The CEO of Italian multinational energy company Eneru has questioned the usefulness of carbon capture and storage, suggesting that this technology is not a solution to climate change.
Francesco Stares told CNBC’s Karen Tso on Wednesday.
“As you can imagine, we’ve worked hard for the last decade, perhaps even more, for 15 years. If there’s a reliable and economically interesting solution, why are all these coal-fired power plants? Will it be closed? [when] Can the system be decarbonized? “
The European Commission, the EU’s executive arm, describes carbon capture and storage as a set of technologies focused on “capturing, transporting and storing CO2 emitted from power plants and industrial facilities.”
The idea is to prevent CO2 from “reaching the atmosphere by storing it in the proper underground formations”.
The Commission states that the use of carbon recovery and storage is “important” when it comes to helping reduce greenhouse gas emissions. This view is based on the claim that a significant proportion of both industry and electricity generation will continue to depend on fossil fuels.
However, Eneru’s Stares seemed skeptical about the potential for carbon capture.
“The fact is, it doesn’t work, it doesn’t work for us so far,” he said. “And here’s a rule of thumb. If technology doesn’t really spread within five years, we’re talking about five or more, so we’re talking about at least 15, but it’s better to stop. prize.”
There are other climate solutions, according to Stares. “Basically, stop carbon emissions,” he said.
“I’m not saying it’s not worth trying again, but I’m not going to start over. Other industries may work harder and succeed. For us, that’s not the solution.”
Carbon capture technology is often held up as a source of hope for reducing global greenhouse gas emissions and is highlighted in national climate plans and the Net Zero strategy of the world’s largest oil and gas companies.
Proponents of these technologies believe that they can play an important and diverse role in achieving global energy and climate goals.
But climate researchers, activists, and advocates have long distracted from the coveted pivot for renewable alternatives, as carbon capture and storage technologies prolong their reliance on fossil fuels around the world. I have insisted.
Plan to increase shareholder dividends
Stares said after Eneru announced a strategic plan for 2022-24 and set goals for the next few years. In particular, Eneru plans to make a direct investment of € 170 billion ($ 190.7 billion) by 2030.
Direct investment in renewable energy assets owned by Eneru is expected to reach € 70 billion. The integrated installed renewable energy capacity, or capacity directly owned by Eneru, is expected to reach 129GW by 2030.
In addition, Rome-based Eneru said it has moved Netzero’s commitment (targets related to both direct and indirect emissions) to 2040, which was previously 2050.
In terms of fossil fuels, the group hopes to finish producing coal by 2027 and finish producing gas by 2040.
Eneru also said that between 2021 and 2024, shareholders were “expected to receive a fixed dividend per share … this is expected to increase by 13% to a maximum of € 0.43 per share.” He also said.
During an interview with CNBC, Stares discusses Eneru’s higher dividend forecasts and how to invest in so-called “stocks of sin” (in this case, the big pollutants in the energy space) and still get good profits. I was asked about. Especially on the dividend side of things.
“It’s all about risk rewards,” he said. “And after all, there are no problems with increasingly risky businesses. [being] … If you wanted to attract investors, you were forced to increase your dividends. “
“What we’re trying to say is that there are limits, and the risks are unbearable no matter what dividends you distribute, and that’s approaching,” he said.
“Therefore, in our case, all you have to do is get out of this risk, get out of your carbon dioxide emissions, and put the word” net “in front of zero, then this” net “is next. It is to prevent it from becoming like. Some kind of trick that doesn’t really decarbonize your operation. “
“We say we’re going to be zero carbon. That is, we don’t emit carbon, so we do. [not] … You need to plant a tree to offset that carbon. “
However, Stares acknowledged that trees will be needed over the next few centuries to remove carbon left in the atmosphere due to historic emissions.
— CNBC’s Sam Meredith contributed to this article.
CEO Eneru skeptical of carbon capture and storage technology
Source link CEO Eneru skeptical of carbon capture and storage technology