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7 November 2002
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COVER

 


Walk into any office in Oman and chances are that you will notice recyclable paper baskets, coloured bins, posters, notices and saving of energy in some form or another. And these are not just platitudes but being increasingly abided by managers and executives religiously across sectors. Oman LNG, Muriya Tourism Development, Petroleum Development Oman (PDO), Shangri-La's Barr al Jissah Resort & Spa, Grand Hyatt, Majan College, Shell Development Oman are amongst a growing list of companies which use some sort of an internal office setup to help promote the ‘green’ cause.

And then there are others who are taking such initiatives far beyond the confines of their office. One such company is Towell Auto Centre (Tac) and their TAC Ecodrive campaign. It was amongst the first corporates who took up the cause way back in 2007, but was hindered greatly by Cyclone Gonu, only to come back in full force as a corporate campaign in 2008. The campaign was spawned from the ideology that both S. Kasthurirengan, CEO – TAC, and Annurag Chawla, Head of marketing & communications – TAC, shared. “It is not just a campaign that we do on special occasions. It is an ideology and a part of our corporate culture”, says Chawla. The campaign is simple enough – spread awareness among the community and drive them towards saving the four key elements of daily life – water, energy, the environment and fuel. The campaign began right at home. TAC started with their own staff, and then spread the awareness to the community at large. The campaign made further inroads with the inclusion of school children through interactive presentations and by taking the message to other corporates of Oman and their key stakeholders. It has therefore become an attitude and a purposeful way of life.

Knowing your footprint
With over 40 per cent of the world’s oil resources being located in the region, fuel based companies have a bigger responsibility to reducing carbon footprint. So what is a carbon footprint (CF)? The burning of fossil fuels leads to an increase in the level of carbon dioxide in the atmosphere, thus enhancing the greenhouse effect above the permissible norm. This in combination with the rise in methane, nitrous oxides and CFC’s endanger the environment further. This is where the carbon footprint comes in. It is basically the amount of greenhouse gas emissions caused by an individual, organisation, event or product. And knowing how to reduce your footprint, no matter how large or small, is the best contribution you can make to the environment.

Hydrocarbon-based industries have the unenviable distinction of creating the largest CFs amongst its peers, led by coal used in the power generation sector and followed by transportation fuels. Gas, the most benign of the hydrocarbons creates a CF less than half that of coal. Aware of these facts many fuel companies across the globe are working hard on reducing their CFs. The buzzwords here are ‘act responsibly’. Dr. Brian Denis Buckley, General Manager and Chief Executive, Oman LNG, puts it perfectly: “Our responsibility towards the environment comes in at various levels – individual, corporate, industry-wide and global.” “For example, as individuals and as companies we are careful to be efficient with energy and minimise our waste through the reduction, reuse and recycle of the materials we use. In Oman LNG, our use of gas-powered turbines, which are the most efficient form of energy extraction available today, maximises energy efficiency. Gas turbines also create the lowest CF per unit of energy of all the fossil fuels. We take care to minimise waste – and set annual targets for continuous reduction. We take steps to ensure, for example, that the sea water, used for cooling in our plant, does not come in contact with any process material and is returned to the sea uncontaminated and with minimum increase on its original temperature to protect its ecosystem. Through design and operations and maintenance practices, we minimise our carbon footprint at a level that is pacesetting in the industry”, says Buckley. "Finally, at the industry-wide and global levels we work to continuously improve standards throughout our industry and to collaborate with governments in achieving levels of performance that will protect and conserve our environment whilst achieving economic growth and wellbeing”, concluded Buckley.

PDO on its part is committed to finding environmentally-friendly solutions to its strategic investments. The oil and gas major recognises that what makes good environmental sense also makes good business sense. In the barren desert of Nimr in South Oman, dust and sand will soon give way to a green oasis. Taking its cue from the ancient Egyptians who used natural reed beds to clean up dirty water, PDO is using the age-old principle to remove oil from water produced alongside oil production. Such water is currently re-injected into deep reservoirs where it can be safely stored without affecting groundwater, a process known as deep water disposal. After a successful eight-year experiment, the Nimr reed bed project is set to treat 45,000 cubic metres per day of water from local oilfields. PDO will create a giant farm with 240 hectares (2.4 mn square metres) of reed beds which will become operational in early 2011. “Our trials demonstrated that reed beds are a technically viable alternative to deep water disposal,” explains Khalifa al Harthy, Head of Environment, PDO.

