The Decommissioning Gap – millstone for the energy transition

60-minute session

A two-part webinar series exploring the challenge of managing decommissioned assets in the energy sector.  Find out why the “Decommissioning Gap” has the potential to be an existential challenge, how the finance sector view it and what it means for energy companies.

Typically, decommissioning has been seen and managed as an end-of-life technical challenge, far from a company’s core business, and of limited significance to others. However, decommissioning of the “old energy system” all along its entire up- and downstream value chain is now being recognised as a critical, holistic part of the energy transition.

In particular, it is increasingly coming to the attention of financial market players and other key stakeholders. The establishment of robust, sustainable pathways for decommissioning and re-purposing of old and stranded assets becomes both a regulatory and strategic imperative.

Only asset owners who have sufficiently identified and addressed their decommissioning obligations will have reliable access to capital and the opportunity to leverage their operational assets and processes towards a greener future. Owners who manage their decommissioning “millstone” well, will benefit from having a headway in the market – those who manage it poorly will be dragged down.

In Part One of the series our expert panel tackle key questions from the financial market perspective:

• What are investor expectations for diligent valuation of decommissioning liabilities?
• What are options and requirements to secure funding, ensure long-term sustainability and optimise investment strategies for Decommissioning Investment Reserves?
• What are the implications for the corporate business model, governance framework and organization?

After the Summer, in Part Two, we return to the topic and focus on how players in the energy industry answer to those questions and deal with the following challenges:

• How to plan the re-purposing of existing infrastructure?
• How to guarantee successful performance of the decommissioning and re-purposing process in a resource-constrained industrial environment?

Hosts:

Julien Halfon, Head of Pension and Corporate Solutions | BNP PARIBAS Asset Management

Rudy Koenig, Executive Advisor, Energy Transition Programmes Executive | Jacobs