Santos announced that it has signed four Memoranda of Understanding (MOU) for the proposed storage of carbon dioxide (CO2) emissions from third parties to underpin the initial development of the Bayu-Undan carbon capture and storage (CCS) project.
ccording to Santos, the four non-binding MOUs for CO2 supply to Bayu-Undan CCS have been executed with potential upstream gas and LNG projects offshore the Northern Territory and in Darwin, and an energy and industrial conglomerate in Korea.
As informed, he MOUs indicate demand for CO2 storage at Bayu-Undan CCS could be in excess of 10 million tonnes per annum (Mtpa). Bayu-Undan CCS ex-Darwin will be a relatively low-cost carbon solution, with costs expected to be well within the Australian Government’s proposed price cap on Australian Carbon Credit Units.
In addition, Bayu-Undan CCS has the potential to reduce the absolute emissions and emissions intensity of Australian gas and LNG projects, as well as of other industries in the Northern Territory, by providing safe and permanent CO2 storage in depleted gas reservoirs that previously held gas and condensate in place for tens of millions of years. Importantly, Bayu-Undan CCS provides a potential Scope 3 emissions solution for Australia’s exports to Asia, with large customers in countries such as Korea looking to capture energy and industrial emissions and ship CO2 to Australia for safe, permanent sequestration deep underground.
While the Bayu-Undan CCS project is located offshore Timor-Leste, Darwin is set to be an important regional hub for CO2 capture, transfer and storage to Bayu-Undan as well as to other potential CCS locations offshore the Northern Territory, which are still in the exploration and feasibility stages.
Australia is well-suited to large-scale deployment of CCS to facilitate domestic CO2 abatement and support regional emissions reductions.
..said the International Energy Agency in its recent Australia 2023 Energy Policy Review.
Santos Managing Director and CEO Kevin Gallagher said Timor-Leste is also well-positioned as a future provider of carbon management services.
Santos working with both the TimorLeste and Australian Governments to bring the Bayu-Undan CCS project to fruition and realise its potential as an important regional decarbonisation project benefiting both nations and our regional trade and investment partners.
Furthemore, there are others CCS projects, which involve the capture of carbon dioxide (CO2) emissions from industrial processes. For example, on 16th May 2022, Cory and Northern Lights signed MoU to collaborate on the realization of a major carbon capture and storage (CCS) project between the UK and Norway.
Moreover, on 6th April 2023, Northern Lights joint venture (JV) installed the first temporary CO2 storage tank of its carbon capture and storage (CCS) project in Øygarden in Norway.