ALASKA RESOURCE REVIEW FALL 2024 42 Department of Energy funding to go toward North Slope site ASRC ENERGY SERVICES LLC AND SANTOS LTD WERE AWARDED A $50 MILLION FEDERAL GRANT TO STUDY THE STATE’S FIRST MAJOR UNDERGROUND CARBON STORAGE FACILITY. The funding was part of $518 million announced by the U.S. Department of Energy’s (DOE) Office of Fossil Energy and Carbon Management (FECM) on Oct. 21 to support 23 selected projects across 19 states. The intent is to fight climate change by developing the infrastructure needed for national decarbonization. According to a news release, ASRC Energy Services, LLC (Anchorage) and Santos, Ltd (Anchorage) plan to advance toward the development of a commercial large-scale CO2 storage hub in the North Slope region of Alaska – The North to the Future Carbon Capture and Sequestration Hub and meet all requirements necessary to reach a financial investment decision for construction. The project will leverage expertise and infrastructure in the region to maximize the utilization of resources and minimize environmental impact while supporting local economic development. The partners plan to drill one stratigraphic well, study transport options and assess the feasibility of CO2 from area emitters, develop a storage field development plan, undertake National Environmental Policy Act (NEPA) activities, and initiate application for an underground injection control (UIC) Class VI permit. The initial hub design consists of two injection wells and transport pipelines for two localized regions of CO2 emitters. The project plans to advance the development and deployment of carbon capture and storage in the industrial center of Alaska by providing a dedicated storage location for point source and direct air capture projects. ASRC Energy Services (ASRC Energy) is a wholly owned subsidiary of Arctic Slope Regional Corporation (ASRC), the largest business established and headquartered in Alaska for three decades. With nearly 40 years of experience working in the world’s most challenging environments, ASRC Energy has earned its reputation as the service provider of choice to the energy industry. Santos is a global energy company with operations across Australia, Papua New Guinea, Timor-Leste and the United States. The company provides reliable, affordable energy for progress and seeks to provide lower carbon energy over time. Santos’ focus in Alaska is advancement of the Pikka Phase 1 project. Pikka will be net zero carbon emissions (equity share) which includes a single drill site, an oil processing facility, and other infrastructure to support production of 80,000 barrels of oil per day. Santos is a global leader in Carbon Capture and Storage (CCS) technology having recently completed and commissioned the Moomba Carbon Capture and Storage (CCS) project in Australia. Moomba is now online and storing CO2 in Cooper Basin depleted reservoirs at full rate. Santos expects to inject approximately 250,000 tonnes (gross) of CO2 in 2024, with the project already at full injection rates. According to their annual sustainability report, CCS is the centerpiece of Santos’ decarbonization strategy, meeting the global demand for decarbonization services and facilities whilst laying the foundation for the low carbon fuels of the future. Beyond the DOE Funding of $50,342,750, another $12.5 million in additional funding will bring the project’s total pre-FID costto almost $63 million. Twenty-three projects were selected for negotiation to support the development of new and expanded commercial large-scale carbon storage projects with the capability to store 50 or more million metric tons of CO2 over a 30-year period. All projects will support the Carbon Storage Assurance Facility Enterprise (CarbonSAFE) Initiative, managed by FECM, and focus on the detailed site characterization, planning, permitting, and construction stages of project development under CarbonSAFE. AES and Santos thanks the Department of Energy for their commitment to partnering with local companies to find innovative solutions for the future. The partners also thanked Governor Mike Dunleavy and the Alaska Legislature for their commitment and support of CCS technology through passage of HB50, along with Alaska’s Congressional Delegation for their support in bringing this critical funding to Alaska. ASRC ENERGY SERVICES, LLC. AND SANTOS LTD. WIN $50M FOR CARBON STORAGE HUB
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