Neptune Energy Targets 2030 to Store More Carbon Than It Emits
With increasing pressure on the oil and gas industry to cut its emissions footprint, Neptune Energy said it aims to go beyond net zero and store more carbon than is emitted from its operations and the use of its sold products by 2030.
According to the company, it is currently progressing a pair of carbon capture and storage (CCS) developments in the Dutch and UK sectors of the North Sea that it claims could store more than 9 million tonnes of carbon dioxide (CO2) emissions per year for third parties by the end of this decade, effectively excedeing its projected direct emissions and emissions from the use of its sold products.
Neptune, with its partners, is currently developing the L10 CCS project in the Netherlands, which could store up to 5mt 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.
To help cut its emissions, Neptune aims to first lower its carbon energy production, focusing on electrification where it is economic to do so, and where the regulatory regime is supportive. Consequently, its short-term focus for electrification is in Norway. Neptune said that by the end of 2022, more than 35 kboepd of Neptune’s net annual production will be electrified. With further projects planned in Norway, the company aims to have around 50 kboepd electrified by 2027.
In addition to electrification, Neptune will focus on integrated energy hubs, using existing infrastructure and capability to integrate energy systems.
According to the company, this strategy provides an opportunity to drive offshore decarbonization, 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 decarbonize existing production further.
“Neptune has one of the lowest carbon intensities in the sector due to the steps we have taken already to reduce operational emissions," said Pete Jones, CEO of Neptune Energy. "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 decarbonization 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.”
In line with its ambitions, Neptune announced these changes to its executive management team:
- Armand Lumens will add IT to his current role as CFO. Having delivered the key priorities of Neptune’s digital transformation programme successfully, Kaveh Pourteymour, currently CIO, will leave the business to pursue other opportunities.
- Philip Lafeber, currently VP, Operations for North Africa and Asia Pacific, will take up the new role of VP, HSEQ & Technical Services, with the responsibility for the technical assurance of HSEQ, projects and engineering, operations and electrification, drilling and wells, and supply chain and logistics. Mark Richardson, currently VP, Projects & Engineering, will retire, having overseen the successful of the Gjøa P1, Duva and Merakes projects last year.
- Neptune’s UK and Norwegian businesses will be brought together and report to Neptune’s MD, Norway and the UK, Odin Estensen. Neptune will retain its offices in both Aberdeen and Stavanger, with local leadership teams remaining in country. Alix Thomas, currently MD, UK, will take up the role of MD, Egypt.
- Eko Lumadyo, currently MD, Indonesia, will take on the additional responsibility for Neptune’s Australia business, becoming MD, Asia Pacific.