RWE ships carbon-neutral LNG to Korean steelmaker

German energy group RWE shipped a carbon-neutral LNG cargo to Korean steelmaker Posco late this month, the companies reported on March 26.

The cargo was delivered to the Gwangyang terminal in South Korea. Its emissions from wellhead to delivery were offset by retiring carbon credits, known as verified emissions reductions certificates, which are issued to various projects that capture or avoid CO₂ emissions and are verified by third parties.

The CO₂ emissions intensity relating to the LNG cargo was calculated using the Wood Mackenzie LNG emissions tool. RWE said it could now provide all its customers with the option to offset emissions from the LNG they receive.

Carbon-neutral LNG is gaining momentum, as companies seek to improve their environmental standing with investors and customers. Japan's Tokyo Gas announced earlier this month it had formed the Carbon Neutral LNG Buyers Alliance with 14 other Japanese firms. Japanese power company Hokkaido Gas also received a carbon-neutral LNG cargo from trading group Mitsui in mid-March.

In Europe, Shell this month received the first ever carbon-neutral LNG cargo to be delivered to the continent, from its Russian partner Gazprom. The shipment came from the Yamal LNG terminal in the Russian Arctic, and was sent to the Dragon regasification terminal in Wales.