1. Black carbon emissions from flaring Status, challenges and way forward Torleif Haugland, 14th May 2015

2. Sted, dato Issues to be covered  Black carbon emission estimates  Mitigation options and costs  Regulations and policies

3. Sted, dato Contribution from flaring to black carbon emissions Significance rise with latitude Source: Black carbon in the Arctic: the underestimated role of gas flaring and residential combustion emissions. A. Stohl, Z. Klimont, S. Eckhardt, K. Kupiainen, V. P. Shevchenko, V. M. Kopeikin, and A. N. Novigatsky. 2013.

4. Sted, dato Current emissions estimates are uncertain 4 FACTORS INFLUENCE BLACK CARBON EMISSIONS Gas characteristics Combustion conditions Gas volumeGas compositionFlare designWind Emission factors (BC/m3 flared)Volume flared

5. Sted, dato Most Arctic flaring in Siberia Flare data uncertain 5 THANK YOU ! 1.Uncertainties on the satellite evaluation (conversion from “sum of light” to volume gas) 2.Satellite estimates may include more than associated gas flaring 3.Underreporting from companies KEY SOURCES OF DISCREPENCIES :

6. Sted, dato Measurements of black carbon emissions from flares Challenges: Large open burning Representativeness of the measurements 6 Lab measuresCamera (Sky-Losa)SamplingPlane Carleton UniversityAerodyneIllinois Univ. Pictures: TCEQ Study, Illinois University and Carleton university

7. Sted, dato Weyant 2015 – Approach 7

8. Sted, dato Weyant 2015 – A few results 8 8 Average = 143 mg/kg fuel Std = 203 mg/kg fuel Median = 68 mg/kg fuel Some flares are high emitters Day to day variation BC MASS EMISSION FACTOR - HISTOGRAM OF ALL FLARE PASSES

9. Sted, dato Existing measurements show important variation 9 Fare from having samples representative of Russian conditions Laboratory. measurements North Dakota «top-down» approach

10. Sted, dato Although there are uncertainties, flaring represents likely a large share of black carbon emissions in the Arctic 10 ESTIMATE OF BC EMISSIONS FOR ENERGY AND INDUSTRY (COMBUSTION) Source: Carbon Limits analysis

11. Sted, dato There are a large number of mature technologies to reduce emissions Gas utilisation Utilizing the associated gas is a natural solution to reduce both black carbon and CO2 emissions and energy wastage. GAS UTILISATION OPTIONS 11 Gas Gathering On-site useConversion into marketable products Gas Treatment and Processing Raw Gas Dry Gas LPG / Liquids CNGLNG Petroche micals Electricity Captive Electricity Heat Gas Injection GTL PipelineTruck – Train – Tanker - PipelineGrid

12. Sted, dato Mitigation costs are highly site specific, and economics of investments also sensitive to market conditions and regulatory framework 12 THANK YOU ! SITE SPECIFIC FACTORS Regularity/stability of gas flows Volume of gas (economics of scale) Gas pressure Distance to gas infrastructure and end use markets Gas composition Impurities Regularity/stability of gas flows Volume of gas (economics of scale) Gas pressure Distance to gas infrastructure and end use markets Gas composition Impurities MARKET CONDITIONS AND REGULATORY FRAMEWORK CONDITIONS Access to infrastructure – even at preferential terms Gas prices License conditions Access to infrastructure – even at preferential terms Gas prices License conditions

13. Sted, dato Estimates of capital expenditure for associated gas utilization in Russia. Billion US$ 13 Carbon Limits analysis

14. Sted, dato When flare elimination is not feasible Other approaches 14 NGL recoveryImprove flare design Pictures: Petrograd, Argo flare Gas infrastructure may be delayed by several years Reduce visible smoke Most likely reduce black carbon emissions No quantitative information available Remove heavy components from gas flared Lean gas can be used or flared

15. Sted, dato Barriers 15 THANK YOU ! Long distance to market Lack of existing infrastructure Low volume of APG per field Long distance to market Lack of existing infrastructure Low volume of APG per field Low domestic gas or power prices Few incentives for investment Gas investments take time to mature Low domestic gas or power prices Few incentives for investment Gas investments take time to mature Regulatory/legal base deficiencies Inefficient system for enforcement Regulatory/legal base deficiencies Inefficient system for enforcement Gas transport Gas processing Power production or transmission Gas transport Gas processing Power production or transmission TECHNICAL/GEOGRAPHICALLEGISLATION AND REGULATION ECONOMIC STRUCTURAL – MONOPOLIES

16. Sted, dato Elements of best practice regulations and policies 16 THANK YOU !

17. Sted, dato Dialogue between companies and authorities essential Public-private partnerships 17 AT THE NATIIONAL LEVEL Knowledge gap and information bias call for dialogue and building of trust The need for enhances action increasingly recognized Incentivize companies to monitor and report correct data Flexibility in regulation but also clear targets – carrot and stick Knowledge gap and information bias call for dialogue and building of trust The need for enhances action increasingly recognized Incentivize companies to monitor and report correct data Flexibility in regulation but also clear targets – carrot and stick INTERNATIONAL INITIATIVES The Arctic Council Framework for Action on Black Carbon and Methane and ACAP/PSI Zero Routine Flaring by 2030 initiative (GGFR) Endorsed by 9 countries (including Russian Federation) and 10 companies (non Russian) Climate and Clean Air Coalition (CCAC) Technology Demonstration and Evaluation for the Recovery of Hydrocarbon Bilateral cooperation The Arctic Council Framework for Action on Black Carbon and Methane and ACAP/PSI Zero Routine Flaring by 2030 initiative (GGFR) Endorsed by 9 countries (including Russian Federation) and 10 companies (non Russian) Climate and Clean Air Coalition (CCAC) Technology Demonstration and Evaluation for the Recovery of Hydrocarbon Bilateral cooperation

18. Sted, dato Final remarks 18 The knowledge gap Scale and characteristics of emissions Mitigation opportunities and costs «We know enough to act» Yes, but… More knowledge essential in order to get regulations and policies right Information and knowledge important to get companies to act Flares are very visible and there are relatively few emission sources and even fewer key decision makers