KUALA LUMPUR: Yinson Holdings Bhd’s offshore production is expected to achieve a 30 per cent reduction in carbon intensity by 2030 via prudent carbon removal methods such as closed flare and hydrocarbon blanketing.
Kenanga Research head of sustainability Marie Vaz and analyst Steven Chan said the offshore production was Yinson’s largest greenhouse gas (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,” they said in a report today.
The report was extracted from the case study on Yinson’s Climate Goals Roadmap in line with the group’s climate goals established in March 2021 of achieving carbon neutrality by 2030 and net zero by 2050.
Kenanga Research said Yinson’s carbon neutral 2030 would likely be dependent on renewable energy (RE) ventures to offset emissions from its FPSO business.
“The group’s RE production is expected to grow exponentially, from 0.3TWh currently, to 1.75TWh by 2025, and 5.6TWh by 2030,” it added.
Yinson currently has 140MW solar capacity in India’s Bhadla Solar Park.
In the immediate term, Yinson has planned in place to expand its India solar capacity to about 330MW, as well as venture into RE projects in Chile.
“Over the mid-term, the group is seeking to achieve 3.0GW to 5.0GW RE capacity in the coming three to five years.”
Kenanga Research said 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.
“During this stage, the group will implement a ‘No Venting and No Flaring Philosophy’ across all its offshore production businesses.
“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, the firm said RE would be the crucial business division within the Yinson group as it expected 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.
Kenanga Research has an “Outperform” call on Yinson with a target price of RM7.35 as the group’s roadmap will yield 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.”
Against its peers, Yinson’s carbon intensity even at current levels was remarkably better at about 10kg to 15kg CO2e/BoE, comparable international peers between 15kg and 20kg CO2e/BoE, it added.
Source: New Straits Times
