted in June 2019 make it very difficult for our companies to compete and create employment, and render our business environment very unattractive for foreign investors,” Obiang Lima said shortly after their enactment, while calling on the industry to take immediate action to encourage a reversal of the regulations.

    Perhaps a collaboration of the Ministry of Mines and Hydrocarbons and the Ministry of Economy and Planning is in order – a collaboration of outgoing and incoming ministers who can use their expertise and political savvy to overcome these kinds of job-killing and industry-damaging regulations.

    I am confident that Minister Ondo has what it takes to make it work. Companies can rest assured: He may be new to the office, but he’s not new to the game. We have all grown accustomed to his predecessor, and now we all need to welcome new ideas from the new minister. Let’s offer him our full support as he works to help Equatorial Guinea’s energy industry get its groove back.

     

  • Climate change: Africa has a major new carbon market initiative – what you need to know

    Author: Jonathan Colmer

     Assistant Professor of Economics, University of Virginia

    Published: January 23, 2023 4.55pm SAST

    Climate finance for the African continent got a boost at the 2022 United Nations Climate Conference (COP27), with the launch of the African Carbon Markets Initiative. This aims to make climate finance available for African countries, expand access to clean energy, and drive sustainable economic development.

    Led by a 13-member steering committee of African leaders, chief executives and industry specialists, the initiative promises to expand the continent’s participation in voluntary carbon markets.

    Carbon markets are trading platforms which allow individuals, firms and governments to fund projects that reduce emissions (instead of reducing their own emissions).

    Kenya, Malawi, Gabon, Nigeria and Togo have already indicated their intention to collaborate with the market.

    Our mission is to share knowledge and inform decisions.

    About us

    Climate projects include reforestation and forest conservation, investments in renewable energy, carbon-storing agricultural practices and direct air capture. In return for funding projects like these, investors receive carbon credits – certificates used to “offset” the emissions that they continue to produce.

    The African initiative’s goal is to produce 300 million new carbon credits annually by 2030, comparable to the number of credits issued globally in voluntary carbon offset markets in 2021.

    However, there is considerable scepticism about whether carbon offset credits do mitigate climate change.

    Two important issues

    In assessing the effectiveness of carbon credits, one important concern is the concept of “additionality”. Emission reductions or removals are “additional” if the project or activity would not have happened without the added incentive provided by the carbon credits. For example, if a landowner is paid to not cut down trees, but had no plans to cut them down in the first place, the project does not deliver additional emissions savings. The landowner is paid for doing nothing and the buyer’s emissions are not offset.

    Providing carbon credits to projects that would have been implemented anyway delivers zero climate mitigation, and can result global emissions that are higher than if the credits hadn’t been issued. This is a serious challenge for carbon offset markets because additionality is not measurable, despite industry claims. While project managers may claim that they are unable to proceed without funding, there is no way of knowing whether these claims are true.

    A second issue is permanence. Carbon offsets have to be permanent because carbon emissions remain in the atmosphere for hundreds of years. It is almost impossible to guarantee that emissions will be offset for this length of time. But it depends on the type of offset project.

    There are two types of carbon offset project:

    • those that reduce the amount of carbon that is emitted
    • those that remove carbon from the atmosphere.

    In the case of carbon reduction projects, overall emissions remain positive. Examples of carbon reduction credits include investments in renewable energy. Even though the supplier of the carbon credit is not generating any emissions, the buyer continues to emit, and so the overall level of emissions is positive. Carbon neutrality – net-zero emissions – cannot be achieved using carbon reduction credits.

    There should be more funding available for carbon reduction activities in Africa, but investors should not receive carbon credits to offset their own emissions when supporting these activities. Such investments would be philanthropic – for the good of the planet, not to balance the carbon accounting books.

    Carbon removal projects do, however, have the potential to deliver a permanent net-zero emissions outcome. Direct air capture projects, which use chemical reactions to extract carbon dioxide from the atmosphere and store them deep underground, can meet this goal. The cost of direct air capture, however, remains very high.

    Forest growth, a less costly type of carbon removal project, is less permanent. Landowners may commit not to cut down trees, but wildfires, disease, and other disruption events can release much of the stored carbon back into the atmosphere. There is still value to forest carbon credits, but they can’t guarantee permanence. Forest projects provide “carbon deferrals”. Additional forest growth projects remove carbon from the atmosphere for a fixed amount of time. There is value to this delay because it can reduce peak warming and gives society more time for the costs of decarbonising technologies to fall. While there is value to these carbon deferral projects they should not be used to generate carbon credits that are used to permanently offset the emissions produced through economic activity.

    Goals of the market

    The African Carbon Markets Initiative has bold ambitions. It will attract investments in Africa by firms, consumers and governments in countries that have historically contributed the most to climate change. Whether these investments result in any meaningful climate benefit, however, is unclear. Time will tell.

