Santos and Beach Energy reach FID on Moomba CCS project
Australian LNG player Santos and oil and gas company Beach Energy have reached a final investment decision (FID) for the $165 million Moomba carbon capture and storage (CCS) project in South Australia, starting in 2024.
Santos registered the project with the Clean Energy Regulator.
The Clean Energy Regulator’s CCS method provides a crediting period of 25 years. Over that period, the project will qualify for Australian Carbon Credit Units for emissions reduction from Moomba CCS.
“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,” said Santos CEO Kevin Gallagher.
“We forecast a full lifecycle cost of less than US$24 per tonne of CO2 including cash costs in operation of US$6-8 per tonne of CO2, with first injection targeted for 2024.
“This decision is a critical step in decarbonising natural gas on our path to new low-emissions and clean-burning fuels such as hydrogen.
“It is also an important milestone in our plan for Santos to achieve net-zero Scope 1 and 2 emissions by 2040.”
Santos and Moomba CSS in Austalia’s energy transition leading role
The International Energy Agency requires a major increase in CCS between now and 2050 to achieve the world’s climate goals. The goals include going from 40 million tonnes of CO2 stored each year to 5.6 billion tonnes in 30 years.
Gallagher also said that Santos is already receiving significant international interest in their CCS and hydrogen plans.
“Santos is playing a leading role in driving the energy transition, including our 1.7 million tonnes per year Moomba CCS Project in South Australia and our proposed plan to use the Bayu-Undan facilities in Timor-Leste to safely and permanently store up to 10 million tonnes of CO2 per year once gas production ceases,” he added.
Beach Energy CEO Matt Kay said the Moomba CCS project would deliver a step-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 some of these same reservoirs will play a role in reducing Australia’s emissions.” he said.
Moreover, this project will deliver a material reduction to Beach’s emissions. It also represents a key pillar of the company’s 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… 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 the operator. Beach Energy. holds the remaining interest.