Neptune Energy announced ambitious targets to reduce carbon and methane intensity by 2030 from the managed production of its low-cost, long life and geographically-diverse portfolio. The company already has one of the lowest carbon intensities in the sector. It is now targeting carbon intensity of 6kg CO2/boe by 2030, which represents a 60% reduction from forecasted levels if no action was taken – and well below the industry average of 18kg CO2/boe1.
To achieve this, Neptune will build on its experience of capturing and storing CO2 gained through long-established projects in Norway and the Netherlands and progress with the ground-breaking 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 new and more efficient technologies.
Neptune also has one of the lowest methane intensities in the sector at 0.02% 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 today 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 recognises 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.
“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.”
Neptune’s ESG strategy encompasses how, through its core activities, the business directly supports the UN Sustainable Development Goals. It also outlines the company’s commitment to ensuring the highest standards of governance, ethics and integrity throughout its operations by adopting the Wates Corporate Governance Principles, which cover leadership, board composition, director responsibilities, opportunity and risk, remuneration, and stakeholders.