Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

CORRECTED (OFFICIAL)-UPDATE 1-Lundin sells its first 'carbon neutral' oil as climate activism grows

04/26/2021 | 07:49am EDT

(Corrects company mentioned in paragraph 5 to London-based Natural Capital Partners (not Amsterdam-based reforestation company Land Life), after Lundin makes clarification)

* Oil cargo certified as carbon neutral

* Italian refiner Saras to buy first cargo

* Final use of oil still causes emissions

OSLO, April 26 (Reuters) - Sweden's Lundin Energy has sold to Italian refiner Saras what it said is the world's first oil cargo certified as carbon neutral at the point of production, the two companies said on Monday.

Oil companies are increasingly trying to market their products as cleaner in an effort to secure a future for the fossil fuel industry in a world where investors, activists and regulators are demanding action to halt climate change.

While Lundin's crude from the Norwegian Edvard Grieg field was certified as carbon neutral from exploration, development and so-called scope 1 and 2 emissions, the major emissions caused by the oil's final use, or scope 3 emissions, are not included.

The North Sea Grieg field causes only 3.8 kilograms of CO2 emissions per barrel of oil equivalent, five times less than the global average, Lundin said.

Residual emissions from producing the 600,000 barrel cargo amount to 2,302 tonnes of CO2, an equivalent of which will be captured by a tree-planting project in Mexico by London-based Natural Capital Partners, Lundin said.

Lundin has previously said it would invest $39 million in a project to plant eight million trees in northern Spain and Ghana as part of the company's wider $750 million programme to decarbonise its output.

The project conducted by Amsterdam-based reforestation company Land Life should help the company to achieve carbon neutrality from all of its production in 2025, it has previously said.

"Selling the 'world's first ever certified carbon neutrally produced oil' is a milestone that few, if any, producers will be able to replicate any time soon," Jefferies analysts said in a note to clients.

FURTHER CARGOES

A Lundin spokesman said that while the Grieg cargo was sold at the regular market price, without attracting a premium, the company still believes the carbon certification allows it to stand out from the crowd when presenting itself to buyers.

"This was a one-off sale, but we intend to sell more carbon neutral cargos from Edvard Grieg and from (the) Johan Sverdrup (field) once it is certified," he added.

Lundin holds a 20% stake in Equinor-operated Johan Sverdrup, western Europe's largest oilfield.

The certification of the Lundin cargo was provided by Intertek Group, which tests, inspects and certifies that products meet quality, safety, environmental and other standards for clients including Carrefour, ConocoPhillips and Unilever.

"This sale will carry the Intertek CarbonZero Verified mark and details of this and all traceable certifications are publicly listed for investors, traders, regulators and other stakeholders," Intertek said in a separate statement.

Texas-based Occidental Petroleum said in January that it had sold the first 100% carbon neutral crude cargo, offsetting emissions by buying carbon credits on the market. However, the transaction has not been certified as carbon neutral by a third party, unlike Lundin's deal with Saras.

(Reporting by Terje Solsvik and Nerijus Adomaitis Editing by David Goodman)


© Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
CARREFOUR SA -0.88% 16.855 Real-time Quote.20.14%
EQUINOR ASA -4.53% 173.56 Real-time Quote.19.74%
INTERTEK GROUP PLC 0.00% 5540 Delayed Quote.-1.91%
LUNDIN ENERGY AB (PUBL) -1.93% 295.4 Delayed Quote.32.88%
SARAS S.P.A. -3.13% 0.81 Delayed Quote.36.25%
UNILEVER PLC -1.03% 4307 Delayed Quote.-1.94%
Latest news "Economy & Forex"
11:57aPRIME MINISTER OF HUNGARY  : After thirty-two years, there is a freedom fight under way in Europe again
PU
11:46aMexico accepts U.S. request to probe Tridonex autoparts plant for labor abuses
RE
11:15aPRESIDENCY OF REPUBLIC OF TURKEY  : “Turkey continues its uninterrupted support for tourism”
PU
10:15aECOWAS ECONOMIC COMMUNITY OF WEST AFRICAN STATES  : Fifty-Ninth Ordinary Session of the ECOWAS Authority of Heads of State and Government holds in Accra
PU
10:06aRussia's Putin tries to give ruling party a pre-election boost with spending promises
RE
09:19aBusinesses, U.S. legislators fume as Canada extends travel ban; Trudeau stands firm
RE
08:27aKhamenei protege wins Iran election amid low turnout
RE
07:44aOlympics-Tokyo cancels public viewing sites, some to be vaccination centres
RE
07:21aEU warns Lebanon's leaders of sanctions over 'home-made' crisis
RE
06:37aSouth African rand heads for almost 4% weekly loss on hawkish Fed
RE
Latest news "Economy & Forex"