Seplat Invests $41.5m in Decarbonization Efforts for Nigeria’s Energy Transition

Seplat Energy spent $41.5m towards its decarbonization programme and is taking a leading role in facilitating a just energy transition for Nigeria, by leveraging three pillars of Upstream, Midstream Gas, and New Energy.

Initiatives to end routine flaring and decarbonization fall under the Upstream pillar, the Midstream Gas business aims to supply lower-carbon gas products, reducing Nigeria’s reliance on imported fuel for power, while the New Energy division is focused on developing lower-carbon power generation and renewable energy business lines.

In 2021, Seplat Energy unveiled a new corporate based upon two ambitions, to Build a sustainable business and deliver energy transition.

Seplat Energy’s short- to medium-term priorities are to end routine flaring of associated gases and methane emissions by end of 2025, integrate renewable energy sources into operations, commitment to reduce overall energy consumption and associated greenhouse gas emissions and reducing scope 1 emissions by 70%.

It allocated $5.7 million towards ending routine flaring in its operations.

The Ohaji Gas Flare Reduction Project has been strategically prioritized and successfully pre-screened to determine its eligibility for earning carbon offsets/ credits under the European Union Fuel Quality Directive (EU-FQD) – German Market.

Ending Routine flaring of associated gases and methane emissions by end of 2025

Flared gas currently constitutes most of Seplat’s greenhouse gas emissions, prompting it to develop a comprehensive investment strategy focused on reducing flaring.

The approach to mitigating greenhouse gas (GHG) emissions revolves around targeted initiatives to address routine flaring, minimise fugitive emissions, and reduce reliance on diesel.

Beyond the environmental benefits, this strategy presents the advantage of commercialising the captured gas for the market.

“We are actively implementing operational enhancements through strategic investments in cutting-edge technologies to achieve these objectives. Through meticulously monitoring flared volumes, we have successfully built a compelling economic case that offsets potential project costs through market availability. Our reduction strategy is ambitious, with a clear target to eliminate routine flaring by the end of 2025,” Seplat Energy said in its 2023 Sustainability report.

Significant investments are being made to advance Seplat’s emissions management practices, focusing on empowering its workforce with the tools and knowledge necessary to enhance asset integrity.

Notably, acquiring an LDAR (Leak Detection and Repair) system enables it to detect and address invisible leaks promptly. Seplat Energy has acquired and trained six employees on the Leak Detection and Repair (LDAR) system and remediated all identified leaks at its Amukpe facility.

In addressing historical reliance on diesel generators, known for emitting higher levels of greenhouse gases, Seplat initiated a diesel replacement program.

This involves conducting a comprehensive inventory of all diesel-operated equipment to assess and reduce dependence on this carbon-intensive energy source. By exploring alternatives, such as gas-powered generators, and examining opportunities for solar power, Seplat aims to significantly reduce its carbon footprint without disrupting operations.

As part of its renewable energy initiatives, a pilot solar installation program is underway at the Amukpe Warehouse, powering essential infrastructure.

Furthermore, plans are in place for a broader solar installation program at all 18 security outposts around its operations.

“Although these projects may vary in scale, they underscore our unwavering commitment to decarbonizing our operating footprint and embracing sustainable energy solutions,” Seplat Energy said.

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