Invictus Awarded Three Carbon Offset Projects in Zimbabwe

This morning Our 2020 Energy Pick Of The Year, Invictus Energy (ASX: IVZ) just made a move towards potentially being the first “cradle to grave” carbon neutral oil and gas project.

In this case, “cradle to grave” means that carbon neutrality is secured from exploration through to production and the end of the project's useful life.

Today, IVZ took that first step by being awarded three different carbon offset projects over a ~30 year term over 301,565 hectares of indigenous forests.

The three projects are the Ngamo, Gwayi & Sikumi projects which are classified under the Reducing Emissions from Deforestation and forest Degradation (REDD+) framework.

REDD+ is basically a framework created by the United Nations that aims to reduce carbon emissions from deforestation and forest degradation.

IVZ is 50:50 partnered with the Forestry Commission of Zimbabwe and plans to develop deforestation programs so as to protect the indigenous forests. Under the REDD+ framework, this constitutes emissions reduction programs which then generate carbon credits that can be sold on the open market.

IVZ is now going through the verification process to get the carbon credits recognised up to the point where they are tradable, with the company expecting this to take ~12 months to complete.

With carbon credits forecast to be worth US$80 to $150/tonne in 2035, IVZ has managed to put together a strategy to reduce carbon emissions and work towards developing one of the first ever carbon neutral oil and gas projects as well as make money from the carbon credits generated.

Next:

We are waiting to see IVZ update the market with respect to a farm in agreement and, most importantly, mobilise its drill rig ready ahead of next month’s spudding.