BETTER IS A
LOWER-CARBON
FUTURE
Supporting net zero: Woodside’s climate strategy

As a proud Australian company and leading natural
gas producer, we’re committed to playing our part inreducing emissions.

THE WORLD NEEDS AFFORDABLE AND CLEAN ENERGY

DRAFT

Woodside considers a range of credible policy scenarios,
Woodsidesuch as considers
those paurange
blishofecredible
d by thpolicye Intscenarios,e r n a t i o n a l E n e rg ysuch
publishedby the International Energy Agency (IEA).
Ageasncthosey (IEA).
IE A
s ce n ar ioParis alig n ed

Stated Policy(STEPS)

No(2.7°C)

SustainableDevelopment(SDS)

Yes(1.65°C)Net ZeroEmissions(NZE2050)

Yes(1.5°C)S i g n p o st s to 2 03 0
Existing stated policies implemented

Increasingly rapid take-up and cost reduction oftechnologies driven by consumer preference andregulatory support1

2 03 0 : S DS

Diverse but successively more ambitious Nationally
Determined Contributions

2 03 0 : N Z E 2 0 5 003Partof a lower-carbon
futureSource:International
Energy Agency(IEA) World Energy Outlook 2020.
1. Technologies including hydrogen, CCUS, battery storage and both battery and fuel cell electric vehicles.

2+Increased
Countries
are looking
to asgas
as astandards
cleaner improve.
and moreenergy
is required
livingaffordable option to expand their economies that may
displaceothermoremiddle
carbonintensive
energysourcesbysuch• The
Asia Pacific(APAC)
classis estimatedto increase
1.5
as coalandbiomass.
billion(75%)
peopleby 2030.
•

2 03 0 : ST E P SContinued rapid renewables growth

Source: International Energy Agency (IEA) World Energy Outlook 2020.
1.
Technologies including hydrogen, CCUS, battery storage and both battery and fuel cell electricvehicles.

Thereis significant demand for+ Increased energy is required as living standards improve.
investment
in gas supply to meet
+ The Asia Pacific (APAC) middle class is estimated toincreaseenergy
by 1.5 billion (75%)
people by 2030.
globaldemandin 2030.

G as an d low- carbon hydrogen demand in 203 0 ( M toe)500

are islooking
to gas as
cleanerandaffordable
option+Countries
Woodsidewell placed
toabea partofmore
the globalenergy
totransition.
expand theireconomies
thatmaydisplaceothermorecarbon
Our LNG can help reduce emissions whileintensive
energysourcesto
suchas coaland biomass.
enabling customers
deliveraffordable
energy and climateaction.
• Woodside is well placed to be a part of the global energy transition.
Our LNG can help reduce emissions while enabling customers todeliver affordable energy and climate action.
•

1,000

1,500

2,000

Gas supply in 2030 without
developing new fields

2,500

3,000

Gas

Hydrogen

3,500

4,000

DRAFT

PART OF A LOWER-CARBON FUTURE

APAC m id dle class growth 1
6

Middle class population (billion)

We support the Paris Agreement and our natural gas can help reduce globalemissions.
by 2050, and we’re challenging ourselves to do
PA RT OF A LOWeWE Raim-C ARto
B Obe
N FUnetTURzeroE
Futureinehow
nergwey soperatecena riostoday’s projects and develop tomorrow’s opportunities.
betterThere is significant demand forinvestment in gas supply to meetglobalenergy demand in 2030.
Supplying gas to the world

4

Asia Pacific2Rest ofworld

02020

2025

2030

Gas demand in 20194

1. Homi Khara, Brookings Institute, 2017.

Part of a lower-carbon future1.

Homi Khara, Brookings Institute, 2017.

Woodside | Better is a lower-carbon future3

TAKING ACTION
Our aim is to be net
zero in our directemissions by 2050.
We’re going to getthere by limiting ourdirect emissions andbuilding our offset
business.
At the same time,
we are working tocreate a better future
by developing newenergy businesses andlow carbon solutions.

SUPPLYING GAS TO
THE WORLDSUPPORTING PARISDECARBONISINGPRODUCTION

BUILDING OUR OFFSET
BUSINESSNEW ENERGY &LOWER-CARBON SOLUTIONS

Delivering affordable
energy and enabling
climate action

Targets to support
our aspiration fornet zero by 2050 orsooner1

Avoiding emissions
through design andreducing throughefficient operations

One of the largest
carbon farming private
investors in Australia

Investing in hydrogen,
LNG fuels, researchand development

1. Woodside equity share.

4

Woodside | Better is a lower-carbon future

5

SUPPLYING GAS TO THE WORLDSUPPORTING PARIS

Natural gas and LNG willplay an important role in thefuture energy mix.

