Expro Awarded Contract With INPEX for Carbon Capture Utilization and Storage Pilot Project

Rhea-AI Summary

Expro Group Holdings N.V. (NYSE: XPRO) secures a new Carbon Capture Utilization and Storage (CCUS) contract with INPEX Corporation for Japan’s first clean hydrogen production demonstration project. The project aims to produce clean energy from domestically sourced gas, aligning with Expro’s and the industry’s efforts to reduce carbon emissions and advance sustainable energy solutions.

Insights

Energy Market Analyst

The contract secured by Expro Group Holdings N.V. for the Kashiwazaki Clean Hydrogen/Ammonia project represents a significant step in the energy sector, particularly in the growing field of Carbon Capture Utilization and Storage (CCUS). CCUS technologies are critical for reducing greenhouse gas emissions and their deployment is essential for countries like Japan that are aiming to transition to cleaner energy sources while maintaining energy security.

Expro's involvement in providing tubular running services is a technical component that ensures the structural integrity of wells used in the carbon storage process. The integrity of these wells is paramount, as any leakage could undermine the environmental benefits of carbon storage. The contract's scope, covering production, injection and monitoring wells over a 12-month period, suggests a comprehensive commitment to the project's success and could serve as a benchmark for similar projects globally.

From an energy market perspective, this project contributes to the diversification of Japan's energy mix and enhances its domestic energy production capabilities. By developing an integrated hydrogen and ammonia value chain, Japan could reduce its reliance on imported fossil fuels and potentially lower energy costs in the long term. This strategic move may influence energy market dynamics, particularly in the Asia-Pacific region.

Environmental Policy Expert

The Kashiwazaki Clean Hydrogen/Ammonia project aligns with global efforts to achieve net-zero emissions, a goal that is increasingly shaping environmental policies and investment strategies. The project is not only a business venture for Expro but also a reflection of Japan's commitment to the Paris Agreement and its own ambitious carbon neutrality goals by 2050.

CCUS is a technology endorsed by the Intergovernmental Panel on Climate Change (IPCC) as a necessary tool for mitigating climate change. Its successful implementation in a high-profile project like this one could accelerate policy support for further CCUS initiatives, potentially leading to regulatory changes and financial incentives that encourage similar investments.

However, the environmental impact of CCUS projects must be critically assessed. There are concerns about the long-term viability and safety of carbon storage and Expro's role in ensuring well integrity is a crucial element in addressing these concerns. The policy implications of this project could set a precedent for how governments balance the need for clean energy development with environmental protection.

Financial Analyst

For investors, Expro's new contract with INPEX Corporation could signal potential growth opportunities, given the increasing demand for CCUS technology in the energy transition. Expro's expertise in well construction services and its established relationship with INPEX may provide it with a competitive edge in securing similar contracts in the future.

Financially, the contract could have a positive impact on Expro's revenue streams over the contracted period. Investors should monitor the company's performance in executing this contract, as it could affect Expro's market position and its ability to capitalize on the growing CCUS market. Furthermore, successful execution could lead to repeat business and long-term partnerships, which are valuable in an industry where reliability and track record are crucial for winning new business.

It's important to note that the investment in CCUS technology is capital intensive and may involve significant upfront costs. The long-term financial benefits, however, could be substantial if the technology becomes widely adopted and supported by government policies. Investors should weigh these factors when considering the implications of this news on Expro's financial health and stock performance.

Tubular Running Services Supports Carbon Storage Development for Japan’s First Clean Hydrogen Production Demonstration Project

HOUSTON--(BUSINESS WIRE)-- Energy services provider, Expro Group Holdings N.V. (NYSE: XPRO) (the “Company” or “Expro”), has secured a new Carbon Capture Utilization and Storage (CCUS) contract with INPEX Corporation for the Kashiwazaki Clean Hydrogen/Ammonia project which is Japan’s first clean hydrogen production demonstration project.

