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01-04-2025

OGCI studies aim to accelerate hydrogen and biofuels adoption to decarbonise transport

The Oil and Gas Climate Initiative (OGCI), a coalition of 12 leading global energy companies, is strengthening its efforts to enable decarbonisation of the transport sector, one of the largest sources of global CO₂ emissions. With a decade of progress, including halving methane emissions and cutting flaring by 45%, OGCI is exploring technologies to tackle transportation's carbon footprint.

Since 2017, OGCI members have invested nearly $100 billion in low-carbon technologies such as biofuels and carbon capture, highlighting their commitment to effective climate solutions. Building on these efforts, OGCI looked at hydrogen and biofuels as ways to reduce CO₂ emissions from transport, showcasing the role of oil and gas companies can play in addressing climate change.

Recent studies highlight promising technologies that could transform the sector’s carbon footprint. Hydrogen is seen as a key solution for decarbonizing some sectors of the industry, especially heavy-duty transport. The Road Ahead for Hydrogen-Powered Mobility report stresses the need for coordinated infrastructure development, regulatory clarity and industry collaboration to release hydrogen's potential.

In the maritime sector, biofuels offer a significant emissions reduction opportunity. The Biomass for Marine 2025 study, developed with Argus Media, forecasts a large increase in global biomass availability by 2050, with much of it allocated to marine fuels. This research helps provide a blueprint for sustainable maritime transportation.

While the transition to emerging energy technologies, such as hydrogen and biofuels, may progress gradually until 2030, a substantial increase is anticipated by 2040 as these solutions scale up. Understanding the importance of assessing how various policies and market dynamics will influence sector-specific decarbonization pathways, OGCI collaborated with FEV Consulting to release Net Zero 2050: Energy Demand Dynamics across the Transportation Sector. This report offers practical insights on shaping regional policies and addressing challenges in adopting low-carbon fuels.

"Decarbonising transport is critical to tackling climate change, and low carbon fuels play a vital role in achieving that goal," said Amy Bason, Deputy Vice President of Strategy & Policy at OGCI. "By bringing together the world’s leading energy companies and industry partners, OGCI is accelerating the development and deployment of real, scalable solutions that can drive meaningful progress toward a low-carbon future."

As the transport sector strives to meet ambitious net-zero targets, OGCI remains committed to advancing emerging technologies to deliver on ambitious net zero targets. By leveraging the collective expertise of its member companies, the initiative continues to demonstrate what’s achievable. 

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