Woodside Petroleum Ltd has entered into a $100 million carbon offset program with Australian Securities Exchange-listed forestry company CO2 Australia Ltd, to offset the emissions from its Pluto liquefied natural gas project in the state's north west.
Woodside Petroleum Ltd has entered into a $100 million carbon offset program with Australian Securities Exchange-listed forestry company CO2 Australia Ltd, to offset the emissions from its Pluto liquefied natural gas project in the state's north west.
The project, which was granted commonwealth environmental approval last month, is expected to more than triple Woodside's current LNG equity production to more than 6.6 million tonnes per annum.
According to its environmental assessment, the Pluto project will add almost 1.55 million tonnes of greenhouse gas emissions each year, which will be reduced to 1.25 mtpa with abatement during phase 1.
Once the project reaches phase 2, at around 2016, the GHG emissions will rise to 1.8 mtpa, which will be reduced to 1.5 mtpa with abatements.
The abatement program will involved mallee plantings in New South Wales and Western Australia over 2008 and 2009, with the option of undertaking additional plantings in 2010, 2011 and 2012.
The program will be accredited under the federal government's Greenhouse Friendly Program. CO2 Australia is the only Commonwealth accredited carbon offset group in Australia.
The full text of a CO2 announcement is pasted below
CO2 Group Limited is pleased to announce that the Company's 100% owned subsidiary CO2 Australia Limited has successfully reached agreement with Woodside Burrup Pty Ltd, a subsidiary of Woodside Energy Limited (Woodside) on the key terms of a major carbon offset program. The parties intend to execute a formal agreement by the end of the year.
Under the proposed carbon offset program, CO2 Australia on behalf of Woodside, will establish and manage mallee environmental plantings. This carbon offset program will be established over the next 2 consecutive planting seasons (i.e. 2008 and 2009) with Woodside having an option to undertake additional plantings in the 2010 to 2012 planting seasons. The 2008 planting will take place in New South Wales, with all subsequent plantings in Western Australia.
The plantings will assist in offsetting emissions from Woodside's $11.2 billion Pluto liquefied natural gas project, currently under construction near Karratha in Western Australia.
The first two consecutive years (2008 and 2009) of the program have an estimated value of approximately $25m over a 50 year time frame, with the majority of the value being generated in the first 2 years. Should Woodside exercise its option for additional plantings, the value of the carbon offset program increases by approximately $75m bringing the total value of the carbon offset program to approximately $100m. The carbon offset program will be subject to a number of regulatory and other specific conditions.
CO2 Australia, on behalf of Woodside, will accredit the mallee environmental plantings under the Federal Government's Greenhouse Friendly™ Program (Program) which ensures that these environmental plantings meet the strict compliance obligations under this Program including additionality, permanence and third party greenhouse gas accounting audit procedures/requirements. CO2 Australia has already successfully gained its accreditation in March 2007 and remains the only carbon sink offset provider accredited under this Federal Government Program.
Woodside have also engaged CO2 Australia to provide a tailored employee offset program by which employees can voluntary offset their personal emissions profile.
CO2 Group's Chief Executive Officer Mr Andrew Grant stated "this carbon offset program with Woodside confirms the scale of the business opportunities in the rapidly emerging Australian carbon market. Our CO2 AUSTRALIA™ Carbon Sequestration Program is well positioned to capitalise on this emerging market as CO2 Australia offers a low cost and highly scaleable accredited solution to major Australian companies, multinationals and governments".
