Industry News

Charles Darwin University (CDU) has produced hydrogen in the Northern Territory for the first time.

The University and the Northern Territory has today taken a step forward in the goal to establish a hydrogen generation industry. 

CDU will use the unique facility to develop skilled workers who are crucial for a successful renewable energy and green hydrogen industry in the Northern Territory. The facility will also serve as an innovation platform for industry through testing new hydrogen and other renewable technologies.

The hydrogen electrolyser and fuel cell system play an important role in a sustainable and efficient energy cycle for hydrogen production and utilisation.

The electrolyser, through electrolysis, splits water into hydrogen and oxygen gases. The generated hydrogen is stored for future use. The fuel cell combines hydrogen with oxygen from the air to produce electricity with no harmful emissions CDU’s interconnected system offers a green energy solution. 

Pro Vice-Chancellor of the Faculty of Science and Technology and Director of the Energy Resources Institute, Professor Suresh Thennadil said this equipment upgrade is key in enabling exploration into hydrogen. 

“The installation of a containerised hydrogen electrolyser and fuel cell system, significantly enhances our ability to study hydrogen production and its feasibility as an energy source for fuelling the grid,” Professor Thennadil said. 

“This will also enable us to better understand the challenges and intricacies associated with incorporating hydrogen as an additional energy source as well as the durability of electrolysers and other components under local climatic conditions.

“This upgrade provides a unique and flexible platform to study renewable energy systems, particularly small regional and remote grids, which are common throughout the NT."

CDU collaborated with Pacific Energy, a specialist in designing and building power generating assets, to design, install and commission a containerised system that houses the electrolyser and fuel cell. 

The system has been installed at CDU’s Renewable Energy Microgrid Hub for Applied Research and Training (REMHART) facility in East Arm to further research and training. A transportable containerised system offers potential benefits for use in remote communities.

The REMHART facility aims to foster collaborative research with various industries, and government, to find innovative solutions to the challenges associated with the design, deployment, and operation of renewable energy systems.

The Northern Territory Government has a strategy in place to be an Australian centre for hydrogen technology research, production and use. 

Deputy Vice-Chancellor Research and Innovation Professor Steve Rogers said the unique state-of-the-art facility is the corner stone in supporting the Government’s vision for a renewable energy future. 

“It is important to us that renewable energy industries flourish in the NT, we achieve our decarbonisation goals, and we address the energy security of remote communities,” Professor Rogers said. 

“Our REMHART facility aims to pioneer the development of affordable, reliable, and eco-friendly power systems by providing a dedicated space to create and test new technologies.

“This represents a practical stride towards sustainable energy solutions in the NT."

The REMHART facility was established and enhanced with $2 million of funding from the Commonwealth Government through the Strategic University Reform Fund (SURF) program. 

Federal Member for Solomon Luke Gosling OAM MP said by 2050, Australia’s hydrogen industry could generate $50 billion in additional GDP and create more than 16,000 jobs in regional Australia – including here in Darwin.

“The Northern Territory has the resources, technical skills and track record with international partners to seize this opportunity and become a global hydrogen powerhouse,” Mr Gosling said. 

“Commonwealth investment in projects like the Hydrogen Electrolyser and Fuel Cell System ensure we don’t get left behind as the rest of the world continues to move forward.”

During the testing phase, the system has produced hydrogen with the fuel cell producing 5kW of electrical output. 

Pacific Energy’s Chief Executive Officer Jamie Cullen said the company was pleased to collaborate with CDU to deliver this hydrogen production and storage system (H2 SPS) which would play a critical role in developing the energy industry’s understanding of hydrogen as a renewable energy source.

“At Pacific Energy, we are keenly focused on transitioning Australia, and the world, to a clean energy future. That’s why we’re excited to be a part of projects like this one, which will help us overcome some of the challenges we currently face when integrating hydrogen into the renewables mix,” Mr Cullen said.

“We’re incredibly proud to work with Charles Darwin University to deliver our first H2 SPS to them, which we designed and manufactured locally at our facilities in Darwin and Perth, and we’re looking forward to seeing how it supports the university in its important hydrogen studies.”

Source: Charles Darwin University 

To view the media release by Pacific Energy, click here.

