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VOLUME 31 | NO. 1 | MARCH 2021 Beyond Energy
MARCH 2021
contents 31 1
VOLUME 31 | NO. 1 | MARCH 2021
Beyond Energy
01
Together, we can do more
PRODUCED BY
The National Gas Company of
Trinidad and Tobago Limited (NGC)
Orinoco Drive
Point Lisas Industrial Estate, Couva
Republic of Trinidad and Tobago
West Indies
MANAGING EDITOR
Nicola J. Ghouralal
Head, Communications and Brand
SUB-EDITOR
Eye on Methane
02
Nadine Ramharack
Public Relations Officer I
Communications and Brand
Green Hydrogen and Opportunities
for Trinidad and Tobago 07
CONTRIBUTORS
Nadine Ramharack
NGC and its Subsidiaries
Aribeca Cazaubon
Kellee Ann St Clair
With thanks to Fariyal Khan (GIS)
Partner with UTT on
Climate Change Mitigation Project
16
and the Operations team
PHOTOGRAPHY
NGC Archives
PPGPL's ESG Strategy for
Managing Climate Change Risk 21
Logging Tape Media Ltd.
DESIGN
Lonsdale Saatchi and Saatchi
Advertising Limited TOWARDS GREATER IMPACT
PRINTING
SCRIP-J
Please address all correspondence
Where Fuel Meets Food
26
to GASCO NEWS
c/o NGC Communications
33
and Brand Department Data and Dashboards:
NGC Head Office, Orinoco Drive, Leveraging GIS Technology
Point Lisas Industrial Estate for Smart Reporting
Tel: (868) 636-4662,4680
Fax: (868) 679-2384
Email: info@ngc.co.tt
Website: www.ngc.co.tt
Empowering Communities
to Lead Development 37
©2021 Material in this publication,
with the exception of photography,
may be reproduced once credit is
given to GASCO NEWS.
MARCH 2021
PRESIDENT'S
MESSAGE Together, we can do more
Together, we can do more
Historically, the agendas of industry As the 17th UN Sustainable At the operational level, we are
and big business have not often Development Goal (SDG) suggests, focusing heavily on methane
aligned with the concept of such partnership and collaboration mitigation. In addition to investing
sustainable development. Energy are the only hope we have of meeting in specialist leak detection tools,
companies in particular could be our climate goals and other SDG we have entered into a partnership
accused of operating for many years targets by the year 2030. with an international provider to
without being held accountable for secure satellite data that will help us
future and broader-scale impact of NGC and its subsidiaries have taken track emissions. We are on our way
their work. Indeed, it is universally heed and is following suit, partnering to membership in the Oil and Gas
acknowledged that the sector has to help achieve those global goals. Methane Partnership, a global forum
contributed in large part to the for exchange and innovation around
environmental crises faced by the Taking on the SDGs methane mitigation.
world today. As an energy sector company, we
are well-positioned to take on one At the systemic level, there needs to
Addressing this misalignment of the most pressing issues facing be investment in research and new
requires a different kind of thinking our planet. Climate change has deep technologies that can accelerate the
- understanding that one’s work has roots in the energy sector, which drive toward sustainability in energy.
wider implications and externalities; means we have a responsibility to This is the motivation behind our
consideration of impact beyond help address it. We are doing just that, partnership in a new green hydrogen
energy. through several internal initiatives and project, and in a research undertaking
strategic partnerships. aimed at climate change mitigation.
Today, fortunately, the necessary
big-picture thinking is gaining At the most basic level, we need to Of course, climate change is not the
ground. The historical misalignment begin measuring and reporting on only SDG that requires urgent action,
between energy and sustainability those metrics that impact our carbon and there are other unconventional
is being corrected, as businesses, footprint. We are strengthening our yet impactful ways that energy
governments and academics across systems through smart reporting companies can support sustainable
the world are collaborating to tools, and introducing dashboards to development. For example, we have
clean up energy production and keep those metrics top of mind. been exploring avenues to build
consumption. food and water security, and enable
sustainable community development,
through strategic partnerships with
government Ministries and other state
entities.
In this issue of Gasco News, we take
a look at some of the latest initiatives
and partnerships of NGC and its
subsidiary companies which are
supporting sustainable development
locally and contributing to the global
SDG targets. We are looking beyond
our business to the causes that matter
and finding ways to collaborate and
leverage our resources for the greater
good.
Together, we can do more.
Mark Loquan, President
1
MARCH 2021 2
Eye on Methane
MARCH 2021
EYE ON
METHANE
If you’ve ever had cause to submit for medical imaging,
you would appreciate the value of being able to visualise
with technology what your eyes cannot see. Locating that
malignancy or malfunctioning system that is giving rise to
disease is the first step towards treatment and cure.
By this same logic, if we are to save our planet from
irreversible climate damage, it is imperative that we locate
and address the sources of the problem - greenhouse gas
(GHG) emissions. In some cases, we know exactly where to
find these emissions - such as chimney smoke or exhaust
fumes - but in others, and particularly in the case of one
highly potent GHG, we need technology to help us visualise,
measure and reduce these emissions.
3
MARCH 2021
VISUALISING FUGITIVE EMISSIONS IS KEY TO REDUCING METHANE OUTPUT.