South Oman is the site of another technological step forward aimed at limiting the carbon footprint of PDO’s operations. At Thayfut, PDO is embarking on its first solar energy project. Approval was recently obtained for a pilot project known as “Thayfut solar steam generation pilot”. Under the project, PDO will install parabolic troughs which will be used to generate steam for injection into underground reservoirs. Parabolic troughs work by concentrating the sun’s rays onto receiver tubes carrying water which under the intense heat then turns into steam. If successful, the project could lead to change in the way PDO generates energy for its thermal enhanced oil recovery (EOR) projects. Royal Dutch Shell, a global leader in the industry, is working on a number of initiatives globally to combat the problem. “Shell is an energy company in a world governed by three hard truths,” says Dr. Andrew Wood, Shell Country Chairman, Shell Development Oman. What are these hard truths? Firstly, global demand for energy is growing, and this will mean increased demand for oil and gas. Secondly, supplies of “easy oil” (easily accessible, conventional oil and gas) cannot keep up with the growth in demand. As a result, society has no choice but to add other sources, such as renewable and “unconventional” fossil fuels, to its repertoire. And lastly, more energy means more CO2 emitted in a time when climate change looms as a critical global issue.

These “hard truths” can only be combated through the joint effort of governments, industry and the consumers. It all boils down to the task of balancing the accessibility, affordability and acceptability of energy, in turn influencing its economic viability. Many of these methods such as taxes on cars dependent on engine sizes, taxes on disposal of waste, higher energy prices and the like are well known. An interesting method of reducing emissions called Carbon Cap and Trade is being tried out by a few developed countries. This involves setting of a carbon emission standard within a government’s jurisdiction and distributing it evenly among the different industries and then allowing it to become a tradable commodity. What this does is allow “greener” companies an additional means of profit to promote their cause and while at the same time giving the other companies the leverage they need to meet their emission limits, albeit at a higher cost. But this system also has an additional benefit; it allows the government to study the concentration of emissions within the various industries. Royal Dutch Shell for its part is actively pursuing the Carbon Capture and Storage (CCS) method to reduce carbon emissions. CCS is a process whereby CO2 is captured from industrial or energy sources and then transported to a storage site to be injected into geological formations deep underground, where it can be permanently trapped. Says Wood,"There are potentially three types of locations that are suitable for such disposal. Firstly, there are deep saline aquifers which have large storage potential but require detailed research into the geological characteristics. Then there are already depleted gas fields, but these typically have uncertainties concerning the integrity of abandoned wells. And lastly there are mature oil fields. These can provide a “win-win” situation, so to speak, in fields where there is Enhanced Oil Recovery (EOR) potential as this can reduce the funding required to create a CCS infrastructure."

A number of ‘green’ initiatives being taken by companies in Oman go beyond the purview of a company’s social responsibilities. A fine case in point is Land Rover. As David Aziz, Director Automotive Products, MHD puts it, “As part of the ongoing commitment to address the challenges of the environment, Land Rover is actually the first car manufacturer to launch its own CO2 offset program.”All vehicles sold in the Gulf will include the CO2 offset package, which is based on offsetting an equivalent of 72,000km worth of CO2 emitted by a vehicle. This CO2 offsetting funds projects that avoid or reduce CO2 emissions so that the amount saved balances the original emissions. In addition, Land Rover, as part of the Our Planet programme, sponsors a number of different organisations such as Born Free Foundation, the Biosphere Expeditions, Earthwatch Institute, Royal Geographical Society and the China Exploration and Research Society.

Coming back to emissions, when it comes to CF levels, at a corporate or industrial scale, things really start to ‘heat up’. A number of companies in Oman like Oman LNG, Grand Haytt have got an ISO14001 certification, embellishing their environment friendly credentials. ISO14001 (International Standard for Organisation) is a set of environmentally friendly and cost efficient practices. This certification includes using energy-saving light bulbs and biodegradable cleaning materials, water restrictors and sewage treatment facilities to prevent water pollution. Another interesting campaign that most of us are familiar with is the anti-plastic campaign. Backed by the ESO (Environment Society of Oman) it is followed by quite a few companies, either in collaboration with the ESO or on their own. The primary objective of this campaign is to reduce the use of plastics where not needed and to use reusable bags instead. The Grand Hyatt Muscat took this cause one step further by converting all clean but damaged old bed-linen into reusable bags, at their own cost, and gave them away to their staff to promote the anti-plastic cause.



Developing the future
Dr. Reginald Victor, Director and Professor, Centre of Environmental Studies and Research, Sultan Qaboos University, says: “Oman is considered as the leader in environmental conservation and research in the region. But now that scenario is changing slightly because of the rapid development.” Take a closer look and you will find that there is quite a bit a development going on, especially along the coast and it is inevitable that this will affect the environment. So, the question that we have to ask ourselves is – where do we bridge the gap between developing our livelihood and protecting the environment? The answer lies in something called ‘Sustainable Development’. The easiest way to describe it is ‘utilising the resources of today without compromising its use for the generations to come’. To do so, requires intense amounts of research and analysis and while the damage cannot totally be avoided it can definitely be reduced.

