Muscat – OGCI Climate Investments (OGCI CI), a specialist decarbonisation investor, on Tuesday announced investment in the flare gas capture project at Mukhaizna Field operated by Occidental Oman (Oxy Oman).
The project is being developed by Flare2Value (F2V), an energy solutions company in flare abatement.
In January this year, F2V signed an agreement with Oxy Oman, the sultanate’s largest independent oil producer, for the construction and operation of the project.
The flare gas capture project has the potential to significantly reduce methane emissions and their associated harmful effects on the climate.
F2V demonstrated to OGCI CI that the project could deliver significant near-term emissions reduction by eliminating methane slip at the flare and improve energy efficiency by using previously flared gas
as fuel, OGCI Climate Investments said in a press statement on its website.
Dr Pratima Rangarajan, CEO of OGCI CI, said, “We invest in projects that can deliver near-term reductions in emissions and have the ability to scale – F2V’s project pipeline has the potential to do both. We look forward to working with F2V as it grows.”
In F2V, OGCI CI sees an operationally and economically realisable business model that can be replicated.
The capital provided by OGCI CI will be used to develop the project in the Mukhaizna oil field and development activities for future projects.
F2V has a development agreement for five further projects, in which OGCI CI may participate, with a potential emissions impact in excess of 250 kilo tonnes (KT) per annum of Carbon dioxide equivalent (CO2e).
The project was made possible by the support from the Ministry of Energy and Minerals and F2V’s partners.
OGCI CI views the F2V investment and relationship as a catalytic example of how the broader industry can address the potential global 265mn tonnes of CO2 opportunity from flare mitigation, with an additional 240mn tonnes CO2e related to methane emissions.
Dr Frigyes Lestak,co- founder and CEO of F2V said, “This project will provide the blueprint for our future projects both in Oman and beyond. OGCI CI’s investment is vital to its success, and we are excited to partner with such a highly qualified investor. Our novel business model delivers standardised flare gas utilisation solutions that both reduce emissions and provide economic value.”
OGCI CI’s investment in F2V is the direct result of its recent public call for proposals from methane abatement projects.