We’re aiming to be net zero in ourdirect emissions by 2050 or sooner andPART OF A LOWER-CARBON FUTURE
DRAFT
Supporting
Parisset clear targets to get there.
we’vePART OF A LOWER-CARBON FUTURE

Supplying gas to the worldtransport and building sectors which are hard to• electrify
As forecast
bytherefore
the IEA’s 2020
World
Energy Outlook,andwhererenewables
have
LNG
will
demandwill
continuetogrow
underParislimited application.
compliant scenarios.
+ To remain competitive in the long term, the LNG• Gas is used in a very broad range of applicationsindustry needs to continue its journey to reduce
beyond just power including the industrial, transport
methaneandsectors
carbondioxideemissions
acrossand building
whichare hardto electrify
andtheentirevaluechain.
therefore where renewables have limited application.
•To remain competitive in the long term, the LNG
industry needs to continue its journey to reduce
methane and carbon dioxide emissions across theentire value chain.

1. Source: IHS Markit, IEA World Energy Outlook 2020.

65

Part of a lower-carbon future800

I n du s t r ial

IEA StatedPolicy
Scenario

28%600

Res iden t ial

15%

Commer c ial

5%

T r an s por t at ion

6%

O t h er

9%

We're aiming
toachievebeournetzero
We aim totargets
through a range of levers:in our direct emissions by+ Decarbonise our hydrocarbon
2050 or sooner
business and we’ve
set clear targets
toget+ Develop large
scalecarbon offsets
there.
+ Assess carbon capture andGlobal LNG demand

Million tonnes

Natural gas and LNG willplay an important role in+ Gas is used in a very broad range of applications
thefuture energy mix.
beyond just power including the industrial,+ As forecast by the IEA’s 2020 World EnergyOutlook, LNG demand will continue to growunder Paris-compliant scenarios.

2019 A PAC
natu ral g asdemand

IEA
SustainableDevelopmentScenario

400•Pow er37%

We aim to achieve our targets through a range of+ Progress both blue and green
levers:

02020

2025

Source: IHS Markit, IEA World Energy Outlook
2020

2030

2035

2040

••
•
•

O ver 2 .2 8M t
CO 2 - e o f f s e t
or avoided
1to d a testorage opportunitieshydrogen200

Deliv er ed

Dec ar bo n is in g
pr oduc tion

N ear ter m

1 5 % b e l ow
b a s e l i n e by
2, 32 02 5Mediu mter m

3 0 % b e l ow
bas eline
3by 2 0 3 0Longter m

N e t z e roa s p i ra t i o n f o r
2050 ors ooner4

Av oid in design • Redu c e through efficient operations • Offs etdecarbonise our hydrocarbon businessdevelop large scale carbon offsets
assess carbon capture and storage opportunities
1. Woodside equity share (2.7 Mt total operated). Avoided through energy efficiencies, voluntary offsets acquired and surrendered and ACCUs generated and retained/surrendered.
progress bothblue and green hydrogen
2. Equivalent to previously disclosed equity reservoir offset target.

3. Baseline is set as the average equity Scope 1 and 2 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.
4. Woodside equity share.
1.
2.
3.

Woodside equity share (2.7 Mt total operated). Avoided through energy efficiencies, voluntary offsets acquired
and surrendered and ACCUs generated and retained/surrendered.
Woodside | Better is a lower-carbon future
Equivalent to previously disclosed equity reservoir offset target.
Baseline is set as the average equity Scope 1 and 2 emissions over 2016-2020 and may be adjusted (up or7

To date, we’ve offset or avoided
DECARBONISING PRODUCTION
over 2.28Mt of CO2-e1. TH

BUILDING OUR OFFSET BUSINESS• We've used battery storage to reduce emissions from power
generation offshore - the world’s first application of microgrid
technology on an offshore platform. This saves over 3,000 tonnesof fuel gas and 7,000 tonnes of CO2-e emissions each year

To date, we’ve offset
or avoided over
2.28Mt of CO2-e .

In 2018, we established a carbon businessfocused exclusively on generating andacquiring quality offsets.

