PERTH (miningweekly.com) – Oil and gas major Woodside on Friday launched a carbon capture and use (CCU) collaboration with US-based technology developers ReCarbon and LanzaTech.

The three companies are jointly investigating the viability of a proposed CCU pilot facility in Perth, which would recycle greenhouse gases such as carbon dioxide (CO₂) and methane into value-added ethanol using ReCarbon and Lanzatech’s technologies.

The ReCarbon technology would convert CO₂ and methane into synthesis gas, with the LanzaTech technology fermenting the synthesis gas into ethanol.

Traditionally, ethanol manufacture relies on land and water use for source crops, such as corn. Woodside said on Friday that CCU reduces the reliance on these natural resources.

Woodside told shareholders that CCU is an emerging field with growing demand from existing and potential customers seeking alternative solutions for lower carbon, adding that the collaboration and proposed pilot demonstrated Woodside’s commitment to developing new energy products and lower-carbon services.

The project is now in the front-end engineering design phase.

Woodside CEO Meg O’Neill described CCU as an exciting addition to the portfolio as it looked at carbon as an opportunity and resource, not just a challenge.

“What’s notable about CCU is the wider co-benefits. Some end products have a further decarbonisation benefit. Products such as ethanol can be used as raw materials in the chemical manufacturing industry.

“We also see a potential role for the technology in helping to abate some of our Scope 1 and 2 emissions,” she said.

Australia’s Clean Energy Regulator is currently leading a co-design process to develop a carbon capture use and storage method under the Emissions Reduction Fund.

ReCarbon Founder and CEO Dr Jay Kim welcomed the collaboration.

“The global energy and fuel sector is experiencing unprecedented transition. We are grateful to be selected as a leading technology solution to transform greenhouse gases into decarbonised products. Woodside is moving decisively by establishing real projects with its CCU initiative, and ReCarbon is proud to play our part,” he said.

LanzaTech CEO Dr Jennifer Holmgren noted the scale of the opportunity.

“Waste carbon can be transformed into critical resources like ethanol without adding CO₂ to the atmosphere. Together with Woodside and ReCarbon, we can create an opportunity to reuse greenhouse gases for meaningful applications,” she said.