Vedanta Ltd’s Cairn Oil & Gas Aims for Net Zero by 2030

On June 3, 2024, Cairn Oil & Gas, a division of Vedanta Limited, announced in an exchange filing that the company aims to achieve Net Zero Carbon status by 2030 through pioneering Environmental, Social, and Corporate Governance (ESG) leadership across the E&P value chain.

As part of a comprehensive strategy, Cairn’s focused ESG roadmap includes reducing carbon emissions, utilising renewable energy sources, leveraging nature-based carbon solutions, and adopting innovations such as waste-to-energy and carbon capture utilisation and storage (CCUS). With these initiatives, Cairn has accelerated its vision of achieving Net Zero Carbon by 2030.

The company stated that this year, the World Environment Day theme focuses on land restoration, building drought resilience and halting desertification. Cairn’s biodiversity conservation and nature restoration initiatives span its operational areas in Rajasthan, Andhra Pradesh, and Gujarat. The company plans to plant 2 million trees by 2030. Ravva in Andhra Pradesh has now become a rich wetland of mangroves spread over 86 acres. In Barmer, Rajasthan, Cairn planted about 0.2 million trees across 988 acres of forest land and revived Khejari (Prosopis Cineraria) with 15,000 plants in the Thar Ecosystem. The overall greenbelt in Rajasthan covers 1,600 acres. Gujarat coastal areas have been transformed with 372 acres of mangrove forest.

Cairn is implementing various initiatives to decarbonise its operations while expanding its energy portfolio to achieve a low-carbon trajectory and reduce its environmental impact. The company plans to source up to 70 MW of renewable energy by 2030, with a renewable Power Delivery Agreement for 25 MW set to commence in FY25. Solar rooftops have been installed across operational sites in Rajasthan and Gujarat.

Cairn has also made significant progress in reducing flare gas, achieving a 60% decrease in potential gas flaring intensity over the past four years. As a Net Water Positive company with an NPWI of 1.12, Cairn recycles more than 96% of produced water through reinjection.

The company has undertaken a feasibility study on a ‘Waste to Power’ project to utilise lean gas, CO2-rich gas, solid waste, and other industrial waste to generate power through pressurised oxy-combustor technology. The resulting CO2 gas can be utilised for enhanced oil recovery.

Other initiatives from Carin Oil & Gas include bottling and cascading gas for CNG players, gas transportation from satellite fields to the terminal through pipelines, optimising recycled gas compressors, installing ejectors to reduce terminal flaring, and employing digital twin technology for comprehensive asset management.

Commenting on these developments, the Deputy CEO of Cairn Oil & Gas, Dr Steve Moore, said, “Cairn, as the largest private oil and gas producer in India, is proud to lead the charge towards a greener future by making a positive impact on the environment and communities we operate in. Our decarbonisation and environmental initiatives are aligned with the vision to become carbon neutral by 2030 through innovation and technology, coupled with our dedicated efforts.”

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.