Santos and GHD are expecting to complete the concept study by the end of this year. Credit: David Mark from Pixabay.

Australian oil and gas major Santos has commenced a concept study investigating a hydrogen future for the Cooper Basin.

The Cooper Basin spans across the northeast corner of South Australia and southwest Queensland.

Santos has selected global professional services firm GHD to conduct the study.

The study is being conducted to determine the potential of de-carbonising natural gas at the source to make ‘blue’ hydrogen.

The carbon dioxide (CO2) produced as a result can then be safely captured and stored in the same reservoirs where the gas originated from.

Santos managing director and CEO Kevin Gallagher said: “The Cooper Basin hydrogen concept study builds on our progress towards the 1.7 million tonne Cooper Basin Carbon Capture and Storage Project for which Santos is targeting a final investment decision later this year, subject to a CCS methodology being approved for the Emissions Reduction Fund.

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“Carbon capture and storage (CCS) is the fastest and most efficient route to a hydrogen economy, using less water, de-carbonising natural gas at its source and eliminating Scope 3 emissions.”

According to Santos, CCS is the most efficient route in transition towards a hydrogen economy.

CCS methodology uses less water, de-carbonises natural gas at its source, and eliminates Scope 3 emissions.

Santos and GHD are expecting to complete the concept study by the end of this year.

GHD CEO Ashley Wright said: “We are committed to supporting our clients through the global energy transition. We believe hydrogen could play a significant role in decarbonising industries and this project is a potential game-changer for the gas sector.”

Santos and GHD are expecting to complete the concept study by the end of this year.

Last month, Santos welcomed the New South Wales (NSW) government’s recommendation to approve its planning application for the Narrabri gas project in Australia.

In a separate development, NextDecade said it is optimising its Rio Grande LNG project in order to reduce the environmental impacts. The company is abandoning development of a sixth liquefaction train at the proposed export facility.

The original plan for Rio Grande LNG called for six trains, each capable of producing 4.5Mtpa of LNG. The company expects to achieve the same total capacity with five units if it decides to proceed further with the full project.