"
Methane rising wetlands, thawing permafrost,
For a long time, while the world volcanic craters, rice paddies and
focused environmental policy the guts of ruminant animals such
attentions on CFCs and carbon as cows. However, methane is also
While the dioxide, the volume of methane in the primary component in natural
the atmosphere has been steadily gas, and the global energy sector is
world focused climbing, raising few alarms. It was estimated to account for a quarter
not until fairly recently that it began of the annual methane budget.2
environmental to take the spotlight. In late 2013, the Moreover, recent research has shown
Intergovernmental Panel on Climate that the historical impact of fossil fuel
policy attentions on Change (IPCC) reported that methane extraction on methane levels has been
is a far more potent greenhouse gas underestimated by up to 40 percent.3
CFCs and carbon than had been previously assumed.1 This means that the oil and gas sector
Although less abundant and more has been releasing far more methane
dioxide, the volume short-lived in the atmosphere than than previously thought. However,
of methane in the CO2, methane has more than 80 times by extension, it also means these
industries hold a key to bringing
the warming potential on a 20-year
atmosphere has been timescale. With climate stability emissions down.
quickly deteriorating, reducing
steadily climbing, methane emissions is now the axis of If energy companies can track and
many short-term remedial strategies. reduce methane emissions from their
raising few alarms. operations, the cumulative impact
Natural processes can be blamed for would be significant. In recent years,
a significant percentage of methane huge advances in satellite and other
emissions. The gas is released from
2
https://www.nationalgeographic.com/
environment/article/methane
1
https://www.greenpeace.org/usa/global- 3
https://www.nationalgeographic.com/
warming/issues/natural-gas/ science/article/super-potent-methane-in-
atmosphere-oil-gas-drilling-ice-cores
4
MARCH 2021
Eye on Methane CONTINUED
visualisation technologies have monitor gas flow and pressure in the NGC’s focus on continuous
made it possible for companies to pipeline network for any variation that improvement led to pursuit
pinpoint leaks and vulnerabilities would indicate major leaks in addition of the latest technologies and
in infrastructure that are releasing to gas detectors at strategic locations. methodologies to complement
methane into the atmosphere. existing practices for leak detection.
Fortunately, locating the problem is SCADA information is however only Consequently, the Company has
the first step towards a cure. reliable for detection of significant invested in two technology initiatives
leaks and pipeline rupture. Therefore, consistent with the corporate drive to
Methane mission routine Leak Detection and Repair achieve near-zero methane emissions.
As an energy company with over 45 (LDAR) programmes supported by
years in the business, NGC accepts its specialised equipment for emissions MOU with Orbital Eye
share of responsibility in the methane detection play a critical role in the In January 2021, NGC announced
matter and accepts its share of the maintenance and safe operation of a pioneering partnership with
burden of change. The Company has the gas transmission and distribution Netherlands-based technology
recognised the need for urgent action infrastructure. Complemented by staff solutions provider, Orbital Eye.
and has set an operational target of training, certification and competency
near-zero methane emissions. assurance initiatives, the Company’s Through satellite data and algorithms,
LDAR programme is very stringent this company is able to monitor
Routine asset integrity management and is continuously being improved infrastructure such as transmission
has always been a top priority from the to align with and exceed international pipelines, roads, railways and power
perspective of safety, and systems are best practices. lines, and more importantly, measure
in place to detect leaks. For instance, the GHG output associated with these
NGC uses a Supervisory Control and Notwithstanding its demonstrated assets.
Data Acquisition (SCADA) system to performance in leak management,
The global energy sector
is estimated to account
for a quarter of the
annual methane budget.
5
MARCH 2021
Eye on Methane CONTINUED
NGC signed an MOU with Orbital valuable measurement and tracking of
Eye which will allow the Company to progress toward operational targets.
access critical research and emissions
information about Trinidad and Adjunct benefits
Tobago’s industrial on-shore and off- The environmental payoff of these
shore assets over the next three (3) tools is undeniable, but there are
years. The images and data provided other important benefits of being
by Orbital Eye will allow NGC and its able to visualise fugitive methane
subsidiaries to assess their methane emissions. Both camera and satellite
footprint on a broad scale. It therefore data will help the Company increase
can be used to develop mitigation the safety of its installations, as
and asset integrity management undetected leaks could result in
plans. Moreover, there is scope for process safety incidents, causing
growth as the intention is to extend injury to personnel or endangering
this exercise across the Caribbean communities and property. Leak
where feasible. detection would also help reduce
the number of gas molecules lost in
FLIR camera transit through the network, which in
To assist in the search for methane, times of tight supply, is an important
NGC has also acquired a Forward- win and aligns well with molecular
Looking Infrared (FLIR) optical optimisation goals.
imaging camera which is capable of
detecting over 400 gas compounds. Committing to the global cause
DRAFTED INTO USE IN FEBRUARY The camera is a small camcorder- Despite its considerable efforts to
2021, THIS CAMERA IS CURRENTLY type device, and the model procured bring methane emissions down to
BEING USED TO EXECUTE AN ANNUAL by NGC is the most sensitive of its zero, NGC recognises that technology
LEAK SURVEY ACROSS NGC’S ABOVE-
kind on the market. This means it is and research are constantly rewriting
GROUND INSTALLATIONS.
capable of visualising much smaller the rules of engagement, and there
leaks in greater clarity and from a will always be room for growth
safer distance than other models. and improvement. It is important,
therefore, to keep abreast of the latest
"
Drafted into use in February 2021, developments and trends in the area
this camera is currently being used to of methane mitigation. Accordingly,
execute an annual leak survey across NGC and its subsidiaries applied
NGC’s above-ground installations. for membership into the United
Once that exercise is completed, Nations Environmental Programme
Both the camera and the camera will be put into rotation Oil and Gas Methane Partnership
satellite data will work for use during routine maintenance (OGMP), which brings governments,
and inspections across member international organisations, NGOs,
together to enhance companies and as part of the and oil and gas industry stakeholders
collective LDAR programme. together to raise awareness around
the Company’s leak and responsibly address methane
Both the camera and satellite data emissions.
detection programme. will work together to enhance
the Company’s leak detection It is expected that participation in
The FLIR Camera programme. The FLIR Camera will this Partnership will strengthen NGC’s
provide data through scheduled capacity to treat decisively with
will provide data periodic assessments as required methane. Furthermore, the Company
by international standards, whilst intends to leverage knowledge-
through scheduled it is envisaged that the satellite sharing platforms to spread the
periodic assessments technology will provide a more real- word, and help equip companies
time approach to leak detection. along the entire local energy value
as required by chain to tackle emissions in their
The next step would be to acquire an own operations. After all, the sector
international “add-on” device to enable users to shares a collective responsibility for
quantify the methane output of a leak the problem, and must therefore
standards.... using the camera. This will facilitate assume collective responsibility for its
resolution.