Robust sales revenue, production and free cash flow

• Sales revenue of US$1.5 billion in the fourth quarter.
• Fourth quarter production of 23.4 mmboe was slightly higher than the prior quarter primarily due to increased sales gas production. FY production of 92.2 mmboe pre-PSC (91.7 mmboe post-PSC) is at the top end of full year guidance.
• Bayu-Undan continuing to produce with gas being delivered into the Australian domestic market until end of field life.
• Strong free cash flow from operations of over $500 million in the fourth quarter and $2.1 billion for the full year. Free Cash Flow Breakeven Price of less than $28/bbl unhedged for the year.
• Net debt of $4.3 billion and gearing at 18.4 per cent excluding operating leases at 31 December 2023 (21.8 per cent when included).

Development projects progressing well

• The Barossa Gas Project is now 66.4 per cent complete. Following approval of the revised Drilling and Completions Environment Plan on 15 December 2023, drilling has now recommenced.
• The Federal Court discharged the injunction preventing pipelaying along part of the Barossa Gas Export Pipeline route on 15 January 2024. One-third of the pipeline has been installed to date.
• The Darwin Pipeline Duplication Project received Northern Territory Environmental Approval on 22 December 2023. The pipeline will transport Barossa gas to Darwin LNG and free up the existing Bayu-Undan pipeline to transport Barossa reservoir CO2 for carbon capture and storage in depleted reservoirs at Bayu-Undan.
• The Pikka Project was 37.4 per cent complete at 31 December 2023, progressing on time and on budget. Rig operations were completed on five wells and work is under way on the sixth well. Two wells have been stimulated with one successfully flowed back and one currently undergoing flow back operations. Flow back results are in accordance with prognosis.
• In PNG, the first of two Angore wells was successfully drilled and production liner run to well total depth. Reservoir characteristics align with pre-drill expectations.

Santos Energy Solutions is tapping into strong regional demand for CCS

• The Moomba CCS Project is 80 per cent complete with first injection on track for mid-2024. Moomba CCS is targeting injection costs of ~US$24 per tonne lifecycle breakeven, putting it at the lower end of the global CCS cost curve. Depending on available CO2 volumes, Moomba CCS could store up to 1.7 million tonnes of CO2 per year, equivalent to 10 per cent of the annual average emissions reduction rate needed to meet Australia’s 2030 and 2050 emissions targets.
• Flow testing on all four injection wells for Moomba CCS has been successfully completed.
• An MOU was signed with two major Japanese energy companies JX and Eneos to evaluate the potential to capture, transport and sequester emissions from Japan, which could support the expansion of Moomba CCS, with Phase 2 potentially storing third party CO2 from customers and hard-to-abate industrial sources.
• Bayu-Undan CCS project FEED is 85.5 per cent complete. Legislation passed the Australia Parliament to enable cross-border transfer of CO2 to and from Australia.
• Four additional nature-based projects registered by Santos and its partners to qualify for generation of emissions reduction units in both voluntary and compliance markets globally.  Along with our PNG Markham Valley project, Santos nature-based portfolio now has the potential to generate over 10 million tonnes of emissions reduction.

Santos Managing Director and Chief Executive Officer Kevin Gallagher said the strong underlying business performance, combined with a disciplined focus on operational excellence, delivered a strong fourth quarter finish for 2023.

“The fourth quarter brought free cash flow for the full year to $2.1 billion, an outstanding achievement in what has been a challenging year. It positions us well to deliver shareholder returns, backfill and sustain our existing business, complete our major projects, Barossa and Pikka, progress our decarbonisation plans and grow our Santos Energy Solutions business,” Mr Gallagher said.

“I am very pleased to see that the Barossa pipelaying and drilling activities are now fully under way with first gas still expected in 2025. Given the challenges of the past two years, we have updated our cost and schedule guidance for the project. The team has done a great job in keeping Barossa close to the original schedule and managing the costs of delay.

“Our Moomba CCS project is on track for first injection this year and I believe it will be a game-changer for decarbonising Santos and also provide decarbonisation opportunities for other companies and hard-to-abate sectors.

“Our operational focus for 2024 is the execution of the Barossa, Pikka and Moomba CCS projects whilst maintaining a strong balance sheet.

“As previously announced Santos is in early-stage discussions to evaluate the merits of a potential merger with Woodside. The parties have agreed to exchange information to assess the benefits for our shareholders. Santos continues to consider alternative options to accelerate value for shareholders. There is no certainty that any transaction will eventuate from these discussions.” Mr Gallagher said.

Source: Santos

To view the full fourth quarter report, click here.

The underlying business of Armour Energy Group owned by its operating subsidiaries, has emerged from administration and is now in a position to continue developing its high-quality portfolio of Australian energy assets under the ownership of privately-owned ADZ Energy Pty Ltd (ADZ Energy).

