Our ambition is to develop high quality products which meet customer requirements while resulting in the lowest possible resource consumption and environmental impact.
What are the challenges?
All production requires energy and entails emissions to the air and discharges to water and soil. It is often the case that the cleaner the product, the more energy is needed to produce it.
One of the main challenges facing our industry is to reduce the greenhouse gas emissions resulting from the production and use of our products. One way of reducing greenhouse gases in the transport sector is to use biofuels.
We are aware of the challenges associated with the environmental, social and ethical aspects of the whole value chain of biofuels from cultivation to use. These are complex topics that need further research and discussion between a broad range of stakeholders before sound and good principles can be established.
The transport sector will require new solutions if it is to succeed in reducing emissions of greenhouse gases. New technology, a more sustainable supply of resources and a correspondingly greater proportion of biofuel will contribute to reducing the negative consequences in relation to the conventional fuels used today.
What are we doing?
We support initiatives for reducing greenhouse gas emissions and improved energy efficiency in the production, distribution and use of our products.
When used for their intended purpose and in the correct manner, our products are not detrimental to people's health or the environment. Nevertheless, our products can be harmful if not treated in the right way or kept in the right environment. The material safety datasheets (MSDS) and the product data sheet contain descriptions of what the products consist of, how to handle them and any detrimental health or environmental effects. These descriptions comply with EU legislation. In the process of developing new products, we actively seek to find less harmful components and chemicals to reduce the negative impacts of our products.
Because we believe that conventional fuels will continue to dominate the market for many years to come, we are working to make fossil petrol and diesel more environmentally friendly. Improved fuel in combination with modern engines and exhaust cleaning systems can make conventional technology environmentally competitive. This requires continuous improvement of product quality in order to keep abreast of innovations in these fields.
We are aware of the challenging issues relating to the production of biofuels. We are working actively to address the challenges relating to environmental impact, biodiversity and social impacts to enable us to make the right choices. We are in close cooperation with a technical oil industry organisation, CONCAWE (Conservation of Clean Air and Water in Europe), regarding studies on fuel quality, energy use and greenhouse gas emissions from motor fuel, as well as production processes and engine technology.
Health and safety impacts of our products are assessed for improvements through EU's chemical regulation programme (REACH). This involves registration, evaluation and authorisation of oil products and chemicals within Europe. In 2009, StatoilHydro carried out pre-registration of all products and chemicals that we produce or import, in accordance with the REACH regulations.
StatoilHydro also cooperates with the European Standardisation body (CEN) with regard to the standardisation of fuels. CEN recently appointed a committee that is expected to produce the basis for a common European standard for sustainable biofuels.
In all countries where we have activities, we follow the law and always obtain internal legal approval before we enter into a sponsorship or before we start an advertising campaign. This way of doing business is described in our management system.
What have we achieved?
In cooperation with the automotive industry, the European Comission and CONCAWE, we have investigated greenhouse gas emissions and energy efficiency of European transport fuels from "well to wheel". This study is regularly updated, and the results are published on the Internet (http://ies.jrc.ec.europa.eu/WTW).
The database resulting from this work forms the starting point for our selection of environmentally appropriate solutions.
StatoilHydro has acquired a 42.5% holding in the Lithuanian biodiesel plant Mestilla. This is StatoilHydro's first investment in biofuel production. The Mestilla plant made its first deliveries in November 2007 and has an annual capacity of 100,000 tonnes of biodiesel. The biodiesel from Mestilla is based on rapeseed, and the plant will deliver biodiesel to all our markets. StatoilHydro is responsible for marketing, sales and distribution of the biodiesel produced at Mestilla. We have also performed a thorough study of the greenhouse gas emissions from our own biodiesel production facility (Mestilla) as well as for our main suppliers of bio-ethanol in Europe.
We have established preliminary sustainability criteria for biofuel trading for internal use until international standards are set by CEN, and we are cooperating with our partners and suppliers to find improved sustainable solutions.
