Climate Change Reports:
Santos to be net-zero emissions by 2040
Santos has announced ambitious emissions reduction targets in line with global aspirations to limit temperature rises to below 2°C that include:
Scope 1 and 2 emissions reduction targets:
- 2025: Economically reduce emissions by more than five per cent across operations in the Cooper Basin and Queensland (current at the 2016-17 baseline) by 2025.
- 2030: Reduce our Scope 1 and 2 emissions and emissions intensity by 26-30 per cent by 2030.
- 2040: Reduce our Scope 1 and 2 emissions to net-zero by 2040.
- 2025: Carbon Capture and Storage (CCS): Pursue step-change emissions reductions technology by assessing the feasibility and, if feasible, invest in technology and innovation which can deliver a step-change in emissions.
- 2030: Once regulatory matters are finalised, use CCS technology to accelerate the economic feasibility of clean hydrogen and deliver a step-change in emissions reduction.
Scope 3 targets:
- 2025: Reduce global emissions through LNG export growth by growing LNG exports to at least 4.5 million tonnes per annum.
- 2030: Work with customers to reduce their Scope 1 and 2 emissions by more than one million tonnes CO2e per annum by 2030 through direct fuel switching to cleaner fuels.
Natural gas is playing a key role in delivering a lower-carbon future
More than ever, natural gas is a fuel for the future. We see a strong future for Santos and a sustained shift to natural gas will significantly reduce greenhouse emissions and contribute to a lower-carbon world. Natural gas is expected to supply 25% of all global energy demand in 2040.
Reporting our progress on addressing the climate challenge
Since 2018, Santos has published annual climate change reports that align with the recommendations of the G20’s Task Force on Climate-related Financial Disclosures (TCFD). The latest 2021 Climate Change Report outlines that Santos is ahead of plan in achieving our 2025 targets and includes details and case studies regarding the company’s emissions reduction performance. It also sets out our pathway to achieving the 2030 targets and net-zero emissions by 2040 in more detail.
Read more about our performance in the 2021 Climate Change Report.
Moomba CCS and clean hydrogen
In 2020 Santos continued to progress our globally significant Moomba CCS project which is now ready for final investment decision pending finalisation of an approved methodology for CCS to earn Australian Carbon Credit Units (ACCUs).
Front-end engineering design is complete for the capture, compression, dehydration (removing any water) and storage of CO2 from the Moomba plant. As part of this phase of the project, Santos successfully injected approximately 100 tonnes of CO2 deep underground into depleted gas reservoirs where it originally came from and has been safely stored for more than 50 million years.
Phase one of the Moomba CCS project aims to inject up to 1.7 million tonnes of CO2 emissions per annum from the Moomba Gas Plant.
This will support commerciality for the project, which is expected to cost approximately A$30 per tonne of CO2 captured.
Appropriate policy settings will accelerate further CCS deployment in the Cooper Basin, which has the capacity to store up to 20 million tonnes of CO2 per
annum and become a large-scale, commercial CCS hub. The Cooper Basin will be able to offset emissions not only from oil and gas, but from other industries such as power generation, steel, cement and chemicals and enable clean hydrogen production at significantly lower cost than produced via electrolysis.
CCS is recognised as a safe, well-established solution for permanent, large-scale emissions reduction and clean hydrogen production, the keys to economy-wide decarbonisation.
Schematic of CCS infrastructure in the context of the Cooper Basin and opportunity to support hydrogen growth.
Case study: Social co-benefits of carbon offset program
For 15 years Darwin LNG, now operated by Santos, has supported the West Arnhem Land Fire Abatement project (WALFA), in which Indigenous rangers conduct strategic fire management to lessen the impact of bigger, hotter fires in the pristine environment of Arnhem Land.
As outlined in the Santos 2021 Climate Change Report, WALFA is now recognised across Australia and the world for its effectiveness at reducing greenhouse gas emissions, more than two million tonnes of CO2 equivalent, making it one of Australia’s biggest offset projects.
For the original five Aboriginal ranger groups, the long-running project has had a transformational effect on the communities they support. Revenue from the carbon credits they produce has reaped benefits in a range of key areas, allowing more employment of traditional owners on country, and a strengthening and expansion of the vital work they do.
As well as better fire management, carbon credits revenue has supported WALFA’s five project partners to invest in community-identified priorities to increase their capacity to manage the land and sea country of Arnhem Land, growing their effectiveness while also strengthening culture.
- The Warddeken rangers have established initiatives to build knowledge of the region’s extensive biodiversity and ancient rock art, train future community leaders and increase female representation. In 2017 they established the Narwardekken Academy, a first of its kind school providing first-rate bilingual education for their children on country, so they did not have to travel hundreds of kilometres to larger towns.
- The Mimal Rangers have created their own Aboriginal land management corporation providing benefits to country and culture for the Dalabon, Rembarrnga and Mayili landowners and are developing an Indigenous Protected Area (IPA).
- The Jawoyn Rangers have expanded their fire management projects to cover the majority of the Jawoyn estate, including a joint management partnership to undertake fire management within Nitmiluk National Park.
- The Bawinanga Rangers have grown their support for Traditional Landowners to include targeted action against other key threats including feral animals and invasive weeds.
- The Adjumarllarl Rangers have increased their capacity to support Traditional Landowners including expanding their registered fire project area where they can generate ACCUs, which is likely to be registered in 2021.
Far beyond its original goal to produce carbon offsets, initiatives such as these demonstrate the enduring environmental, social and education legacy of the WALFA project and the potential for the carbon market to contribute to diverse sustainable outcomes in Australia.