KUALA LUMPUR: Yinson Holdings Bhd plans to commercially launch zero-emission floating production storage and offloading vessel from 2030 as part of its goal to be carbon neutral by 2030 and net-zero by 2050.
Group chief executive officer Lim Chern Yuan said the pilot project of the zero-emission FPSO vessel, which uses low-emission and carbon removal technologies, should be unveiled closer to 2030.
"We are currently in the actuation stage of our carbon reduction strategy. One of the key approaches that we adopt is to improve the operational efficiency of our FPSOs through improvements in energy efficiency onboard and electrification of equipment," he told the New Straits Times recently.
Lim said the global demand for emission-friendly solutions would likely increasein tandem with improved commercial viability.
"At the same time, we adopt low-emissions technologies such as hydrocarbon blanketing, closed flaring, and vapour recovery to eliminate routine flaring and venting. Subsequently, we aim to improve the efficiency of the power generation units by adopting the combined cycle technology," he said.
Once optimum greenhouse gas (GHG) emission reduction was achieved on Yinson's FPSOs, Lim said the group would apply emission removal technology such as carbon capture, utilisation and storage (CCUS) and direct air capture (DAC).
"We intend to pilot the application of carbon removal technology onboard our future Zero Emission FPSOs," he added.
Sustainability is one of the core values at Yinson, and the group believes that it is the pivotal component in its competitive edge.
"Yinson has committed to seven United Nation Sustainable Development Goals (SDGs), with SDG 13: Climate Action being among the key focus and our commitment is reflected in our Climate Goals. We have published our Climate Goals Roadmap, highlighting the pathways towards achieving our Climate Goals of carbon-neutral by 2030 and net-zero by 2050.
"We aim to publish a Climate Report aligning with the Recommendations of Task Force on Climate-related Financial Disclosures (TCFD)."
Lim said Yinson had targeted to transition to a zero-emission fleet after 2030, a realistic projection based on the estimated maturity and commercial accessibility of technologies such as CCUS and DAC.
"It will also depend on how far they (technologies) may be implemented and integrated into our current and projected future FPSO designs."
Yinson has six floating production assets in operation around the globe, consisting of five FPSO vessels and one floating storage and offloading (FSO) vessel.
Yinson also has two assets under construction, specialised vessels that stay static and operational on the assigned oilfields for up to 25 years.
"Once an FPSO is operational, the installed technology is likely to remain onboard until the end of the contract period as logistical and contractual challenges will generally not allow for significant equipment upgrades to take place," said Lim.
Yinson said the achievement of net-zero emissions of the group's fleet would take time using a phasic approach.
Still, it has plans to integrate low-emission solutions and technologies moving forward.
"It is our ambition to reduce the carbon intensity of our overall fleet with each project we add to the portfolio. Aside from just our FPSO business, it is important when looking at us as a company to take into account our growing renewables business," Lim said.