North Sea operator Lundin energy has traded the world’s first ever certified, carbon neutrally produced oil.
A total of 600,000 barrels of crude from the Swedish firm’s Edvard Grieg field, offshore Norway, have been sold to Italian energy company Saras S.p.A’s refinery in Sarroch, Sardinia.
In order to supply a fully carbon neutral barrel, more than 2,300 tonnes residual CO2 emissions were captured using high quality, nature-based solutions, Lundin said.
The Edvard Greig field in the Norwegian North Sea is the first in the world to be independently certified by Intertek, under its CarbonClear certification.
It produces 3.8 kg of CO2 per barrel of oil equivalent (boe) for full life of field emissions, including exploration, development and production.
Lundin said that from 2025, every barrel it produces will be carbon neutral in line with the goals set out in the Paris Agreement.
Nick Walker, the firm’s president and CEO, commented: “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.
“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.
“This trade has been enabled by our industry leading decarbonisation strategy and 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.
“I am very pleased to have been able to do this industry first with Saras in Italy; their progressive low-carbon strategy is aligned with ours and through this first certified sale of crude they will be able to clearly differentiate the refined product to their own customer base.”
Dario Scaffardi, CEO and General Manager of Saras, commented: “We are very proud to be one of the first refining companies in taking this innovative opportunity.
“The purchase from Lundin of certified carbon neutral produced crude oil, demonstrates the continuous and increasing attention that our Group gives to the environmental sustainability of its activities and goes along with various other projects that we have implemented to support our low-carbon strategy.
“In particular, at this stage, most of our efforts have been aimed at reducing and offsetting the direct carbon footprint of the refinery with a number of projects, from scaling-up on biofuels production, to energy efficiency initiatives, the development of renewable power production and also green hydrogen.”
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