1. A leading provider of biofuels
The use of biofuels can contribute to reduce greenhouse gases in the transport sector.
Our ambition is to be able to contribute to a reduction in greenhouse gas emissions, not just in our own business, but also by offering our customers fuel that results in lower overall emissions. We aim to be a leading provider of biofuels in our markets. Our goal is to be an active supplier of biofuel, both in terms of production and trading and as a leading player in the markets in which we sell fuel.
In 2008, 3.3% of our total sales of transportation fuel (excluding marine and aviation fuel) was biofuel. Our total sales of biofuel in 2008 resulted in a reduction of 350,000 tonnes of carbon dioxide emissions compared to fossil fuels, an improvement compared to the previous year.
The environmental and social challenges relating to biofuel vary greatly depending on the biomass that is used and how the biomass is cultivated and processed. We are aware of the possible environmental and social challenges relating to biofuels.
StatoilHydro's ethical standards concerning society and the environment and the UN Global Compact are important to how we address challenges relating to biofuels, including the choice of biomass and the processing of the product.
2. Developing green lubricants
Showing consideration for the environment also includes the handling and development of lubricants. In a research project carried out with Luleå University of Technology, Statoil Lubricants in Sweden studied which base oils result in the lowest energy losses in turbine bearings.
StatoilHydro's specially selected synthetic ester (a chemical mixture of fatty acids and alcohols) produced the best result. The results of product development include the turbine oil TurbWay SE, which uses this base oil. Against this background, we believe that we are able to supply a high-performance product that is energy-saving, biologically degradable and based on renewable raw materials.
A ship's propeller shaft can leak up to 25 litres of lubricant a day, which is clearly detrimental to the environment. We developed the lubricant SternWay Bio 100 in order to be able to offer the maritime industry a product that is renewable and ecologically degradable.
This green product is one of the first environmentally-adapted lubricants on the market, and it has attracted a lot of positive attention externally. Statoil Lubricants is one of very few players to offer environmentally adapted products to the shipping industry. The product has performed well in quality tests at sea. It has been on the market since 2007.
Our product SternWay Bio 100 was nominated for a prize for innovation at the NorFishing international fisheries trade fair in Norway in 2006.
Statoil has also developed a lubricant product for use in the oil industry, MultiDope Yellow. This product has a wide range of applications, such as drill pipe casing, tubing, and jacking systems, and many other slow-speed, high-load applications. The HOCNF environmental evaluation Yellow Y1 yields the best results so far achieved for this type of product in the field.
We offer an environmentally-adapted package for ship owners consisting of the following products (not including SternWay Bio and MultiDope Yellow):
- Gearoil: LoadWay BIO 220
- Hydraulic oils: HydraWay BIO SE 32-68
- Greases: GreaseWay BIO CaH 82 (heavy load,slow moving)
- UniWay BIO LiX 62 (universal)
3. Environmentally-friendly aviation fuel transport
The transportation of aviation fuels from refinery to airports can be done by ship, train, truck or pipeline, and it affects the environment in various ways.
Stockholm Airport Arlanda is one of StatoilHydro's major customers, and Statoil Aviation is part-owner of AFAB - a company responsible for the transportation, storage and operational management of the distribution system for aviation fuel at Stockholm Airport Arlanda.
Until October 2006, aviation fuel was transported to Stockholm International Airport Arlanda by first shipping it to depots in Stockholm, and then moving it by truck from Stockholm to Arlanda. More than 15,000 trucks per year passed through Stockholm city with a corresponding negative impact on urban air quality and emissions of greenhouse gases.
In October 2006, the transport route was changed so that ships from refineries now bypass Stockholm and go directly to depots in Gävle, with the aviation fuel then being sent by train to Arlanda.
In 2008, AFAB was awarded a prize (Green Cargo Klimatintyg) for establishing the more environmentally-friendly transport system for aviation fuels.
