Esso Australia Pty Ltd has announced that construction of a new Air Liquide facility that will capture and reuse Carbon Dioxide (CO2) extracted from Gippsland gas has commenced.
Dylan Pugh, Chair of ExxonMobil Australia, said that construction of the facility next to the Longford Gas Conditioning Plant will allow CO2 captured during the processing of Gippsland gas to be processed and purified to food and beverage grade quality.
“CO2 is a valuable and in-demand gas, typically used by the food, beverage, hospitality, manufacturing and medical industries for a variety of important functions that are essential to everyday life,” said Pugh.
“Decarbonising Gippsland gas presents opportunities for the Gippsland region to maintain its role as one of Australia’s significant energy hubs, supporting local jobs and our ongoing supply of energy Australians rely on.”
The construction of the new facility will bolster the local economy by generating approximately 60 new jobs in the region throughout its construction and operations.
Shiva McMahon, BHP Petroleum General Manager Australia, noted the new facility will make operations more sustainable, provide a valuable product for other sectors in the economy, and create new local jobs and business opportunities.
“I thank our partners Esso Australia and Air Liquide for their collaboration and look forward to seeing this project come to fruition.”
Tim Kehoe, Air Liquide Australia Managing Director, said the aim of the Gippsland Basin Joint Venture is to capture and process CO2 in 2023 when the CO2 processing facility is commissioned.
“The facility will not only contribute to the sustainability of our operations, but will also offer additional support to our customers in the Food and Beverage, Medical, Water Treatment and Industrial markets,” he continued.
Under a long term agreement announced in 2021, Esso Australia will capture and send excess CO2 from the Longford Gas Conditioning Plant to Air Liquide, who will then process and provide the in-demand gas in various forms across Australian businesses.
The Gippsland Basin Joint Venture is a 50-50 joint venture between BHP Petroleum (Bass Strait) Pty Ltd and Esso Australia Resources Pty Ltd, operated by Esso Australia Pty Ltd.