Origin Energy Limited · ASX:ORG
Origin Energy — Citi Sustainability & Environmental Opportunities Conference 2008
25 slides from Origin Energy's conference presentation, May 20, 2008
Slide 1: ASX announcement cover note: presentation
For personal use only To Company Announcements Office Facsimile 1300 300 021 Company Australian Stock Exchange Limited Date 20 May 2008 From Bill Hundy Pages 25 Subject PRESENTATION Attached for your information is a presentation being made by Ms Karen Moses, Chief Operating Officer, Australia to th
Slide 2: Origin Energy: Sustainability - a whole of business approach
For personal use only Origin Energy Sustainability - a whole of business approach May 2008 1
Slide 3: Important Notice
Important Notice For personal use only • This presentation should not be interpreted as a response by Origin to the proposal by BG Group to acquire all of the shares in Origin. Any recommendation to acquire or dispose of any securities in Origin and any response by Origin will be required to be made
Slide 4: Since listing in 2000, Origin has steadily increased its resource, generation and retail positions
Since listing in 2000, Origin has steadily increased its resource, generation and retail positions by consistently implementing a fuel-integrated generator/ retailer strategy For personal use only Fuel Retail Generation 4,000 4.0 3,500 2P Reserves Customers 3.5 (PJe) 4,000 (millions) 3,000 Generatio
Slide 5: A sustainable approach to the development of our businesses has been a key part of our growth strategy
A sustainable approach to the development of our businesses has been a key part of our growth strategy… For personal use only 4 4
Slide 6: A sustainable approach to development, with transparent measures
A sustainable approach to the development of our businesses has been a key part of our growth strategy… For personal use only … with transparent measures established which reflect 5 the current challenges in the energy industry… 5
Slide 7: Climate change responses and rising demand for all fuels
… including climate change responses… in t s RLD For personal use only s t r a WO Au LNG will ti con H E ST stra e gas pric on ROS li a more tigh es r b C sets tly to oil h ca ING A ta rge it BIT ts b e nw RIC E y 202 r ev IL P 0 he HO hig HIG o Coal prices surge more than 200pc t to g s se p rice O
Slide 8: The total scale of Australia's emissions abatement target is large and yet to be set
The total scale of Australia’s emissions abatement target is large and yet to be set… For personal use only Sector (2007) % Stationary Energy 50% Transport 15% 2006 Fugitive 6% forecast Industrial 6% Agricultural 16% 66 MT Waste 3% 150 MT Land Use & Forestry 5% The stationary energy contributes at 5
Slide 9: Mandatory renewables targets will cause new renewable generation to be built
Mandatory renewables targets will cause new renewable generation to be built… For personal use only NEM Demand 2008 vs 2020 300 250 200 Thermal Generation TWh 150 100 50 20% MRET Target - 2008 2020 indicative … with the fuel mix for the balance of conventional plant 8 dependent on government policy
Slide 10: Lower emission intensity from combined cycle turbines means gas should be favoured
The lower emission intensity from combined cycle turbines means that gas should be favoured for any thermal new build For personal use only 1.6 1.4- 1.2 1.4 1.2 1.0- Emission intensity CO2-e/MWh 0.8 1.0 0.8 0.7 0.6 0.4- 0.45 0.4 0.2 0.0 CCGT OCGT Black Coal Brown Coal 9 9
Slide 11: While coal in eastern Australia has traditionally been cheap and abundant
While coal in eastern Australia has traditionally been cheap and abundant… For personal use only Monthly Average Coal Price 6 5.5 NEWC Coal Price 5 4.5 4 AUD/GJ 3.5 3 2.5 2 1.5 1 Oct-02 Oct-03 Oct-04 Jan-07 Jan-08 Apr-07 Jul-02 Jan-03 Apr-03 Jul-03 Jan-04 Apr-04 Jul-04 Jan-05 Apr-05 Jul-05 Oct-05 Ja
Slide 12: A carbon price around $20-30/t will start to change the merit order of gas and coal
At existing coal prices a carbon price around $20-30/t will start to change the merit order of baseload gas and coal… For personal use only Short run marginal costs of generation vs carbon price 140 120 100 B Brown Coal Gas - CCGT 80 $/MWh Black Coal 60 Black Coal (High Price 40 Scenario) 20 A - 0 1
Slide 13: LNG is an emerging market for domestic gas and provides an oil linked price alternative
