Santos, an Australian firm supplying natural gas and its project partner, Beach Energy have secured a grant of AUD15 million from the Carbon Capture Use and Storage Development Fund instituted by the Australian government. The partners won the grant in recognition of their AUD210 million CCS project in Moomba, South Australia.
A Santos LNG facility, Darwin, Northern Territory, Australia. Credit: Santos website
Santos, an Australian firm supplying natural gas and its project partner, Beach Energy have secured a grant of AUD15 million from the Carbon Capture Use and Storage Development Fund instituted by the Australian government. The partners won the grant in recognition of their AUD210 million CCS project in Moomba, South Australia.
The Moomba CCS project is expected to have the capacity of removing and safely storing 1.7 million tonnes of carbon dioxide every year. The carbon dioxide will be stored in the form of geological formations in the Cooper Basin. Cooper Basin is expected to have a capacity of storing approximately 20 million tonnes of carbon emissions every year.
The Moomba CCS project will aid the objectives laid down by the Australian government’s Carbon Capture Use and Storage Development Fund. One key objective is to reduce emissions generated by the natural gas industry. In addition to this, it is hoped that with the recognition of the Moomba CCS project, other industries keen on reducing their carbon footprint will come together to realistically explore CCS into their operations. This will enable widespread adoption of the technology and a subsequent lowering of the costs and risks involved in integrating CCS on a large scale.
The Moomba CCS project is currently among the most inexpensive projects involved in carbon capture and storage today. Currently, the cost of capturing and storing carbon at the Moomba CCS project is at AUD25-30 per tonne. The Australian government has set a target to capture, transport and store carbon emissions at a rate of AUD20 per tonne.
Santos Chief Executive Officer and Managing Director Kevin Gallagher said: “Australia needs low-cost abatement to maintain our position as a leading energy exporter and to protect the manufacturing of energy-intensive materials such as steel, cement and the many every day products that rely on oil and gas as well as enable new industries like hydrogen.”
“CCS and a new clean hydrogen industry could put South Australia at the centre of an emerging global zero-emissions clean fuels boom. I am looking forward to taking a final investment decision on the Moomba CCS project in the second half of this year as we deliver on our commitment to decarbonise our existing business and grow our clean fuels capability on our road to net-zero emissions by 2040.”
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