Tamboran Resources has outlined its plans to comply with the Australian government’s Safeguard Mechanism and achieve net zero Scope 1 emissions by law, while also setting an internal goal to exceed these requirements. The company is committed to managing its carbon emissions economically and is exploring various strategies to achieve its targets.
Material actions and disclosures
Tamboran will report its Scope 1 GHG emissions from operations to the Australian Government’s Clean Energy Regulator (CER) under the National Greenhouse and Energy Reporting Act 2007 (Cth). The company is subject to the Safeguard Mechanism, which sets legislated limits on greenhouse gas emissions for facilities emitting more than 100,000 tonnes of CO2-e per year. Upon exceeding this threshold, all Scope 1 emissions must be offset with Australian Carbon Credit Units or Safeguard Mechanism Credits.
The company has set an internal net zero goal for natural gas production, aiming to utilize renewables and batteries to supply operational power needs and purchase carbon offsets as required. However, there is no guarantee that these plans will be achieved, and the company acknowledges the potential risks associated with meeting these goals.
Forward commitments
Tamboran plans to utilize a variety of means to achieve its net zero equity Scope 1 and 2 GHG emissions goals, including but not limited to, utilizing carbon offsets, exploring opportunities to power facilities with renewable energy sources, implementing methane leakage minimization technology, and integrating a carbon capture storage hub with its proposed LNG project.
The company also aims to exceed the current requirements of the Safeguard Mechanism by reaching net zero equity Scope 1 and 2 GHG emissions upon the commencement of commercial production.
Tamboran’s operations are subject to stringent environmental and occupational safety and health laws and regulations, including the Native Title Act 1993 (Cth), the Sacred Sites Act 1989 (NT), the Heritage Act 2011 (NT), and the Aboriginal and Torres Strait Islander Heritage Protection Act 1984 (Cth).
The company is required to comply with these legislative regimes and their respective requirements for negotiation and agreement, which can significantly delay the grant of exploration and production tenements and may result in substantial compensation being payable as part of any agreement reached.
Tamboran’s efforts to implement or expand sustainability and ESG initiatives may be viewed unfavorably by some stakeholders and expose the company to competing and sometimes irreconcilable demands. The company acknowledges the potential risks associated with these efforts and the potential for increased costs and operational complexity.