6
MARCH 2021
Green Hydrogen and Opportunities
for Trinidad and Tobago
GREEN HYDROGEN
AND OPPORTUNITIES
FOR T&T
7
MARCH 2021
"
Introduction Trinidad and Tobago (T&T) is uniquely
The energy transition is upon us! The positioned to not only support the
decade to 2030 will be an exciting shift to natural gas from other fossils
one as efforts intensify to tackle the but also simultaneously accelerate
OUR ENERGY global climate emergency. Updated its progress toward zero-carbon
FUTURE… Nationally Determined Contributions
(NDCs) – to be presented in
alternatives.
“We must now agree on a November 2021 at Conference of the Carbon-cutting actions are bringing
Parties 26 (COP26) – are expected to the fore hydrogen's versatility
binding review mechanism to define ambitious targets that as an energy carrier. The potential
reflect considerable political will and role of hydrogen technologies
under international law commitment. in a decarbonised world is well-
recognised. However, the complexities
so that this century can For Small Island Developing States, and market challenges associated
there is much to lose should these with hydrogen require careful
credibly be called a century efforts fail. Therefore, it is essential understanding and management
of decarbonisation.” that collaborative and meaningful of risk. Wide-scale success in
implementing suitable hydrogen
actions are taken to stay on the 1.5oC
— ANGELA MERKEL climate-safe pathway of the 2015 technologies has been negatively
Paris Agreement. With natural gas impacted by cycles of high hopes
identified as a critical transition fuel, followed by disappointments.
With unprecedented momentum,
an alignment of techno-economic
solutions, environmental urgency,
and political influence may finally be
taking place to break the cycle of
disappointment. In 2020, hydrogen
strategies emerged from Germany,
Netherlands, Spain, Portugal, and
the European Commission, and even
China has set a 2060 net-zero goal
that will feature green hydrogen.
These measures can only augur
well to accelerate technological
innovations, lower emissions, and
improve economies of scale for
decarbonisation initiatives.
The prospects that lie in the hydrogen
space offer NGC and its subsidiaries
an opportunity to seek new markets
and products aligned towards a
nascent growth area – decarbonised
petrochemicals – which can be a
powerful platform upon which we
build a sustainable future.
The Trinidad & Tobago Energy
Context
With over 100 years of experience
in the oil and gas industry, it may be
hard to imagine a decarbonised future
in T&T, but the transition is happening.
Almost every international oil and
gas major has announced strategies
to decarbonise operations, and the
same holds even for the downstream
8MARCH 2021
Green Hydrogen and Opportunities for T&T CONTINUED
gas, making the country highly
dependent on its hydrocarbon
resources.
For T&T, there is an obvious
opportunity to produce hydrogen and
utilise it as feedstock in the country’s
well-established petrochemical sector,
displacing hydrogen produced from
natural gas. Beyond the industrial
sector, hydrogen could also provide a
"
possible avenue to transition towards
petrochemical players operating in clean mobility as the transportation
Trinidad and Tobago. sector shifts from gasoline and CNG
towards electric driving, both with
Since the 1950s, T&T has been batteries and fuel cells powered by
Today, solar and wind among the first countries to utilise hydrogen.
natural gas for power generation.
are among the cheapest The proliferation of gas finds in the Moreover, establishing a hydrogen
sources to produce 1970s paved the way for a natural production complex in T&T can
gas economy, and by the mid to late kickstart a regional industrial cluster
power in areas with 1990s, T&T's economy shifted from that will complement regional
an oil-based economy to one based decarbonisation efforts.
high solar irradiation on natural gas. Natural gas is also
processed to recover Natural Gas The Case for Hydrogen in T&T
or wind speeds, with Liquids (NGLs), a Liquefied Petroleum Trinidad and Tobago has a high per
Gas (LPG) source – with both natural capita consumption of electricity
unsubsidised production gas and NGLs being end-user fuels. and ranks among the world's most
costs for solar and wind Based on the 2019 figures, usage
energy-intensive countries due to
its extensive industrial sector and
being US 2 to 4 cents per of natural gas produced in T&T is small population. Within the power
apportioned as follows: generation sector, simple cycle
kWh worldwide. gas turbines result in inefficient
natural gas usage. Opportunities for
improvement across the industry
According to the therefore abound.
International Energy In the 2019/2020 National Budget
Presentation, the Minister of Finance
Agency (IEA) (2019), indicated that the State was desirous
hydrogen is gaining of exploring different hydrogen
applications within the local economy
considerable momentum and encouraging collaborations
with the private sector, academia,
worldwide and could and international organisations. The
private sector heeded the call and
finally be on a path to began work to study low carbon
hydrogen applications in the first
fulfill its longstanding instance, using waste heat from the
potential as a clean industrial processes to generate
power to make hydrogen. The
energy solution. In the past, the local energy sector resulting economic disruption from
accounted for as much as 40% the coronavirus has dramatically
of the country's GDP, with the accelerated the need to advance
petrochemicals sector contributing efforts to help scale-up technologies
over 20% of total export earnings. such as hydrogen, setting the country
Further, approximately 99% of the on a post-COVID-19 path toward a
power generated is fueled by natural sustainable energy sector.
9MARCH 2021
The overall benefits to the economy
would include:
• An improved reserve to
production ratio
• Storage of excess renewables
as hydrogen for use as a
secondary fuel;
• improved resilience;
• Job creation/ skills transfer;
• Reduced CO2 emissions;
• Increased foreign exchange
levels; and
• Energy diversification in T&T.
A Way Forward: Piloting for a
Hydrogen Economy
A modular, purely green hydrogen
facility can be a precursor to
establishing a green hydrogen
economy. A pilot would serve to
FIGURE 1: TYPES OF HYDROGEN AND SOURCES advance a hydrogen economy
along the most effective path
and confirm proof of concept
Figure 1 summarises the various types
concerning the application of
of hydrogen and sources.
RE technology for hydrogen
production in the local context. The
Green hydrogen is another hydrogen
pilot project would also:
technology that can decarbonise
the sector and add significant
• allow for the identification of
economic sustainability to the local
the best RE technology for
energy sector. With the country’s
power generation to produce
first utility-scale solar farm under
hydrogen
development and a revised target of
• lower the risks for
30% renewables by 2030, production
entrepreneurial investments
of green hydrogen can become
through the provision of
a reality in the medium to long
relevant baseline data, specific
term as electrolyser costs decline.
to the T&T context
Figure 2 captures the vision for T&T
• encourage further technology
incorporating hydrogen into the
development and private sector
energy landscape (See page 11).
participation through access to
data from a local pilot plant.
