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Energy companies must reduce the carbon intensity of their products – Woodside CEO

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The exhibition stand of Australian group Woodside Energy is displayed at the World Gas Conference 2022 in Daegu, South Korea May 23, 2022. REUTERS/Florence Tan/File Photo

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NEW YORK, June 15 (Reuters) – Energy companies must reduce the carbon in their products and prioritize the development of hydrogen-based fuels, Meg O’Neill of Woodside Energy Group (WDS.AX) said on Wednesday.

“We need to start offering our customers products that are lower in carbon intensity than where we sell them today,” O’Neill told Reuters on the sidelines of the Reuters Global Energy Transition conference in Brooklyn, New York. .

Woodside is the largest independent natural gas producer in Australia, where it has two hydrogen projects underway. An American project in Oklahoma aims to produce liquid hydrogen for long-haul vehicles.

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She said the company was in talks with customers in the United States, Japan and South Korea about possible uses for hydrogen and ammonia products.

“We are doing our shareholders no favors if we build factories and no one buys our products from us,” she said.

The company recently completed its merger with the oil arm of BHP Group, giving it a 100% stake in the $5.7 billion Scarborough natural gas project it is developing off the coast of Western Australia. .

O’Neill said the company is still looking to divest a stake in the project. Talks on the sale to Chinese national oil companies have been suspended due to strained bilateral diplomatic relations.

She said the company was talking with “non-Chinese” buyers but wouldn’t be more specific.

The Perth-based company plans to be net zero by 2050, if not sooner, O’Neill said, and to invest $5 billion in new energy by 2030.

“We have very clear plans to move from a pure oil and gas player to a company that provides a variety of energy sources,” including low-carbon and zero-carbon energy sources, he said. she declared.

Woodside is also investing in ammonia production. O’Neill said the company could produce ammonia in Australia and ship it to Japan and Korea for power generation, similar to liquefied natural gas (LNG) produced by Woodside.

Some power plants can use up to 20% ammonia as fuel, O’Neill said, and Woodside and its customers are studying whether plants can handle 50% or more ammonia fuel.

“We have a very clear capital allocation framework with very specific targets for oil, natural gas and new energy,” O’Neill said, noting that the company expects an oil project yields 15%, a gas project 12% and new energy. project 10%.

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Reporting by Stephanie Kelly and Scott DiSavino; Editing by Richard Chang and Chris Reese

Our standards: The Thomson Reuters Trust Principles.