NEO Energy to halve carbon intensity per barrel by 2030

North Sea oil and gas player NEO Energy has revealed a set of ambitions to reduce its carbon emissions as part of the energy transition movement with plans to halve its carbon intensity per barrel of oil equivalent by 2030.

In a recent interview with Offshore Energy, NEO Energy CEO, Russell Alton, stated that the company was working on its mission statement surrounding low-carbon and would be coming out with a low-carbon transition plan.

About a month later, NEO published its Low Carbon Transition Plan (LCTP) setting out an ambitious strategy to reduce its carbon emissions.

Announcing its transition plan on Wednesday, NEO said it recognises that climate change is one of the world’s greatest challenges and that it demands thoughtful and urgent action.

NEO Energy has therefore outlined a set of clear ambitions to reduce its carbon emissions.

Firstly, NEO will seek to reduce the carbon intensity per barrel of oil equivalent produced by its portfolio by 50 per cent by 2030.

To achieve this, NEO said it will invest in technology and systems, such as the full or partial electrification of its operations, required to reduce carbon output.

Alton has already shared with Offshore Energy the company’s plans to participate in an ongoing discussion in the Central North Sea about the electrification of assets.

“We certainly see that the electrification of assets has the most impact on reducing carbon intensity”, he said.

Secondly, NEO is aligned with the UK’s net-zero by 2050 target and is proactively working with partners, regulators, and industry bodies to play its part in achieving this goal.

In line with The OGA Strategy, a key aspect of NEO’s approach will be to maximise economic recovery from its assets, bringing down the carbon impact per barrel of production.

In addition to proactively reducing NEO’s carbon footprint, the business will continue to invest in projects and research that will contribute to a low carbon future, the company said.

NEO currently funds research by the Centre for Doctoral Training (CDT) and PhD students in Geoscience and the Low Carbon Energy Transition, the UK’s training and research body for the energy industry with a focus on decarbonisation.

Russ Alton, CEO of NEO Energy, said: “Through creative thinking, innovation, agility and adaptability we will be a positive agent for change in how the UK oil and gas industry contributes to the energy transition.

“Our Low Carbon Transition Plan focuses on how we will reduce carbon emissions today and put net-zero at the heart of our future growth strategy, without compromising value creation or the role we play in employing and investing in people and the communities in which they live”.

As previously reported, NEO Energy is poised to become one of the top five North Sea players following the acquisition of ExxonMobil’s North Sea assets and the acquisition of Zennor Petroleum and its North Sea portfolio.

The important development that will come out of these deals is the improvement of NEO ENergy’s carbon intensity within the portfolio overall.

Alton told Offshore Energy in April that these assets are gassier and newer: “Integrating the ExxonMobil and Zennor portfolios actually improves our carbon intensity within the portfolio overall, which is a good thing”.