In support of the Government
of the Republic of Trinidad and
The pilot provides an avenue for
Tobago's stated policy position,
NGC and group member companies
National Energy has initiated work to
to pivot T&T to lead industrial
identify opportunities for applying
renewable energy applications.
renewables-based hydrogen locally.
These efforts will be the basis for
As shown in Figure 3, establishing
the decarbonisation of the existing
a pilot green hydrogen facility
petrochemical industry and hard to
FIGURE 3: PILOT GREEN HYDROGEN provides an avenue to link various
DEVELOPMENT HIGHLIGHTS decarbonise sectors, like the cement
stakeholders such as the State and
and metals industries.
private sector. Valuable data would
then be available for reference to
complement other sustainable
energy programmes and inform
policy development that facilitates
the growth of a hydrogen economy
in Trinidad and Tobago.
10FIGURE 2: INCORPORATING HYDROGEN IN T&T'S CURRENT ENERGY VALUE CHAIN
Source: The National Gas Company of Trinidad and Tobago Limited, National Energy modified
Green Hydrogen and Opportunities for T&T
CONTINUED
MARCH 2021
11MARCH 2021
FIGURE 4: POTENTIAL SUBSECTORS FOR REGIONAL INVESTORS IN A HYDROGEN ECONOMY
Source: Sandia (2018)
"
The expansion of a
Trinidad facility could also
With support from the Ministry
of Energy and Energy Industries
(MEEI) and the Ministry of Planning
and Development (MPD), National
Energy secured funding from the
among small islands or communities
within large countries. Hubs and
clusters are an emerging solution
to overcome transport issues
associated with hydrogen. They can
Inter-American Development Bank link production, industrial demand,
(IDB) under an IDB-executed non- consumer demand storage, usage,
support regional cluster reimbursable Technical Cooperation and trading workforce in a small,
formations to showcase Promotion of the Green Hydrogen centralised, focused area. In the
Market in Latin America and future, Caribbean islands can serve as
the advancement of Caribbean (LAC) Countries. This research centres to exemplify various
cooperation will facilitate feasibility renewable energy technologies and
hydrogen clusters studies in 2021 that contribute to integration approaches. Such centres
understanding the economical will foster evidence-based solutions,
among small islands parameters of producing green tailored to the region.
hydrogen locally. The results will
or communities within add to the work of National Energy The Caribbean is predominantly
and the MEEI to provide insight into dependent on relatively expensive
large countries. Hubs hydrogen growth for the country. and environmentally damaging
and clusters are an fossil fuels for power generation and
Beyond the Pilot: Caribbean Clusters transportation. Thus, a major feature
emerging solution to The expansion of a Trinidad facility of Caribbean energy economies is the
could also support regional cluster high and volatile energy prices, which
overcome transport formations to showcase the have contributed significantly to the
advancement of hydrogen clusters build-up of unsustainable debt and
issues associated with fragile economies.
hydrogen.
12MARCH 2021
Green Hydrogen and Opportunities for T&T CONTINUED
other forms of renewable and clean
TABLE 1: SUMMARY OF DOWNSTREAM SUBSECTORS HYDROGEN CAN SUCCESSFULLY energy sources to satisfy demands.
DECARBONISE
Midstream Investments
DOWNSTREAM SUBSECTOR COUNTRY
Transportation of power from
AMMONIA PRODUCTION TRINIDAD AND TOBAGO the power generation sites to the
METHANOL PRODUCTION TRINIDAD AND TOBAGO hydrogen production facilities
throughout the islands will require
METALS & REFINING TRINIDAD, JAMAICA, DOM REPUBLIC
infrastructural investments.
CEMENT AND OTHER MANUFACTURERS TRINIDAD, JAMAICA, DOM REPUBLIC
SYNTHETIC FUELS FOR POWER PLANTS REGION-WIDE According to the EIA (2019), some
VEHICULAR TRANSPORT FUEL REGION-WIDE pilot projects show that pipeline
SHIPPING FUELS VARIOUS systems can be converted from
COOLING & HEATING FOR BUILDINGS REGION-WIDE natural gas to hydrogen gas with
the limited investment required, but
ENERGY STORAGE VARIOUS
this is case-specific. A recent study
HYDROGEN INTER-REGIONAL EXPORTS TRINIDAD AND TOBAGO for the Netherlands concluded that
its transmission pipelines can be
converted to facilitate hydrogen gas
by replacing compressors and gaskets
"
According to the World Bank, (DNV GL, 2017). Therefore, Trinidad's
despite the region's ideal conditions existing gas infrastructure and any
for leveraging green energy, the new infrastructure to enable gas-fired
current renewable capacity in the power generation throughout the
Caribbean still leaves the area with a region could represent considerable
Rethinking the use of 90% dependency on fossil fuels for infrastructure-in-place for integrating
power generation. Sun and wind are green hydrogen. Modifications and
energy in all sectors abundant and geothermal energy the build-out of new hydrogen/ gas-
and hydropower could theoretically
of the economy can free the islands almost entirely from
fired infrastructure will, however, be
quite capital intensive.
boost economic growth, dependence on fossil fuels. From a storage perspective, hydrogen
can go where batteries cannot
create jobs, enhance There is, therefore, substantial room facilitate long-term energy storage
for expansion across the renewables of clean energy. Energy storage
prosperity, support supply chain to contribute to a can be attractive business cases
transitioned Caribbean economy. Like for Caribbean grids, improving grid
social development and the African Hydrogen Partnership, reliability and resilience against power
which aims to promote green
advance environmental hydrogen to stimulate sustainable
shortages and outages. Additionally,
as prices decline, a hybrid solution
sustainability. economic development across
the African continent, a Caribbean
(batteries and hydrogen) coupled
with solar generation can yield an
A decarbonised world hydrogen cluster can contribute to attractive business case for Caribbean
an energy ecosystem to strengthen grid operators to integrate hydrogen
does not equate to economic growth, improve regional into the energy mix with storage
transportation, and boost economic options in Trinidad and Tobago and
desolation, instead it integration. Figure 4 illustrates the elsewhere.
broad scope of opportunities that can
brings benefits of healthy be the catalyst for creating a resilient, Downstream Investments
integrated Caribbean energy system.
environments and A suite of sub-sectors can potentially
be built with renewable or green
strong economies when Three investment segments can be hydrogen as the feedstock on the
examined – upstream, midstream, and downstream end. These are outlined
adequately managed. downstream as follows below: in Table 1. The Caribbean is also a
large hotel and cruise tourism region.
