The Moomba carbon seize and storage (CCS) challenge onshore South Australia saved 340,000 metric tons of carbon dioxide equal (CO2e) at yearend after beginning service October 2024, operator Santos Ltd. has stated, touting the power as a showcase of Australia’s potential for the know-how.
“The know-how and reservoir is [sic] performing as anticipated, placing Moomba CCS on monitor to securely and completely sequester as much as 1.7 million tonnes each year of CO2e, relying on CO2 availability”, the native gasoline and oil firm stated in an internet assertion.
A current evaluation by the Institute for Vitality Economics and Monetary Evaluation (IEEFA) of one other Australian CCS challenge discovered underperformance and forged doubt in regards to the know-how’s viability for abating emissions.
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The Chevron Corp.-led Gorgon CCS injection system captured, within the final Australian fiscal 12 months (July 2023-June 2024), simply 30 p.c of the CO2 emitted from pure gasoline extraction by the Gorgon LNG and home gasoline challenge, IEEFA reported November 28, 2024.
Gorgon CCS had been accepted on the situation it captures, on a five-year rolling common from 2016, no less than 80 p.c of CO2 emissions from wells drilled for the gasoline facility, in response to info revealed on-line by Chevron Australia Pty. Ltd.
Santos assured its challenge “is delivering rapid and actual large-scale emissions discount for the corporate and for Australia at a really aggressive lifecycle value”.
“The challenge is offering an actual confidence increase for the potential of CCS know-how to assist Australia attain web zero and decarbonize quicker, at scale and affordably”, the Adelaide-based exploration and manufacturing firm added.
At a full injection price, Moomba CCS avoids extra CO2 in 4 days than what 10,000 electrical autos save in a single 12 months, in response to Santos.
“And in only one 12 months, Moomba CCS will obtain round 28 p.c of the entire emissions discount achieved by Australia’s whole electrical energy sector in 2023”, it stated.
The challenge injects into depleted reservoirs close to the Moomba oil and gasoline gathering and processing complicated, which serves the onshore Cooper and Eromanga basins. Santos operates Moomba CCS with a 66.7 p.c stake. Seashore Vitality Ltd., additionally a neighborhood oil and gasoline exploration and manufacturing participant, holds the remaining curiosity.
Santos chief govt and managing director Kevin Gallagher commented, “In bringing this challenge to fruition, I imagine we’ve got additionally began an unimaginable new chapter in Australia’s vitality transition, which can lead us to turn into a carbon seize and storage superpower”.
“Policymakers ought to seize the chance to deploy CCS to cut back emissions quicker, at scale and value competitively – notably when Australia has a singular and pure benefit in carbon seize and storage that’s complemented by a well-established, world-class regulatory regime administered by the Clear Vitality Regulator”, Gallagher added.
“CCS is the one know-how with actual potential to abate emissions at scale and that’s why tasks like Moomba CCS are so vital to assist make web zero a actuality,” Gallagher stated.
Australian Potential
Santos goals to determine a carbon storage enterprise with a capability to completely retailer 14 million metric tons each year (MMtpa) of third-party CO2e emissions by 2040, it declared November 19, 2024.
The Cooper and Eromanga basins alone maintain the potential for injection of as much as 20 MMtpa of CO2e for as much as 50 years, in response to Santos.
“Australia has a pure aggressive benefit in CCS with identified high-quality, secure geological storage basins able to injection at a price of 300 million tonnes each year for no less than 100 years”, it stated within the Moomba CCS replace.
Third-Get together Emissions
Santos has secured agreements with potential home and abroad purchasers for its first CCS challenge. This curiosity “gives sturdy momentum for Moomba CCS section two as a business service”, Gallagher stated October 17, 2024, as the corporate introduced start-up.
In 2023 two Japanese corporations got here on board Moomba CCS after Australia handed controversial laws that may permit overseas corporations to ship CO2 by way of Australian waters.
“The signing of a memorandum of understanding between Santos, JX Nippon Oil & Gasoline Exploration Company and ENEOS Company paves the best way for a joint feasibility examine that may consider the potential to seize, transport and sequester emissions from Japan, supporting enlargement of the Moomba CCS challenge”, Santos stated December 18, 2023.
“The aggregation and administration of carbon at Moomba would additionally assist Santos’ Vitality Options low-carbon fuels ambitions and complement present research with Tokyo Gasoline and Osaka Gasoline for potential low-carbon e-methane manufacturing within the Cooper Basin.
“This could facilitate the export of e-methane, made by combining inexperienced hydrogen with CO2 obtained from industrial emissions or direct air seize in a round financial system”.
The businesses agreed to review the potential of importing CO2 from Japan to Moomba CCS by way of both Gladstone, Queensland or Port Bonython, South Australia. The import targets are 5 MMtpa by 2030, 10 MMtpa by 2035 and 20 MMtpa by 2040.
“The CO2 goal set for 2040 on this examine is equal to delivering – yearly – triple the entire emissions discount achieved in Australia’s electrical energy sector final 12 months [2022]”, Gallagher stated then. “It additionally equates to round two-thirds of Santos’ whole annual Scope 3 emissions right this moment or virtually 4 instances our present annual Scope 1 and a couple of emissions – it’s big”.
Santos had signed the same settlement with Australian energy producer and gasoline distributor APA Group. “The collaboration will embrace an evaluation of CCS pipeline transport routes from key emission sources in Gladstone, Port Bonython and Better Sydney to the Moomba CCS facility within the Cooper Basin”, Santos stated November 22, 2023.
Santos additionally introduced on the time an settlement with Abu Dhabi Nationwide Oil Co. for potential cooperation within the growth of CCS applied sciences and the availability of CCS providers corresponding to transport, in addition to potential joint investments in CCS tasks.
Gorgon CCS
The IEEFA report final November stated there was a development of underperformance amongst CCS tasks throughout the globe and that the Gorgon CCS challenge calls into query “the monetary viability of formidable CCS plans by Australian governments and firms”.
Gorgon CCS captured 44 p.c of CO2 eliminated throughout gasoline extraction between FY 2019-20 and FY 2023-24, in response to the Cleveland, Ohio-based assume tank.
Chevron Australia has not responded to a request for remark emailed by Rigzone in regards to the IEEFA evaluation. Nonetheless, it says in an internet challenge factsheet it’s “dedicated to growing carbon dioxide injection charges at Gorgon CCS in accordance with its environmental approvals”.
“A challenge has commenced that goals to develop the system’s capability to handle water discovered inside the reservoir the place carbon dioxide is saved, thereby lowering reservoir strain and enabling elevated carbon dioxide injection charges”, the very fact sheet says.
“Along with this challenge, Chevron Australia continues to discover choices to additional enhance carbon dioxide injection charges inside the system”, it provides.
To contact the creator, electronic mail jov.onsat@rigzone.com
