- Senex Energy (SXY) closes slightly higher on the ASX today after announcing its plans to become completely carbon neutral by 2040
- Using the 2021 financial year as a baseline, Senex plans to cut greenhouse gas emissions by 30 per cent in FY25, 75 per cent in FY30 and 100 per cent in 2040
- SXY says it will achieve this by electrifying new processing facilities from renewable sources, reducing gas flaring, introducing climate-related incentives and more
- Managing Director and CEO Ian Davies says Senex is committed to supporting a global transition to cleaner energy and a low-carbon economy
- Shares in Senex Energy closed 0.51 per cent higher at $3.95 each
Oil and gas producer Senex Energy (SXY) closed slightly higher on the ASX today after announcing its plans to become completely carbon neutral by 2040.
The company today outlined its “bold” near-term emissions intensity reduction targets in an announcement to the ASX.
Using the 2021 financial year as a baseline, Senex plans to cut greenhouse gas emissions by 30 per cent before the end of the 2025 financial year, by 75 per cent before the end of FY30 and by 100 per cent before the end of 2040.
Managing Director and CEO Ian Davies said the company was committed to supporting a global transition to cleaner energy and a low-carbon economy.
“Natural gas is integral to meeting demand for reliable and affordable energy and we are focused on being the natural gas supplier of choice through the transition,” Mr Davies said.
“We plan to expand our valuable natural gas business to deliver 60 petajoules per year by year-end FY25 and, at the same time, materially reduce the carbon intensity of our operations and use our knowledge and technology to help our customers to do the same.”
Senex’s decarbonisation plan
Senex has outlined several key steps it plans to take to reach net-zero emissions by its 2040 target.
From an operational perspective, the company said it would electrify all new processing facilities from renewable sources and reduce gas flaring by 70 per cent by FY25. The company will cut gas flaring entirely by the 2030 financial year.
Further, Senex said executive directors would be given remuneration incentives linked to the company’s performance against climate-related targets.
At the same time, Senex said it would engage with customers to identify customer-related greenhouse gas emission targets within the next year.
Senex plans to spend at least five per cent of its annual earnings before interest, tax, depreciation and amortisation (EBITDA) on low-carbon investments, with this percentage figure to be reviewed every year.
“Decarbonising the energy system will require sustained and cooperative action across the entire energy sector,” Mr Davies said.
“We are proud to be taking these first steps and are committed to reducing our emissions while meeting growing energy demand through increased low-carbon natural gas production.”
On the back of today’s decarbonisation news, shares in Senex Energy closed 0.51 per cent higher at $3.95 each.