Upstream Investments A hydrogen cluster in the area can
As new power generation capacity is generate innovative solutions within
needed, investors will seek to develop the global tourism industry, with the
wind, solar, geothermal, biomass, and Caribbean as the first-mover.
13MARCH 2021
energy use in the countries but this is
primarily a Trinidad and Tobago story
as over 90 percent of the gas used in
the region is from T&T. Oil products
account for 34 percent of TPES,
followed by biomass as the third most
important energy source, and the
most important renewable resource,
at 11 percent of TPES.
2. Growth Opportunities
Bloomberg New Energy Finance
(BNEF) analysis concludes that by
2030 hydrogen will be competitive
with fossil-derived hydrogen. Further,
they conclude that green hydrogen
FIGURE 5: GREEN HYDROGEN CAN COMPETE WITH FOSSIL-DERIVED HYDROGEN will be competitive with the cost of
Source: BNEF (2020) natural gas. Figures 5 and 6 illustrate.
According to Greentech Media,
however, forecasts on when green
hydrogen might be competitive with
existing high-carbon production
methods keep accelerating.
Given that Caribbean countries
currently import natural gas at
relatively high prices compared
to the rest of the world, this can
represent one of the first regions
where green hydrogen will compete
with natural gas in an unsubsidised
market. Therefore, there is significant
potential for both investors and the
economies as each would maximise
value by considering a hydrogen-
FIGURE 6: GREEN HYDROGEN CAN EVEN COMPETE WITH THE COST OF NATURAL based economy. A pilot facility at
GAS this time would therefore serve as
Source: BNEF (2020) preparation for fully capitalising upon
this competitive cost position.
Roadblocks
Today, most governments within the As a result, production or sourcing The road toward a hydrogen economy
region have set aggressive renewable could move closer to end-users, with will not be an easy one as future
energy targets, coupled with public companies localising or regionalising demand and the structure of the
policies and incentives that enable their supply chains. market remain uncertain. Most major
solar photovoltaic systems, wind projects are in the early phases of
turbines, geothermal and marine Drivers development, with few confirmed off-
energy to become competitive with 1. Sufficient Fossil-Based Capacity takers. Wood Mackenzie estimates
fossil fuel-based generation. Another The Bahamas, Barbados, Belize, that 80 percent of low-carbon
impetus for regional collaboration has Dominican Republic, Guyana, Haiti, hydrogen deployed this decade
arisen from the 2020 pandemic. Jamaica, Suriname, and Trinidad and will be used to displace existing
Tobago represent the nine larger fossil-fuel-derived hydrogen (grey
According to international islands in the region. Among them, hydrogen). Hydrogen demand for
consultancy firms, the world’s risky total primary energy supply (TPES) is heating, shipping and aviation are
dependence on vulnerable nodes 37,703 ktoe. Fossil fuels – oil, natural still considered longer term, and
in global supply chains has been gas and coal – account for 89 percent uptake by these sectors that have
exposed to supply chain disruptions. of TPES in these countries. Natural not previously utilised hydrogen, are
gas accounts for 53 percent of all crucial to further driving costs down.
14MARCH 2021
Green Hydrogen and Opportunities for T&T CONTINUED
FIGURE 7: GLOBAL HYDROGEN POLICY SUPPORT SNAPSHOT
Source: IRENA analysis based on IEA (2019)
Role of Policy Conclusion • Reduce fossil-based natural
To realise the true potential of As a state-owned enterprise, NGC and gas consumption and therefore
hydrogen locally and to capture its subsidiaries are well-positioned decarbonise the petrochemical
the benefits outlined earlier, policy to support the country's pursuit sector over time.
support mechanisms are essential for of a hydrogen economy, through • Serve as a new source of revenue
the penetration of green hydrogen the establishment of a pilot green through the sale of hydrogen.
into multiple sectors and encourage hydrogen facility, with the expectation • Improve location competitiveness
sector coupling. The graphic on page of scaling up over time, which will: of Trinidad and Tobago.
15, derived from IRENA, captures • Support long-term sustainability • Allow the State to lead by
hydrogen policies at a global level by of the petrochemical sector example and mobilise private
value chain segment. by reducing exposure to non- sector investments in advancing
renewable supply factors. the hydrogen economy.
References:
Pivovar, B. (2016). “H2 at Scale: Depply Decarbonizing our Energy System.” Briefing to Deputy Under Secretary Adam Cohen. NREL
chrome-extension://oemmndcbldboiebfnladdacbdfmadadm/https://www.nrel.gov/docs/fy16osti/66246.pdf
Gonzalez. J. (2017). “Is Hydrogen a Solution for Green Energy Resilience in The Caribbean?” Hinicio
chrome-extension://oemmndcbldboiebfnladdacbdfmadadm/https://www.hinicio.com/file/2017/10/Is-Hydrogen-a-solution-for-green-
energy-resilience-in-the-Caribbean.pdf
IRENA (2020), Green Hydrogen: A guide to policymaking, International Renewable Energy Agency, Abu Dhabi
chrome-extension://oemmndcbldboiebfnladdacbdfmadadm/https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2020/Nov/
IRENA_Green_hydrogen_policy_2020.pdf
Sandia National Laboratories (2018) - Hydrogen Embrittlement Considerations for Distribution of Gaseous Hydrogen by Pipeline - Chris
San Marchi and Joe Ronevich PRCI mtg, October 2018. Available at: https://www.osti.gov/servlets/purl/1593013
The full suite of documents relating to the technical co-operation can be found at https://www.iadb.org/en/project/RG-T3777.
