Carbon capture and storage project on track in SA

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Oil and gas company Santos is on track to commission its carbon capture and storage (CCS) facility at Moomba in South Australia next year.

The project is about 60 per cent complete with the imminent arrival of a compressor and turbine, considered two of the most critical components.

Santos Energy Solutions president Brett Woods said the Moomba CCS facility would be the start of a new industry, with carbon-abated gas opening potential new revenue streams.

"Moomba CCS will help Australia reach net zero. Once complete, the project will support Santos to reduce our own emissions but crucially, we're also working with other hard-to-abate sectors to look at ways of using Moomba CCS to help reduce their emissions, too," Mr Woods told reporters on Monday.

Santos expects to inject the first carbon dioxide into depleted reservoirs at Moomba in 2024.

The facility will have the capacity to store up to 1.7m tonnes each year using the same geological formations that previously held oil and gas.

Mr Woods said demand for such services was strong with 30 CCS projects in operation around the world storing more than 42m tonnes each year.

"Increased deployment of CCS is critical to achieve the world's climate goals," he said.

"Santos' progress on CCS reaffirms our strategy and our commitment to delivering emissions reduction solutions for our own operations as well as that of our customers, and third parties."