HomeCarbon CreditsDepleted Gas Reservoirs Hold CO2 and Carbon Credits

Depleted Gas Reservoirs Hold CO2 and Carbon Credits

Australian gas producer Santos has secured a network of depleted gas reservoirs for carbon storage – with the potential to keep up to 100 million metric tons. Santos can then issue carbon credits worth as much as $25M annually.

These reservoirs serve as a piece of the puzzle for Santos’ carbon project called Moomba.

Beach Energy has partnered with Santos on Moomba. The is to capture 1.7 million metric tons of carbon each year. So, the storage option proposed could last more than 50.

They expect to start in 2024.

How does carbon capture and storage (CCS) work?

Carbon capture is when carbon is collected from the atmosphere and then reused or stored. The technology behind it is quite complex.

While governments and industries support carbon capture and storage, it is only just starting to pick up steam. This is mainly due to the high cost.

As such, once the technology becomes more accessible, CCS will continue to grow.

“[Carbon capture and storage] is a critical technology to achieve the world’s emission reduction goals, and we only have to look at current carbon prices to see how valuable 100mn tons of storage is,” chief executive Kevin Gallagher said in a statement on Tuesday.

What are carbon credits?

For every carbon credit purchased on the carbon markets, one metric ton of carbon is offset through an environmental project.

The Santos capture and storage project qualifies.

Santos can claim one Australian carbon credit for every ton of carbon they capture and store. They could then sell the credits for A$17 (US$12) per ton, which the Australian government would then retire, or sell them privately.

On the private carbon market, ACCUs are going for more than A$55 (US$39).

Santos can capture and store carbon at Moomba for $24 a ton if prices stay where they are now – though many expect carbon prices to continue to increase over the next several years.

Most Popular
LATEST CARBON NEWS

From Wild Seaweed to High-Value Products and Carbon Credits

A wave of seaweed is covering the Caribbean coasts, killing wildlife while harming humans and tourism, but an innovative company is turning it into...

Ammonia: Carbon-Free Fuel for the Shipping Industry

Converting ammonia into hydrogen is an emission-free fuel to help decarbonize the heavy-duty and shipping transportation industry. The transportation industry is the biggest polluter in...

How The First Carbon Negative Nation of Bhutan Did It

As the world’s richest and largest emitting countries are struggling to reduce emissions, Bhutan became the first carbon negative nation. Fog-enshrouded temples nestled in mountainous...

Google’s Eco-Friendly Routing Comes to Europe

Google expanded its eco-friendly routing on its Google Maps to 40 countries across Europe. With Google Map’s eco-friendly routing, drivers can choose a route that’s...
CARBON INVESTOR EDUCATION

The 5 Top Carbon Offset Project Developers

Are you looking to directly reduce your carbon footprint or support projects that cut emissions elsewhere? Then carbon credits allow you to do either...

The Top 3 Private Carbon Companies to Watch Right Now

Right now, the carbon space is heating up. Dozens of companies are jumping into what’s fast becoming one of the hottest spaces to invest...

Carbon Insetting: The Target of Scope 3 Carbon Offset Accounting

Carbon offsets are a well-known sustainability concept so you most likely have heard of them. But there’s a relatively new sustainable supply chain term...

Tonne Year Accounting for Temporary Carbon Storage

You most likely know the climate benefits of storing carbon and removing gigatons of it from the atmosphere to limit climate change. But we also...