Swedish Lundin Energy on Wednesday announced its decision to reach its carbon neutrality goal two years earlier by fully electrifying offshore producing installations from renewable sources before the end of 2023.
The company now aims to reach its carbon neutrality goal by 2023 by allocating US$800 million, 70% of which has already been spent on electrification of the giant offshore Johan Sverdrup oil field and the Edvard Grieg platforms and three renewable energy projects.
“As a result of the electrification of our main producing assets by the end of 2022, the Company’s carbon intensity will be at an industry leading low level of approximately 1 kg CO2 per boe [barrel of oil equivalent], over 15 times better than the industry average,” Lundin said.
Through the sourcing of high-quality, proprietary natural carbon capture projects and carbon credit offtake agreements, the company aims to neutralize all future residual emissions.
The target also includes Scope 3 supply chain emissions from supply vessels, logistics and travel. However, it excludes CO2 emissions after delivery of hydrocarbons to customers, Lundin said.
The carbon neutrality timeline has been updated as a result of a current project, led by Norway's Equinor, to install subsea cables to supply electric power to several legacy offshore fields in the Norwegian North Sea, with the goal of reducing annual CO2 emissions by around 1.2 million tonnes.
“Acceleration of carbon neutrality by two years to 2023 is a key differentiator for our business and one which is based on an absolute operational emissions drop of over 50% compared to 2020 levels, in a time when our production is projected to have grown by 40%,” Nick Walker, president and CEO of Lundin Energy, was quoted as saying in the statement.
By Sibel Morrow