Australian independent oil and gas producer Santos has announced its new ambitious emissions reduction targets with a goal of becoming a net-zero emitter by 2040.

The new reduction targets set by the company will reduce scope one and two absolute emissions by 26%-30% on 2020 baseline by 2030.

Santos said that it will actively work with its customers to lower their scope one and two emissions by over one million tonnes per annum of CO₂ emissions by 2030.

According to Santos, the company will achieve scope one and two absolute emissions net-zero by 2040.

Santos managing director and CEO Kevin Gallagher said: “Our focus over the last three years on step-change technologies such as carbon capture and storage has enabled a pathway that allows us to go further faster when it comes to emissions reduction.”

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Gallagher said that the company is already on track to exceed its existing 2025 emission targets and net-zero emissions target for 2050.

He added: “The world still relies on hydrocarbon fuels for 80 per cent of its primary energy, the same as 45 years ago, so to achieve global emissions reduction goals it is vital that companies like Santos focus on making these fuels cleaner and eventually zero emissions.

“Through large-scale carbon capture and storage, world-leading nature-based offsets, increased use of renewables and energy efficiency projects, Santos will continue to be a leading clean fuels company at the forefront of the energy transition to a lower-carbon future.”

Santos’ Moomba CCS Project will be able to store 1.7Mtpa of carbon dioxide, which is equal to taking about 700,000 cars off the road.

Gallagher further added: “The West Arnhem Land Fire Abatement project involves early dry season burning which has been used for centuries to help prevent bigger, hotter and uncontrolled fires later in the season and Santos is very excited about the potential to expand our interests in nature-based carbon abatement projects, generating additional carbon credits and also improving social, economic and environmental outcomes for Indigenous communities.”

In April, Santos signed a letter of intent (LoI) to divest a 12.5% stake in Barossa project, offshore Northern Australia, to Japanese firm JERA.