Origin Energy announces plans for net zero

Origin Energy Limited (Origin) has released its first Climate Transition Action Plan (CTAP) outlining the company’s strategy and ambition to lead the energy transition through cleaner energy and customer solutions. The company says the CTAP includes new targets to accelerate emissions reduction across Origin towards a long-term ambition to be net zero emissions by 2050.

Origin’s CTAP includes the ambition of reaching net zero Scope 1, 2 and 3 emissions across the value chain by 2050, with a medium-term target consistent with the goals of the Paris Agreement to reduce Scope 1, 2 and 3 equity emissions intensity by 40% by 2030, from a FY2019 baseline.

“As a leading Australian energy company with operations spanning retail, power generation and natural gas production, and as a major employer with a footprint in many communities across the country, we recognise we have an important role to play in the transition to a low-emissions future,” said Origin CEO Frank Calabria. “We have a track record of action and advocacy on climate change and have made progress in several areas; and we also recognise the need for greater ambition and action.

“The release of our first Climate Transition Action Plan is an important milestone for Origin, and we believe it articulates a clear, pragmatic and ambitious pathway to accelerate decarbonisation across our business and create value for shareholders.”

Origin recently announced the closure of the coal-fired Eraring plant by 2025, with a big battery planned for the site.

“We are also progressing plans for a 700 MW battery on the Eraring site and have more than 1600 MW of renewable development projects, as we aim to grow renewables and storage capacity within our generation portfolio to 4 GW by 2030,” Calabria said.

“We recognise that a significant proportion of our emissions result from our customers’ use of the energy products we sell, or our Scope 3 emissions, and therefore our customers are a central part of our strategy and are captured within our medium-term targets and long-term net zero ambition,” he added. “Our view is that gas will continue to play an important role in the energy mix for some time, to support variable renewable energy output and for customers who cannot easily electrify and for which there is no viable alternative to gas available today.

“We believe our climate plan is appropriately ambitious, and that our medium-term emissions intensity target and long-term net zero emissions ambition are consistent with the goals of the Paris Agreement; therefore, we encourage shareholders to support it.”

Origin’s Climate Transition Action Plan will be submitted to a non-binding, advisory shareholder vote at the company’s Annual General Meeting on 19 October 2022.

Image: Eraring power station. ©iStockphoto.com/Harlz