Zephyr Energy PLC told investors it successfully commenced 100% carbon neutral operations ahead of its 30 September 2021 target.
A statement said its initiative is designed to ensure all hydrocarbons produced by the company have a "net-zero" operational carbon impact.
It has been working with Prax Group which has helped Zephyr measure and mitigate the company's greenhouse gas emissions. Mitigation efforts were mainly focused on the purchase of a form of carbon credit, verified emission reductions (VERs), from reputable pre-vetted developers of sustainable projects.
"I am delighted we've now achieved our ambitious target to commence carbon-neutral operations this year,” said chief executive Colin Harrington. “This groundbreaking initiative is a tangible demonstration of our determination to deliver on our core values of being both responsible stewards of our investors' capital and responsible stewards of the environment.
“It is also work that will continue as we grow the company.”
Zephyr said the cost to buy an appropriate number of VERs to offset its operational footprint currently averages under $1 per barrel of oil equivalent produced and it noted that the net cost may turn out to be considerably less – as it anticipates a possible premium price for ‘net-zero’ operational carbon status crude, marketed by Prax.
The company noted that its work to establish a carbon-zero footprint has been focused on its Scope 1 impacts, covering the direct emissions from Zephyr-owned or controlled sources which include the drilling and production operations along with the associated transport impacts and corporate activities.
Looking ahead, the company said it also plans to work with potential end-users of its products to explore routes to more fully offset Scope 3 impact (those related to the use of its products, i.e. the oil and gas itself) to the greatest extent possible.