Astomos Energy has signed an agreement to purchase carbon-neutral1 liquefied petroleum gas (LPG) from Shell. This VLGC-size LPG cargo is believed to be the world’s first such carbon-neutral LPG.

In this agreement, credits from Shell’s global portfolio of nature-based projects will be used to offset lifecycle CO2e emissions generated across the value chain2 from production to consumption (combustion), including transportation. Nature-based projects protect, transform or restore land and enable nature to add oxygen and absorb CO2e emissions from the atmosphere. Each carbon offset is subject to a third-party verification process and represents the avoidance or removal of one tonne of CO2e.

Astomos is planning to load this carbon-neutral LPG onto a ship owned by Astomos and to discharge at import terminals in Japan.

Emily Chin, Shell’s General Manager for Natural Gas Liquids Trading, said: “The transition to a low-carbon energy future requires a range of solutions. 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. We are very pleased to be collaborating with Astomos Energy for this carbon-neutral offering in the LPG industry.”

Toru Araki, Astomos’s Executive Vice President, COO, International Business Division, said: “Astomos is proud to lead decarbonisation of the LPG industry and contribute to the transition and realisation of Japan’s net-zero ambitions. “