Energy supplier Santos (ASX:STO)
plans to register its $210 million Moomba CCS project, after the federal government released the carbon capture and storage (CCS) method for the emissions reduction fund.
According to the company, their CCS project will permanently store 1.7 million tonnes of carbon dioxide per year in the same reservoirs that held oil and gas in place for millions of years,
“CCS will reduce Australia’s carbon emissions and is set to underpin a new, large-scale carbon storage industry for the nation, creating new skilled, secure, well-paid jobs. Zero-emissions technologies like CCS that make hydrocarbon fuels cleaner are essential to meet the world’s emissions reduction targets,” said Santos CEO Kevin Gallagher.
“Australia needs low-cost abatement to maintain our position as a leading energy exporter and to decarbonise manufacturing of energy-intensive materials such as steel, cement, bricks, chemicals, plastics and the many everyday products that are made from oil and gas," said Santos chief operating officer Brett Woods.
“The world still relies on hydrocarbon fuels for 80 per cent of its primary energy and 60 per cent of clothing fibres along with essential products such as the plastic gloves, syringes and medical equipment that have got us through the global pandemic,” Brett continued.
Once the project has been registered, Santos will be in a position to make a final investment decision to proceed.
Shares in Santos (ASX:STO)
are trading 3.6 per cent lower at $6.91.
Image from: https://www.petroleum.sa.gov.au/