Santos Limited has commenced a concept study on a hydrogen future for the Cooper Basin. The study will investigate how natural gas can be de-carbonised at its source to make ‘zero-emissions’ or ‘blue’ hydrogen. The carbon dioxide produced as a result could then be safely and permanently captured and stored in the same reservoirs that the gas came from.

According to Santos Managing Director and Chief Executive Officer, Kevin Gallagher, the Cooper Basin hydrogen concept study builds on Santos’ progress towards the 1.7 million tonne Cooper Basin Carbon Capture and Storage (CCS) Project for which the Company is targeting a final investment decision later this year, subject to a CCS methodology being approved for the Emissions Reduction Fund.

“CCS is the fastest and most efficient route to a hydrogen economy, using less water, de-carbonising natural gas at its source and eliminating Scope 3 emissions,” said Mr Gallagher. “It enables the capture of carbon dioxide from the production of blue hydrogen, making it a ‘zero-emissions’ fuel.”

“With over 65 years of experience in the safe production of natural gas, Santos has the operational knowledge, capability and infrastructure to be a leader in the creation of a hydrogen industry right here in Australia,” he stated.

Mr Gallagher noted that the development of blue hydrogen from natural gas in combination with CCS will be critical in the transition to a low-carbon future.

“A CCS and hydrogen future proves that emissions reduction and job-creating resource development can work hand-in-hand.”

It is anticipated that Santos’ proposed Moomba CCS Project in South Australia would capture the 1.7 million tonnes of carbon dioxide currently separated from natural gas each year at the Moomba Gas Plant and reinject it into the same geological formations that have held oil and gas in place for tens of millions of years.

“With the Cooper Basin’s reinjection capacity assessed at up to 20 million tonnes of carbon dioxide per year for 50 years, it has the potential to de-carbonise energy at its source,” Mr Gallagher shared.

“This exciting opportunity could create high-skilled, well-paying and secure jobs, drive regional development, create new industries and deliver good outcomes for climate and the environment.”

GHD has partnered with Santos on the project, drawing on GHD’s hydrogen experience across Australia and globally and supporting clients through the global energy transition.

GHD’s Chief Executive Officer, Ashley Wright, said he believes hydrogen could play a significant role in decarbonising industries.

“This project is a potential game-changer for the gas sector,” he said.

Santos and GHD aim to complete the concept study by the end of 2020.