Independent E&P oil Company Lundin Energy today announced it sold the world’s first certified carbon neutrally produced oil product. Accordingly, the Sweden-based company sold 600,000 barrels of oil equivalent (boe) to Italian downstream company Saras. (Photo credit: Lundin).
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Lundin Energy on selling the world’s first certified carbon neutrally produced oil product
Today, independent E&P company Lundin Energy announced it sold the world’s first certified carbon neutrally produced oil product. Therefore, Lundin Energy sold 600,000 boe to the firm Saras.
In fact, this output came from the company’s Edvard Grieg field. Notably, the product testing company Intertek certified Lundin’s carbon intensity certification.
Accordingly, Intertek measured the CO₂ emissions of oil production at the field as 3.8kg/boe, including all lifespan parts. Therefore, the company says this makes the area five times less carbon-intensive than the industry average.
Thus, for this deal, Lundin offset more than 2,302 tonnes of CO₂ emissions via a teak forestry project in Mexico. As a result, the offsetting covers emissions from production. However, it does not cover the emissions produced by the use of oil, known as scope 3.
Indeed, a Lundin spokesperson said: “While it is early days, we are seeing signals for demand for commodities produced with lower emissions and more sustainability across the industry, as customers increasingly seek low carbon and carbon neutral feedstocks.
Reception and expectation from the purchase
Moreover, “we are confident that this market is going to grow. Besides, a market has to start somewhere, and as we are in a position to invest in the potential opportunity, given our low carbon profile.”
Similarly, the company said that as it continues electrifying its offshore platforms, it expects more fields to become viable as offset-able oil sources. Therefore, from 2023, the company expects 95% of its production to use onshore electricity sources, bringing the CO₂ emissions of its portfolio to below 2kg/boe.
In a statement, Lundin Energy CEO and president Nick Walker said; “We were the first company to have one of its field’s carbon emissions independently certified as low carbon. So, this authenticated carbon-neutral transaction with Saras is the next stage in what we believe; will become a key value differentiator for Lundin Energy.
Saras CEO and general manager Dario Scaffardi said: This purchase “demonstrates the continuous and increasing attention that our group gives to the environmental sustainability of its activities. Besides, it goes along with various other projects that we have implemented to support our low-carbon strategy.”