Trafigura and Braskem collaborate on carbon offset naphtha cargo
Rotterdam and Singapore, 26 April 2021 – Trafigura Group Pte Ltd (“Trafigura” or the “Group”), one of the world’s leading independent commodity trading companies, and Braskem, the largest petrochemical company in the Americas and a world leader in biopolymers production, have collaborated on what is believed to be the first cargo of carbon offset naphtha¹. The cargo was shipped last week from Corpus Christi, Texas and will be delivered by Trafigura to Braskem’s facility via the Port of Aratu in Bahia, Brazil.
The carbon dioxide equivalent emissions associated with the extraction and pipeline transportation of crude oil, its processing to produce naphtha and waterborne transportation of the 325,000-barrel carbon offset cargo will be calculated on data collected by Trafigura. Emissions will be offset through a combination of efficiency measures which reduce emissions, and surrender of high-quality carbon offsets.
Trafigura has worked with the vessel owner to minimise actual emissions associated with transporting the cargo including by chartering the most energy efficient vessel available at the time of fixing and by agreeing with the ship owner that a speed reduction is made. High-quality carbon offsets have been sourced from nature-based projects located in Indonesia that are independently verified by the Verified Carbon Standard.
“Naphtha is a vital component for the plastics industry and this carbon offset cargo, the first of its kind, demonstrates the potential to reduce upstream supply chain emissions for non-combustible plastics. We believe this could be an important additional step in the industry’s efforts to minimise emissions,” said Dmitri Croitor, Global Head of Naphtha and Condensates, Trafigura.
"Braskem is committed with a carbon neutral circular economy strategy and this pilot is a step forward in this direction, contributing to offset part of the value chain emissions,” said Hardi Schuck, Feedstocks, Chemicals and Global Chartering Director at Braskem. “Today’s announcement fits with our efforts to continue to advance in innovation and to develop low carbon solutions.”
Note ¹: The term “carbon offset” indicates that the Seller and the Buyer have committed to reduce or offset the amount of carbon dioxide equivalent associated with their respective operated emissions (including the extraction, storage, and shipping of the naphtha) through a combination of demonstrated emissions reductions and carbon offsets verified by the Verified Carbon Standard.
With a global vision of the future, oriented towards people and sustainability, Braskem is engaged in contributing to the value chain in order to strengthen the Circular Economy. Its 8,000 team members dedicate themselves every day to improving people's lives through sustainable solutions in chemicals and plastics. With its corporate DNA rooted in innovation, Braskem offers a comprehensive portfolio of plastic resins and chemical products for diverse industries, such as food packaging, construction, manufacturing, automotive, agribusiness, health and hygiene, and more. With 40 industrial units in Brazil, United States, Mexico and Germany and net revenue of R$58.5 billion (US$11.3 billion), Braskem exports its products to clients in over 100 countries.
Founded in 1993, Trafigura is one of the largest physical commodities trading groups in the world. Trafigura sources, stores, transports and delivers a range of raw materials (including oil and refined products and metals and minerals) to clients around the world and has recently established a power and renewables trading division.
The trading business is supported by industrial and financial assets, including a majority ownership of global zinc and lead producer Nyrstar which has mining, smelting and other operations located in Europe, Americas and Australia; a significant shareholding in global oil products storage and distribution company Puma Energy; global terminals, warehousing and logistics operator Impala Terminals; Trafigura's Mining Group; and Galena Asset Management.With circa 850 shareholders, Trafigura is owned by its employees.
Over 8,500 employees work in 48 countries around the world. Trafigura has achieved substantial growth over recent years, growing revenue from USD12 billion in 2003 to USD147 billion in 2020. The Group has been connecting its customers to the global economy for more than two decades, growing prosperity by advancing trade.