    Existing carbon offset projects lack credibility. This doesn’t mean that carbon credits can’t be more useful in future. Being transparent about what projects actually deliver, rather than what we hope they deliver, is paramount. Given the limited resources available to mitigate climate change, we need more than good intentions.

    Source:(The Conversation)

     

  • Transition to Green Energy Must be Sensible, Pragmatic and Rational, Says Afreximbank’s Rene Awambeng

    Transition to Green Energy Must be Sensible, Pragmatic and Rational, Says Afreximbank’s Rene Awambeng

    Speaking during the Invest in African Energy Reception in London, Afreximbank’s Global Head of Client Relations, Rene Awambeng provided insight into what the institution’s recommendations are regarding Africa’s climate agenda
    LONDON, United Kingdom, January 27, 2023/ — The Invest in African Energy Reception (https://AECWeek.com/news/) kicked off in London with opening remarks by African Energy Chamber Executive Chairman, NJ Ayuk, and Rystad Energy Co-Founder and Chief Analyst, Per Magnus Nysveen, followed by an opening address delivered by Rene Awambeng, Global Head of Client Relations at the African Export-Import Bank – a partner of the event. During his address, Awambeng provided insight into what the institution’s recommendations are regarding Africa’s climate agenda.

    Firstly, Awambeng emphasized that Africa only accounts for less than 3% of global emissions, and therefore should be recognized as not the cause of excessive carbon, but rather, the victims of climate change. At the same time, considering the many oil-dependent economies in Africa, with GDP measuring as high as 25% for some, the continent should be able to establish a sensible plan for a just and fair transition.

    “We must use this opportunity to promote an approach to reducing global carbon emissions while sustaining current livelihoods which Africa is championing. The transition to green energy must be sensible, pragmatic and rational. It must recognize the enormity of the continent’s unmet economic development aspirations, the necessity to take urgent actions to address its ever-widening development gap and the continent’s vulnerability to climate change,” Awambeng stated.

    As such, Awambeng detailed a strategy towards a just and inclusive transition. Key aspects include supporting the implementation of the African Continental Free Trade Agreement (AfCFTA) to reduce emissions associated with shipping, moving away from exporting raw minerals that support the green economy and scaling up domestic value chains; enhancing foreign capital to finance the just transition and establishing African-based financing mechanisms to support industry growth.

    “We must give ourselves a breather to use the natural resources at our disposal to urgently deliver our development needs and simultaneously deploy these to promote investments in green energy. We must proactively and collectively intensify our efforts to implement the AfCFTA, as it is a clear path to mitigating carbon emissions while sustaining lives and livelihoods. We must all support the creation of the Africa Energy Transition Bank so that the continent can take control of its own future. We must back the African Energy Chamber (https://EnergyChamber.org/) so that it can intensify its thought leadership on this subject and ensure that Africa’s voice is heard as loudly as possible on issues that matter to us regarding energy.”

    Meanwhile, Awambeng emphasized the need to take urgent action to address the development gap in Africa and the continent’s vulnerability to climate change. In addition to energy investment, focus needs to be placed on climate investment, with the continent requiring up to $277 billion per annum to combat climate change. With Africa currently receiving less than $28 billion of the required funds, Awambeng urged the developed world to honor its commitments to climate financing and incentivized African stakeholders to create their own mechanisms and instruments to honor such commitments.

    “Afreximbank is supporting the promotion of a number of such innovative instruments and programs that can catalyze global finance and help close the funding gap for the necessary climate action while not sacrificing the development priorities of the continent. The Liquidity and Sustainability Facility represents one such innovative instrument…Initially launched by UNECA at COP26 in Glasgow, we expect to conclude the first deal in the course of this conference, to be fully funded by the Afreximbank.”

    In closing, Awambeng reiterated the need for a just transition in Africa, one that prioritizes carbon emission reduction and economic growth, simultaneously.

    “While decarbonization is at the center of the global climate agenda, it is evident that Africa, which has hardly carbonized, cannot contribute much to decarbonization. Africa’s priority is to find the money to fight poverty and fund mitigation and adaptation investments.”

    Distributed by APO Group on behalf of African Energy Chamber.

    SOURCE
    African Energy Chamber

    Distributed by :APO Group

  • Seychelles holds successful talks with Masdar UAE in relation to Seychelles’ Energy Generation plan

    Seychelles holds successful talks with Masdar UAE in relation to Seychelles’ Energy Generation plan

    18 January 2023 | Energy

    Abu Dhabi, UAE 18 January 2023: President Wavel Ramkalawan chaired successful discussions with a Masdar delegation, during his participation at the 2023 Abu Dhabi Sustainability Week (ASWD).

