ADX targeting 45% emissions cut at Austrian gas play; ESG focus withstands chaotic backdrop
ADX is in talks with Austria's RWA Solar to decarbonise gasfield, shrugs off energy security crisis
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Mentioned
KEY POINTS
- ADX Energy is launching a joint feasibility study alongside a leading Austrian solar power firm
- ADX seeking to electrify its oil and gas operations in the Upper Vienna Basin; company targeting 45% emissions reduction
- Two sites identified in ADX’s 13ha portfolio for proposed solar plant sites
ADX Energy (ASX:ADX) is seeking to demonstrate its ability to meet ESG outcomes while retaining energy security objectives at its Austrian acreage. The company has teamed up with Austria’s RWA Solar Solutions to investigate constructing two solar plants to support its oil and gas exploration play.
ADX is targeting a 45% reduction of emissions associated with its operations by way of including solar energy assets on-site, meaning it can replace nearly half of its reliance on diesel and gas-fired electricity through transmission networks.
Two suitable locations have been identified so far across ADX’s land holdings.
The move would also likely save ADX significant costs in paying for electricity, with bills across Europe rising on the back of Russia’s deliberately manufactured energy supply cut-off.
ADX’s ESG focus withstanding macro crisis
While ADX calls its existing operations ‘low emissions’ to start with (likely due to the small size of operations in the first place,) if ADX can pull of a 45% reduction, the company will be well ahead of its Australian peers; even those operating in Europe.
Also worth noting is that ADX is seeking to press ahead with ESG outcomes at the same time many companies have stacked ESG concerns on the backburner while larger macro trends continue to disrupt the ‘normal’ flow of markets wholemeal.
The company also notes, if successful, the plan would allow ADX a foot-in-the-door to penetrate the Austrian renewables sector.
Renewables, you say?
Speaking at Perth’s Good Oil conference earlier this month, intentions to enter the renewables sector were not exactly a headline piece of the company’s presentation to investors.
ADX has, however, made significant noise around its plans to penetrate hydrogen markets, though it has been more interested in storing hydrogen underground in depleted reservoirs.
Regardless, solar power generation on-site would be needed anyway, if the company ever wants to make green hydrogen. Perhaps that is a longer term vision, here, between the lines—perhaps not.
For context, ADX Energy's one year charts. The blocky appearance comes from the relative illiquidity in daily trades
