Azerbaijan, for first time, earns profit from carbon credits

The State Oil Company of Azerbaijan (SOCAR) has, for the first time, certified emissions from oil and gas production under the Upstream Emission Reduction (UER) project, reported from SOCAR.

According to the company, this project, along with a significant reduction in emissions in the oil and gas sector, has created additional economic benefits.

According to the European Union's Fuel Quality Directive, oil and gas suppliers implement UER projects to reduce emissions during operations, as well as to minimize their impact on the environment and obtain relevant certificates. The UER certificates obtained as a result of the process can then be sold to energy suppliers, which is a tool for those companies to achieve their emission reduction goals.

Thus, on May 11, 2018, a Memorandum of Understanding was signed on the implementation of the "Leak Detection and Repair" (LDAR) pilot project in the activities of SOCAR in cooperation with the Norwegian "Carbon Limits" company.

Within the project's framework, monitoring was carried out at Bibiheybatneft Oil and Gas Production Department (OGPD) of Azneft Production Union, OGPD named after A.J. Amirov, OGPD named after H.Z. Taghiyev, OGPD named after N.Narimanov and Absheronneft OGPD, sources of leaks were identified and appropriate measures have been taken to eliminate them.

As a result of the project, the emission volume of 14,500 tons of CO2 equivalent was certified and sold accordingly. Thanks to the project, SOCAR earned a profit of 3 million manats ($1.76 million).

Considering the successful experience gained in this field, SOCAR intends to implement new projects in the future to reduce emissions in broader segments.

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