GS Caltex, First Domestic Energy Company to Introduce Carbon-Neutral Crude Oil

Lundin Energy of Sweden Purchases 2 Million Barrels of Carbon-Neutral Crude Oil
Carbon Emissions 40 Times Lower Than Conventional Crude Oil

[Asia Economy Reporter Hwang Yoon-joo] GS Caltex is taking the lead in ESG (Environmental, Social, and Governance) management by becoming the first domestic energy company to introduce 'carbon-neutral crude oil,' which has 40 times lower carbon emissions than conventional crude oil.

On the 17th, GS Caltex announced that it will import 2 million barrels of carbon-neutral crude oil produced at the Johan Sverdrup offshore oil field in Norway, operated by Lundin Energy, a Swedish energy company that is the world's first to obtain carbon-neutral crude oil certification.

Although the 2 million barrels of Norwegian carbon-neutral crude oil correspond to only about three days of GS Caltex's processing capacity (up to 800,000 barrels per day), it is significant as the first domestic energy company to introduce carbon-neutral crude oil. The 2 million barrels of carbon-neutral crude oil imported by GS Caltex will be shipped in July and are expected to arrive in Korea by September.

On the 16th, Lundin Energy received certification under the 'VCS (Verified Carbon Standard),' an international carbon reduction certification standard, for the crude oil produced at the Johan Sverdrup field, which has carbon emissions 40 times lower than the average emissions of typical oil fields (0.45 kg of CO2e/boe). This certification means that Lundin Energy's crude oil production is overall carbon neutral.

Huh Se-hong, President of GS Caltex, stated, "In line with our efforts to expand the company's eco-friendly management activities, we have proactively introduced Lundin Energy's carbon-neutral crude oil, which is the world's first to receive carbon-neutral crude oil certification, to Korea. We will continue to strive to build a sustainable business ecosystem through various eco-friendly leadership initiatives as a corporate citizen."

Meanwhile, GS Caltex replaced all low-sulfur heavy oil, used as fuel for the operation of production facilities at the Yeosu plant last year, with liquefied natural gas (LNG), which emits less carbon dioxide than low-sulfur heavy oil despite having the same calorific value, through process improvements. Additionally, in collaboration with Amorepacific, GS Caltex recycles 100 tons of plastic bottles annually into eco-friendly composite resin, which is then applied again to cosmetic containers.