Santos has signed a new agreement with Japanese companies JX Nippon Oil & Gas Exploration Corporation and ENEO Corporation to collaborate on carbon capture and storage (CCS).
The memorandum of understanding (MoU) between the three companies will allow Santos to expand the Moomba CCS project and transform the Cooper Basin into a decarbonisation hub.
Under the agreement, a feasibility study will evaluate the potential to capture, transport and sequester emissions from Japan.
Santos chief executive officer and managing director Kevin Gallagher said the targets set for demonstrate the potential of Moomba in South Australia.
“If we progress to the next stage, this collaboration could potentially extend the life of the Cooper Basin for another 55 years, keeping it at the centre of a modern Australian energy industry and supporting hundreds of well-paying, skilled and secure jobs for another three generations and beyond,” Gallagher said.
“The CO2 target set for 2040 in this study is equivalent to delivering – every year – triple the total emissions reduction achieved in Australia’s electricity sector last year. It also equates to around two-thirds of Santos’ total annual Scope 3 emissions today or almost four times our current annual Scope 1 and 2 emissions – it’s huge.
“Australia is in a prime position to drive circular economies using its vast carbon storage and renewable energy resources. This combination will make Australia not only a renewable energy superpower, but we can also be a decarbonisation and low-carbon fuels superpower.”
The MoU complements the company’s current studies with Tokyo Gas and Osaka Gas for potential low-carbon e-methane production in the Cooper Basin.
The first phase of the Moomba project is 75 per cent complete with first injection on track for 2024.
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