Santos has forged a memorandum of understanding (MOU) with Liberty Primary Metals Australia Pty Ltd, a key player in South Australia’s commercial industrial gas landscape.
This collaboration aims to explore gas supply options combined with carbon capture and storage (CCS) technologies to facilitate the transformation of the Whyalla steelworks, Santos said in a media release.
Under the leadership of Santos Managing Director and CEO Kevin Gallagher, the MOU seeks to supply abated natural gas to assist GFG Alliance’s decarbonisation efforts.
This aligns with GFG’s transition plan towards a Direct Reduction Plant (DRP) in Whyalla, aimed at processing local magnetite ore to produce low-carbon iron.
Initially, the DRP will utilise a blend of natural gas and green hydrogen, with plans to transition fully to green hydrogen as scalability increases.
The partnership also entails a joint pre-feasibility study exploring CCS opportunities to mitigate emissions from the Whyalla iron and steel works.
This collaboration positions GFG Alliance to potentially become Santos’ inaugural domestic third-party customer for carbon capture and storage, leveraging Santos’ flagship project at Moomba.
Kevin Gallagher expressed Santos’ enthusiasm for supporting GFG Alliance’s green steel aspirations.
He noted, “We’ve been a gas supplier to Whyalla for many years and we’re pleased to be working with GFG on its green steel journey. We’re seeing strong interest in abated natural gas domestically and internationally.”
He emphasised the role of abated natural gas coupled with CCS as an affordable and accelerated decarbonisation pathway, especially during the transitional phase to green hydrogen.
“This MOU is great news for the Upper Spencer Gulf and South Australia because industries like the Whyalla steel works rely on affordable energy combined with decarbonisation to grow into the future – keeping jobs, skills and business opportunities here in the region to support vibrant local communities for decades to come,” Gallagher stated.
Sanjeev Gupta, executive chairman of GFG Alliance, lauded the partnership with Santos and underscored the importance of natural gas supply for the transition to hydrogen.
Additionally, he endorsed Santos’ carbon capture and storage initiatives as crucial in reducing residual emissions from their steelworks.
Echoing the sentiments, Liberty Primary Steel and Mining CEO Sandip Biswas underlined Whyalla’s readiness to lead the green steel industry.
“Whyalla has all the elements required to lead the green steel industry in one location – vast reserves of high-quality magnetite, abundant potential for the generation of renewable energy, a cape-sized capable sea port, a skilled workforce, extensive existing infrastructure, a supportive community, collaborative governments and now a secured pathway to offtake natural gas and decarbonisation collaboration,” Biswas concluded.
