Woodside to abandon long-term emissions and clean energy targets
Australian oil and gas company Woodside Energy will abandon its long-term targets for cutting emissions and investing in clean energy. The company will also cancel its commitment to invest $5 billion in new energy products, including hydrogen, by 2030.
Financial results
As The Guardian World reports, Australia’s largest oil and gas company increased its sales profit by 27% over six months, to $1.67 billion, or A$2.33 billion. The publication links the increase to higher oil prices caused by disruptions to global supplies amid the conflict involving Iran.
Woodside expects further trading profit by redirecting oil cargoes to markets offering higher prices. The company also announced interim dividends of 57 US cents per share, compared with 53 cents a year earlier.
Review of low-carbon projects
Woodside’s new ammonia business in the United States has been placed under strategic review. The company had previously described the asset as one of its most promising options for decarbonising energy sources.
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Chief executive Liz Westcott told analysts that Woodside would “scrap” its investment targets and Scope 3 emissions reduction targets. These are emissions generated by the company’s customers while using its products. According to Westcott, these benchmarks were set under different market conditions.
She noted that markets for low-carbon sectors, including hydrogen, ammonia, carbon capture and storage technologies, had developed more slowly than expected. Going forward, Woodside’s new energy business will be guided by customer demand and commercial markets.
Brett Morgan, investor campaigns manager at climate organisation Market Forces, criticised the company’s decision. He said that Woodside’s major investors, including Australian pension funds, should demand that it abandon plans to expand fossil fuel operations.
