Shell's Potential Divestment from Corporate Carbon

Shell is reportedly exploring options to sell its stake in Corporate Carbon, an Australian carbon credits company. Corporate Carbon manages over 100 projects under Australia's Emissions Reduction Fund and has delivered more than 10 million Australian Carbon Credit Units (ACCUs), which are fundamental to the country's carbon trading market. Its projects include carbon capture and storage, reforestation, and alternative waste treatment. Shell initially secured an option for interest in Corporate Carbon in 2019 and exercised it in 2023, acquiring a 25.1% stake. The deadline for non-binding letters of intent is late June, with Greenhill Capital acting as transaction advisor. Both Shell and Corporate Carbon declined to comment, while Greenhill Capital did not respond to inquiries.

Context and Industry Perspectives

Some observers interpret Shell's move as part of a broader shift by oil and gas majors back to traditional hydrocarbons, influenced by the Middle East crisis and US administration policies. However, according to S&P Global Energy's Agamoni Ghosh, such scrutiny may be overstated. Ghosh notes that hard-to-abate sectors like mining, metals, oil and gas are visible participants in Australia's carbon market due to compliance pressure, but the framework extends beyond any single sector. Shell retains ownership of Select Carbon, another Australian ACCU project developer acquired in 2020.

Western Australia's CCS Acreage Release

Western Australia has launched nominations for potential carbon capture and storage (CCS) projects as part of its 2026 acreage release programme, marking the first inclusion of greenhouse gas storage. Mines and Petroleum Minister David Michael emphasized the petroleum sector's role in the state economy and energy partnerships. The nomination process runs until 20 June, with work programme bidding later in the year. Western Australia already hosts major CCS projects, including Chevron's Gorgon offshore field and Woodside's Browse development, which includes a CCS component for gas processing at the Karratha Gas Plant.