Santos has secured $150m (A$228.88m) in financing for its share of the Moomba carbon capture and storage (CCS) project in South Australia.

The financial backing will cover the costs incurred to date and support the $220m project as it advances towards its first CO₂ injection, scheduled for mid-2024.

Santos CEO and managing director Kevin Gallagher said the competitive rates offered by banks for energy transition projects reflect their acknowledgment of CCS as an essential component for achieving global net-zero goals.

Currently 80% complete, the Moomba CCS project aims to achieve life cycle break-even storage costs of around $24 per tonne.

The project is expected to have an annual storage capacity of up to 1.7 million tonnes of CO₂, permanently and safely stored in depleted natural gas reservoirs.

Gallagher added: “The strong support Santos has received is underpinned by the progress we are making on our Climate Transition Action Plan that is focused on reducing our own emissions and those of our customers, as well as on developing low-carbon fuels as customer demand evolves.

“The median of IPCC 1.5-degree scenarios assumes Asian gas demand will increase slightly out to 2050 (compared to 2020) with some scenarios assuming demand increase of 40% or more.”

The Cooper Basin, where the project is located, is poised to become a key player in the energy transition, potentially serving as a hub for low-carbon fuel production and CCS services.

These services could help mitigate emissions from essential fuels like liquefied natural gas and sectors that are challenging to decarbonise.

Furthermore, Santos has signed a number of agreements with foreign organisations to investigate the viability of storing, transferring and absorbing their emissions at the Moomba site.

Last year, Santos and APA Group signed a memorandum of understanding to connect the CCS facility in Moomba with major CO₂ emitters and/or CO₂ import destinations.