    The meeting, which was held with the Masdar Chief Green Hydrogen Officer, Mohammad Abdelqader El Ramahi and the Senior Manager of Project Management Services, Simon Bräunigerr, focused on the way forward for the implementation of a comprehensive Seychelles’ Electricity Generation plan.

    This is in line with the growth of the Seychelles economy and the increased need to implement an electricity generation plan that will meet the long-term demands associated with the rise in economic activities whilst also addressing the Nationally determined contributions (NDC) commitments made by Seychelles government at COP27.

    Seychelles is supportive of a transition towards integration of more renewable energy and the use of cleaner fuel for generation of electricity in the short to medium term. The meeting held yesterday was an opportunity for Seychelles to propose to Masdar several projects for consideration that will get Seychelles on track towards strengthening its role further in the global combat against climate change. Hence, the proposal for implementation various key renewable energy projects proposed for Mahé, Praslin and La Digue.

    This includes various Renewable Photo Voltaic (PV) Projects for the above three main islands, in the form of Agri-Voltaic PV, Floating PV Systems, PV plant mounted on elevated structures as well as others. PUC also recognizes the need to transit to a cleaner fuel in the short to medium term, hence discussions with the Masdar team also revolved around potential conventional generation projects such as transitioning to hydrogen.

    Following the talks held in Abu Dhabi on Tuesday, confirmation of most suitable and feasible projects will be approved and Memorandums of Understanding between the two entities will be drawn up.

    Also present for the discussion from the Seychelles delegation were the Minister for Agriculture, Environment and Climate Change, Mr. Flavien Joubert, the Chief Executive Officer for Public Utilities Corporation, Mr Joel Valmont and the Chief Executive Officer for Meteological Services, Mr Vincent Amelie.

    Source:(Seychelles State House)

  • Nigeria’s Petroleum Minister Timipre Sylva to Engage investors at Invest in African Energy Reception in London

    Nigeria’s Petroleum Minister Timipre Sylva to Engage investors at Invest in African Energy Reception in London

    Timipre Sylva, the Minister of State for Petroleum Resources of Nigeria, will be attending the African Energy Chamber-organized Invest in African Energy Reception in London on January 26.

    The African Energy Chamber (AEC) is proud to announce that Timipre Sylva, Minister of State for Petroleum Resources of Nigeria, will lead investment-focused dialogue during the Invest in African Energy Reception set to take place in London on January 26. With the Nigerian energy market on the precipice of another transformation on the back of diversification and market-driven policy implementation, the participation of Minister Sylva is key for securing new capital for Nigeria’s rapidly growing market, while enabling new players and financiers to expand their footprint in one of Africa’s biggest oil producing countries.

    Nigeria has emerged as one of the most attractive destinations for foreign investment owing largely to the signing into law of the Petroleum Industry Act in 2021. With the Act having overhauled the country’s regulation and governance, addressing key growth inhibitors by prioritizing transparency, procedural clarity and attractive fiscal terms for regional and international players, the Nigerian energy market is more enabling for business than ever, and the Minister will showcase opportunities in the sector during the Invest in African Energy Reception in London.

    The Act itself has already unlocked tangible benefits, with the country positioning itself as the biggest oil producer in Africa in 2023, despite a year of production declines owing to challenges associated with oil theft and reduced exploration. With the state-owned company, the Nigerian National Petroleum Corporation identifying and shutting down an illegal pipeline responsible for the loss of up to 600,000 barrels per day (bpd) of crude oil, production has rapidly increased to approximately 1.2 million bpd in December 2022, setting the country up for an exciting year in 2023. The country is more ambitious than ever when it comes to expanding the oil and gas market even further, with the government incentivizing E&P activity in a bid to boost production levels further. As such, opportunities for upstream players have opened up and Minister Sylva will be making a strong case for hydrocarbon exploration during the reception in London.

    Opportunities in the oil industry, over 200 trillion cubic feet (tcf) of proven natural gas reserves – and opportunities to increase this figure to 600 tcf with advancements in exploration – have positioned the country as the destination of choice for financiers and project developers from across the natural gas landscape. At a time when global markets are urgently seeking alternative gas supplies in light of ongoing supply constraints, Nigerian gas has emerged as a top solution, and investors are encouraged to capitalize on the opportunities present across this rapidly growing market.

    However, Nigeria’s oil and gas market opportunities transcend exports, with the country well-positioned to feed into regional supply chains. Having signed a deal with Equatorial Guinea that would see Nigerian gas being processed at the country’s Punta Europa facilities while making steady progress to complete the Trans-Saharan Gas Pipeline and breaking ground of new project developments, Nigeria is opening new opportunities for electrification and industrialization in Africa on the back of intra-African gas trade, made possible through initiatives such as the African Continental Free Trade Agreement and the progressing Central African Pipeline System.

