PERTH (miningweekly.com) – Oil and gas major Santos is advancing work on its carbon neutral e-methane collaboration, having inked an agreement with Osaka Gas Australia (OGA) for pre-front end engineering design (pre-FEED) work on a demonstration-scale project to produce carbon neutral e-methane from green hydrogen.

The demonstration project aims to produce e-methane from green hydrogen, which is generated through water electrolysis powered by renewable energy, and carbon dioxide (CO₂), which instead of being emitted into the atmosphere, is captured at industrial sites or by Direct Air Capture technology.

Santos is studying the potential to use its existing extensive infrastructure position to generate, liquefy and export e-methane to Japan.

Santos and OGA will commence pre-FEED, which will include renewable power and carbon capture infrastructure studies, site selection for e-methane and green hydrogen plants, optimisation of e-methane production efficiency and processes, and further detailed assessment of costs, schedules, feasibility and risks.

Santos and OGA aim for FEED entry in 2024 and to be final investment decision ready in 2026 to produce e-methane at a plant with a planned capacity of 10 TJ/day and export about 60 000 t of e-methane annually by 2030.

Santos MD and CEO Kevin Gallagher said the company has a long-standing, positive relationship with OGA, and Santos is committed to delivering on its net-zero by 2040 target.

“I believe it is increasingly clear gas will play a leading role in the transition to a decarbonised future, and Santos is excited to be progressing a new business opportunity that seeks to leverage our assets and capabilities to deliver a cleaner energy that will help create a better world for everyone,” Gallagher said.

“Decarbonising natural gas supports a long-term supply of reliable and affordable energy, as well as the production of cleaner fuels such as e-methane. The advantage of e-methane is that it overcomes the challenges associated with the transport and export of hydrogen by allowing the use of existing transport, liquefaction and end-user infrastructure providing a scope 1 and 2 as well as a scope 3 carbon neutral outcome.”

Santos Energy Solutions is developing one of the world’s largest carbon capture and storage (CCS) projects in Moomba, South Australia, which is expected to store up to 1.7-million tonnes of CO₂ each year with first injection on track for 2024.

Santos Energy Solutions is also planning to trial direct air capture, a technology used to capture CO₂ from the atmosphere, which could be used to expand the Moomba CCS project and provide feedstock for e-methane production at Moomba.