Lower-carbon Services

The role of carbon credits in our decarbonisation plans

Woodside utilises certified carbon credits to offset equity Scope 1 and 2 GHG emissions that are above our targets in a given year after design out and operate out measures have been taken. The availability of carbon credits to offset emissions is important because: gross emissions can fluctuate, for example, due to portfolio change or for operational reasons, asset decarbonisation plans can take time to implement, especially where they are large scale or complex engineering projects, and some decarbonisation technologies may prove too expensive to implement efficiently.

The ability to utilise carbon credits means that we can maintain our target trajectory and continue to reduce our net equity Scope 1 and 2 GHG emissions, despite these variable factors. Like our asset decarbonisation plans, our portfolio of carbon credits enables our base business to manage the price risk associated with regulations and our corporate net equity Scope 1 and 2 GHG emissions targets. Carbon credits are available now and can be used in the short and medium term for emissions that are otherwise not technically or economically viable to avoid or reduce.²

Capturing and storing carbon from existing and new industries 

CCS is a mature technology which represents a proven solution to abate large-scale industrial emissions. Services like CCS can help customers reduce the emissions that they would otherwise generate when using Woodside products (or similar products sourced from others), or emissions from other hard-to-abate industries. Because CCS is also a solution for reducing Woodside’s Scope 1 GHG emissions at our assets (Browse CCS concept), we have the potential to underpin the development of CCS projects for our own use whilst customer demand develops for hub concepts.

We believe CCS will play an increasing role in the energy transition, and also that Woodside has competitive advantages in its development including its knowledge of geoscience, subsurface engineering and bulk-gas handling.

As a participant in various joint ventures, we hold five greenhouse gas assessment permits enabling carbon capture and storage assessments in the Browse Basin, Northern Carnarvon Basin, Bonaparte Basin and Gippsland Basin.³

We have progressed three non-binding memoranda of understanding to enable studies of a potential CCS value change between Japan and Australia. In 2025, Woodside also signed a storage study agreement with Petros to evaluate the technical and commercial aspects of offshore carbon storage in in an underground site in Central Luconia, Sarawak.

The following proposed large-scale multi-user CCS hubs aimed at capturing carbon emitted by multiple industries are summarised below:

Aiming to recycle carbon into useful products

In the longer term, carbon capture and utilisation (CCU, also referred to as carbon-to-products) has the potential to utilise third party sources of CO₂ at scale.

In 2023, Woodside completed a number of engineering studies with CCU technology developers LanzaTech, NovoNutrients, StringBio and several engineering firms. These studies have helped inform how their technologies may be integrated and optimised to convert greenhouse gases into a variety of useful products.

Woodside is a founding partner in the RECARB ARC Hub based at Monash University which is exploring Direct Air Capture of CO₂ for use in products.