    “Through his participation at the Invest in African Energy Reception in London – taking place in partnership with the African Export-Import Bank and Rystad Energy – Minister Sylva has made clear his commitment to securing new capital for a suite of large-scale projects across the entire energy value chain in Nigeria. During the event, the Minister will be driving market-focused dialogue on why investing in Nigeria is so critical, both for the African economy and for the global energy market at large. The London event provides financiers and energy players with the unique opportunity to directly engage and connect with a leading government representative from the biggest oil producer in Africa, and the AEC is encouraging all of those interested in expanding their footprint in Africa to join us at this high-level event,” states NJ Ayuk, Executive Chairman of the AEC.

    Source; Africa Energy  Chamber 
    Editor’s Note(Published unedited)

  • Decarbonisation of Hospitality Industry Gets Major Boost

    ……As Studio Moren and EAA Join Hands

    9th January 2023

    Hospitality design specialist Studio Moren has announced a strategic partnership with the Energy and Environment Alliance (EEA) – an international not-for-profit coalition driving the decarbonisation of the hospitality industry – to provide expertise on sustainable architecture and interior design practices across the sector.

    The EEA’s mission is to develop the first universal sustainability standard for the hospitality industry, including the design, build and operation of buildings. Studio Moren, working in collaboration with EEA and its other partners, will utilise its substantial knowledge and experience designing effective and energy-efficient hotel and hospitality projects to help steer the ongoing development of the new BREEAM in Use Hospitality (BiUH) standard.

    Studio Moren Senior Designer and Certified Passive House Designer, Bryan Oknyansky, AIA, will sit on the EEA Technical Committee to work with the EAA and BRE Group in the development of hospitality-specific standards, metrics and methodologies, embracing all lifecycle stages of hotel or apart-hotel development, including design, construction and operations to redevelopment or decommissioning.

    As a world-renowned hotel and hospitality architect and interior designer, Studio Moren has a long-term commitment to both sustainability and the hospitality industry and shares EEA’s mission to improve sustainable outcomes in the sector. Whilst it is well understood that hospitality operations require a considerable amount of energy to ensure the comfort of guests and offer individualised experiences and services, in addition to generating a considerable amount of waste from consumables, Studio Moren believes a lot can be done to decarbonise the hospitality sector to enable sustainable growth.

    Bryan Oknyansky says: “According to U.N data, the built environment is currently responsible for about 40% of global energy-related carbon emissions. As architects and designers, we have a key role to play in driving a reduction in carbon emissions, as the greatest opportunity for impact on building performance and energy efficiency comes at the design stage.

    “Measures being more widely adopted by the hospitality industry include designing out the excess energy demands of operating buildings and recovering heat from both plant equipment and wastewater for reuse elsewhere in building services. Additionally, exploiting opportunities for circularity will lead to the use of materials and products that have lower embodied carbon through sourcing locally, recycling and reuse. We look forward to working collaboratively with the EEA and its partners to further increase the uptake of such measures, whilst also helping asset owners and managers in the hospitality industry mitigate climate risk and meet net zero targets.”

    Ufi Ibrahim, CEO & Founder, the Energy & Environment Alliance (EEA), said: “Studio Moren stands out as a hospitality focused architectural and design practice that puts sustainability at the heart of its creative philosophy. We are therefore delighted to have its input into our Technical Committee, helping to determine the most relevant and useful standards and metrics for ESG in the industry.”

    ENDS

    For media enquiries, please contact Zoe Couch:

    zoe@satellitempr.com / +44 (0)777 159 8483

    Notes to Editors

    All images © Studio Moren

    Studio Moren

    Studio Moren is an award-winning practice of 70 architecture and interior design specialists, working right across the hospitality spectrum. Over the past 30 years in business we have established a world-renowned reputation as leaders in hospitality design, based on our ability to deliver intelligent, creative and bespoke solutions which meld both developer and operator requirements. With a design-led ethos of ‘creating places people want to stay’, we have taken our hospitality experience into other sectors including resorts, serviced apartments, build-to-rent, co-living and co-working. We are passionate, commercially astute and committed to producing beautiful buildings and interiors that respond to location and context.

    About Energy & Environment Alliance (EEA)

    The Energy & Environment Alliance (EEA) is a company limited by guarantee, run by its members for the benefit of its members. A small executive team is responsible for running and growing the organisation, it is supervised and directed by an advisory board, comprised of leading figures from the hospitality industry. The EEA’s immediate priority is to achieve faster carbon reduction rates in the hospitality industry. It will help its members do so in three practical ways: first by bringing the industry together with renowned experts, regulators and specialist services, to share knowledge and implement new technologies; second, by enabling member companies to purchase their energy 100% sustainably; and third by helping members drive energy productivity levels in a highly cost-effective manner.