John Parnell – GTM - https://www.greentechmedia.com/articles/read/woodmac-on-green-hydrogen-its-going-to-happen-faster-than-
anyone-expects
15MARCH 2021
16
MARCH 2021
NGC and its Subsidiaries
Partner with UTT on
Climate Change Mitigation Project
NGC AND ITS
SUBSIDIARIES
PARTNER
WITH UTT
ON CLIMATE
CHANGE
MITIGATION
PROJECT
17MARCH 2021
"
There is no doubt that we need Some recent examples:
to act with urgency on a global • In 2020, the Company launched
scale to address climate change. the EnergySmarTT app to raise
Climate change is the However, when it comes to mitigation consumer awareness around more
strategies, one size does not fit all. efficient energy use in the home.
single biggest thing that The team is currently working on
Variations in geographies, economic extending the functionality of the
humans have ever done on structures, and different development app, to add more useful services
and support greater uptake
this planet. The one thing metrics from country to country, can
mean that even tried-and-tested of energy efficient products
that needs to be bigger is mitigation plans could falter if not practices.
tailored to local circumstances.
our movement to stop it. • Work is underway with partners
This also means that even though along the energy value chain
– BILL MCKIBBEN the fight against climate change is a to advance RE projects such
global one, at the individual country as solar and green hydrogen,
level, a degree of independent reduce emissions from operations
effort is required. Countries must through reduced venting, and
determine what unique opportunities even produce carbon neutral LNG
exist to bring greenhouse gas cargoes.
(GHG) emissions down in their
local contexts, and what strategies
must be implemented to seize
those opportunities. This can be
most effectively achieved through
collaboration among State, industry
and academia.
Partnering in research
NGC and its subsidiaries have made
climate change mitigation an axis
of their business strategy, and there
has been significant investment in
several initiatives, focused on energy
efficiency (EE), renewables (RE) and
emissions reduction.
18MARCH 2021
NGC Group partners UTT on Climate Change Mitigation Project CONTINUED
In order to expand on this work, and b) Facilitate the exchange of undertakings at UTT. By making
recognising that the most impactful knowledge, research and such data available to researchers,
programmes are those that are capabilities among all parties the companies will facilitate a better
grounded in research, NGC and its c) Produce data and reports for academic understanding of the local
subsidiaries have decided to partner public awareness and education emissions profile. It will also build
with the University of Trinidad and on RE, EE and GHG emission a clearer picture of how and where
Tobago (UTT) on a special Climate studies emissions are lost in operations, and
Change Mitigation Project. d) Provide, develop and exchange allow for targeted innovation around
information on GHG reduction industrial tools and processes.
In December 2020, both state technologies and strategies
entities signed a Memorandum of which include industrial, power Investment attention is both a
Understanding (MOU) in relation to generation, and transportation prerequisite and a consequence
climate change research, with the sector applications of increased innovation. Research
overarching objective of helping e) Pursue relevant and related and development require funding,
Trinidad and Tobago meet its studies particularly when prototypes must
international emissions reduction be created and tested. Through this
commitments and play its part in the Several outcomes are expected from MOU, NGC and its subsidiaries will
global fight. this collaboration over the three-year commit support to relevant research,
term of the MOU. ideation and prototyping in the
The general objectives of the MOU for areas of EE, RE and GHG reduction.
this Climate Change Mitigation Project Firstly, the partnership will allow NGC Successful projects can then be
are as follows: and group members to feed empirical marketed to attract other investors,
a) Promote further cooperation data from their operations and other creating a positive feedback loop
among NGC, its subsidiaries and GHG emissions projects1 into research and strengthening the capacity for
UTT in renewable energy, energy innovation, entrepreneurship and real-
efficiency and GHG emissions world deployment.
1
research Read more about the Company's efforts
to reduce methane emissions on page 4 of
this issue.
19MARCH 2021
"
This MOU and the attendant research Even though this inventory process
findings will enrich the body of is underway, current emissions
literature around climate change estimates may be inaccurate due
There is no doubt that mitigation. The more we know, the to the absence of country-specific
more we can teach. Raising public emissions factors.
this partnership can have awareness and education can help
drive climate action at the individual An emissions factor (EF) is a value
big impact in the years to level, and ultimately strengthen the that helps quantify the amount
collective national effort to bring of pollutant released during an
come, and the fight ahead. emissions down. activity - for example, the volume of
carbon dioxide emitted per unit of
Project underway fuel burned. The Intergovernmental
The Climate Change Mitigation Panel on Climate Change (IPCC)
Project has kicked off with an has established EFs for a range of
important first task. In order to track fuels and emitters using averages
its progress toward meeting emissions of aggregated world data. Because
reduction commitments, Trinidad and these are global averages, the
Tobago must be able to measure and IPCC EFs do not allow for the most
inventory its GHG output. accurate calculations of emissions
from local activities. Different grades
of crude, for example, sourced from
different wells, might emit marginally
different amounts of CO2. The actual
emissions factor for Trinidad and
Tobago crude might be higher or
lower than the global average. Even
marginal differences can add up to
statistically significant numbers.
To start addressing this shortcoming,
the UTT team is currently working
on developing a country-specific
EF for natural gas combustion. That
is, they are seeking to determine
exactly how many units of carbon
dioxide equivalents are emitted
when a unit of natural gas is burned
in domestic industry. To do this, the
team is analysing five years’ worth
of compositional data of both inlet
L to R: Mr. Dominic Rampersad, President PPGPL; Mr. Curtis Mohammed, President NGC and residue gas provided by Phoenix
Park Gas Processors Limited (PPGPL).
CNG; Prof. Prakash Persad, President (Ag.) UTT; Mr. Mark Loquan, President NGC;
The team is aiming to submit an EF
Dr. Vernon Paltoo, President National Energy; Ms. Wendy Seow, General Manager LABIDCO
specific to natural gas combustion
in Trinidad and Tobago for UNFCCC
acceptance by the end of 2021.
