Series A + Decarbonization Highlights from Q4'21 Earnings Calls

BP, COP, and MPC made notable comments about decarbonization in the earnings calls this past week. For each of the companies, emissions targets are critical to show progress towards the company's net-zero and low-carbon goals.

The announcements and pledges are coming under scrutiny as investors and stakeholders expect action, not empty platitudes.

BP Aims to Decrease Scope 1 & 2 Emissions by 50%

As part of BP's transition to an Integrated Energy Company, the company is investing heavily in industrial decarbonization and electrification along with other low-carbon technology. BP took a significant step in accelerating Scope 1 and 2 reduction targets to 50%.

For aim 1, which encompasses our Scope 1 and 2 emissions from our operations, we're accelerating our 2030 aim from 30% to 35% to 50% today. Bernard Looney, CEO

A good source for emissions data? Based on PermianMap.org 2019 survey, BP had nearly 27 emission events at an estimated 3,760 kg/hr emission rate. In the fall 2021 survey, BP was down to 13 emission events at an estimated 4,291 kg/hr emission rate.

And we're in action on emissions. For example, further reducing our Permian methane flaring intensity to a record low of around 0.6% in December. That's down 95% from when we acquired the assets in 2018. Bernard Looney, CEO

Electrification and charging station build-out is an emerging area for BP. By 2030, the company anticipates having 30,000 EV charging stations The company is already making progress in the UK, Germany, and China with partnerships and deployments.

In convenience and mobility, we expect to invest between $2 billion to $3 billion per annum. This underpins our convenience strategy and our plans to accelerate in the EV charging. And in low carbon energy, we expect to invest $3 billion to $5 billion per annum between 2023 and 2025, rising to $4 billion to $6 billion per annum in the second half of the decade as we build out positions in renewables and hydrogen. Murray Auchincloss, CFO

COP Invests in Supply Chain Emissions Reductions

ConocoPhillips made transformative acquisitions of Concho and Shell's assets. By reducing flaring and selecting electrified vendors, COP can meet these Scope 1 and 2 emissions targets.

We've allocated $0.2 billion of this year's capital program for projects to reduce the company's Scope 1 and 2 emissions intensity and investments in several early stage, low-carbon opportunities that address end-use emissions. Ryan Lance, CEO

A price for carbon? Energy companies are beginning to discuss a standard or global price for carbon, similar to other commodity price benchmarks. The EU ETS is leading the way, although other global financial institutions are beginning to launch indices for carbon pricing. Expect COP, BP, CVX, and XOM to be active here as the companies begin trading carbon alongside other commodities.

We are continuing to actively advocate for an economywide price in carbon. Of course, that's so important to address both the supply side, but so important, the demand side. We're also engaging with our supply chain on their emissions and their reduction plans, and we're making some early stage investments in low carbon business opportunities that address end-use emissions. Dominic Macklon, EVP

MPC Starts up Renewable Diesel Facility

The Dickinson renewable diesel facility has a 184 million gallons per year capacity, producing a 50% lower carbon intensity fuel. The facility will be the second largest in the U.S.

Our Dickinson renewable diesel facility started up, reached capacity, and we've been successfully optimizing the operation. We made two strategic decisions to idle our Gallup refinery and to convert Martinez to a renewable fuels facility. Mike Hennigan, CEO

The Martinez facility will be another large facility. Martinez will have a 730 million gallons per year capacity with 60% lower GHG emissions compared to previous refinery operations.

I've talked a lot over the past couple of calls about why Martinez makes sense. And I've talked about three hydroprocessing units, two hydrogen plants. I've talked about the Cogen power generation on site. Why Martinez? Martinez has scale, Martinez has optionality. And so we have optionality on truck, rail, pipe, and water as far as bringing feedstocks in and products out. Raymond Brooks, EVP

Numerous other companies are taking action and investing in low-carbon solutions to meet their company's pledges.

Inside this Issue

👩‍🌾 eAgronom closes $7.4M Series A to create a farming-based carbon credits platform
🛰 Sateliot raises 10 million euros in Series A round
🔥 Quaise Energy Secures $40M Series A to Unlock Terawatt-Scale Geothermal Energy
💵 ClimateTrade Closes €7 Million Pre-Series A, Targets Another €13 Million to Expand World’s First Climate Marketplace in New Markets
🔋 Ion Storage Systems Announces $30 Million Series A Funding Round Led by Clear Creek Investments, VoLo Earth Ventures, and Alsop Louie Partners
❇️ Ekona Power closes CAD 79M Series A to advance pulsed methane pyrolysis technology for clean hydrogen production