Oil and gas company, Lundin Energy, has announced that it has sold the world’s first certified carbon neutrally produced oil to Saras from its Edvard Grieg field, offshore Norway.
Lundin Energy’s Edvard Grieg field is the first oil field in the world to be independently certified by Intertek Group under its CarbonClearTM certification. The field is certified as low carbon at 3.8 kg of CO2 per barrel of oil equivalent (boe) for full life of field emissions, including exploration, development and production, five times less than the world average.
Nick Walker, President and CEO of Lundin Energy, 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.”
In order to supply a fully carbon neutral barrel to Saras, residual emissions of 2,302 tonnes CO2 were compensated through a high quality, nature-based carbon capture project, certified by the Verified Carbon Standard (VCS). In addition, the entire trade was independently certified as carbon neutral by Intertek. As a result, there were no net emissions released during the production of each barrel delivered to Saras.
Dario Scaffardi, CEO and general manager of Saras, commented: “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.”
According to the Lundin Energy statement, providing certified, low emission produced barrels to their customers ensures that they can continue the decarbonisation pathway, delivering a differentiated product to their end users. From 2025, every barrel produced by Lundin Energy, will be produced as carbon neutral.
Saras is an independent player in the Mediterranean refining industry, with a production capacity of about 15 million tons per year. Saras is actively seeking and developing various projects aimed at minimising its environmental footprint.