Australia's Santos collaborates with Japan on CCS
Australian energy company Santos has collaborated with two major Japanese energy entities, JX Nippon Oil & Gas Exploration Corporation (JX) and Eneos Corporation, to advance carbon capture and storage (CCS) initiatives, it announced on December 18.
This partnership signifies a step forward in Santos' plans to expand the Moomba CCS project and transform the Cooper basin into a hub for decarbonisation and low-carbon fuels. The signing of a memorandum of understanding (MoU) between Santos, JX, and Eneos establishes the framework for a joint feasibility study. This study will assess the potential to capture, transport, and sequester emissions from Japan, supporting the expansion of the Moomba CCS project.
The aggregation and management of carbon at Moomba align with Santos' ambitions for low-carbon fuels and complement ongoing studies with Tokyo Gas and Osaka Gas for potential low-carbon e-methane production in the Cooper Basin. This could pave the way for the export of e-methane, produced by combining green hydrogen with CO2 obtained from industrial emissions or direct air capture, creating a circular economy.
The MoU outlines plans to jointly explore commercial and investment opportunities, including the potential importation of up to 5mn tonnes/year of CO2 by 2030, 10mn tonnes/year by 2035, and 20mn tonnes/year by 2040 from Japan to the Moomba CCS project. The import could be facilitated via either Port Bonython in South Australia or Gladstone in Queensland.
Santos said that this collaboration could significantly contribute to the longevity of the Cooper basin for another 55 years, positioning it at the core of the modern Australian energy industry. CEO Kevin Gallagher highlighted the potential to support well-paying, skilled, and secure jobs for future generations.
The first phase of the Moomba CCS project is well underway, with 75% completion and the first injection on track for 2024. The project aims for a lifecycle breakeven storage cost of approximately $24/tonne. Once operational, the Moomba CCS project will have the capacity to store up to 1.7mn tonnes/year of CO2, equivalent to over 25% of the total emissions reduction achieved in Australia's electricity sector over the past year to March 2023.
This collaborative effort builds on recent MoUs with APA and ADNOC, solidifying Santos' commitment to establishing a network of CO2 pipelines and related infrastructure to support the burgeoning carbon capture and storage industry in Australia.