Santos Secures New Funding For Moomba CCS Project

Santos Secures New Funding For Moomba CCS Project - Carbon Herald

Energy company Santos announced today that it has successfully obtained funding for the company’s portion of the Moomba carbon capture and storage (CCS) project in South Australia. 

The funding for the project has been secured for a duration of five years, totaling $150 million. 

This substantial amount will be crucial in not only covering expenses that have already been incurred during the initial phases of the project but also in providing the necessary resources as the project progresses towards its anticipated milestone of the first injection in mid-2024.

The project, a shared venture between Santos (66.7% interest) and Australian oil and gas company Beach Energy (33.3% interest), is expected to cost around US$220 million.

In a recent press release, Santos shared that the work is progressing smoothly, with the initial phase of the Moomba CCS project nearly 80 percent complete. 

The primary goal of this effort is to achieve lifecycle breakeven storage costs of approximately US$24 per tonne, making it one of the most cost-effective CCS projects globally, which will enable it to compete with other carbon reduction technologies in the market. 

Kevin Gallagher, the CEO and Managing Director of Santos, pointed out that banks are eager to finance energy transition projects at highly competitive rates, showing their acknowledgement of CCS as a crucial tool in achieving global net-zero goals.

Relevant: Santos To Invest $165M In Moomba Carbon Capture and Storage Project

Mr. Gallagher emphasized that the solid backing Santos has garnered is based on the advancements they are making with their Climate Transition Action Plan. This plan is centered around decreasing their own emissions and those of their clients, while also focusing on creating low-carbon fuels in response to changing customer demands.

Santos announced that the company has recently entered into a number of agreements with foreign third parties to assess the possibility of capturing, transporting, and storing their emissions via the Moomba CCS project. 

Through collaboration with global organizations, the company is demonstrating its dedication to widening its scope and seeking new, creative ways to address the challenges of climate change.

Read more: Baker Hughes Wins Moomba Project Contract

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