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Australia’s Santos has began front-end engineering and design (FEED) work for its proposed big carbon seize and storage (CCS) mission offshore East Timor on the Bayu Undan discipline. Considerably, Santos goals to take a remaining funding choice (FID) in 2023 on the CCS mission, which it claims has the potential to be the most important on this planet.
“The Bayu-Undan CCS mission might doubtlessly safely and completely retailer as much as 10 million tonnes of carbon dioxide (CO2) each year, equal to about 1.5% of Australia’s carbon emissions every year,” mentioned Santos, which operates the Bayu-Undan offshore gasoline manufacturing facility in East Timor related to its Darwin liquefied pure gasoline (LNG) export plant in Australia.
“The mission has the potential to be the most important CCS mission on this planet and one of many many who might be crucial to assist the world meet its local weather targets,” added Santos in a press release at the moment.
The Bayu-Undan FEED work will embody engineering and design for extra CO2 processing capability at Darwin LNG plus repurposing of the Bayu-Undan amenities for carbon sequestration operations after gasoline manufacturing ceases.
Santos mentioned it’s working intently with East Timor’s regulator, ANPM, in the direction of the mandatory agreements and regulatory framework that might be required for the Bayu-Undan CCS mission. The mission may also want agreements between the governments of East Timor, also called Timor-Leste, and Australia, and a few Australian regulatory preparations.
“Positioned in Timor-Leste with potential CO2 sources from Australian gasoline initiatives and different industries within the Northern Territory, Bayu-Undan CCS could possibly be the beginning of a invaluable new carbon companies business for Timor-Leste,” mentioned Santos chief govt Kevin Gallagher.
“Entry into the FEED part has sturdy help from our 5 three way partnership companions headquartered in Japan, Korea and Italy. And final month, a gathering of the Timor-Leste and Australian Prime Ministers included a dedication by Australia to ascertain an LNG Partnership Fund to deepen hyperlinks between Australia and Timor-Leste in gasoline growth and commerce, together with in the usage of carbon seize and storage,” added Gallagher.
The Australia authorities mentioned in a press release launched 17 February that the Prime Ministers mentioned the vital contribution the exploitation of gasoline assets within the Timor Sea makes to each international locations’ financial prosperity, and the shut cooperation between Australia and Timor-Leste underneath the Maritime Boundaries Treaty, which entered into pressure in 2019. Australian Prime Minister Scott Morrison dedicated to ascertain an LNG Partnership Fund to deepen hyperlinks between Australia and Timor-Leste in gasoline growth and commerce, together with in the usage of carbon seize and storage (CCS).
With about 80% of the world’s power nonetheless coming from hydrocarbons, together with pure gasoline, and new provide funding nonetheless required to satisfy the world’s ongoing demand for these merchandise, it’s important that the business decarbonises manufacturing, famous Santos. “CCS provides a large-scale, low-cost and everlasting method to progressively make these fuels cleaner. CCS may also allow new clear fuels industries similar to hydrogen which is able to dramatically cut back not solely Scope 1 and a pair of emissions, however Scope 3 emissions as properly,” added the corporate.
Santos has a 43.4% operated curiosity in Bayu-Undan and Darwin LNG. The remaining curiosity is held by SK E&S (25%), INPEX (11.4%), ENI (11%), JERA (6.1%) and Tokyo Gasoline (3.1%).
Santos’ permitted Barossa mission is one in every of a number of potential CO2 sources for Bayu-Undan CCS, however importantly this mission provides a area vast carbon answer, reckons Santos. Santos had proposed to make use of the Bayu Undan reservoir for capturing and storing CO2 from Barossa, which it’s creating off north-western Australia. The $3.6 billion Barossa initiatives’ gasoline has a really excessive CO2 content material in comparison with different initiatives within the area. Some critics declare it is among the dirtiest gasoline developments proposed globally.
Critics say Santos’ Barossa LNG should be halted until CCS scheme proven
Nonetheless, there are different competing CCS initiatives proposed offshore Northern Australia. Final month, Inpex introduced its proposed CCS hub close to Darwin, that’s estimated to value 100 billion yen ($868 million) and could possibly be expanded from an preliminary 2 million tons per yr to seize 7 million tons of CO2 per yr. This might put it on par with the world’s largest CCS hub operated by ExxonMobil within the US. Inpex’s proposed CCS mission additionally lies inside Australian waters, which removes problems over cross border regulatory frameworks and agreements that might be required for Santos’ Bayu Undan CCS hub plan.
Santos mentioned that “a remaining funding choice (FID) on Bayu-Undan CCS is focused for 2023, topic to related regulatory frameworks and agreements being in place in each Timor-Leste and Australia. Non-government organisations in East Timor have raised issues about how shortly Santos CCS mission is progressing, urging the federal government in Dili to completely analyse the implications of such a growth.
East Timor NGO hits out at Santos’ carbon storage plans for Barossa LNG
The Worldwide Power Company (IEA) Roadmap to Internet Zero by 2050 envisages carbon seize, utilisation and storage (CCUS) increasing to 7.6 billion tonnes of CO2 per yr by 2050 from round 40 million tonnes per yr at the moment.
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