An IPA-led industry group is spearheading the development of standard metrics and tools to bring clarity to cost versus carbon emissions trade-off decisions associated with capital projects.
Formed in April 2020 to bring consistency and reliability in GHG performance management for projects, the IPA Carbon Working Group (CWG) comprises the world’s leading integrated energy and E&P companies. After an IPA survey found significant inconsistencies between corporate ambitions and how capital project teams tackle GHG risks and emission-reduction practices in their project development systems, several of the industry’s largest owner operators turned to IPA to assist in advancing Industry’s low-carbon agenda in a standard manner. The CWG has already been successful in developing standardized metrics and benchmarking tools to increase the effectiveness of GHG performance management. The free and voluntary working group is working fast to develop new datasets and tools.
The IPA CWG’s main activities include identifying the common challenges and issues facing capital projects in their low-carbon journey and providing regular inputs and guidance to develop solutions to address these challenges. The CWG also provides a platform to align on standard practices for project-related emissions data collection and management, estimation methodologies, and target setting at a portfolio and individual project level.
Knowledge-sharing sessions throughout 2020 contributed to establishing the GHG Performance Toolkit. Unveiled at the Upstream Industry Benchmarking Consortium (UIBC) 2020, the toolkit comprises four capabilities: GHG Intensity Benchmarking, a Carbon Capital Effectiveness Index, a GHG Estimate Maturity Index, and a Carbon Optimization and Readiness Assessment.
The working group agreed at its April 2021 meeting to continue developing more detailed concept-specific GHG Intensity benchmarking capabilities. It also agreed to continue identifying and validating industry Best Practices to deliver low-carbon projects using the Carbon Optimization and Readiness Assessment framework. Working group members also expressed a strong interest in initiating several multi-client research studies. The first one planned will help project teams assess the subsurface complexity for long-term CO2 storage and identify industry Best Practices to manage this uncertainty. The second study will explore the development of early cost screening metrics to help decision makers assess the feasibility of different carbon capture technologies across different industries. Work is also in progress to help project teams address GHG performance issues for LNG projects.
Given the importance of decarbonization in the industry, the scope of the CWG is broadening and more diverse topics are being identified by all members. Through this industry working group, IPA will support the endeavors of business sponsors and project teams to improve their GHG performance management.
Contact us to learn more about the CWG and for more information on IPA’s new tools for improving the carbon competitiveness of capital projects.