Lundin Petroleum aims to become carbon neutral by 2030

OSLO (Reuters) - Lundin Petroleum AB will aim to make its operations carbon neutral by 2030, the Swedish company said on Monday, joining the growing list of oil producers trying to address criticism of their impact on the environment.

FILE PHOTO: Lundin Norge's logo is seen at its headquarters in Lysaker, Norway June 2, 2017. REUTERS/Ints Kalnins

The company said it would use renewable energy to supply its offshore fields and also adopt carbon offset measures.

Oil and gas producers are coming under pressure from investors and regulators to reduce carbon dioxide (CO2) emissions amid a global drive to slow down climate change.

Lundin’s board also proposed changing the company’s name to Lundin Energy.

Its measures aim to cut or offset CO2 and other climate changing gases from Lundin’s oilfield operations, as well as indirect emissions from business operations, known as Scope 1 and 2 emissions respectively.

The company said it was also addressing some so-called Scope 3 emissions, such as from supply vessels and helicopters used to fly staff to oil platforms, but not the larger emissions from the use of oil by customers.

Oil majors such as France’s Total and Anglo-Dutch Shell have set targets to reduce their Scope 3 emissions, and BP might do so.

Lundin will reduce emissions from oil and gas fields off Norway to below 2 kg of CO2 per barrel of oil equivalent from 2023 compared with 6.5 kg in 2018, it said.

That includes previously announced plans to connect Lundin’s Edvard Grieg field to the onshore electricity grid from 2022 via Equinor’s Johan Sverdrup field, which is 20% owned by Lundin.

Lundin also said it planned to replace its net electricity usage on the Norwegian continental shelf through investments in renewable power by 2023, including an unspecified investment in a wind power project in 2021.

The company has already announced plans to invest $60 million in a hydropower project in Norway.

“For emissions that we cannot reduce operationally, we are looking at suitable carbon offset mechanisms to reach carbon neutrality by 2030,” a spokesman said via email.

The company will also factor in the carbon footprint of any future field developments or acquisitions before investment decisions are made, he added.

Lundin’s emissions from operations stood at 0.4 million tonnes of CO2 equivalent in 2018 compared with Scope 3 emissions of 16.9 million tonnes, the company’s sustainability report shows.

Environmentalists criticised Lundin’s plan for failing to address emissions from the use of oil and gas, which overall generate about 95% of emissions.

“Sadly fossil fuel companies like Lundin and Equinor are focusing on greening the production of oil, rather than addressing the elephant in the room: the burning of the product,” Frode Pleym, head of Greenpeace Norway, said.

Editing by Kim Coghill and Mark Potter