Woodside Petroleum [WPL:AU], Australia’s major petroleum exploration and production company, announced an investment worth USD5bn in clean energy by 2030, as reported by Bloomberg on December 8. On the same day, the enterprise announced a trial project of concentrated solar power in California, together with the collaboration with Hyzon Motors [HYZN:US] in developing green hydrogen production facilities.
Woodside aims to build a low-cost, carbon-friendly, profitable, resilient, and diversified portfolio, citing CEO Meg O’Neill. However, the company, at the transition to a green energy producer, has yet to exclude the fossil fuel business from its portfolio. On November 22, Woodside and BHP Group [BHP:US] just approved a USD12bn investment in an Australian gas project, two months after the world’s largest mining company agreed to merge its oil and gas business with Woodside. It is mainly because Woodside expects liquefied natural gas (LNG) will still be a crucial part of the global energy mix for decades, and it sees LNG as a less polluting substitute for coal. Moreover, Meg admitted that Woodside’s investment in green energy counts on the proceeds brought by its merger with BHP’s petroleum arm. The merger deal is expected to be completed after a shareholder vote in the second quarter of next year.