Muriya is just such a company. They are at present developing two major projects; the Salalah Beach project which is spread over 15.6 million square metres and 8.2km of beachfront; and the Jebel Sifah project which spreads over 6.2 million square metres and 5.6km of beach front. One of the key features of the two projects is the inland marinas. In doing so Muriya avoids reclaiming land from the sea, which is extremely harmful to the marine environment. “By reclaiming land from the sea, you disturb the shoreline and this has major implications on the environment. You have accretion of sand on both sides of the shoreline, disturb the currents, disturb the marine life and kill the coral”, says Cyril Piaia, CEO, Muriya Tourism Development. He also added, “By building inland marinas we don’t disturb the natural flow of the water, natural currents and the marine life.” Also part of the plan is the proper disposal of brine from the desalination plants and the use of off-shore mooring buoys. Also, only local flora will be used for the projects. But, with increased tourism comes the need for hotels, which also have quite a significantly large carbon footprint. Reducing this is no easy task and requires some firm protocols and ingenuity. For instance, Grand Hyatt Muscat, whenever possible, closes down one wing of the hotel to reduce power consumption. They are in plans to use AC condensation water for the plants in the hotel. “You usually have huge AC plants in a hotel such as this. The condensation water is several thousand litres. So, just using that will make a difference”, says Christoph K. Franzen, GM, Grand Hyatt Muscat. They are also in the process of completely phasing out the use of plastic bottles in the hotel, controlling the use of paper and also use various methods, such as motion sensors and energy saving bulbs, to further reduce energy consumption in the hotel. Even Shangri-La’s Barr Al Jissah Resort & Spa spares no expense when it comes to environment conservation. “All Shangri-La properties follow an Environmental Management System Manual, which helps to identify and address the immediate and long-term impact of the hotel’s operations on its local environment”, says Arbind K. Shrestha, GM, Barr Al Jissah. The resort also has a sewage treatment facility. All water is clarified and treated and in turn used to maintain the resort’s extensive landscaped and natural surroundings. The resort also takes great pride in its turtle beach and puts great effort in maintaining it. The beaches remain unlit at night and the exterior lights are soft, not to put off turtles. There is a dedicated Turtle ranger on staff who makes sure turtles are treated in a right way, and that their habitat is not disturbed by guests or staffs. The nesting is marked with wooden stands and a sign to alert everyone that a turtle nesting is located below.

The exotic problem
Unfortunately, with increased development comes an additional danger that not many are aware of – the introduction of foreign exotic species of plants and animals into the local ecosystem. The most important fact to consider is that when a species of plant and animal is absent in a certain area, there is a good reason for it. If you try to plant a species that was not initially there, you are basically interfering with the natural order of things and in actuality you are doing a lot more harm than good. And in fact it even goes far deeper than that. Taking any green golf course in the world as an example, by building the said course one provides ample amounts of food and shelter for creatures that were initially struggling for food and survival. This causes those creatures to thrive and eventually turn, what were once rare, into pests that also affect the other flora and fauna in the area! And no matter what sort of environmentally friendly methods are used in the process, this sort of damage cannot be avoided.

This sort of damage gets even worse when circumstances or industries involve the introduction of new species of plants and animals into the environment. Take for example, the pet industry; it involves the introduction of foreign animals into an environment that was not initially meant for them. When left free, these new species of animals may flourish and, in nearly all cases, will compete with and eventually drive off the local fauna thereby affecting the entire local ecosystem. Prime examples of such competition are the green, Rose-ringed parakeets and House crows. These were creatures that were introduced by accident and are now thriving in an environment that they were never meant to be in. And even worse, or what may even seem heartless, is the solution to such damage – get rid of the said exotic creature. While this may seem cruel, it is a matter of choosing the lesser of two evils. On one side we have the parakeets or crows who for no fault of their own have survived in the wild and have managed to compete successfully for food and shelter but on the other hand we have the local birds who were originally of this ecosystem and who now have a new, and extremely strong, competitor for the same resources. But these birds, being much smaller as they are, don’t stand a chance and run the risk of being extinct. The choice, as you can see, is not in their hands but in ours. This is a choice that we would not have had to be made had the right steps been taken right in the beginning but what we can do with ease is avoid this from ever happening again.