Given the significance of the current
exercise being undertaken by UTT
within the framework of the Climate
Change Mitigation Project MOU, There
is no doubt that this partnership can
have big impact in the years to come,
and the fight ahead.
20MARCH 2021
PPGPL's ESG Strategy for
Managing Climate Change Risk
PPGPL’S ESG
STRATEGY FOR
MANAGING
CLIMATE
CHANGE RISK
21MARCH 2021
There are echoes that Global warming is the long-term
heating of the earth’s climate system.
One thing is certain: It must remain
resolute on the issue of sustainability
haunt the Caribbean The rise in heating has been observed and not pursue business growth at
since the pre-industrial period the expense of its community. For
region after each extreme (between 1850 and 1900). It has been PPGPL, the sustainability agenda
attributed to human activities such must not be at odds with profitability.
weather-related event. as fossil fuel usage, which increases In fact, the company understands
heat-trapping greenhouse gas levels that it cannot expand its asset base
Loss of life, damage in the earth’s atmosphere. Whilst and support nation building, unless
climate can change over a period due deliberate action is taken to preserve
to property and social to natural causes, the warming being it. There should be no tradeoff
displacement are painful linked to human activity has been
identified as the main driver behind
between its vision and the stability of
its natural environment.
remnants of the trail of climate change.
PPGPL’s external environment
destruction that remains. When one considers the devastation has been rumbling for some time.
from climate change, there appears It has been portending the rapid
These are perils that to be a global fight for survival. In transformation of the global
what has been termed a climate energy sector. At the forefront, is
plague the islands of the emergency, one thing becomes the growing threat of abrupt and
region up to today. clear, GDP would no longer be the
main measure of national prosperity.
irreversible climate change and the
influence abatement measures will
Instead, adaptation to climate change have on energy usage. The Paris
The echoes are a glaring reminder of
and strong resilience mechanisms Climate Agreement has created
the region’s vulnerability. Threats of
would be the flagship measure of a vehicle to prompt social and
hurricanes, ocean acidification, and
wealth. With 60% of humanity living intergovernmental discourse on the
wildfires are representative of the
in coastal areas, the global collective critical actions required to address
long-term shifts in regional or global
will either directly or indirectly share global emissions. Once at arm’s
climate patterns. Coastal areas have
vulnerability to climate change. length with commodity producers,
come under threat. Sea level rise and
consumers have become more
warmer oceans are changing our
This highlights the importance of empowered through social media.
biosphere. Plankton - the source of at
climate risk management. Using Some have even commenced
least half the oxygen we breathe - is
information about present and litigation procedures against
dying, with coral reefs that protect
future climate change can help polluting companies. They are not
coastlines following suit. Events such
with the development of practices, only demanding social justice, but
as these cannot be ignored as they
policies, and infrastructure to make cleaner products in support of
hinder socio-economic development
governments, and by extension energy security. This is influencing
and play a significant role in human
organisations more resilient to this the global energy mix.
displacement patterns. Consequently,
risk.
economic progress is hampered, and
New technologies are also changing
future generations are deprived of
Building Resilience through Climate energy production, delivery, and
their home and ecological heritage.
Risk Management consumption patterns. The internet
When PPGPL looks at its history and of things and digital twins are
Without access to land and marine
role in shaping the energy sector, it making plant operations safer and
resources, the path to prosperity
will see a common thread of safety efficient. Electrified transportation,
will become murky. Certain areas
leadership, capacity building and autonomous vehicles and ride
will become inaccessible to those
community development. These sharing are also changing demand
economies that rely on it the most.
embody its vision of being recognised patterns through cost and fuel
Climate risk management (CRM) is
as a global leader in the development efficiency. Presently, the COVID-19
therefore an important part of the
of sustainable energy-related pandemic has not only affected
conversation. It is imperative for
businesses. However, as the company societal behaviours like travelling,
preventing, mitigating, and adapting
contemplates the impact of climate personal hygiene and personal space
to extreme weather-related events.
change on the region and its future, norms, but it has also caused the
it must determine the right tactics to world to slow down and focus on
employ for business growth. tackling climate issues.
22MARCH 2021
PPGPL’s ESG Strategy for Managing Climate Change Risk CONTINUED
23MARCH 2021
"
These external rumblings have series of random events. PPGPL
caused PPGPL to do some has been observing environmental
introspection. It has reinforced the abnormalities at its facilities for
company’s commitment to be a some time. In 2016, the rate of
“Nothing happens until leader on sustainable issues. While shoreline erosion was noted to
the pain of remaining the sustainability has always been have increased to the extent that
the company’s passion, we must shoreline conditions had significantly
same outweighs the pain reinforce environmental, social and worsened, and PPGPL’s plant
governance (ESG) principles into infrastructure was in critical danger
of change”, our strategy if we want to mitigate of significant negative impact
risk, drive profitability, and ultimately on structural integrity. This plant
ARTHUR BURT. create a compelling future for infrastructure included PPGPL’s
stakeholders. Issues of biodiversity Dock 2 southern fence-line, its Dock
protection, climate and preservation 2 pipeline Right-of-Way (ROW) and
of natural assets are all things that ultimately, PPGPL’s Dock 2 (East to
we must consider in our pursuit of West) pipeline (Lee Young & Partners
growth. Limited, 2017).
PPGPL’s internal environment has At the dock facility, localised waves
also been making a statement. Its and currents are driven by more
facilities are changing in a way generalised tides, currents, and
that can no longer be viewed as a waves in the wider Gulf of Paria.
CHANGES IN THE GULF OF PARIA ARE AFFECTING PPGPL FACILITIES
24MARCH 2021
PPGPL’s ESG Strategy for Managing Climate Change Risk CONTINUED
"
It is the belief that the waves to decarbonise. These are risks that
effecting erosion at PPGPL are may occur due to policy, regulation,
abnormal “extreme condition” storm litigation, adoption of alternative
waves that have to approach the energy sources, and shifting “Facts do not cease to exist
shoreline perpendicularly, thereby consumer preferences or behaviour.
effecting the observed onshore- because they are ignored.”
offshore erosion and transport, In the past, PPGPL has supported
resulting in the observed 2.2 metres environmental initiatives under the - ALDOUS HUXLEY
per year shoreline erosion calculated umbrella of our corporate social
by the subject matter experts. These responsibility and our health safety,
seemingly unrelated observations security and environmental initiatives.