Armour Energy Group was placed into voluntary administration and receivership on 10 November 2023. Following a meeting of creditors held by McGrathNicol’s Mark Holland, Damian Pasfield and Jonathan Henry on 19 January 2024, the ownership of Armour Energy Group’s underlying business transitioned to ADZ Energy on 22 January 2024.

ADZ Energy has a clean and strong balance sheet, a supportive new shareholder in ADZ Holding Group and a clear path to development of its extensive portfolio of exploration and production assets.

ADZ Energy will remain focused on accelerating gas and liquids production from its Kincora Gas Project in Queensland, which provides much-needed energy for the east coast domestic market. The Group’s portfolio includes high-quality oil and gas prospects across multiple basins with a range of project maturity that will realise near-term value accretion and mid- to long-term transformational growth across its Northern Territory1, Victoria and South Australia jurisdictions.

The management team, led by Chief Executive Christian Lange, will remain in place and continue to be headquartered in Brisbane.

Mr Lange said the Company’s focus remained on safe and environmentally responsible development.

“Under new ownership, ADZ Energy has a bright future as a fast growing and dynamic explorer and energy producer focused on being a proud contributor to the communities in which we operate,” Mr Lange said.

“ADZ Energy Group and the management team thank all our stakeholders, including our talented and dedicated employees and the customers and suppliers that partner with our business, for their patience and support during the administration period. Together, we will continue to keep downward pressure on domestic energy prices and support Australian manufacturing and employment.”

KordaMentha’s Richard Tucker and Robert Hutson retired as Receivers and Managers on 22 January 2024. McGrathNicol will now proceed to wind up residual Armour Energy Group corporate entities.

¹ Pending completion occurring under the Asset Sale Agreements between ADZ Holding and Armour Energy Limited (in liquidation) and McArthur NT Pty Ltd (in liquidation) in relation to the NT tenements.

Source: ADZ Energy 

To view full media release, click here.

Highights

• Empire acquired the Roslind Park Gas Plant (“RPGP”) from AGL Limited for $2.5 million in cash, significantly accelerating the path to Carpentaria Pilot Project production and reducing the capital expenditure required to commence gas sales 

• R&D Tax Offset for FY2022 of $15.6 million in cash received. Proceeds applied to debt reduction and working capital including FID expenses

• Carpentaria Pilot Project is progressing towards a final investment decision (“FID”) 

• A key Northern Territory gas field continues to produce below contracted volumes leaving the Northern Territory domestic market short of gas 

• Ms. Karen Green appointed as an independent Non-Executive Director and Chair of the Audit & Risk Committee effective 17 November 2023 

• Cash at the end of the Quarter was $17.3 million

Source: Empire Energy Group

Follow the links below to view the full ASX announcements:

Quarterly Activities Report as at 31 December 2023: Activities Report

Quarterly Cashflow Report as at 31 December 2023: Cashflow Report

The hydrocarbon, helium and hydrogen exploration and production company lodged its Environmental Management Plan for the EP 145 project in Australia.

This EMP is pending approval and Mosman Oil and Gas awaits certification required for a seismic exploration programme later in 2024.

“I am pleased these two milestones in the exploration and Farmin Agreement process have been reached,” Mosman chief executive officer Andy Carroll said.

“This keeps us on track to acquire seismic in 2024 and then drill in 2025 to test the helium, hydrogen and hydrocarbon potential in this area.”

Mosman has lodged the Environmental Management Plan (EMP) with the Northern Territory Government. Approval of the EMP and re-issue of the Aboriginal Areas Protection Authority (AAPA) Certificate are the two remaining approvals required prior to the acquisition of 2D seismic, scheduled for 2024.

Completion of the Farmin Agreement announced in October 2023 is subject to government approval of the proposed change of operator and transfer of interest.

The farminee, Greenvale, has advised that it has received the Stamp Duty assessment and paid the amount due.

The next step is Ministerial approval, which is expected to proceed now that stamp duty has been paid.

Mosman is not in control of the timing of Ministerial approval, but based on progress so far anticipates completion to occur in the near future.

Source: Energy Today

The Santos Darwin Pipeline Duplication Project has been given environmental approval following an assessment by the independent NT Environment Protection Authority (NT EPA).

The Environment Protection Act 2019 requires an environmental impact assessment and separate environmental approval for all projects that have the potential to have a significant impact on the environment.

