Sustainability leader Ørsted eyes carbon neutrality by 2025
Offshore wind leader and success symbol for energy companies looking to transition from fossil fuels to renewables, Ørsted, has unveiled plans to become carbon neutral by 2025 with a carbon neutral supply chain and energy trading portfolio set for 2040.
Recently recognised as the world’s most sustainable company, Ørsted has spent the past decade successfully shifting from being a fossil fuels-focused energy company to one wholly dedicated to renewables.
Compounding this impressive feat, its goal of carbon neutrality by 2025 will mark it as the first major energy company in the world to reach the milestone for energy generation, significantly outpacing the targets set by the Paris Climate Agreement and the UN’s Sustainable Development Goals. Compared with 2006, the firm has already slashed its carbon output by 86%.
Between now and 2025, the firm aims to cut its emissions by 98%, and it is exploring ways to counter the remaining 2% which, it says, falls within a variety of sources and proves more challenging to rectify. One of the ways it will cut emissions will be through ending its purchasing and leasing of fossil fuel-based vehicles, with a view to a fully electrified fleet by 2025.
It added that, if offsetting is necessary to reach carbon neutrality, it will ensure that such projects will be “verified, measurable and additional”, thereby ensuring the offsetting is a direct result of Ørsted’s actions rather than an incidental achievement.
“We've come very far in reducing our emissions and Ørsted is more than two decades ahead of what is required by science to limit global warming to 1.5°C,” said Henrik Poulsen, CEO at Ørsted, in the company’s press release.
“We've now decided to take an additional step by making Ørsted a carbon neutral company already by 2025. Halting climate change requires action at all levels of society, and we need that action now. Especially within production and use of energy which account for 73% of all global emissions.”
He added: “Our change from black to green energy has not been easy but it's been necessary. I hope that our transformation inspires countries and businesses to take more radical actions than they might think possible. There really is no time to lose if the world is to halve emissions by 2030 and stay below 1.5°C of warming.”
Trafigura and Yara International explore clean ammonia usage
Reducing shipping emissions is a vital component of the fight against global climate change, yet Greenhouse Gas emissions from the global maritime sector are increasing - and at odds with the IMO's strategy to cut absolute emissions by at least 50% by 2050.
How more than 70,000 ships can decrease their reliance on carbon-based sources is one of transport's most pressing decarbonisation challenges.
Yara and Trafigura intend to collaborate on initiatives that will establish themselves in the clean ammonia value chain. Under the MoU announced today, Trafigura and Yara intend to work together in the following areas:
- The supply of clean ammonia by Yara to Trafigura Group companies
- Exploration of joint R&D initiatives for clean ammonia application as a marine fuel
- Development of new clean ammonia assets including marine fuel infrastructure and market opportunities
Magnus Krogh Ankarstrand, President of Yara Clean Ammonia, said the agreement is a good example of cross-industry collaboration to develop and promote zero-emission fuel in the form of clean ammonia for the shipping industry. "Building clean ammonia value chains is critical to facilitate the transition to zero emission fuels by enabling the hydrogen economy – not least within trade and distribution where both Yara and Trafigura have leading capabilities. Demand and supply of clean ammonia need to be developed in tandem," he said.
There is a growing consensus that hydrogen-based fuels will ultimately be the shipping fuels of the future, but clear and comprehensive regulation is essential, according to Jose Maria Larocca, Executive Director and Co-Head of Oil Trading for Trafigura.
Ammonia has a number of properties that require "further investigation," according to Wartsila. "It ignites and burns poorly compared to other fuels and is toxic and corrosive, making safe handling and storage important. Burning ammonia could also lead to higher NOx emissions unless controlled either by aftertreatment or by optimising the combustion process," it notes.
Trafigura has co-sponsored the R&D of MAN Energy Solutions’ ammonia-fuelled engine for maritime vessels, has performed in-depth studies of transport fuels with reduced greenhouse gas emissions, and has published a white paper on the need for a global carbon levy for shipping fuels to be introduced by International Maritime Organization.
Oslo-based Yara produces roughly 8.5 million tonnes of ammonia annually and employs a fleet of 11 ammonia carriers, including 5 fully owned ships, and owns 18 marine ammonia terminals with 580 kt of storage capacity – enabling it to produce and deliver ammonia across the globe.
It recently established a new clean ammonia unit to capture growth opportunities in emission-free fuel for shipping and power, carbon-free fertilizer and ammonia for industrial applications.