• We are rethinking our operational philosophies, such as saving fuel1gas through start-up procedures and minimising power generation
spinning reserve across our facilities.
• Increased efficiency through Pluto LNG automated process control
reduces emissions by 10,000 tonnes of CO2-e each year.
• We are on track to meet our current overall energy efficient target+ We’ve used battery storage to reduce emissions fromof 5% against baseline over 2016-2020.
power generation offshore - the world’s first application of
microgrid
onenergy
anefficiencies,offshore
platform.
This saves
1.
Woodside equity
share (2.7 Mt totaltechnology
operated). Avoided throughvoluntary offsets
acquired and surrenderedand ACCUs
generated and retained/surrendered.
over 3,000 tonnes of fuel gas and 7,000 tonnes of CO2-eemissions
7Part of a lower-carbon
future each year.

ZERO ROUTINEFLARING BY 2030
In 2017 Woodside signed up to the World Bank’s Zero Routine Flaring by 2030 initiative and theMethane Guiding Principles to reduce methane emissions across our value chain.

+ We have invested more than A$100 million across Australia
through native tree planting over the past 10 years. At theend of 2019, our partnership with CO2 Australia had offset
more than 700,000 tonnes of CO2-e from Pluto LNG Train 1.

+ We are rethinking our operational philosophies, such assaving fuel gas through start-up procedures and minimising
power generation spinning reserve across our facilities.

+ The Woodside Native Reforestation Project, in partnershipwith Greening Australia, has planted 2,200 hectares in WA
during 2020 which is estimated to sequester about 700,000
tonnes of CO2-e over 25 years.

+ Increased efficiency through Pluto LNG automated processcontrol reduces emissions by 10,000 tonnes of CO2-e eachyear.

+ We are building capabilities in human induced regeneration,
fire management and international opportunities, including
Indigenous training and employment.

+ We are on track to meet our current overall energy efficient
target of 5% against baseline over 2016-2020.

1. Woodside equity share (2.7 Mt total operated). Avoided through energy efficiencies,
voluntary offsets acquired and surrendered and ACCUs generated and retained/surrendered.

8In 2017, Woodside signed up to the World Bank’s Zero Routine Flaring by 2030 initiative
and the Methane Guiding Principles to reduce methane emissions across our value chain.

Woodside’s Cowcher property near Pingrup, WA – 2,500 ha

Woodside | Better is a lower-carbon future9PART OF A GROWING HYDROGEN MARKETNEW ENERGY AND LOWER-CARBON SOLUTIONS

We see hydrogen as a naturalevolution of our energy export
business model, post 2030.
+ We have jointly invested more than A$40M with Monash
University in the Woodside-Monash Energy Partnership toexplore new energy technologies, including hydrogen.
+ We are progressing the proposed H2Tas Green Hydrogenproject which has been shortlisted for the next stage offunding from the Australian Renewable Energy Agency(ARENA).
+ We are developing markets for LNG as a new and cleaner
fuel for land-based use (e.g. remote power generation)and shipping. We have already successfully piloted theseprojects at small-scale.
+ We are looking for opportunities to use carbon captureand storage (CCS) at scale, with the potential to unlock~3.4Gt of storage across Woodside operated titles1.
1. Estimates are 100% project, relate to carbon storage potential and are not resource estimates.

10

Woodside advantages

Our partnerships+ Ability to leverage existing infrastructure+ Experienced in processing and storage of cryogenic gases+ Established relationships with customers and technology providers+ Access to abundant renewables+ Japanese consortia trialling use ofammonia in power generation+ Exploring green hydrogen export
project with KOGASPart of a growing hydrogen market

Woodside advantages••••

Ability to leverage existing infrastructure

C ar bon-neutralhydrogenp ro d u c t i o nExperienced in processing and storage ofcryogenic gases

Established relationships with customers andtechnology providers

Electrolysis
Ammonia orother hydrogencarriers

Renewable
electricity

Access to abundant renewables

Woodside partnerships

Transport ands to ra g e

Natural gas

Steammethane
reforming

Japanese consortia trialling use of ammonia inpower
generation
The Woodside Monash Energy Partnership is researching
high-efficiency
and low-cost solutions
•

DRAFT

E nd use

Heavy vehicletransportPowergeneration
LiquidhydrogenIndustrials andchemicals

to generate, store, and export carbon neutral energy, including hydrogen and its carriers.

•Exploring green hydrogen export project withKOGAS

CO2 management
Woodside | Better is a lower-carbon future11

Head Office
Woodside Energy Ltd
Mia Yellagonga
11 Mount Street
Perth WA 6000 Australia
Postal Address
GPO Box D188
Perth WA 6840 Australia
T +61 8 9348 4000
F +61 8 9214 2777
E companyinfo@woodside.com.au
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