Woodside To Invest $5B In New Energy Markets By 2030
Australian energy giant Woodside has revealed its plans to invest $5 billion in emerging new energy markets by 2030 assisted by cash generated from its merger with BHP’s petroleum arm.
Woodside’s new energy transition plan was laid out by Chief Executive Meg O'Neill, basing it on the assumption that the $28 billion merger with BHP Group's petroleum will go through.
The company expects LNG to remain an important part of the energy mix for decades to come, both as a lower-carbon source of fuel for coal-dependent countries and as a convenient firming capacity for renewables.
“We have the vision to build a low cost, lower carbon, profitable, resilient, and diversified portfolio. Woodside aims to do this by leveraging our world-class Tier 1 portfolio and allocating capital to the right opportunities at the right time,” O’Neill said.
“Our investment decisions are informed by robust market analysis, so we understand macro trends for our products and a range of outcomes depending on different climate scenarios. Individual opportunities are assessed through a disciplined capital allocation framework and clear investment criteria, always considering the fit with our emissions reduction targets and shareholder returns,” she added.
As for climate, the company has set emissions reduction targets which include 15 percent reduction by 2025, 30 percent by 2030, and net-zero by 2050 or sooner. It also expects to have around 3,000 megawatts of capacity from lower-carbon energy solutions by 2030.
As for the company’s 2021, Woodside achieved FIDs on the Scarborough and Pluto Train 2 projects, continued delivery of the Sangomar project, and progressed its new energy opportunities as well as the already mentioned BHP merger.
Once the merger is completed, the new portfolio will have several near-term developments, including Sangomar in Senegal, Mad Dog Phase 2, Shenzi North as well as other opportunities in the Gulf of Mexico, and Scarborough offshore Australia.
“These, together with other potential oil, gas and new energy developments, will provide an enviable hopper of opportunities competing for capital,” O’Neill stated.
It is worth noting that Woodside recently announced progress on their new energy projects – H2Perth and H2TAS – in Australia as well as Heliogen and H2OK in the U.S. All projects are designed to be phased, starting small with the potential to build scale.
In each case, the project location has been chosen for specific reasons, near available renewables or close to a market, ensuring they are customer-led. By the mid-2020s, Woodside expects the transition to new energy to be well underway, including the start-up of the first of its projects.
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