Yinson leads in net zero transition
KUCHING: Analysts are upbeat on efforts by oil and gas player Yinson Holdings Bhd (Yinson) via its Climate Goals Roadmap, detailing on steps it intends to take in reaching its climate goals of achieving carbon neutrality by 2030 and net zero by 2050.
The team at Kenanga Investment Bank Bhd (Kenanga Research) saw that emissions from Yinson’s offshore production division wereexpected to rise until 2030.
The group’s main business division, offshore production is its largest GHG emitter representing 93 per cent of the group’s emissions.
“From present until 2030, net emissions from offshore production are expected to steadily increase – in tandem with the additions of new floating, production, storage and offloading (FPSO) contract awards in the coming years, before tapering off thereafter.
“Nonetheless, throughout this period, the group will still be able to achieve 30 per centreduction in carbon intensity via prudent carbon removal methods – such as closed flare and hydrocarbon blanketing.”
With the group’s net emissions from offshore productions expected to steadily rise until 2030, Kenanga Research saw that Yinson will be heavily reliant on renewable energy to offset emissions from its FPSO business and achieve its target of carbon neutrality by 2030.
As such, the group’s renewable energy production is expected to grow exponentially, from 0.3TWh currently, to 1.75TWh by 2025, and 5.6TWh by 2030.
Currently, the group has 140MW solar capacity in India’s Bhadla Solar Park.
Moving forward for the immediate-term, the group has plans in place to expand its India solar capacity to about 330MW, as well as venture into renewable energy projects in Chile. Over the mid-term, the group is seeking to achieve 3GW to 5GW RE capacity in the coming three to five years.
Beyond 2030, Yinson’s key focus would be to integrate carbon removal technologies (such as direct air capture, carbon capture utilisation and storage) into its FPSO operations to achieve actual reduction in net emissions – working towards the zero emissions FPSO concept.
During this stage, the group will implement a ‘No Venting and No Flaring Philosophy’ across all its offshore production businesses. In fact, all new projects deployed from 2025 onwards will have completely eliminated regular venting and flaring – thereby reducing carbon intensity of FPSO operations by a further 30 per cent from 2030 levels.
Additionally, renewable energy will be the crucial business division within the group as it expects to reach 22.4TWh energy generation by 2050.
Meanwhile, its green technologies division will also play an increasingly vital role via strategic investments in marine, mobility and energy.
“Overall, our read-through of Yinson’s roadmap yields positively. We continue to like Yinson as it is a market leader within the sector for transitioning to clean energy and setting clear targets for net zero emissions, aligned with the Paris Agreement.”