Santos signs MoU with Liberty Primary Metals for supply of abated natural gas

Santos has signed a memorandum of understanding (MoU) with Liberty Primary Metals Australia, a major commercial industrial gas user and part of GFG Alliance, to initiate discussions for gas supply integrated with carbon capture and storage (CCS) opportunities, it said on February 26.

Kevin Gallagher, CEO of Santos, said the MoU to supply abated natural gas is aimed at assisting the GFG Alliance in its decarbonisation pathway as it transitions to a Direct Reduction Plant (DRP) in Whyalla that can process local magnetite ore to produce low-carbon iron.

Initially utilising a combination of natural gas and green hydrogen as the reducing agent, the DRP aims to fully transition to green hydrogen as it becomes available at scale.

The MoU includes a joint pre-feasibility study of CCS opportunities designed to abate emissions from the Whyalla iron and steel works. This collaboration could potentially make GFG Alliance the first domestic third-party customer for Santos’ flagship carbon capture and storage project at Moomba, the company said.

“We’ve been a gas supplier to Whyalla for many years and we’re pleased to be working with GFG on its green steel journey. We’re seeing strong interest in abated natural gas domestically and internationally,” Gallagher said.