Denison Gas acknowledges the need to reduce emissions as the world seeks to reduce the effect of global warming. Our plans to decarbonise our operations align with the aims and desires of our customers and partners.
Energy customers are seeking to reduce their emissions by seeking low-carbon fuels, capturing their CO2 emissions or by offsetting their emissions.
The landholders on whose land we operate, the communities where we are and other parties integral to our social licence to operate over time will rightly measure our performance more on our ability to “do good” for the environment.
Many investors, including potential future investors in Denison, have a broadening expectation in relation to low-emissions performance, both from an ethical-investment viewpoint and for the consequent resilience of the Company’s business model to weather and excel in an increasingly emissions-constrained future.
The internationally community’s resolve to decarbonise the energy supply chain has gained considerable momentum in the last few years, and this has been reflected in the Australian Government’s own statement in relation to a net zero target by 2050. Whilst Denison and the energy industry generally had identified net-zero as a key target some time ago, the formal adoption by governments, including Australia’s, has accelerated the progression of projects to achieve emission reductions.
Another tangible recent change has been the rapid maturation of hydrogen as a major component of the future energy mix, with very substantial activities progressed by government and industry to prove its viability at scale and reduce its cost of production, transportation and use. Hydrogen production from natural gas has been produced at industrial scale for decades. Adapting this process to a low-carbon alternative (by capturing and storing the by-product CO2, a process commonly referred to as “blue hydrogen” production) is a recognised pathway promising lower-cost production earlier than might be achievable through other ways of producing hydrogen.
Denison is developing opportunities in relation to decarbonisation.
Steps taken to date include:
- the execution of a Memorandum of Understanding with a major Australian university to investigate a potential Carbon Capture and Storage (CCS) project in the vicinity of Denison’s existing operations; and
- initiated a blue hydrogen production infrastructure study leveraging Denison’s existing assets and gas production
Through these initiatives Denison will decarbonise its operations and provide products and services to enable customers to reduce their emissions as well.