Kevin Gallagher, CEO of Santos, has urged Australia to position itself as a "carbon storage superpower" by utilizing pastoral land and depleted oil and gas fields. The objective of this ambitious carbon capture and storage (CCS) plan is to reduce emissions while creating offset opportunities for various industries. Gallagher believes it could also pave the way for a new export industry, attracting prospective customers like Japan and South Korea (subject to cross-border carbon accounting). Notably, Australia already hosts the world's largest CCS project, the Chevron-operated Gorgon LNG project off the coast of Western Australia.
Santos is in the process of evaluating a CCS project at its Moomba gas plant in South Australia. However, the realization of this project relies on a legal change that would make CCS initiatives eligible for Australian carbon credits. Recent times have seen a surge of interest in CCS from the oil and gas industry. The International Energy Agency (IEA) stated in 2020 that storing 5.6 billion tonnes of CO2 by 2050 would be necessary to meet climate goals—a significant increase compared to current levels, exceeding 100-fold.
Gallagher's call to unlock Australia's carbon storage potential reflects the growing recognition of CCS as a crucial technology for combating climate change. By harnessing this capability, Australia has an opportunity to address emissions, create offsets, and potentially establish a thriving export industry, all while contributing to global climate objectives.