LNG is an emerging market for domestic gas and provides a “oil linked” price alternative For personal use only LNG Pricing in Asia Pacific Together LNG and power generation are likely to result in significantly higher demand for gas 12 Source: Woodmackenzie, Global LNG Online, LNG Insights April 200
Slide 14: Total 2P Reserves and Contingent Resources in eastern Australia over 31,000 PJ
Total 2P Reserves and Contingent Resources in eastern Australia are currently estimated at over 31,000 PJ… For personal use only 8,000 CSG Reserves in Queensland by Company 7,000 Other Sunshine Gas 6,000 AGL BG Group 2P reserves - PJ 5,000 QGC Arrow CH4 4,000 Santos Anglo 3,000 Tipperary BHPB 2,000
Slide 15: Potential for reserves to increase even further in a higher price environment
… with potential for reserves to increase even further in a higher price environment For personal use only Schematic illustration of relationship between gas prices and economically viable CSG reserves * Because of Economically variances in viable CSG cost structure reserves between geographies, (PJ
Slide 16: Origin has an extensive acreage position across the two prime CSG fairways in Queensland
Origin has an extensive acreage position across the two prime CSG fairways in Queensland For personal use only • Origin’s share of 2P reserves is 2,470 PJ (July 2007), while 3P reserves are estimated at 4,578 PJ (this excludes Bowen Basin Basin CSG CSG Bowen exploration potential) Fairview && Spring
Slide 17: The mix of technologies to meet the renewables target will be determined by relative cost
The mix of technologies required to meet the renewables target will be determined by relative cost… For personal use only Long run marginal cost of electricity generation Estimates for mature technologies 250 130-200 200 • The lowest-cost large- 85-158 scale technology likely 60-150 150 to qualify f
Slide 18: Origin well positioned to capture value from additional renewable generation requirement
Origin is also well positioned to capture value from the requirement for additional renewable generation under climate change policy For personal use only Wind • Origin acquired an option for access to 590MW of wind farm development sites from Epuron • Origin has committed to build the first 30MW wi
Slide 19: Contact has a similar set of opportunities in New Zealand
Contact has a similar set of opportunities which can be leveraged in the New Zealand environment For personal use only Geothermal • 500 MW of new geothermal generation in various stages of development Stage 1: 225 MW Te Mihi project – construction commencing late 2008 Stage 2: 245 MW Tauhara pro
Slide 20: Reduce the greenhouse gas intensity of our energy production and distribution
Reduce the greenhouse gas intensity of our energy production and distribution and non-producing assets For personal use only Reduce the greenhouse gas emissions intensity of our gas supply chain to 10% less than the gas industry national average by 2012 • Strong growth in CSG at less than half the i
Slide 21: Offset greenhouse gas emissions from non-energy producing sites
Reduce the greenhouse gas intensity of our energy production and distribution and non-producing assets For personal use only Offset all greenhouse gas emissions from non-energy producing sites using a mix of carbon offsets and GreenPower IAG to be carbon neutral by 2012 Nation Google plans to go car
Slide 22: Reduce the greenhouse gas intensity of our customer's energy consumption
Reduce the greenhouse gas intensity of our customer’s energy consumption For personal use only Be recognised as the leading provider of green energy products; and Increase our sales of low carbon intensity products to 10% of our total supply chain greenhouse gas emissions by 2012 21 21
Slide 23: What is Origin's approach to sustainability?
What is Origin’s approach to sustainability? For personal use only • Our approach is guided by our company commitments and principles. Communities • We will add value to the resources that come under our control. • We will distribute the value we create to stakeholders, recognising the need to ensur
Slide 24: 2007 Sustainable Company of the Year
2007 Sustainable Company of the Year For personal use only 23 23
Slide 25: For more information
For more information For personal use only For more information on Origin Energy please contact Angus Guthrie Manager, Investor Relations Email: angus.guthrie@originenergy.com.au Office: +61-2-8345 5558 Mobile: + 61-4-1786 4255 Alternatively visit our website www.originenergy.com.au and follow the p
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