Expro's Rotary Spider system (Photo: Business Wire)

Expro’s work scope, will include the delivery of tubular running services for multiple sections of casing, liner and tubing across a 12-month period. This comprehensive scope covers one production well, one injection well, and one monitoring well. The company’s range of technologies for handling and running tubulars is designed to enable safe and efficient operations, while providing maximum protection to downhole equipment.

Expro’s Chief Operating Officer, Alistair Geddes said “Expro's long-standing relationship with INPEX, supported by our expertise in tubular running services, played a pivotal role in securing this contract.

“Carbon storage sites are a fundamental part of clean hydrogen projects and ensuring the long-term integrity of those wells is imperative. Across our portfolio of Well Construction services, we provide technologies that enhance well integrity during the drilling and completions phases.”

The Kashiwazaki Clean Hydrogen/Ammonia project is a key milestone in Japan’s energy security journey to help produce clean energy from domestically sourced gas. This will be the country's first project to build an integrated hydrogen and ammonia value chain from production to usage.

Alistair Geddes added “We are proud to be a part of this demonstration project that aligns with Expro’s and the industry’s efforts to reduce carbon emissions, whilst advancing our Sustainable Energy Solutions. We have supported CCUS globally for over 10 years, gaining invaluable experience in executing operations with excellent results, and continue to believe it is a key industry enabler to support our own and our clients' net-zero goals.”

Notes to Editors:

Expro

Working for clients across the entire well life cycle, Expro is a leading provider of energy services, offering cost-effective, innovative solutions and what the Company considers to be best-in-class safety and service quality. The Company’s extensive portfolio of capabilities spans well construction, well flow management, subsea well access, and well intervention and integrity solutions.

With roots dating to 1938, Expro has approximately 8,000 employees and provides services and solutions to leading exploration and production companies in both onshore and offshore environments in approximately 60 countries.

For more information, please visit expro.com and connect with Expro on X (formerly Twitter) @ExproGroup and LinkedIn @Expro.

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

This press release, and oral statements made from time to time by representatives of the Company, may contain certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements regarding, among other things, the success of technologies associated with carbon capture utilization and storage and the Company’s environmental, social and governance goals, targets and initiatives, and are indicated by words or phrases such as "anticipate," "outlook," "estimate," "expect," "project," "believe," "envision," "goal," "target," "can," "will," and similar words or phrases. These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements to be materially different from the future results, performance or achievements expressed in or implied by such forward-looking statements. Forward-looking statements are based largely on the Company's expectations and judgments and are subject to certain risks and uncertainties, many of which are unforeseeable and beyond our control. The factors that could cause actual results, performance or achievements to materially differ include, among others the risk factors identified in the Company’s Annual Report on Form 10-K, Form 10-Q and Form 8-K reports filed with the Securities and Exchange Commission. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, historical practice, or otherwise.

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Source: Expro

FAQ

What is the new contract secured by Expro Group Holdings N.V. (NYSE: XPRO)?

Expro Group Holdings N.V. (NYSE: XPRO) has secured a new Carbon Capture Utilization and Storage (CCUS) contract with INPEX Corporation for Japan’s first clean hydrogen production demonstration project.

What is the significance of the Kashiwazaki Clean Hydrogen/Ammonia project?

The Kashiwazaki Clean Hydrogen/Ammonia project is Japan’s first project to build an integrated hydrogen and ammonia value chain from production to usage, aiming to produce clean energy from domestically sourced gas.

What is Expro’s role in the Kashiwazaki Clean Hydrogen/Ammonia project?

Expro’s work scope includes the delivery of tubular running services for multiple sections of casing, liner, and tubing across a 12-month period, covering one production well, one injection well, and one monitoring well.

How does Expro contribute to reducing carbon emissions?

Expro is proud to be a part of the demonstration project that aligns with the company’s and the industry’s efforts to reduce carbon emissions and advance sustainable energy solutions.