Oil and gas company Neptune Energy has revealed its targets to reduce carbon and methane intensity by 2030 from the managed production of its low-cost, long-life portfolio.
The company said on Monday it is now targeting carbon intensity of 6kg CO2/boe by 2030, which represents a 60 per cent reduction from forecasted levels if no action was taken – and well below the industry average of 18kg CO2/boe.
To achieve this, Neptune will build on its experience of capturing and storing CO2 gained through projects in Norway and the Netherlands and progress with the PosHYdon project to generate offshore hydrogen via its operated Q13a platform in the Dutch North Sea. It will also reduce flaring and venting, and replace operational equipment with more efficient technologies.
According to Neptune, it has one of the lowest methane intensities in the sector at 0.02 per cent and is targeting net-zero methane emissions by 2030. Methane is the primary component of natural gas and is a potent greenhouse gas. While it has a shorter lifespan than CO2 – staying in the atmosphere for about a decade, compared with 200 or more years for CO2 – it has a much higher global warming impact.
The targets were detailed as part of the company’s new Environment, Social and Governance (ESG) strategy, published on Monday in its Annual Report and Accounts for 2019.
Neptune’s Executive Chairman, Sam Laidlaw , said: “ As our sector deals with the twin challenges posed by the COVID-19 pandemic and lower commodity prices, sustainability has never been more important. To secure a sustainable future we need to protect the health and welfare of our people, preserve the resilience of our business and stay focused on providing the secure supplies of lower-carbon energy essential for the energy transition.
“ Neptune’s ESG strategy demonstrates our commitment to being at the forefront of that transition and recognizes that gas remains an important part of the solution, in both its present and future forms. While the carbon and methane intensities of our managed production is already industry-leading, we have set ambitious targets to reduce them even further by 2030, requiring both investment and innovation – and we are making much progress already. “
Laidlaw continued: “ In a net-zero emissions scenario, scaling up technologies is essential and requires extensive collaboration between policymakers and industry. Our sector is uniquely placed to help, with the skills and experience to implement large-scale engineering projects, emissions reduction initiatives, and innovative technologies. ”