Santos provides update on Moomba CCS project

Australian energy company Santos on May 17 said that two crucial pieces of equipment, valued at approximately AU$30mn, have arrived in South Australia and are on their way to the Moomba carbon capture and storage (CCS) project site.

This development follows the project's recent achievement of reaching 60% completion, with the first injection of carbon dioxide (CO₂) on track for 2024.

Moomba CCS project aims to capture and abate carbon emissions from natural gas, which could potentially create new revenue streams. In addition to reducing Santos' own emissions, the company plans to collaborate with other hard-to-abate sectors to explore opportunities for emissions reduction using CCS.

Once operational, the Moomba CCS project will securely and permanently store up to 1.7mn metric tons/year of CO₂ in depleted reservoirs that previously held oil and gas for millions of years.

Santos recently executed four memoranda of understanding for the storage of CO₂ emissions from third parties at the Bayu-Undan CCS project, located offshore Timor-Leste.

The Bayu-Undan CCS project is situated within Santos' Darwin and Bayu-Undan Hub, part of its three hub CCS strategy that includes the Moomba CCS project. Bayu-Undan CCS has the potential to reduce the absolute emissions and emissions intensity of Australian gas and LNG projects, as well as of other industries in the Northern Territory.

The company said it recognises the critical role of increased CCS deployment in achieving global climate goals. Its commitment to CCS aligns with its strategy to deliver emissions reduction solutions for its own operations, customers, and third parties, Santos said.

Furthermore, Santos is planning to conduct trials of direct air capture (DAC) in the Cooper basin later this year. If successful, DAC with CCS could have significant potential for scaling up and further contributing to emissions reduction efforts, it said.