Energy Transition Consulting

Challenge

A Latin American NOC sought to develop a more comprehensive estimate of its methane emissions and to understand the activities needed to comply with international commitments (OGMP 2.0) and domestic regulatory requirements regarding the detection, reporting, and mitigation of methane emissions.

Solution

Developed a high-level emissions model to address underestimations in methane emissions inventory by leveraging the company’s estimates and an initial flyover detection exercise

• Provided an overview of the domestic regulatory landscape regarding the reduction of methane emissions and mapped the implications of commitments the company acquired after signing up to international initiatives
• Conducted interviews with LDAR providers and key stakeholders to evaluate the maturity and applicability to the NOC’s environment of various remote detection and quantification technologies of methane leaks
• Selected an optimal mix of LDAR methods, considering the company’s operational environment and the likely profile of potential methane leaks in its operations and delineated a pathway to integrate them into the company’s operations

Results

An implementation plan to support the client in their strategy to comply with newly published national regulatory guidelines regarding the detection and repair of methane leaks. Additionally, we composed and performed a presentation to field operations teams, to address the selected detection methods and frequency of LDAR programs, as well as the regions and emissions sources to prioritize.

Challenge

A global tier 1 battery manufacturer, with the support of its financial advisor, was seeking to raise limited recourse senior secured debt financing from commercial banks, export credit agencies and other prospective debt financiers for its planned Gigafactory battery manufacturing facility in Europe. The client required support for the development of an independent market due diligence review and audit of the project

Solution

• Provided a comprehensive market overview focusing on France & Europe, extensive due diligence of business plan & sourcing strategy and detailed red flag analysis highlighting major risks to the project & its commercial execution.
• Provided an extensive overview of EU electrification trends by fuel type & developed forecast for European demand for the next 10 years.
• Analyzed trends in new battery technologies and chemistries and risks they pose to investment.
• Assessed robustness of marketing arrangements, contracts, volumes, price, offtake.
• Developed raw material supply price forecast over the next 20 years and reviewed/commented on material sourcing strategy.
• Developed detailed battery cell price forecast by cathode type and downside scenarios.
• Benchmarked financial and commercial assumptions against industry standards and regional/local benchmarks.

Results

Our team identified, quantified and mitigated risks related to the project and its execution, while providing confidence to prospective project lenders & facilitating the overall debt raising process.

(Evaluating the potential for a regional government to decarbonize major oil production activities)

Challenge

A regional government was developing a decarbonization strategy, in collaboration with the private sector via a climate strategy working group. Its goal was to understand the importance, impact, indicative cost, and barriers for decarbonization options across sectors, with a focus on upstream and power generation.

Solution

CERA Consulting by S&P Global provided an independent view of CCUS and H2 projects and broader decarbonization options for the region. The team identified priorities by time horizon and a view on economic and environmental implications.

Specific project work included: evaluating intensity and absolute emissions across value chains of E&P, midstream, power, chemical & heavy industry; identifying and evaluating options for carbon interventions impacting the region’s existing footprint; summarizing the opportunity, scale, and approximate cost for CCUS and H2 use cases across the region; and conducting analysis of barriers and policy opportunities to support CCUS and hydrogen projects

Results

CERA Consulting presented its findings to the regional government and private sector, via climate strategy working group. The government client advanced on its decarbonization strategy in collaboration with the upstream industry

Challenge

A major Latin American National Oil Company (NOC) was facing heightened pressure from banks and investors demanding robust ESG (Environmental, Social, Governance) performance as a prerequisite for investment. The company, grappling with high leverage and limited financial flexibility, was underperforming on several key ESG metrics, posing a significant challenge to its operational and financial standing.

Solution

• Conducted a series of stakeholder interviews to assess the current ESG landscape and expectations.
• Evaluated various ESG initiatives through a consultative process with stakeholders, utilizing a qualitative model that rated potential initiatives by impact and feasibility.
• Reviewed and provided expert feedback on existing sustainability efforts, suggesting enhancements to strengthen their effectiveness.
• Developed an actionable ESG strategy tailored to align the NOC's operations with investor and stakeholder expectations while considering the company's financial constraints.

Results

The NOC successfully disclosed the newly formulated ESG strategy, garnering a positive response from stakeholders and investors. This work has helped enhance the company's credibility, demonstrated its commitment to sustainability, and improved investor relations.