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Lower-Carbon Services
PURSUING LOWER-CARBON ENERGY SOURCES
Woodside’s objective is to thrive in this energy transition as a low-cost, lower-carbon energy provider. Carbon capture and storage (CCS), carbon capture and utilisation (CCU) and Offsets have key roles to play.
Our approach to carbon management
Woodside has a dedicated carbon business tasked with developing a sustainable offsets portfolio in support of our climate goals.
We are also investing in the new energy products and lower-carbon services our customers need as they decarbonise. This includes progressing opportunities such as carbon capture and storage, and carbon capture and utilisation. We have targeted $5 billion investment1 in new energy products and lower-carbon services by 2030.
The role offsets play in achieving net emissions reductions
Avoiding and reducing emissions are our first priority when planning how to achieve our net equity Scope 1 and 2 greenhouse gas emissions reduction targets. However, offsets also play an important role where emissions from within Woodside's business are balanced by reduction or avoidance of emissions elsewhere.
We have set near- and medium-term targets to reduce our net equity Scope 1 and Scope 2 greenhouse gas emissions - 15% by 2025 and 30% by 2030 - in support of our aspiration of net zero emissions by 2050 or sooner.2
Woodside established a carbon business in 2018 to develop a sustainable offsets portfolio in support of our base business and new energy projects. We acquire offsets from carbon markets and also originate our own, with an aim to develop a diversified domestic and international carbon offsets portfolio..
We have invested more than A$100 million across Australia through native tree planting over the past 10 years, and we continue to undertake carbon projects in regional Western Australia.
In addition to originating our own offsets, we participate in carbon markets.
We retire offsets annually to meet our net equity Scope 1 and 2 greenhouse gas emissions reduction targets. Details of our 2021 activities can be found in our 2021 Climate Report.
Further information can also be found in our Carbon Offsets Factsheet.
Capturing and storing carbon from existing and new industries
We are also progressing a number of carbon capture and storage (CCS) opportunities. CCS is the process of capturing carbon and storing it permanently and safely underground in geological structures.
Woodside Energy Ltd (Woodside), BP Developments Australia Pty Ltd (bp), Japan Australia LNG (MIMI) Pty Ltd (MIMI), which is owned equally by Mitsubishi Corporation and Mitsui & Co., Ltd, Shell Australia Pty Ltd (Shell) and Chevron Australia Pty Ltd (Chevron), collectively referred to as the Joint Venture, have been awarded a greenhouse gas assessment permit to investigate the feasibility of storing carbon dioxide in geological formations in the Northern Carnarvon Basin, off the coast of Western Australia (WA). The Joint Venture is currently assessing the feasibility of a large-scale, multi-user CCS project near Karratha in WA.
We are working with the Northern Territory (NT) Government, Commonwealth Scientific and Industrial Research Organisation (CSIRO) and industry to develop a business case assessing the viability of a large-scale, low-emission carbon capture, utilisation and storage hub based in the NT.
Woodside is also a non-operator participant in an ExxonMobil-led joint venture investigating capturing and storing carbon in the Gippsland Basin, off the coast of Victoria.
Aiming to recycle carbon into useful products
Carbon capture and utilisation (CCU) refers to a process in which CO2 is captured and the carbon is then used in a product1. We are exploring the potential of converting carbon into useful products, collaborating with technology developers from around the world. We view CCU as an emerging field with growing demand from existing and potential customers seeking alternative lower-carbon solutions.
In March 2022, we launched a CCU collaboration with US-based technology developers ReCarbon and LanzaTech to assess the viability of a proposed CCU pilot facility in Perth, Western Australia. We also agreed a term sheet with the Eastern Metropolitan Regional Council (EMRC) in May 2022, providing us an option to use EMRC’s Red Hill Waste Management Eco Park for the proposed pilot CCU facility. The term sheet also covers the supply of landfill gas by EMRC to Woodside.
In July 2022, we announced plans to invest US$9.9 million in String Bio Private Limited (String Bio), the developer of a patented process for recycling greenhouse gases into products such as livestock feed.
Woodside’s climate strategy has two key elements: reducing our net equity Scope 1 and 2 greenhouse gas emissions, and investing in the products and services that our customers need as they too reduce their emissions. CCU has the potential to contribute to both elements of our climate strategy.
1 Individual investment decisions are subject to Woodside’s investment hurdles. Not guidance.
2 Target is for net equity Scope 1 and 2 greenhouse gas emissions, relative to a starting base of the gross annual average equity Scope 1 and 2 greenhouse gas emissions over 2016-2020 and may be adjusted (up or down) for potential equity changes in producing or sanctioned assets with an FID prior to 2021. Post-completion of the Woodside and BHP petroleum merger (which remains subject to conditions including regulatory approvals), the starting base will be adjusted for the then combined Woodside and BHP petroleum portfolio.
