PERTH (miningweekly.com) – Oil and gas major Santos is hoping to take an investment decision on its $155-million Moomba carbon capture and storage (CCS) project, in the Cooper basin, in the second half of this year.

Speaking at the company’s annual general meeting, CEO Kevin Gallagher said that the Moomba project would assist Santos in delivering on its commitment to decarbonize its existing business and grow its clean fuels capability to achieve net zero emissions by 2040.

“We are technically ready, but an approved methodology for CCS projects to generate carbon credits is essential to make the project stack up economically, with the cost of abatement still at A$25/t to A$30/t,” said Gallagher

“Just as Barossa will lock in Darwin liquefied natural gas’ (LNG’s) future, and the jobs attached to it, for another 20 years, a final investment decision for Moomba CCS will breathe new life into the Cooper basin. This will underpin its transition into a clean fuels hub for decades to come, protecting hundreds of jobs.”

The proposed Moomba CCS project, in South Australia, would capture the 1.7-million tonnes of carbon dioxide currently separated from natural gas each year at the Moomba gas plant and re-inject it into the same geological formations that have safely and permanently held oil and gas in place for tens of millions of years.

Gallagher noted that while the Moomba project is initially planned to store up to 1.7-million tonnes of carbon dioxide a year, the basin has the capacity to store up to 20-million tonnes a year.

“Our unique competitive advantage for CCS in the Cooper basin sets Santos apart from our peers. We already have a relatively pure carbon dioxide stream at Moomba, meaning much of our carbon is already separated and doesn't require the technology that is needed for post-combustion capture,” said Gallagher.

“We have a strong infrastructure footprint in the Cooper on which we can build and leverage our low-cost operating model, and we have depleted reservoirs which have a demonstrated ability to safely store hydrocarbons for tens of millions of years.”

Gallagher reiterated that CCS was the fastest and most efficient route to a hydrogen economy, using less water, de-carbonising natural gas at its source, and eliminating Scope 3 emissions.

“Today, Santos could deliver hydrogen for around 2 Australian dollars per kilogram – that is the Australian government’s 2030 target and we are already there. But we won’t set the timeframe for hydrogen – that will be set by our customers,” he added.