Santos is developing the Barossa Gas Export Pipeline to bring gas from the Barossa reservoir in the Timor Sea, to Darwin. The NT EPA assessed the Santos Darwin Pipeline Duplication Project, which is the section of the pipeline in Northern Territory waters.

The pipeline duplicates a section of the existing Bayu-Undan pipeline, which is proposed to stay in place to provide Santos with the option of repurposing it to transport CO₂ to the depleted Bayu-Undan reservoir for sequestration.

The NT EPA considered potential significant impacts from the project including on the marine environment, culture and heritage and from greenhouse gas emissions.

The environmental approval includes conditions to ensure potential environmental impacts are managed to an acceptable level.

The Barossa Gas project is worth $6.4 billion dollars to the NT economy and will create 600 local jobs through construction, and hundreds more over the next two decades.

The environmental approval can be viewed on the Department of Environment, Parks and Water Security website: https://depws.nt.gov.au/environment-information/environmental-assessment-and-approvals/environmental-approvals

Quotes attributable to Minister for Environment, Climate Change and Water Security, Kate Worden:

“The Santos Darwin Pipeline Duplication project has been through a rigorous environmental assessment by the NT EPA. I have applied the NT EPA’s recommended conditions and granted the environmental approval.

“The Territory Government has supported this project from the beginning. Gas will play a critical role in supporting our transition to renewables, ensuring ongoing energy security for Territorians as we head towards net zero.”

Quotes attributable to Minister for Mining Mark Monaghan:

“The Northern Territory is in a strong position to become a global leader in low-emissions energy exports.

“Our Government congratulates Santos on the Federal court ruling and for being granted NT EPA approval, we look forward to seeing this project and industry as a whole progress.

“The $6 billion Barossa Gas project is significant for the Territory’s economy and secures hundreds of local jobs for the next two decades, all while being pivotal in the world’s transition to a cleaner, greener future.”

Source: Northern Territory Government Newsroom

Santos welcomes the decision of the Federal Court of Australia today in the case of Munkara v Santos NA Barossa Pty Ltd (No.3).

The decision was in favour of Santos, with the Court dismissing the application and discharging the injunction that prevented pipelay activities south of the kilometre 86 (KP86) point along the Barossa Gas Export Pipeline.

As per the ruling and in accordance with the Environment Plan in force for the activity, Santos will continue pipelaying activity for the Barossa Gas Project (Barossa).

More information on the Barossa Gas Project can be found here.

Ends.

Source: Santos

To view the ASX announcement, click here.

Santos’ $5.8 billion gas project off the Northern Territory coast will go ahead after the Federal Court ruled on Monday that its proposed pipelines would not endanger Indigenous cultural heritage sites.

Justice Natalie Charlesworth shut down claims by a group of Tiwi Islanders that the proposed location of the pipeline – along with the concrete beds it sits on – would damage Sea Country, dreaming tracks, songlines and areas of cultural significance including burial sites and animal habitats.

The decision means that Santos can push ahead with work on the pipeline, which has largely been in limbo since September 2022, pending the outcome of this and another case. Santos was racking up a hire bill of about $US10 million ($15.7 million) a month for a drilling rig while it waited for Monday’s judgment.

The group of 11 elders from the Tiwi Islands, led by Jikilaruwu man Simon Munkara and represented by the Environmental Defender’s Office (EDO), launched the case against Santos last year, after an earlier claim by a traditional owner already scuppered Santos’ first approval for the scheme.

But Justice Charlesworth said she was not satisfied that the Tiwi Islanders had shown their beliefs around the potential Sea Country damage were broadly held by First Nations people in the area, instead saying their evidence was about “personal beliefs”.

Santos had presented conflicting evidence that there were no specific underwater places on the proposed pipeline route, according to beliefs of other Tiwi Islanders consulted by the oil and gas giant’s cultural heritage expert witness.

Map of the Barossa gas project in the Timor Sea. 

The case was part of a wave of legal challenges – including multiple specifically related to Santos’ Barossa development – against new gas projects from Indigenous groups asserting they have not been consulted in line with regulations that require environment plans to consider how projects may affect their interests and activities. Woodside Petroleum is fighting a similar case over its $16.5 billion Scarborough gas project in Western Australia.

Energy analysts warned on Monday that LNG production would fall for at least two years between Woodside Energy and Santos, the two largest oil and gas producers on the ASX, and potentially longer if legal challenges and environmental issues continue delaying work on $22 billion in projects.

