Ampol Limited has released its 2023 Climate Report (Report) providing an overview of how it is progressing the delivery of its Future Energy and Decarbonisation strategies. It covers the period from May 2021 to end of May 2023 and is aligned with the Task Force on Climate-related Financial Disclosures (TCFD) framework.
Ampol Managing Director and CEO Matt Halliday said: “The Ampol Group is well placed to successfully navigate the energy transition and play a key role in the broader decarbonisation of transport in Australia and New Zealand.
“In 2021, we set targets to decarbonise our Australian operations and we have a clear pipeline of initiatives to meet the interim emission reduction targets for 2025. Combined with the interim targets to 2030, they will put us on a pathway to meet our ambition to reduce our Australian operational emissions (Scope 1 and 2) to net zero by 2040,” he said.
“Since acquiring Z Energy in May 2022, we have adopted their previously established commitments to reduce operational emissions in line with the Paris Agreement to limit warming by 1.5˚C, with a 42% reduction by 2030 from 2020 levels.
“We are also committed to helping our customers embark on their energy transition journey. Ampol has an important role to play and we have made significant progress in our test and learn activities across a range of mobility solutions and in progressing the initial rollout of our on-the-go EV charging network,” Mr Halliday said.
“Our key markets are in the early stages of the transition and the pace and shape of the transition is both uncertain and likely to vary significantly in each of the markets we serve. This requires us to take a flexible and pragmatic approach, tailoring the level of spend and areas of focus over time and as markets evolve.
“We have made good progress in the last two years since launching our strategy, leaning into the challenges and opportunities the transition presents. Importantly, I believe we are getting the balance right between meeting the needs of our customers and shareholders today and investing in the energy transition in an appropriately paced manner to retain their support through the transition in the years ahead,” he said.
Undertaking strategic planning to better understand the long-term opportunities pipeline
The Report also includes the release of new climate scenario modelling of the Australian transport sector, building on the climate modelling work released in 2021. The climate modelling suggests that under plausible climate change scenarios:
- Due to average vehicle ownership periods (10 years in Australia, 14 years in New Zealand), our customers’ demand for traditional transport fuels will remain robust well into the 2030s.
- Electric vehicle penetration of the total fleet will gradually increase from 2025 to become the predominant mode of transport by 2050.
- Heavier, long-haul and aviation transport solutions will take longer to emerge and will likely require renewable fuels as an interim to longer term solution, until hydrogen becomes economic as a transport fuel.
- Cash flows from the core business should remain strong to support investment into the transition while maintaining shareholder returns.
Committed to taking action
The electrification of passenger and light commercial vehicles has commenced, so Ampol is investing to roll out an on-the-go fast charging network. Ampol is also building strategic partnerships to accelerate electric vehicle (EV) solutions, and have launched a collaboration with EVDirect, the Australian importer and seller of BYD vehicles, and Hyundai.
Z Energy’s EV charging network is expanding with a dedicated Z EV Charging App to enable customers to easily find and pay to charge their vehicles.
Ampol is also undertaking a study in conjunction with ENEOS to explore the feasibility of developing an advanced biofuels manufacturing facility at our Lytton refinery in Brisbane, Australia to generate sustainable aviation fuel (SAF) and renewable diesel.
Mr Halliday said: “We are proud of the progress we are making to support our customers and the economy-wide decarbonisation of the transport sector across Australia and New Zealand. We will continue to partner and engage broadly to positively influence the enablers of the transition and facilitate the reduction of economy-wide emissions from transport.”