• Solar Technology:
have been reviewed and have caused These activities included coastal o Perimeter lighting – beta-
the staff at PPGPL to ask these community interventions, children's testing in specific/remote
questions – are these occurrences art competitions on biodiversity and areas
genuinely random and unrelated staff involvement in home gardening. o Entrance barrier controls
or do these occurrences provide One of our flagship projects was our operating specific/remote
evidence of the impact of climate partnership with NIHERST in 2012, areas
change on our small island nation? to provide rainwater harvesting • Motion sensor operated extractor
A story is being woven as PPGPL systems (RWHS) in water-scarce fans in specific washroom areas
ponders its observations, connects schools combined with solar energy • Thermostat management-reduce
the dots, and maps its future. The solutions. energy consumption during low
story’s theme suggests that the way Whilst we are proud of these occupancy periods
we invest, manage, and maintain achievements, for our next phase • Gradual replacement of old/
our assets must be reflective of our of growth, we will use a more defunct air conditioning
environmental context. We must transformative approach. We cannot equipment with new ‘energy star’
also consider our responsibility to afford to flatline when climate equipment
our stakeholders. With this mindset, change has been declared the • Utilising energy saving
the opportunities become glaring. world’s greatest threat to economic technology such as Multistage Air
Embedding ESG into our investment stability. This decade has been Volume
• Maintaining quarterly air
and project decisions grants us underscored as a critical period to
conditioning servicing schedules.
social licence as it illustrates the win this fight.
values that the company espouses
Notwithstanding the above, we will
with respect to sustainable and PPGPL will be championing be embarking on the formalisation of
ethical management. Under issues that create a platform for our energy management systems by
the ESG umbrella, issues such social leadership and stakeholder aligning to ISO 50001. In this regard,
as environmental preservation, stewardship. Our project and some of our future initiatives will
institutional strength, gender, and investment management principles include:
diversity have a key role in enabling would be influenced by these values. • Monitoring and quantifying
sustainable management. How we select our partners, suppliers gas leaks to reduce energy
and customers will also be informed consumption using a leak
When grappling with the issue of by our renewed agenda. We are detection camera
climate risk, the business cannot only committed to supporting Trinidad • Implementing fired heater
be viewed in short five-year horizons. and Tobago’s Nationally Determined optimisation to reduce fuel
PPGPL understands that it must Contributions (NDC) under the Paris consumption and emissions
create the right balance between Agreement, so we will dig deeper, • Evaluating the benefits of using
short-term and long-term priorities. elevate our outlook, and take bold inert gases instead of fuel gas in
This would allow it to shape its future action. storage tanks
rather than reactively trying to fit a • Retrofitting and replacing
square-pegged strategy within an We have already championed energy existing lighting with more
externally defined round boundary. management within the organisation efficient lighting and LED lighting
by upgrading our heating, ventilation, • Determining the feasibility
As PPGPL looks at its risk profile,
air conditioning and cooling systems. of small-scale utility solar PV
it will not only be focused on the
Upgrades include: projects on the plant.
physical manifestation of climate
risk on its asset integrity, it will also
• Replacement of lighting Taking bold focused action creates
contemplate transition risks that are
• Timer-controlled lighting explosive results (John Di Lemme).
likely to occur as the company tries
operating specific areas PPGPL intends to do what we must.
25MARCH 2021 26
MARCH 2021
Where Fuel Meets Food
WHERE FUEL
MEETS FOOD
BRIDGING THE GAP BETWEEN
ENERGY AND AGRICULTURE
27MARCH 2021
TOWARDS GREATER IMPACT
As energy sector revenues decline
due to a challenging global market,
the expenditure of such a significant
portion of foreign exchange on
imported food has become an
increasingly bitter pill to swallow.
Concurrently, the need for alternative
revenue streams has become more
pronounced and urgent.
The COVID-19 pandemic also exposed
the danger of dependence on
international markets for food. At
its current rate of food importation,
Trinidad and Tobago could suffer
tremendously if another extreme
event were to force a complete
border closure, cripple international
trade, or disrupt global food
production systems and supply
chains.
It is with good reason that the United
Nations has made food security a
priority target under its Sustainable
Development Goals (SDGs).
ENTER NGC
"
The industries of energy and
A country’s sovereignty and capacity agriculture seem an incongruous
for sustainable development are pairing - it is not immediately obvious
severely undercut if it cannot feed where one can help the other, but
There have been calls in itself. NGC, together with its subsidiaries,
believes it can add value to
recent years for the revival Agriculture has become a mere agriculture and food production. Why
spectator in the development of would this company take an interest
of local agriculture and Trinidad and Tobago with the advent in this sector, and how exactly could it
and subsequent reliance on the oil
greater investment in food and gas industry. Accordingly, there
contribute?
have been calls in recent years for the
security. Despite having revival of local agriculture and greater
To the question of motivation, NGC
and its group members have become
the resources to support investment in food security. Despite vocal advocates for sustainability. To
having the resources to support food be a respected business in today’s
food production for both production for both internal markets world, one must be attuned to the
and an export-oriented industry, the impact of operations on people and
internal markets and an country today spends around $5 the planet. Sustainability means
billion annually to import over 80% of constantly focusing on current and
export-oriented industry, its food.1 future impact, and aligning business
the country today spends https://publications.iadb.org/
objectives with the targets of the UN
1
SDGs. A focus on strengthening the
around $5 Bn annually to publications/english/document/Analysis-
of-Agricultural-Policies-in-Trinidad-and-
domestic agricultural sector fits within
the Company's sustainability agenda,
import over 80% of its food. Tobago.pdf
https://oxfordbusinessgroup.com/analysis/
by allowing the organisation to help
aiming-revival-targeting-reduction-
move the country closer to several
costly-food-imports-and-bolstering- SDG targets (See next page).
development-agricultural
https://sta.uwi.edu/uwitoday/archive/
may_2020/article7.asp
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