Santos has successfully secured financing for its portion of the US$220 million Moomba carbon capture and storage project in South Australia.
The funding, amounting to US$150 million and with a five-year term, will cover project expenses incurred to date and provide additional support as the project progresses towards its targeted first injection in mid-2024.
CEO and managing director Kevin Gallagher noted the willingness of banks to finance energy transition initiatives at competitive rates, signalling their recognition of CCS as a crucial tool in achieving global net-zero goals.
“The strong support Santos has received reflects the progress of our Climate Transition Action Plan, which focuses on reducing both our own emissions and those of our customers while also developing low-carbon fuels to meet evolving customer demand,” Mr. Gallagher stated.
He highlighted the significance of CCS in abating emissions associated with natural gas, emphasising its role in reducing greenhouse gas emissions and addressing climate change. The Moomba CCS project, nearing 80 percent completion in its first phase, is aiming for a lifecycle breakeven storage cost of approximately US$24 per tonne, positioning it as one of the world’s lowest-cost CCS projects.
With a capacity to store up to 1.7 million metric tonnes of CO2 annually, the project is poised to make a substantial impact, equivalent to around 28 percent of Australia’s total emissions reduction achieved in the electricity sector last year.
Moreover, the Cooper Basin is envisioned as a key player in the energy transition, evolving into a decarbonisation hub capable of producing low-carbon fuels and offering CCS services. Santos has recently inked agreements with international partners to explore opportunities for capturing, transporting, and sequestering emissions at Moomba.
For more information visit www.santos.com
