Woodside Petroleum Ltd. plans to invest US$5 billion in new low-carbon energy projects over the next 2 decades while still supporting its petroleum business, including the benefits of the recent merger with BHP’s oil and gas assets (OGJ Online, Aug. 3, 2021).
Chief Executive Officer Meg O’Neill told an investor briefing this week that although the company’s LNG business will remain an important energy source for decades to come, Woodside will support its customers’ intentions to lower the production of carbon.
O’Neill did not specify where the new investments will be but did say that solar and wind projects would not be included.
The company has already flagged its interest is developing ammonia and liquid hydrogen which can be run in parallel and synergy with its existing LNG output and the company’s technical skills. Liquid hydrogen, for instance, requires similar cooling to the manufacture of LNG.
Woodside announced in October its intention to produce ammonia and hydrogen at a plant in Kwinana south of Perth (OGJ Online, Oct. 5, 2021). Another project is earmarked for the Bell Bay region of Tasmania using hydropower to produce hydrogen and ammonia.
The new energy projects are likely to provide a return of more than 10% within a decade, slightly less than the 12-15% return and shorter time frame for oil and gas, the operator said.
While the Scarborough gas discovery was made in the late 1970s, the company can’t wait so long to take advantage of similar opportunities given the pace of change within the energy industry, O’Neill said.
Woodside maintains it is still on target to achieve net zero direct emissions by 2050.
