Carbon Management Project Joint Venture
Brisbane, May 9, 2022 AEST (ABN Newswire) - State Gas Limited (
ASX:GAS) announces that it has agreed terms with minerals company Rockminsolutions Pty Ltd for a Joint Venture for a Carbon Management project in Central Queensland.
After initially entering into a Memorandum of Understanding last year, the parties have now deepened their relationship into a Joint Venture.
The Joint Venture will investigate the potential of the Buckland Basaltic Sequence, located within EPM 27596 (within and adjacent to the western area of State Gas' Rolleston-West Project ATP 2062), to enable significant decarbonisation through carbon mineralisation, either in- and ex-situ.
Basalt rocks are highly reactive and contain the elements needed for permanently immobilising carbon dioxide through the formation of carbonates such as calcium carbonate and magnesium carbonate. In these forms, the carbon is stable and safe.
The Buckland Basaltic Sequence is an extensive area of Tertiary aged basaltic ignimbrites (volcanic ash deposits) up to 330m thick. The particular characteristics of this deposit (as nonwelded ignimbrites) suggest very high permeability and porosity, facilitating the availability of the minerals within the basalt to react rapidly with carbon dioxide.
The size and thickness of the Buckland Basalt Formation provides the potential for very significant quantities of carbon to be mineralised.
The Joint Venture will initially investigate the potential of the Buckland basaltic ignimbrite for a range of ex-situ mineral carbonation purposes such as soil mineral carbonation, while also investigating its potential as a supplementary cementitious material to make low-carbon cements.
Important information as to potential of the deposit for in-situ mineral carbonation - applying the process currently being successfully implemented by Carbfix in Iceland - will be revealed as a consequence of this initial work.
State Gas Executive Chairman, Richard Cottee, said that the Company was very pleased to progress its relationship with Rockminsolutions, and embark upon this Carbon Management initiative.
"While State Gas remains focussed on development of its Reid's Dome and Rolleston-West Gas Projects, the carbon mineralisation approach has the potential to be a gamechanger in carbon management", he said. "Carbon management is an increasingly pressing need as we move towards a net zero world, and I am very pleased State Gas is playing its part."
"I am very positive about the future of this initiative", he added. "Investigating a broad range of potential opportunities maximises our chances of success. Rockminsolutions has particular strengths in basalt geology, and combining these with State Gas' operational expertise will optimise the outcomes."
The Carbfix in situ mineralisation process is one attracting significant international attention, with the US Department of Energy demonstrating the technology at Washington state, and Rio Tinto recently announcing a project in Minnesota, USA.
The process involves dissolving the carbon dioxide in water, creating a stable solution which can be readily pumped into formations much shallower than those required for traditional carbon sequestration. The high porosity of the Buckland Basalts is expected to facilitate the retention of the carbonated water without the need for a geological seal. As a result, the Carbfix process has the potential to provide a more secure carbon storage solution at substantially lower cost than traditional processes. In its trials in Iceland, Carbfix has found this process has resulted in more than 95% of carbon mineralising underground within two years.
Under the terms of the Joint Venture State Gas will undertake investigatory works to progressively farm-in to Rockminsolutions' EPM 27596. Initial works of drilling two chipholes into the formation are expected to be undertaken this year. These holes will provide samples for laboratory analysis and to commence the ex-situ studies.
Should the potential of the Formation for carbon management be proved, the options for development include establishment of hydrogen manufacture, direct air capture, or creation of a commercial carbon management hub in Central Queensland.
*To view Map of JV Location, please visit:
https://abnnewswire.net/lnk/17272B65
About State Gas Limited
State Gas Limited (ASX:GAS) is a Queensland-based developer of the Reid's Dome gas field, originally discovered during drilling in 1955, located in the Bowen Basin in Central Queensland. State Gas is 100%-owner of the Reid's Dome Gas Project (PL-231) a CSG and conventional gas play, which is well-located 30 kilometres southwest of Rolleston, approximately 50 kilometres from the Queensland Gas Pipeline and interconnected east coast gas network.
Permian coal measures within the Reid's Dome Beds are extensive across the entire permit but the area had not been explored for coal seam gas prior to State Gas' ownership. In late 2018 State Gas drilled the first coal seam gas well in the region (Nyanda-4) into the Reid's Dome Beds and established the potential for a significant coal seam gas project in PL 231. The extension of the coal measures into the northern and central areas of the permit was confirmed in late 2019 by the Company's drilling of Aldinga East-1A (12 km north) and Serocold-1 (6 km to the north of Nyanda-4).
State Gas is also the 100% holder Authority to Prospect 2062 ("Rolleston-West"), a 1,414 km2 permit (eight times larger than PL 231) that is contiguous with the Reid's Dome Gas Project. Rolleston-West contains highly prospective targets for both coal seam gas (CSG) and known conventional gas within the permit area. It is not restricted by domestic gas reservation requirements.
The contiguous areas (Reid's Dome and Rolleston-West), under sole ownership by State Gas, enable integration of activities and a unified super-gasfield development, providing economies of scale, efficient operations, and optionality in marketing.
State Gas is implementing its strategic plan to bring gas to market from Reid's Dome and Rolleston-West to meet near term forecast shortfalls in the east coast domestic gas market. The strategy involves progressing a phased appraisal program in parallel with permitting for an export pipeline and development facilities to facilitate the fastest possible delivery of gas to market. State Gas' current focus has been to confirm the producibility of the gas through production testing of the wells.
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