Companies interesed in carbon capture4/30/2024 It recently inked an agreement to supply green hydrogen, which refers to hydrogen manufactured through renewable energy sources, to Evonik – another chemicals company – by building an electrolyser plant in Singapore. On this front, Linde has also been increasing its investments in clean hydrogen production. These other strategies include continuous investments in energy-efficient assets, procuring renewable energy on the supply side and promoting low carbon-emitting technologies, such as hydrogen, he said. Broadly, this will help to reduce emissions from high-energy reactions, even in the absence of an efficient CCS solution,” said Milla.Īs the best way forward, he recommended that the chemical industry implement other decarbonisation strategies alongside developing innovations in CCS technology. Instead, the chemical industry should focus on improving energy efficiency in processes that cannot be powered by green electricity sources. “CCS alone cannot solve the problem of carbon emissions. Kevin Milla, carbon specialist at sustainability advisory Paia Consulting, said that climate activists and scientists are sceptical about CCS because it is not yet scalable enough to meet the decarbonisation goals outlined in the Paris Agreement. According to a recent report by the United Nations’ Intergovernmental Panel on Climate Change, CCS is potentially one of the lowest contributors to net emission reduction among the gamut of climate mitigation solutions, including solar, wind, nuclear and geothermal energies. Linde’s bet on CCS, in its bid to decarbonise, may run into some challenges, however. Recently, the group completed its delisting from the Frankfurt Stock Exchange. The group expects its adjusted earnings per share to grow between 9 and 13 per cent this year, after previously guiding for growth of between 9 and 12 per cent.ĭespite the continued market volatility, Linde’s stock price is up 16.1 per cent since the start of 2023. The company also raised the top end of its 2023 earnings guidance, citing higher pricing and continued productivity initiatives across all its businesses. The company made a net profit of US$1.5 billion after taxes and minority interests in the first quarter of 2023, up 29.1 per cent from the same quarter a year ago. It has also maintained its MSCI ESG rating at “A”, though green advocacy purists might criticise this as greenwashing.ĭuring its latest earnings call on Thursday (Apr 27), Lamba announced that the company sees potential to invest more than US$50 billion globally into clean energy over the next 10 years. On a shorter-term basis, it aims to reduce its absolute greenhouse gas emissions by 35 per cent by 2035, from its 2021 levels.Īnd its environmental, social and governance (ESG) strategies seem to be paying off, so far.ĭespite being a high-emitting chemicals company, Linde has not been dropped from the Dow Jones Sustainability World Index. Linde – and other high-emitting companies – is turning to CCS as part of its pivot to clean energy, and to meet its target of being carbon-neutral by 2050. And the challenges really are, you know, a combination of economics, and the ability to work with neighbouring countries to make sure that we’re able to use their pore space to do the sequestration,” said Lamba. “Obviously, we’re working on both of those options. Such opportunities, however, are dependent on the outcome of government-to-government discussions. However, Lamba noted that there are opportunities in the region.Ĭarbon dioxide captured in Singapore could either be pressurised and then piped into the wells and subsurfaces of its neighbouring countries, or be liquefied, shipped to these other countries and then injected. One challenge with developing CCS in Singapore, though, is the lack of natural carbon sinks given the city-state’s small land size and lack of geological formations. ![]() ![]() And that’s where I think the economic challenge lies for carbon capture and sequestration.” In this upcoming investment, Linde will be looking at capturing and storing a “few million tonnes” of carbon dioxide equivalent per year, he said. However, Lamba said that this is currently done at a very small scale of about 300 tonnes of carbon dioxide equivalent per day, which translates to more than 100,000 tonnes per year. Linde already captures carbon dioxide on Jurong Island and supplies them to beverage manufacturers for their use. So I do expect investments in Singapore, either by us or by a consortium, to capture and sequester the carbon dioxide.” He added: “We will be part of one of those consortiums, and working with EDB to figure out how we might be able to move that forward.
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