Decarbonisation Strategy
We are targeting carbon neutrality across our operations as an oil and gas exploration and production company from 2023
Focus of our Decarbonisation Strategy
Lundin Energy is a leading oil and gas producer in terms of efficient and responsible production but we want to do more. Our Decarbonisation Strategy sets a target for carbon neutrality from 2023 across our operations. The boundary of our carbon neutral target is Scope 1 and 2 emissions, and Scope 3 emissions related to our supply chain (supply vessels, logistics and business travel). Additionally, we have set an absolute emissions reduction target for net Scope 1 and 2 emissions of 50% by 2023, from 2020 levels. This target puts Lundin Energy on track to meet the targets of the Paris Agreement much earlier than required.
This Strategy confirms our focus as an oil and gas producer, while committing to support and implement innovative ways to further reduce our exploration and production related carbon footprint to the lowest possible levels.
As part of our Decarbonisation Strategy we have defined a roadmap that incorporates investments in energy efficiency, electrification and renewable energy. The remaining hard-to-abate emissions, along with our Scope 3 supply chain emissions, will be neutralised through natural carbon capture. This Strategy confirms our focus as an efficient oil and gas explorer and producer, while committing to support and implement innovative ways to further reduce our exploration and production related carbon footprint to the lowest possible levels.
Our investments in renewable power generation
Lundin Energy has committed to three renewable projects, with a combined net power generation of around 600 GWh per annum from late 2023, which will cover all of our expected net electricity usage for our offshore producing assets.
This means that from end 2023 over 95 percent of our oil production will be powered by our own generated renewable energy.
Karskruv wind farm
In 2021, Lundin Energy acquired a 100 percent interest in the Karskruv wind farm project in southern Sweden. OX2 AB is constructing the wind farm, which will produce around 290 GWh per annum gross, once it is fully operational in 2023, from 20 wind turbines. This is the equivalent of ~75,000 European households’ energy consumption annually.
Metsälamminkangas (MLK) wind farm
Lundin Energy owns a 50 percent interest in the MLK wind farm situated in Finland, with the remaining 50 percent held by Sval Energi AS. OX2 AB has constructed the wind farm and commercial handover took place at the end of March 2022. MLK will produce around 400 GWh per annum gross from 24 wind turbines, which is the equivalent of ~100,000 European households’ energy consumption annually.
Leikanger hydropower plant
In 2020, Lundin Energy acquired a 50 percent interest in the Leikanger hydropower project in Norway, with the remaining 50 percent held by Sognekraft AS. It will produce around 208 GWh per annum gross. This is the equivalent of ~50,000 European households’ energy consumption annually.
Natural carbon capture projects
To reach carbon neutrality by 2023, we are investing MUSD ~50 in natural carbon capture projects. We are developing proprietary reforestation projects with our two partners, Land Life Company and EcoPlanet Bamboo, to neutralise our hard-to-abate residual emissions. The CO2 removed and sequestered by these projects will be equivalent to taking more than 100,000 cars off the road permanently.
Native tree reforestation with Land Life Company
With an investment of MUSD ~35, Land Life Company will plant over 7 million native trees across 9,500 hectares of land between 2021-2025 in Northern Spain and other geographies, for Lundin Energy. The trees will remove and sequester a total of ~2.5 million tonnes of CO2 as they grow and mature, and these reforestation projects will attract a range of benefits such as improving air quality, restoring degraded lands and biodiversity, creating local jobs and reinjecting millions of USD into the local communities.
Sustainable bamboo plantations with EcoPlanet Bamboo
On behalf of Lundin Energy, EcoPlanet Bamboo will plant over 1 million bamboo clumps across 2,500 hectares of degraded land between 2022-2024 within the Bandai Hills Reserve in Ghana. The bamboo will remove and sequester ~1.7 million tonnes of CO2 over 10 years, and will form part of a certified, sustainable plantation, that will help restore healthy soils, protect remaining biodiversity, create hundreds of local jobs and increase income for local communities.
Voluntary natural carbon capture credits
As a stop-gap whilst our natural carbon capture projects ramp up, we are sourcing high quality market based carbon credits from reforestation and afforestation projects, which will remove and sequester a total of ~300 thousand tonnes of CO2. Our reliance on these market based carbon credits will decrease annually over the next 5 years, as our proprietary reforestation projects ramp up, mature and get certified. We do not anticipate buying any more credits from the market post 2026. All projects are certified under the Verified Carbon Standard or the Gold Standard.
| Related documents | Related links | |
 Sustainability Report 2021 |  ESG Datasheet | |
| Environmental policy | ||
| Climate Change Statement | ||
| Carbon KPIs: Scope and calculation methodology | ||
| CDP report 2021 |
