SANTOS is lobbying all levels of government for its carbon capture and storage pilot program in the Cooper Basin that would eventually see 1.7 million tonnes of CO2 injected underground each year, from an initial 300,000t during phase one. 

It also released its third climate change report which says the oiler has "a long term aspiration of achieving net-zero emissions by 2050" and which offered more detail and colour on its CCS plans.  

Santos managing director Kevin Gallagher said carbon capture is "crucial technology for achieving the world's climate goals… it's a large scale permanent abatement solution".  

There are currently 40 million tonnes per annum of CCS projects in operation globally.  

Australia could be a world leader in CCS and hydrogen production - for which CCS is a necessity if it is to be made from methane or coal - provided policy settings are favourable.  

Santos is planning a front-end engineering and design entry mid-year for an end-of-year final investment decision for phase one of its planned CCS project.  

During a conference call after its full-year earnings were released Gallagher, now a CCS convert, said as the cost of carbon goes up the costs of its carbon sequestration program will go down.  

"We're working hard with all levels of government to encourage the accreditation of sequestration projects for carbon credits in Australia," he said. 

Santos' climate change report, which leans heavily on International Energy Agency data, said its emissions are in line with all three scenarios from the agency's latest climate report, suggests a glowing future for Aussie CCS, provided support is offered.  

Its report states "government policy in the form of tradeable credits, financing vehicles and investment incentives will be needed".  

With this support in place the Cooper and Eromanga basins have potential to store over 20MMtpa of CO2 for 50 years and could also capture emission from power generation, steel, cement and chemicals, Santos said.  

Overall "Australia has an estimated storage capacity of enable injection at a rate of 300MMtpa for at least 100 years," it said. 

The Cooper Basin is ideal given the depleted reservoirs and Santos' long history of working there. It has already drilled two wells to test the project.  

Source: Energy News Bulletin

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