BP [NYSE: BP] revealed that the company has entered into a collaborative contract with Rosneft to reduce carbon discharges. Both the parties will put mutual endeavors to work on energy transition projects which will include low carbon technologies and hydrogen. The new contract aid both the companies in delivering more energy with fewer carbon emissions through methane reduction and energy efficiency.
Under the terms of the contract, both the companies decided that they will cooperate in identifying and developing new low carbon solutions. Moreover, they will also develop and work on programs that will endorse their sustainability objectives”. The enterprises will not only look into upstream but also downstream business, they will look into the production of cleaner fuel, trading of forest carbon offsets. Additionally, they will oversee the launching of carbon capture, utilization and storage projects.
The companies have been going through many transitions plans to focus on creating renewable energy and cutting on carbon emissions. Bernard looney CEO of BP said “The company will cut 40% of its hydrocarbon output with the timeframe of 10 years. We will also increase its investments in low carbon by $5billion a year. BP pledges that it will not explore oil anymore in any new country.”
On the other hand, Rosneft revealed that the company will achieve net carbon neutrality by 2050. The company uncovered some new objectives under its low carbon agenda. The goals foresee the prevention of 20 million tons of greenhouse gas discharge and zero standard flarings of related petroleum gas.