Santos eyes incentives to meet green power goals
SA oil and gas producer Santos wants more government incentives for experimental renewable energy projects to cut its own emissions.
SA energy giant Santos wants more Federal and local government incentives for experimental renewable energy projects to cut its own emissions while continuing its push to increase LNG exports to Asia for global climate action.
“This year Santos is investing $50 million in projects in the Cooper Basin to reduce our carbon footprint, including deployment of solar energy, waste heat recovery at Moomba and appraisal of the potential for carbon capture, utilisation and storage,” Santos managing director and chief executive Kevin Gallagher said in a speech at the Australian Institute of Energy awards on Wednesday night.
Of this, $10 million is being invested to test the potential for carbon capture, utilisation and storage (CCUS) in the Cooper Basin and use carbon dioxide reinjection to enhance oil recovery.
“Proving up and deploying this technology is vital to achieving the world’s long-term aspirations for zero emissions and I want Santos to be a leader in this endeavour.
“At the moment the technology does not qualify for generating Australian Carbon Credit Units and this is something that needs to change.”
Australian governments need to follow the US’ lead where CCUS technology is eligible for tax incentives, he said.
“I am keen for governments in Australia to consider similar incentives to accelerate CCUS deployment.”
Santos has set a target to cut production emissions in the Cooper Basin and Queensland by 5 per cent by 2025 and reach net zero emissions by 2050. The oil and gas producer said it was unlocking cleaner energy for the domestic market and for export to Asia.
“The best action we can take to reduce global emissions is to increase our LNG exports, which displace coal and dirty fuels in Asia.
“That’s because for every tonne of carbon dioxide emitted during production in Australia, our LNG saves between 3 and 10 tonnes of emissions when it is used for power generation in Asia.”
Port Bonython is Santos’ largest renewable project so far where solar energy makes up more than six per cent of the power used at the processing plant. It is also trialling solar energy to power oil well operations. The initial project to convert beam pumps on 56 oil wells to solar and batteries will cost just over $16 million. If successful, all 208 oil wells in the basin will be converted.
Santos’ oil wells project won AIE’s best SA project award last night with employee Christian Winterfield, who is leading the CCUS project, named Young Energy Professional. Energy sector veteran Monica Oliphant was inducted into the Hall of Fame.