Santos has officially launched operations at its Moomba carbon capture and storage (CCS) project in Australia’s Cooper Basin.
The initiative is designed to store up to 1.7 million metric tons of carbon emissions annually and inject 250,000 tons of CO2 in 2024.
Santos holds a 66.7% stake in the project, while Beach Energy Ltd. owns the remainder. The initiative has also received $10 million in government support through the Carbon Capture Use and Storage Development Fund.
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Kevin Gallagher, managing director and CEO of Santos, highlighted that the successful commencement of the first phase of Moomba CCS represents a significant advancement for the company and for hard-to-abate industries throughout Australia.
He emphasized that CCS technology is increasingly essential with a lifecycle cost below $30 per ton of CO2.
Gallagher also pointed out the potential for this project to create high-skilled, well-paying jobs in South Australia and contribute to the development of a robust carbon management industry in the region.
The Moomba CCS project has established memorandums of understanding with various domestic and international clients, suggesting promising prospects for a second phase of commercial operations.
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Additionally, two Japanese firms have shown interest in partnering with Santos following recent legislation that permits foreign companies to transport CO2 through Australian waters.
These companies are considering options to capture, transport, and sequester emissions from Japan at the Moomba facility.
This collaboration could extend the Cooper Basin’s operational lifespan by an estimated 55 years, supporting numerous jobs and playing a vital role in the evolution of Australia’s energy sector.
Santos has also entered agreements with APA Group and Abu Dhabi National Oil Company to explore potential collaborations in CCS technologies, services, and investments, further reinforcing its position as a carbon capture and storage solutions leader.