Neptune Energy announces aim to store more carbon than it emits by 2030

Oil and gas company, Neptune Energy, has announced an ambition to go beyond net-zero and store more carbon than is emitted from its operations and the use of its sold products by 2030.

The company is currently progressing two carbon capture and storage (CCS) developments in the Dutch and UK sectors of the North Sea that could see it store more than nine million tonnes of carbon dioxide (CO2) emissions per year for third parties by the end of this decade. That would exceed its projected direct emissions (Scope 1) and emissions from the use of its sold products (Scope 3).

Neptune’s aim will be supported by a refreshed strategy, focusing on lower-carbon energy production and integrated energy hubs. They are also aiming to focus on electrification where it is economic to do so, as well as continue to reduce emissions
from their operations.

Pete Jones, CEO of Neptune Energy, said: “Neptune has one of the lowest carbon intensities in the sector due to the steps we have taken already to reduce operational emissions. We have both the infrastructure and the experience with electrification and CCS to now accelerate our ambitions.

“Gas will continue to play a crucial role in decarbonisation globally, while also being vital for energy security. Our gas-weighted portfolio positions us well and we will use this to integrate energy systems, increasing CO2 storage, electrification, and hydrogen production, with the aim of storing more carbon than we emit by 2030.”

The company will continue to target production in its key producing regions, maintaining its gas-weighted portfolio and lower carbon intensity. New gas and oil developments that are consistent with its lower carbon strategy will be prioritised, along with those that provide opportunities to integrate energy systems.

However, further operational improvements will likely have only a modest impact on Group emissions intensity. Neptune will therefore pursue electrification to decarbonise some of its highest-producing assets where it is economic to do so and where the regulatory regime is supportive. Consequently, its short-term focus for electrification is in Norway. By the end of 2022, Neptune expects that more than 35 kboepd of its net annual production will be electrified. With further projects planned in Norway, the company aims to have around 50 kboepd electrified by 2027.

Neptune Energy’s integrated energy hub strategy also hopes to provide an opportunity to drive offshore decarbonisation, by extending the life of offshore assets and repurposing them to facilitate CO2 storage and hydrogen production, using domestic, lower carbon-intensive gas or wind power. By extending field life, electrification could become more economic, helping decarbonise existing production further.

This strategy builds on the company’s experience with CCS in the Netherlands and Norway. Neptune, with its partners, is currently developing the L10 CCS project in the Netherlands, which could store up to five million tonnes of carbon per year. The company plans to have the project FEED-ready by the end of 2022, with a final investment decision due in 2023. First carbon injection could be in 2026. Neptune is also pursuing a CCS storage and appraisal licence in the UK, and further potential opportunities in the UK and Norway.

Through CCS, Neptune aims to store more carbon for third-party emitters than is emitted from its operations and the use of its sold products by 2030.

At 6kg CO2/boe, Neptune says that the carbon intensity of its operated portfolio is already among the lowest in the sector and ahead of the industry average of 15kg CO2/boe. The methane intensity of its operated production is 0.02 per cent, below the industry average of 0.20 per cent, and Neptune remains on target to reach net-zero methane emissions by 2030.

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