Zephyr has announced that it intends to achieve carbon-neutrality across its operational footprint by 30 September 2021. This industry-leading pledge is a major first step towards the near-term delivery of hydrocarbons produced with an operational ‘net-zero’ carbon impact.
Not only is the Board unanimously committed to this initiative, but it also appears to make good business sense. Recent market-based evidence suggests that purchasers and supply chain partners of ‘net-zero’ operated volumes are willing to absorb costs associated with the purchase of Verified Emission Reductions (‘VER’) offsets related to oil and gas production.
While eliminating its operational carbon footprint is important from an environmental perspective, the Board believes that shareholders will also benefit from the potential for premium commodity pricing, access to a wider pool of institutional investors and cheaper cost of capital, as well as enhanced relations with regulatory partners.
With the next few months expected to remain news flow heavy on all fronts, as the Group targets initial production on its Paradox project, further defines the Paradox resource and potentially begins to generate significant cash flow from its non-operated asset portfolio, yet more key objectives look set to follow.
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