Santos announced the launch of a battery project for Darwin LNG which will reduce power generation carbon emissions by 20 per cent, as well as cut fuel gas consumption and operating costs.
The project is a world first for an LNG plant, and involves the integration of battery technology with existing power generation turbines so they run more efficiently.
This will not only result in a significant cut in carbon emissions, but also a reduction in costs by saving on fuel use and maintenance.
The project will now move into the front-end engineering and design phase of development, and is targeting completion by the middle of 2020.
Santos Managing Director and Chief Executive Officer Kevin Gallagher said Santos is committed to working with its joint venture partners towards a lower carbon future.
“This is the latest of a number of carbon reduction actions we are taking across the company, and not the first time we are employing battery technology,” Mr Gallagher said.
“We are converting oil well beam pumps to solar and batteries in the Cooper Basin, as well as investing $10 million to test the potential for carbon capture, utilisation and storage, also in the Cooper.”
Santos is also working on significant solar installations across our operations, including at Port Bonython in South Australia.
“In Western Australia, we’re replacing existing power generation turbines at our Devil Creek plant with higher fuel efficiency ones – not only reducing emissions by more than 25% but also generating carbon credit units as a registered project with the Emission Reduction Fund.”
“These initiatives are steps along the way to achieving our goal of net zero emissions by 2050.”
“As well as cutting our carbon footprint, the Darwin LNG battery project – as with our solar and battery project in the Cooper – cuts costs and means we can sell more gas,” Mr Gallagher said.
The Darwin LNG project has been an industry leader when it comes to taking action on climate change with the West Arnhem Land Fire Abatement project.
“Since its establishment in 2007, it has offset more than 2 million tonnes of CO2,” Mr Gallagher said.
The project also protects local wildlife and rainforest vegetation and provides social, cultural and economic benefits for the local Aboriginal community, resulting in the employment and fire management training of more than 200 Traditional Owners and rangers.
Santos has an 11.5% share in Darwin LNG, which is operated by ConocoPhillips.