Source - LSE Regulatory
RNS Number : 8850S
Wentworth Resources PLC
19 November 2021
 

  

                                                                                                                                19 November 2021

WENTWORTH RESOURCES PLC
("Wentworth" or the "Company")

Announcement of agreement between Wentworth and Vitol SA
to offset carbon emissions at Mnazi Bay from 2022

Partners will jointly develop new community-focused carbon credit programmes aligned to UN Sustainable Development Goals in Tanzania

Wentworth Resources (AIM: WEN) ("Wentworth" or "the Company"), the independent, Tanzania-focused natural gas production company, is pleased to announce it has entered into a Memorandum of Understanding ("MOU") with Vitol SA ("Vitol") regarding the supply of carbon credits to partially offset the impacts of its emissions footprint at Mnazi Bay.   

Highlights:

Wentworth and Vitol will jointly develop new community-focused carbon credit programmes in Tanzania, with Wentworth committing to offtake a material portion of the carbon offsets between 2022 and 2030;

Wentworth and Vitol will co-design the projects with stakeholders, local implementation partners and Government, thereby ensuring the co-benefits of the projects are aligned to the UN Sustainable Development Goals and creating immediate, positive outcomes for the partnering communities associated with Wentworth's working interests and operations; 

The immediate objective is for Wentworth to offset all Scope 1 and 2 emissions and partially offset Scope 3 emissions from 2022;

Vitol and Wentworth will be co-financing the programmes, demonstrating a united commitment to deliver tangible impacts to the communities and country in which Wentworth supplies natural gas;

All credits will be registered with international accreditation bodies, such as VERRA or Gold Standard;

The carbon offsetting programmes and emissions reporting will be independently audited from 2022.

Increasing affordable, reliable and cleaner energy access in Tanzania

In Q2 2021, Wentworth launched its inaugural Sustainability Report identifying climate change mitigation and greenhouse gas emissions reduction as key strategic priorities for the business, to safeguard the interests of all its stakeholders within Tanzania and outside. To further formalise its strategic focus on climate action and its broader ESG priorities, Wentworth formed a Board Sustainability Committee in September of this year, providing greater oversight of the business' ESG risks and opportunities.

As a domestic natural gas producer in Tanzania, Wentworth is playing a critical role in increasing energy access for communities across Tanzania whilst simultaneously decarbonising the energy mix away from higher emitting fuels such as HFO and diesel and replacing it with lower carbon natural gas which works hand-in-hand with hydropower to support grid reliability.

With only 33% of the country's population with access to electricity and 7.7 million households without access to power, there is a significant opportunity for Wentworth to transform Tanzanian lives and communities by making electricity more accessible, reliable and affordable. [1]  

Commitment to responsibly manage Wentworth's emissions footprint

Scope 1 and 2 emissions

In its Sustainability Report, Wentworth measured its emissions footprint in line with the Greenhouse Gas Protocol. Scope 1 and 2 emissions at Mnazi Bay demonstrated an emissions intensity in 2020 of 0.42kg/CO2 boe (1,676.9t CO2 e), one of the lowest in the UK-listed E&P sector.

Whilst Wentworth's emissions footprint is proportionately lower than most on a Scope 1 and 2 intensity basis, the business recognises that it must take continuous action to minimise its impacts in the most responsible way for all of its stakeholders.

Wentworth believes it has responsibility as an engaged and active owner of Mnazi Bay to work with its joint venture partners, investors, regulators and host country to accelerate its decarbonisation as swiftly as possible.

Ongoing emissions reduction is a key driver of Wentworth's strategy and as non-operator at Mnazi Bay, the business intends to work closely with its operator and partner Maurel et Prom to identify innovative solutions to further lower its Scope 1 and 2 emissions in the near and medium term.

Wentworth has made good progress during 2021 on reducing its Scope 1 and 2 emissions and looks forward to providing an update on its emissions reduction measures in its 2021 Sustainability Report.

Scope 3 emissions

Whilst Wentworth's Scope 3 emissions represent the largest proportion of its overall emissions, the business recognises the role that natural gas has played in reducing the emissions intensity of the energy mix in Tanzania whilst also rapidly increasing energy access to some of the country's most vulnerable communities in both rural and urban areas.

To ensure it takes responsibility for emissions generated across its entire value chain, Wentworth will seek to partially offset its Scope 3 emissions from 2022.

