World’s first certified, carbon neutrally produced oil sold

Source: press release, 26 April 2021

Edvard Grieg platform in the North Sea
Edvard Grieg platform in the North Sea (photo: Lundin Energy)

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.

Lundin Energy’s Edvard Grieg field is the first oil field in the world to be independently certified by Intertek Group plc, under its CarbonClear™ 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 (According to the latest data available from the International Association of Oil and Gas Producers). 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 under its CarbonZero™ standard. As a result, there were no net emissions released during the production of each barrel delivered to Saras.

As one of the elementary feedstocks of the global economy and energy system for decades to come, it is imperative that the provenance of every barrel of oil is accounted for, thereby beginning the decarbonisation of the entire value chain in line with the Paris Agreement goals. As the energy transition continues to accelerate, providing certified, low emission produced barrels to our 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 and represents a reference model in terms of efficiency and environmental sustainability, thanks to the know-how developed in almost 60 years in the business. With its purpose to be innovative, sustainable and a reference point among energy providers, Saras is actively seeking and developing various projects aimed at minimising its environmental footprint.

Nick Walker, President and CEO of Lundin Energy, comments, “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, comments, “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.”

Note: Carbon neutral status ranges across full life of field, including exploration, development and Scope 1 and 2 emissions from production.