China takes first 'carbon-neutral' crude cargo

China has taken delivery of its first "carbon neutral" crude cargo, state-controlled firms Sinopec, Cosco and China Eastern Airlines said.

The cargo of Angolan Olombendo crude, part of refiner Sinopec's regular offtake of the grade, was sent by shipping firm Cosco to east China's Zhoushan port.

The "carbon neutrality" includes emissions from upstream production, loading and shipping, refining and end use, totaling 103,526t of CO2 equivalent, said Sinopec.

Sinopec is offsetting emissions using offtake credits covering the upstream operations, refining, oil product shipping and the eventual burning of gasoline, diesel and LPG across consumers. Cosco is accounting for emissions from transportation and bunker fuel use, while China Eastern Airlines covers jet fuel emissions.

The offset credits, awarded by the Shanghai emissions exchange, come from multiple Chinese certified emissions-reductions projects, including forestry carbon sinks, as well as solar, wind and biomass power generation projects. Accounting of the "carbon neutral" lifecycle emissions was certified by the state-controlled China Classification Society.

The carbon footprint of the cargo is calculated based on a seaborne shipping distance of over 9,300 nautical miles, the refining of 30,000t (220,000 bl) at Sinopec's Gaoqiao refinery, and product output including 8,963t of road gasoline, 2,276t of diesel, 5,417t of jet-kerosine, 2,786t of LPG, 6,502t of bunker diesel and 2,998t of very-low sulphur fuel oil.

The "carbon neutral" cargo is in line with Chinese president Xi Jinping's pledge last year to reach peak carbon emissions before 2030 and to achieve carbon neutrality by 2060, Sinopec said.

Sinopec will sell "carbon neutral" oil products at some retail sites this year, it said.