Mr Munkara’s case was the latest in a string of legal problems Santos faced about the pipeline. In a separate case, NOPSEMA’s original approval of the pipeline and its environment plan was overturned in September 2022 after the Federal Court found the oil giant failed to consult local Indigenous people adequately on the development.

Santos’ attempt to get that judgment overturned failed in December 2022, in a shock decision that created a higher standard for companies to consult traditional landowners for offshore projects.

NOPSEMA ordered Santos to carry out fresh cultural studies before signing off on the new application, and the company hired anthropologist Brendan Corrigan to consult with about 170 Tiwi Islanders. His final report finding that there was no specific underwater cultural heritage places on the pipeline route.

But Mr Munkara disagreed, launching his case against Santos and successfully winning an injunction (which later became a partial injunction) to prevent Santos from starting to lay the pipeline.

Monday’s decision also comes as Resources Minister Madeleine King tried to reduce ambiguity in the rules about consultation that oil and gas projects need to carry out. She opened consultation on the rules last Friday, saying she wanted “clear and unambiguous rules that give communities and stakeholders a real say, and are also workable for industry participants”.

Gas from the Barossa project, in which Korea’s SK E&S and Japan’s JERA have stakes, is to supply the Darwin LNG plant. Shipments to Asia were due to begin in early 2025.

Source: Australian Financial Review

To view the AFR article, click here.

The Northern Territory Government has awarded Major Project Status to TE H2’s Darwin H2 Hub.

The Darwin H2 Hub will be a green hydrogen production facility, which will use solar energy to produce more than 80,000 tonnes of renewable-based hydrogen each year.

With the potential to create approximately 800 jobs during construction and 175 positions once it is operational, the hydrogen will be for domestic and international export.

It will also assist both Australian and global companies to decarbonise through the use of green hydrogen, and to facilitate industries in a net zero economy.

TE H2 will be an early mover in giga-scale renewable energy generation and will establish a hydrogen production industry in the Territory.

The Territory Government has been working closely with Total Eren since 2022, now “TE H2”, and has seen the project develop.

TE H2 has been established by Total Eren. TE H2 is a joint venture formed by TotalEnergies and EREN, which develops large-scale green hydrogen projects benefitting from exceptional renewable resources.

The company will continue to progress its project, working towards design of the downstream facility, transmission infrastructure and upstream generation facility.

TE H2’s is among five proponents awarded ‘not to deal’ commitments by the NT Government to provide certainty for land at Middle Arm.

Major Project Status is a formal recognition of a project’s significance through its contribution to economic growth, decarbonisation, employment and renewable energy supply chains in the NT.

Quotes attributed to Chief Minister Eva Lawler:

“Creating the jobs now and into the future is the priority of the Territory Labor Government. And this project does just that. It will create approximately 800 jobs during construction, and 175 ongoing local jobs.

“The TE H2 project is an example of how this Government sources new clean energy projects that will significantly contribute to the Territory’s drive to reduce greenhouse gas emissions.

“With our abundant solar resources and our strategic location to support exports into the Indo-Pacific, the production of green hydrogen is a key opportunity for the Territory to address the growing demand for this green energy globally.

Quotes attributed TE H2 Australia’s Managing Director, Kam Ho:

“The proposed Darwin H2 Hub is TE H2's cornerstone project and aims to be the Northern Territory's first solar-powered green hydrogen production and export project, delivering sustainable and cost-competitive power for domestic use and global export.

“ ‘Major Project Status’ marks a significant milestone in the project development. The current objective is to pursue studies in order to consider Final Investment Decision (FID) by 2027.

“The Darwin H2 Hub will contribute to driving the Northern Territory Government’s vision of achieving net zero emissions by 2050 and will enable other industries to move towards decarbonisation and sustainable industry.

Source: Northern Territory Government Newsroom

Cue Energy Resources Limited (ASX: CUE) is pleased to announce that it has executed a Gas Supply Agreement (GSA) with Incitec Pivot Fertilisers Limited.

The GSA is for firm gas supply with take-or-pay provisions and the price reflects current market conditions.

The gas will be aggregated with gas from other Palm Valley joint venturers, Central Petroleum and New Zealand Oil & Gas, to supply a total of 1.74 PJ.

The Central Petroleum release is attached.

Cue holds a 15% participating interest, New Zealand Oil & Gas a 35% participating interest and Central Petroleum (Operator) a 50% participating interest in the Palm Valley license. 

Click here to view the full announcement and media release 

Source: Cue Energy