Tokyo-headquartered Astomos Energy has signed an agreement to purchase carbon-neutral liquefied petroleum gas (LPG) from Shell International Eastern Trading Company.
Astomos Energy says it believes the very large gas carrier-size cargo is the world’s first such carbon-neutral LPG.
As per the agreement, credits from Shell’s global portfolio of nature-based projects will be used to offset lifecycle carbon dioxide equivalent (CO2e) emissions generated across the value chain from production to consumption (combustion), including transportation, Astomos Energy said.
The company also confirmed that each carbon offset is subject to a third-party verification process and represents the avoidance or removal of one tonne of CO2.
‘The transition to a low-carbon energy future requires a range of solutions,’ said Emily Chin, Shell International Eastern Trading Company’s General Manager for Natural Gas Liquids Trading. ‘As more ways to avoid and reduce emissions are developed at scale, using high-quality nature-based offsets to compensate for greenhouse gas (GHG) emissions, that are otherwise hard-to-abate, is an immediately available solution.’
Toru Araki, Astomos’s Executive Vice President, COO, International Business Division, added: ‘Astomos is proud to lead decarbonisation of the LPG industry and contribute to the transition and realisation of Japan's net-zero ambitions.’
Astomos says it plans to load the carbon-neutral LPG onto one of its owned ships and to discharge at import terminals in Japan.