Reliance Industries Ltd has received the world’s first consignment of ‘carbon-neutral oil’ from the Oxy Low Carbon Ventures (OLCV)-a division of US oil major Occidental.
- The Very Large Crude Carrier (VLCC) Sea Pearl containing 2 million barrels carbon-neutral oil from the Permian basin unloaded the cargo at Jamnagar on January 28, 2021.
- Reliance Industries operates the world’s largest single location oil refining complex at Jamnagar in Gujarat with capacity of 68.2 million tonnes a year
- It aims to become a net zero-carbon company by 2035.
What is carbon-neutral oil?
- According to the the OLCV, greenhouse gas (GHG) emissions associated with the entire crude lifecycle, well head through combustion of end products, have been offset.
- The supplying company will offset carbon dioxide equivalent to that associated with the production, delivery and refining of the crude oil and the use of the resulting product through the retirement of carbon offset credits. This process will make the oil ‘carbon-neutral’.
What is Carbon neutrality?
- According to the European Union, carbon neutrality means having a balance between emitting carbon and absorbing carbon from the atmosphere in carbon sinks.
- Removing carbon oxide from the atmosphere and then storing it is known as carbon sequestration.
What is Carbon Offsetting?
- The Carbon Offsetting is an another way to reduce emissions and to pursue carbon neutrality.
- It is a way to offset emissions made in one sector by reducing them somewhere else.
- This can be done through investment in renewable energy, energy efficiency or other clean, low-carbon technologies.
(Source: EU)
