Beach Energy commissions and ramps up Moomba CCS project in South Australia

Beach Energy Limited has announced the successful commissioning of the Moomba Carbon Capture and Storage (CCS) project in South Australia, marking a critical milestone in carbon capture technology. The project, which began CO2 injection on 30 September 2024, has rapidly scaled up to reach full capacity, surpassing initial expectations. The Moomba CCS project, one of the world’s largest, is set to capture and store approximately 1.7 million tonnes of CO2 per year, positioning it as a key player in Australia’s emissions reduction efforts.

Located adjacent to the Moomba Gas Plant in the Cooper Basin, this pioneering CCS hub represents a joint venture between Santos (66.7%) and Beach Energy (33.3%). The facility captures CO2 emissions from the plant, transports it through a sophisticated network of pipelines, and stores it in the depleted gas reservoirs of the Strzelecki and Marabooka fields. The infrastructure, built with an investment of AUD 220 million (USD 165 million), includes a four-stage compressor, CO2 dehydration units, and a multi-stage compression system designed to handle up to 84 million cubic feet of CO2 per day.

CEO Highlights the Strategic Importance of Moomba CCS

Brett Woods, Managing Director and Chief Executive Officer of Beach Energy, described the commissioning as a pivotal moment for the company and for Australia’s broader emissions reduction strategy. He emphasized that the facility’s full-scale operation would enable Beach Energy to safely and efficiently store all vented CO2 emissions from the Moomba Gas Plant, which plays a significant role in the company’s goal to reduce its Scope 1 and 2 emissions intensity by 35% by 2030.

Woods highlighted that natural gas remains an essential component of the global energy transition, and carbon capture and storage technologies are crucial for achieving low-emission energy production. The International Energy Agency (IEA) has similarly emphasized that reaching net zero by 2050 will be nearly impossible without large-scale CCS technology.

Technological Advancements in Carbon Capture

The Moomba CCS project is a showcase of cutting-edge carbon capture and storage technology. It captures CO2 from the Moomba Gas Plant’s processing operations through four CO2 removal units. The captured gas is dehydrated and compressed before being transported via underground pipelines for permanent storage in the Cooper Basin’s depleted fields. The project’s infrastructure includes a multi-stage centrifugal compressor and a triethylene glycol (TEG) dehydration unit to handle and prepare the CO2 for long-term storage.

The project’s significance is further amplified by its registration under Australia’s Emissions Reduction Fund (ERF). It is the first CCS initiative in the nation to qualify for Australian Carbon Credit Units (ACCUs) over a 25-year period, setting a precedent for future carbon capture projects. The ACCUs can be traded on the private market or sold to the government, providing a financial incentive for emissions reduction.

Impact on Beach Energy’s Market Position and Stock Performance

Beach Energy’s significant investment in the Moomba CCS project has the potential to reshape its market position. Analysts suggest that such a large-scale and technologically advanced project could positively impact the company’s stock performance by enhancing its sustainability credentials and aligning with international climate targets. The expansion potential of the Moomba CCS hub—capable of eventually storing up to 20 million tonnes of CO2 annually—shows the long-term value of the project.

Expert Opinion: The Role of CCS in Achieving Net Zero

Industry experts have emphasized the crucial role of CCS in the global effort to achieve net zero. The Moomba project, they noted, not only allows Beach Energy and Santos to decarbonise their natural gas production but also supports Australia’s broader emissions reduction goals. Kevin Gallagher, CEO of Santos, stated that the Moomba CCS hub is a critical step in their journey to develop low-emission and clean-burning fuels like hydrogen, further helping them achieve net zero in Scope 1 and 2 emissions by 2040.