Education is the key
The children of today hold the keys to the world’s future. It is our responsibility to educate them in the right way and make them aware of the importance of conservation. It is good to see that schools and colleges are making a genuine effort in this regard. “The potential is there and it thrills me to know that the students have so many ideas. But they sometimes need a certain competition or movement to explore and reflect on those potential ideas”, Says Mohamed Murtadha Al-Eisa, Marketing and PR manager, Majan College. One such initiative is Majan College’s “Majan friends of the Environment”. The objective of this initiative is put forward a message and to educate others about the importance of conservation and the methods that need to be utilised. Whatever said and done, these burden is not theirs to bear alone. It is only with support from larger corporations and organisations can they hope to be a success. This responsibility should also be taken up on a personal level by educating children to take it forward as a way of life. Remember, educate the young of today for a better world of tomorrow.
 


June - 2009

Cover Story
Truly 'Going Green'
While most people would relate ‘Going Green’ to planting of more trees and increasing the level of greenery around ones home and neighbourhood, corporate Oman is taking the concept to a much deeper level with initiatives like carbon capture, conservation of energy and water, controlling waste management and recycling. Malcolm Xavier Crasta and Visvas Paul D Karra give a first-hand accountalk
Renewable Energy – On a roll
The development of renewable energy is an ongoing process and although it may not be viable today, it may soon become relevant for Oman due to newer technologies, writes Visvas Paul D Karra
Petroleum Development Oman: A Planet-Friendly Mindset Takes Over
A look at how Petroleum Development Oman is contributing to environment preservation
Other Headlines
An indelible stamp
Our Guest Editor H E Anil Wadhwa surprised us with his hands-on approach and quick-wit understanding of the editorial process
A class act
The OER Top 20 Debate and Awards gave a ringside view on the State of the Sultanate's Economy and rewarded the best performing listed companies. An OER report
Steady progress
H E Ahmed bin Abdulnabi Macki, the Minister for National Economy shares his thoughts on bilateral relations, the economic crisis and Oman’s response in an exclusive interview with our guest editor, H E Anil Wadhwa
‘Disruption is in our DNA’
Ramzi Raad, Chairman and CEO, TBWA\RAAD talks about the impact of global economic slowdown on the advertising industry and his agency's partnership with the ZEENAH Group in an exclusive conversation with Akshay Bhatnagar
The Life of an Icon
We were recently given the opportunity to drive three of the very best models that Rolls-Royce had to offer. But rather than review the car we decided to take a look at its roots and find out how the company came to be. Malcolm Xavier Crasta tells the tale
Trust is the key
Rohit Walia – Executive Vice Chairman and CEO, Bank Sarasin-Alpen and Alpen Capital, Dubai replies to a set of questions sent out by our guest editor, H E Anil Wadhwa
Malaysia: A business hub
Malaysia is a fast growing, modern and progressive nation. It is one of the most developed economies in South East Asia and enjoys strong socio-economic and political stability. A multi-racial and multi-cultural population gives it cultural diversity
The Future of Investing: Riddle, Mystery Or Enigma?
Investing has always been a game of navigating uncertainty and the only anti-dote to that is a disciplined research-led investment process with continual adjustments or rebalancing as the macro situation evolves
Incredible India: the traveller's paradise
A roadshow was held in Muscat recently to promote the ‘Visit India 2009’ campaign, put together by the travel industry in association with Government of India. Visvas Paul D Karra travels to Mumbai, Delhi and Agra for this exclusive report
Private Ties
The demand for health services is set to escalate considerably as Oman’s population grows larger. Aware of this the government of Oman is welcoming private participation in the healthcare industry, offering various incentives such as soft loans and, in some cases, free land to medical entrepreneurs
Kuwait embraces socio-economic change
The recent elections in Kuwait has come as a shot in the arm for a government looking at taking on the financial crisis with an economic stimulus package the election of four women MP's adds to the country's image
Samsung extends lead with LED TVs
Sungyong Hong, president, Samsung Electronics Co, Dubai, talks about the brand positioning with its new television LED TV technology to Visvas Paul D Karra
Office Workout
If you have trouble staying fit at work, these office exercises are a great way to keep your body moving right at your desk. Raksha D’Souza checks them out
What next in the Bond Market?
While the markets are now optimistic about risk, the realities of the world economy still do not justify unbridled optimism, given this scenario it may be prudent to invest in government debt on any dip
Simple pleasures
Mohammed Al Hassani, Corporate Communications manager, BankMuscat surprises one with his simplicity and down-to-earth demeanour. Raksha D Souza and Visvas Paul D Karra meet him for a tete-a-tete
Is a downturn a good opportunity for start-ups?
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