Santos, Tokyo Gas plan e-methane production in Australia
Australian oil and gas producer Santos has partnered with Japan's largest gas utility company, Tokyo Gas, to investigate the potential for producing carbon-neutral e-methane in Australia, it announced on November 21
E-methane is produced by combining green hydrogen and CO2 obtained from carbon capture of industrial emissions or direct air capture (DAC) technology. This process offers a carbon-neutral alternative to conventional natural gas, paving the way for cleaner energy consumption without compromising existing infrastructure.
Santos, through its unit Santos Energy Solutions, will work closely with Tokyo Gas to evaluate the feasibility of e-methane production in Australia for export to Japan. The study will focus on the Cooper basin, a region with abundant renewable resources suitable for generating green hydrogen using electrolysis technology.
“We are excited about this new business opportunity which could transform our Cooper Basin assets into a large-scale, commercial carbon capture and storage, and low-carbon fuels hub," stated Santos Energy Solutions executive vice president Alan Stuart-Grant.
The investigation will include a technical analysis of renewable power, carbon dioxide and other feedstock sources, the methanation process (to make e-methane), cost and schedule evaluations, risk assessments and commercialisation options.
The study will focus on the Cooper basin which has vast renewable resource potential for making green hydrogen using electrolysis technology, where Santos is trialling DAC technology. Santos is also building carbon capture and storage projects at Moomba in the Cooper basin and the project is on track for first injection in 2024.