Energy Efficiency and Renewables Conference Launch Remarks
Claus Cronberger – Managing Director, Proman Limited
Introduction
Honorable Ministers, Ladies and Gentlemen, all protocols observed. Thank you for joining us here today.
I would like to talk to you about Proman’s commitment to sustainability, and our ambitions for the future of the energy sector in Trinidad and Tobago.
Proman’s History
For more than thirty years, Proman has been committed to continuous investment and innovation in this country.
Through our approach to investment and the development of our plants, operations and personnel, we are proud to have played a leading role in the growth of the Point Lisas Industrial Estate. Now, we have 14 petrochemical plants and are the largest employer on the Estate, with more than 1,000 highly skilled employees.
When I first came here to work in Point Lisas, 30 years ago, the picture was quite different. Point Lisas has grown tremendously, becoming a major global player in the methanol and ammonia industry, and of course is one of the largest contributors to Trinidad’s economy. Tens of thousands of jobs have been created, directly as well as indirectly in the services and supply industries.
Innovation has always been at the core of our business and we achieved many “firsts” right here in Point Lisas.
Proman was one of the first private companies to invest in methanol production in Trinidad & Tobago beginning of the 1990s.
We were the first to build the world’s largest methanol plant in the mid-2000s, with our M5000 plant.
We were the first of the petrochemical producers to invest further downstream, with the establishment of our Ammonia-Urea-Melamine complex in 2009.
And we were the first to develop stranded gas fields by investing in Trinidad’s upstream operator, DeNovo, in 2015.
And our focus on innovation has always been matched by our focus on local content – that is what defines the Proman model. One of the greatest assets of this industry, and of this country, is our local expertise. As Proman has grown, our employees have remained at the heart of our business. Since inception of our operations, we have always been 100% local.
They have shared their expertise worldwide and played a crucial role in the development, construction, start-up, commissioning and operations of some of the largest and newest methanol and ammonia plants in the world. Today, thanks in part to the Point Lisas model of public-private collaboration, our energy sector can be proud of its world-class petrochemical expertise.
Future of the industry
Now, the industry is changing. And not only because of the Pandemic!
The energy sector is at a crossroads, as we confront changing global dynamics and what this means for our natural gas value chain model. Meanwhile, our planet is under threat from increasing temperatures and rising sea levels, and the world is working to respond. From international efforts like the Paris Climate Accords, to Vision 2030 here, we are moving into a new era for global energy policy.
What, then, is the next phase for the energy sector in Trinidad & Tobago?
This government has made a commitment to place the environment at the centre of our social and economic development, and we in the industry must in turn make that same commitment. Prime Minister Rowley’s target of reducing carbon emissions by 15% by 2030, announced at this conference last year, will require innovation and major investment, and the same hard work that led to the development of the current Point Lisas model. Many of the commodities we already produce can play a key role in achieving these goals.
As we move from fossil fuels towards renewables, which is widely known as the ‘energy transition’, there is huge potential for methanol and ammonia as ‘future proof’ fuels. This is a great opportunity for our country. While the industry will need to see changes, we already have all of the ingredients to secure a stable and economically viable energy transition – one that capitalises on the existing infrastructure of the energy sector, and this country’s world-class workforce.
So what is Proman doing now?
Proman is already pursuing many sustainable energy initiatives around the world. In Canada, we have partnered with sector leaders such as Enerkem, Shell and Suncor, as well as the Government of Quebec, on the Varennes Carbon Recycling project, which will include one of the world’s largest waste-to-methanol plants. It will reduce the carbon intensity of methanol production by over 90% and achieve the equivalent in greenhouse gas reduction of taking 50,000 vehicles off the road each year. This an exciting project for us to be part of, and we expect to leverage our expertise in Trinidad & Tobago as part of our role in Varennes.
We also recently announced our participation in the North-C-Methanol project in Belgium, which is part of a large CCUS initiative. And Proman will take a leading role in this development, which will include the world’s largest renewable hydrogen-to-methanol plant. This would be Proman’s first methanol plant in Europe.
So what is the potential for T&T?
This an exciting time for Proman and for our industry, and we want Trinidad & Tobago to be part of our journey. In both, the creation of renewable energy, and its utilization, our country has many of the resources required to participate in this global shift.
T&T is a major methanol producer. And methanol has tremendous potential as a ‘bridge fuel’ – bridging the gap from fossil fuels to renewables. Because methanol is cleaner burning than conventional fuels, widely available, and easy to transport, it is a viable energy source for a number of industries.
As a marine fuel, methanol can drastically reduce shipping emissions – which is vital for a sector that produces around 10% of global transport emissions. Over the next 12 to 18 months, Proman and our partners Stena Bulk will deliver three state-of-the-art methanol dual-fuel vessels to support the decarbonization of the global shipping industry.
Methanol can also be blended with gasoline, to create a cleaner motor fuel. Proman is actively pursuing opportunities for fuel blending in Trinidad, to provide a regionally produced lower cost, low emission gasoline for both domestic and regional use.
Beyond the role of bridge fuels, this country has enormous untapped potential for the development of renewable commodities. In particular, bio-methanol – produced from sustainable alternatives to the current natural gas feedstock – is one of the most promising avenues for us, as well as the wider CARICOM region, to become less carbon-intensive. In the next 5-10 years, we also anticipate huge potential for green ammonia.
The bio-methanol market is relatively young, but we expect to see substantial growth in the short to medium term as governments and private sector players continue to decarbonize. Just last month, we announced a research project with The University of West Indies to explore further biogas feedstock options in Trinidad and Tobago.
Furthermore, the expertise we develop with Enerkem in Canada will be invaluable for the Beetham waste-to-bio-methanol bid we have already submitted to the Ministry of Energy. We are excited about bio-methanol’s potential and committed to developing this innovative technology further.
It is clear we are on the cusp of an exciting and necessary transition for the local, regional and global energy sector. However, in order to create the conditions for this transition, we need to maintain, and sustain, what we have collectively built to date in Point Lisas. The past, present and future of our energy sector are fundamentally linked.
The downstream sector has huge potential, and is essential, to drive this country and the CARICOM region’s energy transition. But only if we can work together to develop a revitalised gas value chain model and gas pricing strategy that sustains the long-term future and competitiveness of our energy sector. This is a matter of crucial national importance.
Our natural gas sector is built on symbiotic relationships. The sustainable long-term solutions required for the sector’s survival can only be achieved through collective effort, and collaboration, across the upstream and downstream industry sectors, the National Gas Company, and the Government. I am confident that if we can do this, the long-term prosperity of both the sector and the country will be assured, and we can play a leading role in the Caribbean energy transition.
I thank you.