Australian oil and gas producer Santos has acquired a network of gas storage facilities that can store 100 million tons of carbon dioxide. The oil and gas giant will start hiding carbon in them as part of the launch of a new project. About it informs financial times.
The tanks were previously used to store natural gas, but have now been adapted for carbon dioxide, which the company intends to capture as part of its new Moomba project. We are talking about a joint venture with another gas producer Beach Energy, which will capture 1.7 million tons of carbon dioxide every year – that is, the capacity of the newly acquired storage facilities will be enough for almost 60 years. The first injection of gas into the reservoirs is planned for 2024.
Santos is one of Australia’s largest liquefied natural gas (LNG) producers. The company said that initially carbon capture will be used to reduce emissions from the gas production process. However, in the long term, Santos hopes to use the technology to produce “blue hydrogen,” which is obtained from natural gas and the carbon dioxide produced in the process is captured and stored.
Related materials:
“Carbon capture and storage technology is critical to meeting global emission reduction targets. You only need to look at current carbon prices to understand how valuable 100 million tonnes of carbon stored are,” said Kevin Gallagher, CEO of Santos.
For every ton of carbon dioxide saved, Santos will be able to receive one carbon credit. The group can then sell them either to the government or to the private market, whichever is more profitable for them.
Critics are skeptical of Santos’ plans because carbon capture and storage projects often fall short of their goals. In addition, carbon capture in gas projects will only increase emissions. “We should be phasing out gas rather than extending its production, arguing that we can capture a small percentage of CO2 emissions,” said analyst Polly Hemming.
Carbon capture technology is supported internationally by governments and the oil industry. For example, billionaire Bill Gates’ venture capital recently invested in a young company that has developed a new technology to capture carbon dioxide.
#Oil #gas #giant #start #hiding #carbon