South Korean steel giant Posco has received its first-ever carbon-neutral LNG cargo from Germany’s RWE at its Gwangyang terminal.
Posco said in a statement on Monday that it purchased around 64,000 tons of carbon-neutral LNG from RWE via its Singapore unit as it looks to slash emissions.
In addition, the 159,000-cbm Woodside Rogers delivered the shipment from Australia at the Gwangyang facility on March 19, according to Posco.
Under the agreement between the duo, carbon emissions totaling about 35,000 tons and associated with the cargo from wellhead to delivery, including exploration, production and transport, have been offset, the statement said.
Moreover, Posco says carbon offsets would come from reforestation, renewable energy, and environmental conservation projects.
The move is a part of Posco’s plan to reach net-zero emission by 2050.
The firm says it now becomes the second Korean company that introduced carbon-neutral LNG following GS Energy.
RWE said in a separate statement it used the Wood Mackenzie LNG Emissions Tool to estimate the carbon emission intensity of the cargo delivery.
The German firm added it is now able to provide all its customers with the opportunity to offset carbon emissions related to LNG deliveries through the use of emission reduction certificates.