Carnarvon Energy Ltd (ASX:CVN) has outlined its development pathway for the Dorado Project off the coast of Western Australia in its 2024 sustainability report, with a focus on balancing both energy demands and environmental responsibility.
The company has taken several steps to those ends in recent time, including engineering works at Dorado intended to reduce development costs and carbon intensity while accelerating cash flow, and developing a carbon bank with Australian Carbon Credit Units (ACCUs) to offset future emissions.
In terms of direct regulatory engagement, CVN is also developing an environment plan (EP) for Dorado and the company’s Bedout exploration activities with approval targeted for the end of the next quarter.
Offsetting the first three to five years of production
"In line with Carnarvon’s approved Carbon Offset Strategy, we developed a ‘carbon bank’ over the year via the acquisition of ACCUs on-market,” Carnavon risk, governance and sustainability (RGS) committee chair Will Barker said.
“These ACCUs are intended to offset future emissions from the Dorado production facilities in accordance with the relevant regulatory requirements under the Safeguard Mechanism.
“Based on Carnarvon’s calculation, the company has acquired ACCUs to cover the first three to five years of production under the Safeguard Mechanism.
“Carnarvon also offset all its Scope 2 emissions from its corporate office consistent with previous years.
“The RGS Committee remains integral in overseeing ESG matters for the company, and providing the necessary leadership to ensure Carnarvon meets all its obligations in this area as we advance towards development and future production.”
CVN’s sustainability and development goals for the 2025 period include:
- Incorporating emissions reduction measures in the design of the Dorado production facilities.
- Positioning the business for mandatory disclosure of climate-related financial risks and opportunities.
- Securing approval of the EPs for the Dorado development and Bedout exploration activities.
- Ensuring the Dorado facilities meet required standards and specifications for asset integrity and critical incident management.
- Maximising shareholder value and drive share price growth through the realisation of the Dorado Final Investment Decision (FID) and future exploration drilling.