Lundin Energy sells world-first ‘certified carbon neutrally produced oil’

Sweden-based oil producer Lundin Energy has sold what it claims to be the ‘world’s first certified carbon neutrally produced oil’ product, after working with product testing company Intertek.

Intertek measured the CO₂ emissions of 600,000 barrels of oil equivalent (boe) from Lundin’s Edvard Grieg field that were sold to Italian downstream company Saras. The emissions were calculated as 3.8 kg per boe, including all parts of the field lifespan.

This makes the field five times less carbon intensive than the industry average, according to Lundin. Meanwhile, Intertek compared these measurements with traceable carbon offsetting schemes to verify the production as carbon neutral.

Lundin achieved carbon neutrality by offsetting more than 2,302 tonnes of CO₂ emissions via a teak forestry project in Mexico. The project was independently certified by the Verified Carbon Standard. The offsetting covers emissions from production (scope 1 and 2 emissions) but does not cover the emissions produced by use of the oil (scope 3).

“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,” said CEO and president Nick Walker.