Woodside Energy, an Australian energy giant, has refuted claims from environmental group Friends of the Earth that it is lobbying for subsidies on fossil fuels. Despite recommending that new gas-fired power projects be given the same treatment as renewable schemes, Woodside denies seeking fossil fuel subsidies from the Australian government.
Controversy Over Gas Power Generation Inclusion
Friends of the Earth expressed concern over Woodside’s call to extend government underwriting to methane gas projects, stating that it could lead to more taxpayer money supporting an industry that hinders climate initiatives. The environmental group urged the government to reject such requests, emphasizing the negative environmental impact of methane gas.
Woodside’s Submission to Future Gas Strategy
Woodside’s submission to the Australian government’s Future Gas Strategy included nine recommendations, one of which proposed extending the Capacity Investment Scheme to cover gas power generation. The company clarified that its submission aims to ensure market stability and affordability during the transition to renewable energy, especially as coal-fired generation phases out.
Australian Energy Market Operator’s Perspective
Woodside’s position aligns with the Australian Energy Market Operator’s 2024 draft Integrated System Plan, which emphasizes the importance of gas-powered generation in supporting grid stability during the transition to a net-zero economy. The plan suggests that a combination of renewable energy, storage, and gas-backed generation is the most cost-effective approach.
Woodside Emphasizes Market Stability
Woodside defended its stance, emphasizing the need for stability in the market as Australia shifts to renewable energy. The company believes that including gas in the Capacity Investment Scheme will contribute to grid stability and affordability, especially with the phase-out of coal-fired generation.
Source: upstreamonline.com
