CARBON NEUTRAL FUEL
- February 4, 2021
- Posted by: OptimizeIAS Team
- Category: DPN Topics
No Comments
CARBON NEUTRAL FUEL
Subject: Environment
Context: Reliance Industries Ltd has sourced the world’s first consignment of ‘carbon-neutral oil’ from the US as it looks to become a net zero-carbon company by 2035.
Concept:
- Oxy Low Carbon Ventures (OLCV), a division of US oil major Occidental, delivered carbon-neutral oil to Reliance, the firm said.
- Oxy Low Carbon Ventures and Macquarie 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 will make the oil ‘carbon-neutral’.
- This transaction is a first step in the creation of a new market for climate-differentiated crude oil.
- It is also a bridge to the development of a further differentiated petroleum product, net-zero oil which Occidental intends to eventually produce.
- Net zero oil is produced through the capture and sequestration of atmospheric CO2 via industrial-scale direct air capture (DAC) facilities and geological sequestration.