Kernel has completed the world's first transaction involving the sale of sunflower oil with a reduced carbon footprint and verified climate impact. The buyer was an international multinational corporation pursuing a global net-zero strategy, which paid an additional premium above the market price for the verified emissions reductions achieved during production.
The key value of the transaction lies in a different approach to decarbonising the production chain and reducing greenhouse gas emissions associated with sunflower oil. Instead of purchasing carbon offsets on the market, the buyer receives a product that has been produced with a lower environmental impact from the outset, as Kernel reduces emissions directly during production and throughout the supply chain.
The carbon footprint is reduced at three stages
In the field. At the heart of the project is a system for accurately calculating the carbon footprint of crops at individual field level, taking into account soil characteristics, weather conditions, crop rotation and farming practices. This makes it possible to identify fields where sunflower is grown with the lowest climate impact and build low-carbon supply chains.
Transparent traceability. Kernel tracks the entire chain - from the fields with the lowest carbon footprint through grain storage facilities to the processing plant - and can verify exactly which fields the product originates from and the volume of greenhouse gas emissions reductions associated with it.
During processing. Kernel's processing plants use electricity from renewable sources, further reducing greenhouse gas emissions.
The global market for low-carbon agricultural products is still emerging. The climate premium depends on the volume of verified emissions reductions and the market value of carbon, meaning it can reach $100 or more per tonne of CO₂e.
To further automate calculations, ensure alignment with international standards and scale up its low-carbon offering, Kernel has begun working with technology company Regrow.
"Despite the war and continued pressure on our operations, we remain committed to developing climate-resilient solutions for agriculture. This transaction demonstrates that we can not only implement these practices in production, but also quantify and verify their impact and turn it into commercial value. We are already working to scale up the project so that we can offer these solutions to more customers and support them in achieving their climate goals," said Marta Trofimova, Head of Sustainability at Kernel.
This is the first case in the global agricultural market where transparency and verified emissions reductions across the entire production chain have created tangible added value for the product.