Santos to build a carbon capture project in South Africa | Liverpool City Champion

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Oil and gas giant Santos will undertake a $ 220 million carbon capture and storage project in northern South Australia, a move hailed as a major step in Australia’s progress towards net zero emissions. ‘by 2050.

Santos and its joint venture partner Beach Energy say the Moomba plan has been successfully registered with the Clean Energy Regulator, which allows it to qualify for carbon credits over a 25-year period.

Santos chief executive Kevin Gallagher called the project of global significance.

“This carbon reduction project in the South Australian outback will be one of the largest 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 have held oil and gas in place for tens of millions of years, ”Mr. Gallagher said.

“This decision is a critical step in the decarbonization of natural gas on our path to new low-emission, clean-burning fuels such as hydrogen.

“Moomba CCS is the first project to press the Go button, with more to come.”

Federal Energy Minister Angus Taylor said the project was the first to be registered under the government’s Emissions Reduction Fund and was a big step forward for the technology in Australia.

“This is the first time that a national government will issue tradable, high integrity carbon credits to large-scale projects that permanently capture and store carbon underground,” Taylor said.

SA Energy Minister Dan van Holst Pellekaan said the storage facility will create 230 jobs during construction and support more during operation.

“Santos’ commitment to the transition to clean fuels is essential for South Australia’s economy,” he said.

“We want to be a world-class producer of clean fuels such as hydrogen to help fuel our economy and export to the world.

“This infrastructure will become even more valuable over time, allowing South Australia to capture carbon dioxide from many sources and store it underground.”

Santos said the full life cycle cost of carbon storage is expected to be less than US $ 24 per tonne with the first injection of CO2 scheduled for 2024.

The carbon to be stored represents about seven percent of AS emissions and will reduce emissions from gas production at Moomba by 70 percent.

Associated Australian Press


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