First Certified Carbon Neutrally Produced Oil Sold

Lundin Energy AB has announced that it has sold the world’s first ever certified carbon neutrally produced oil to Saras S.p.A from its Edvard Grieg field offshore Norway.

The company highlighted that the cargo was carbon neutral across the full life of the field, including exploration, development, and Scope 1 and 2 emissions from production. In order to supply a fully carbon neutral barrel to Saras, residual emissions of 2,302 tons of CO₂ were compensated through a nature-based carbon capture project, certified by the Verified Carbon Standard, Lundin revealed.

Lundin noted that the trade was independently certified as carbon neutral by Intertek under its CarbonZero standard. The company, which outlined that it will produce every barrel as carbon neutral from 2025, highlighted that its Edvard Grieg field is the first oil field in the world to be independently certified by Intertek.

“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,” Nick Walker, the president and chief executive officer of Lundin, said in a company 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,” he added.

“This trade has been enabled by our industry leading decarbonization strategy and offers a proof point of where the crude market is heading and the potential value that can be realized through efficient, industry leading emissions reductions,” Walker continued.

Dario Scaffardi, the chief executive officer and general manager of Saras, said, “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,” he added.

To contact the author, email andreas.exarheas@rigzone.com