Kernel sells low-carbon sunflower oil at premium for first time

Kernel has signed its first deal, according to the company, to sell sunflower oil with a reduced carbon footprint and verified emissions reductions. The buyer paid an additional premium on top of the market price for the oil based on its climate attributes.

An international multinational corporation whose name Kernel has not disclosed is the buyer. The company is pursuing a strategy to achieve net-zero emissions.

The emissions reductions are achieved directly within the oil’s production and supply chain, rather than through the purchase of carbon offset certificates.

Kernel calculates the carbon footprint of crops at the individual field level, taking into account soil conditions, weather, crop rotation and farming practices. This allows the company to select sunflower with the lowest carbon footprint to create separate supply chains.

The origin of the product is tracked from the field through the elevator to the crushing plant. This enables Kernel to determine which fields supplied the raw material and the amount of emissions reductions associated with it.

Emissions are also reduced during processing through the use of electricity from renewable sources.

The premium for low-carbon products depends on the verified amount of emissions reduced and the market value of carbon. According to Kernel, it may reach $100 or more per ton of CO₂ equivalent.

To automate calculations and scale up the project, Kernel has also begun working with technology company Regrow.

“This deal proves that we can not only implement the relevant practices in production, but also verify the results through calculations and turn them into commercial value. We are already working to scale up the project so that we can offer such solutions to more customers and support their climate goals,” said Marta Trofimova, Kernel’s head of sustainability.