Santos has successfully secured financing amounting to USD $150 million for its share in the USD $220 million Moomba Carbon Capture and Storage (CCS) project in South Australia.
The Moomba CCS Project is set to capture CO2 separated from natural gas at the Moomba Gas Plant, presenting opportunities for additional projects to store diverse sources of CO2, including direct air capture, and facilitating low-carbon hydrogen production.
Santos’ Moomba CCS Project – Key Details
The Moomba CCS project capitalizes on existing processing capabilities at the Moomba Gas Plant and leverages infrastructure linked to depleted reservoirs in the Cooper Basin.
Having received final investment decision (FID) in 2021, Santos aims for a full lifecycle cost of approximately $24 per tonne of CO2, positioning it among the most cost-effective CCS projects globally.
Looking ahead, Santos envisions exploring the development of low-carbon fuels like e-methane and scalable technologies such as DAC, emphasizing the Cooper Basin’s natural advantages for these initiatives.
Santos’ Moomba CCS Project – Current Status
The initial phase of the Moomba CCS project is now 80% complete, with the facility expected to have the capacity to store up to 1.7 million tonnes of CO2 annually, subject to CO2 availability for storage.
This yearly storage capacity is equivalent to approximately 28% of the total emissions reduction achieved in Australia’s electricity sector the previous year.
The Cooper Basin is poised to play a pivotal role in the energy transition, evolving into a decarbonization hub capable of producing low-carbon fuels and offering CCS services for emissions reduction in critical sectors like LNG, steel, aluminium, and cement.
Santos’ Moomba CCS Project – New Credit Facility
The company has secured a new credit facility totalling $150 million with a five-year tenor. These funds will cover incurred costs to date and support ongoing project progress, with the first injection targeted for mid-2024.
Santos CEO Kevin Gallagher commended the banks’ willingness to fund energy transition projects at competitive rates, highlighting the recognition of CCS as a vital tool in achieving global net-zero ambitions.
“The strong support Santos has received is underpinned by the progress we are making on our Climate Transition Action Plan,” said Mr Gallagher, emphasizing the focus on emissions reduction and the development of low-carbon fuels in response to evolving customer demands.
Recognizing the crucial role of CCS in abating emissions, he expressed encouragement that financiers are acknowledging its significance in the transition to net zero.
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