Near zero gas flaring

Wentworth has minimal flared emissions in comparison to its industry peers, with a pilot flare used solely as a mandatory safety mechanism. Safety flares accounted for 7% of its Scope 1 emissions in 2020 (118t CO2 e). 

Committing to transparent and third-party validated reporting on emissions disclosure and carbon offsetting

Wentworth will continue to disclose its emissions on an annual basis in line with the Sustainability Accounting Standards Board (SASB) standards. In 2021, Wentworth disclosed its 2020 Scope 1 and 2 emissions and will be disclosing this data alongside its Scope 3 emissions in its 2021 Sustainability Report.

[1] USAID Power Africa Fact Sheet: Tanzania, 2020

In anticipation of future regulatory requirements for London Stock Exchange AIM-listed businesses, Wentworth is also exploring reporting in line with TCFD recommendations as part of its ongoing climate strategy and disclosure roadmap.

Strengthening its commitment to transparency and accountability, Wentworth's emissions reporting and carbon offsetting programmes will be independently audited from 2022.

Katherine Roe, CEO of Wentworth, commented:

"Emerging economies, particularly in Africa, are disproportionately impacted by climate change, despite having contributed the least in terms of global warming - yet the threat of energy poverty to a country like Tanzania is very real and a just transition is critical. Whilst COP26 has elevated climate to the very top of the corporate and global agenda, we hope it also paves the way for a more inclusive conversation with emerging economies to ensure the energy transition places them at the centre too.  

Our gas plays a critical role in addressing the energy access gap in Tanzania, but we must endeavour to do more to mitigate the impacts from fossil fuels. Whilst investments are made to achieve a global net zero ambition, we must be responsible in playing our part to offset the negative impacts from our production right now. Whilst being a non-operating partner at Mnazi Bay, we are working actively with Maurel et Prom to reduce our operational emissions but in the interim we do not want to be complacent.

We are proud to be working with Vitol, an expert in the carbon offsetting industry, to identify credible, high-quality, and impactful programmes with UN SDG-aligned benefits in Tanzania. Our communities are critical to maintaining our licence to operate, and we are committed to removing, avoiding and offsetting emissions as much as we can that are potentially damaging to their livelihoods.

We recognise that carbon offsets are not the single solution to climate change and will continue to prioritise abatement where possible. We look forward to updating our stakeholders on our ongoing progress as we strive to be a responsible partner for Tanzania".

 

Michael Curran, Head of Carbon Emissions Matrix, Vitol, added:

"We are pleased to be working with Wentworth on these projects.  Across our carbon business we are committed to only developing high quality projects that combine environmental benefits with a strong alignment to the UN SDGs. This is a great example of cooperation with a responsible in-country producer where we co-design a purpose-built carbon offset programme together".

 

 

Enquiries: 


Wentworth

 

 

Katherine Roe,
Chief Executive Officer
 

 

 

katherine.roe@wentplc.com
+44 (0) 7841 087 230
 

 

 
Stifel Nicolaus Europe Limited

 
AIM Nominated Adviser and Joint Broker 
Callum Stewart
Ashton Clanfield
Simon Mensley

 
+44 (0) 20 7710 7600

 

 

Peel Hunt LLP

 

Joint Broker 
Richard Crichton
Alexander Allen

 

+44 (0) 20 7418 8900

 

 

FTI Consulting

 

Communications Adviser 
Sara Powell                               

Ben Brewerton

Jourdan Webb

 

+44 (0) 20 3727 1000

 

 

 

 

 

 

About Wentworth Resources

Wentworth Resources plc (AIM: WEN) is a leading, domestic natural gas producer in Tanzania with a core producing asset at Mnazi Bay in the onshore Rovuma Basin in Southern Tanzania.

 

Inside Information

The information contained within this announcement is deemed by Wentworth to constitute inside information as stipulated under the Market Abuse Regulation (EU) no. 596/2014 ("MAR"). On the publication of this announcement via a Regulatory Information Service ("RIS"), this inside information is now considered to be in the public domain.

Notes to Editors

Glossary

"Scope 1 Emissions"                       Direct emissions from a company's owned or controlled sources.

"Scope 2 Emissions"                       Indirect emissions from the generation of purchased energy.

"Scope 3 Emissions"                 All indirect emissions (not included in Scope 2) that occur in a company's value chain, including both upstream and downstream emissions.

All definitions are according to the Greenhouse Gas Protocol.

 

 

 

 

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