Santos and joint venture partner Beach Energy have announced a final investment decision to go ahead with the Moomba carbon capture and storage (CCS) project.
Australian Petroleum Production & Exploration Association (APPEA) Chief Executive, Andrew McConville, said the $220 million investment decision would aid emission reduction efforts.
“CCS technology has been identified by the International Energy Agency as critical to reaching net zero targets, and this potential has been recognised by government and industry alike,” Mr McConville said.
“In particular, registration of the Moomba project with the Clean Energy Regulator is welcome as we work together to pursue all options to reduce emissions both at home and in our region.”
The Clean Energy Regulator’s CCS method provides a crediting period of 25 years, over which period the project will qualify for Australian Carbon Credit Units for emissions reduction from Moomba CCS.
Santos Managing Director and Chief Executive Officer, Kevin Gallagher, welcomed the Regulator’s registration of the project.
“This carbon reduction project in the South Australian outback will be one of the biggest and lowest cost in the world, and will safely and permanently store 1.7 million tonnes of carbon dioxide per year in the same reservoirs that held oil and gas in place for tens of millions of years,” Mr Gallagher said.
“If we do not decarbonise the hydrocarbon fuels that still make up just over 80 per cent of global primary energy and provide 60 per cent of the world’s clothing fibres along with other essential everyday products, then the world will simply not reach net zero by 2050.”
Beach Energy Managing Director and Chief Executive Officer, Matt Kay, said the Moomba CCS project would deliver a change in Beach’s CO2 emissions profile.
“For more than 50 years, natural gas-filled reservoirs in the Cooper Basin have played an important role in delivering Australia’s energy needs, so in many ways it is fitting that some of these same reservoirs will play a role in reducing Australia’s emissions,” Mr Kay said.
“Once operational, this project will deliver a material reduction to Beach’s emissions and forms a key pillar of our aspiration to reach net zero emissions by 2050.
“Natural gas will continue to be a critical source of energy, even in a lower carbon future, and we are committed to playing our part in reducing our emissions footprint – our participation in the Moomba CCS Project is a clear indication of that.
Santos has a 66.7 per cent interest in the Moomba CCS project and is an operator. The remaining interest is held by Beach Energy.