Lundin sells world's first carbon-neutral oil
Sweden's Lundin Energy said on April 26 it had sold the world's first ever certified carbon neutrally produced oil to a refinery owned by Italy's Saras on Sardinia.
The oil came from the Edvard Grieg field off Norway, which Lundin noted had been independently certified by Intertek to emit only 3.8 kg of CO2/barrel of oil equivalent in full field-life emissions. The residual 2,302 metric tons of CO2 emissions from the oil cargo were offset with a nature-based carbon capture project, certified under the Verified Carbon Standard. The cargo is carbon neutral in terms of both Scope 1 and 2 emissions, Lundin said.
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The oil company, which produced nearly 153,000 boe/d of oil and gas last year, has pledged to make all the oil it sells carbon neutral by 2025.
"We were the first company to have one of its field’s carbon emissions independently certified as low carbon, and this certified carbon neutral transaction with Saras, is the next stage in what we believe will become a key value differentiator for Lundin Energy," Lundin CEO Nick Walker said in a statement. "The provenance of a barrel and how it is produced is increasingly important, as society and industry require lower carbon feedstocks to achieve emission reduction targets and meet the goals of the Paris Agreement."
The carbon-neutral trade "offers a proof point of where the crude market is heading and the potential value that can be realised through efficient, industry-leading emissions reductions," he said.
Saras, whose refinery has a processing capacity of 15mn mt/yr (300,000 b/d), said it was working on other projects to reduce its carbon footprint. It wants to scale up biofuels production, increase its energy efficiency, and develop renewable energy and green hydrogen.