The only way to cut emissions is to cut demand for crude

Mika Anttonen, founder of Nordic clean energy group ST1, has a hard-hitting message on carbon dioxide — that it is imperative to cut crude oil demand. It has ramifications for shipping.

"To cut carbon dioxide emissions, it is not good enough to cut gasoline and diesel consumption," Anttonen told the Commercial Meet audience. “We need to cut crude oil demand.”

Anttonen believes there is no viable renewable fuel for shipping yet but agreed with fellow speaker, Skangas chief executive Kimmo Rahkamo, that LNG is the best option for cutting carbon dioxide emissions.

Rahkamo says there is good availability and sound technology in place for LNG. Around half the LNG ships being built are dual-fuel, representing “good insurance”, he adds.

With available existing reserves equal to 50 years of demand, Rahkamo says LNG and gas prices should be more stable than oil.

ST1 is now the largest fuel retailer in its home market of Sweden, Norway and Finland. It has one refinery in Sweden and its renewables business includes a wind joint venture and the production of biofuels from waste.

He sees ST1 as a "carbon dioxide-aware energy producer and seller”, but explaining his vision to hydrocarbon industry peers is not easy.

“I could see in their eyes: what is this guy talking about? We’re in the oil business,” he said.

His message is that the oil business needs to make the renewables story possible by providing cash flow for research and development "to try to make the world a better place".

Jet-fuel demand cannot grow 50% while petrol and diesel consumption falls 50%, he argues. The distillation curve dictates that producing more jet fuel requires more crude at the bottom.

“As long as we like to fly and drive around in [very powerful] cars we aren’t really addressing the problem,” Anttonen added.

He proposes lifestyle changes including limiting the power of car engines to maximum-speed limits and banning flight under an hour.

Rahkamo says it is necessary to "take a view" with a 20-year to 30-year horizon despite the fact no one can predict what the world will look like then.