Today’s ESG Updates
- BP Revises Oil & Gas Demand Forecast: BP now expects oil consumption to be 83 million barrels per day in 2050, as geopolitical tensions increase.
- TotalEnergies to Build France’s Largest Offshore Wind Farm: TotalEnergies is due to begin construction of a 1.5 GW offshore wind farm off the coast of Normandy
- Microsoft Partners with Green Steel Producer Stegra: Microsoft has signed two agreements with Stegra to utilize its near-zero-emission steel in datacenter construction.
- UK Launches Major Carbon Capture Projects: Two new UK-based carbon capture projects will remove 1.2 million tonnes of CO₂ annually, creating 500 jobs across Wales and England.
BP estimates oil and gas use to be higher than initial forecast
Oil giant BP predicted in its outlook report that oil and gas demand is expected to remain high, despite countries committing to net-zero targets and an increase in renewable energy sources. Currently, around 100 million barrels of oil are consumed daily worldwide. Based on BP’s report, that number is expected to drop very little over the next 25 years, to an estimated 83 million barrels by 2050. Previously, BP forecasted that 77 million barrels would be consumed daily in 2050. The company cites trade tariffs and the wars in the Middle East and Ukraine as the main reasons for this increase. With rising geopolitical tensions, countries may turn to fossil fuels to strengthen national security. The outlook for reaching global net zero targets is bleak, with BP stating that oil consumption must drop to approximately 85 million barrels per day by 2035 and to around 35 million barrels by 2050 to effectively achieve these goals.
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Further reading: BP predicts higher oil and gas demand, suggesting world will not hit 2050 net zero target
TotalEnergies to take on France’s largest renewable energy project
France has awarded TotalEnergies control over its largest renewable energy project. Partnered with German energy company RWE, the companies will design and construct a 1.5 gigawatt (GW) offshore wind farm approximately 40 kilometers off the coast of Normandy. The project will require an investment of €4.5 billion. The wind farm is expected to produce 6 TWh annually, powering over 1 million households. During the three-year construction period, approximately 2,500 new jobs will be created. TotalEnergies is also committed to using recycled materials during the construction process. Companies focused on renewable energy solutions should look to ESG tools for support.
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Further reading: France: TotalEnergies Selected by the State as Operator of the Country’s Largest Renewable Energy Project
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Microsoft partners with green steel producer Stegra
In an effort to drive demand for green steel, Microsoft has partnered with Swedish green steel manufacturer Stegra. The two new agreements align with Microsoft’s energy commitments, intending to become not only net-zero but also carbon-negative by 2030. The first agreement is a supply agreement. Stegra produces steel with up to 95% fewer emissions than standard steel production, which Microsoft’s datacenter equipment suppliers will use. The second agreement is based on Environmental Attribute Certificates (EACs). Both companies have agreed to purchase EACs to balance out emissions from Stegra’s steel production. Jennifer Weitzel, the Corporate Vice President of Engineering, Construction, and Procurement at Microsoft, said, “Integrating near-zero emission steel into our datacenter construction is a critical advancement in reducing embodied carbon at scale.” Companies committed to the net-zero transition should consider ESG solutions for guidance.
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Further reading: Stegra announces agreement with Microsoft, driving demand for near-zero emission steel
UK to begin significant carbon capture projects
The UK’s government has given official approval for major carbon capture projects. Contracts were finalized with developers Encyclis and Heidelberg Materials, and two projects in England and Wales are set to begin construction. Once operational, the two projects could remove an estimated 1.2 million tonnes of CO2 each year. They are also expected to create 500 new jobs for the region. The projects are targeting cement production plants, starting with the Padeswood facility in Flintshire, Wales, and energy from waste (EfW) facilities, beginning with one in Cheshire, England. Both industries have significant carbon emissions, according to the UK’s Department for Energy Security and Net Zero. Carbon capture is one of the many climate-forward actions. ESG solutions guide corporations seeking to increase these actions.
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Further reading: Government signs off on plans for ‘trailblazing’ UK carbon capture projects
Editor’s Note: The opinions expressed here by the authors are their own, not those of impakter.com — In the Cover Photo: Oil drilling platform in Tenerife Cover Photo Credit: Maria Lupan
