For more than 12 months, the two companies have been collaborating to develop a commercially viable model that could create a new bicarbonate industry.
Santos Managing Director and CEO Kevin Gallagher said the MOU is a commitment from both companies to complete a concept study that will inform a Final Investment Decision (FID) to produce sodium bicarbonate in Narrabri.
“Australia doesn’t have a bicarbonate industry, so we import it for use in food, pharmaceuticals and a wide range of industrial uses,” said Mr Gallagher.
“These are the benefits that would come from the Narrabri Gas Project – new industries, more jobs, business opportunities and regional development.
“The partnership with Natural Soda demonstrates how our industry continues to evolve and explore new ways of beneficial use for products that previously would have been considered waste.
“The water Santos extracts is of no use to farmers because of the salt content, so we treat the water to a very high standard that is suitable for irrigation, stock watering and other purposes.
“The salt removed from the water is a natural product and, if our concept study is successful, could be converted into valuable sodium bicarbonate.
“That’s a win-win. It creates a new industry, more jobs, it’s good for the environment and good for farming.”
Mr Gallagher said if this concept does not go as planned, the water will still be able to be used for irrigation with the salt removed from the water to be disposed of in accordance with waste laws.
“As we come out of COVID-19, every new industry and job is more important than ever. The Narrabri Gas Project means more jobs and more investment in New South Wales and lower gas and electricity prices for customers in New South Wales,” said Mr Gallagher.
Natural Soda President Kirk Daehling said this is as a great opportunity for both companies as salt removed from produced water at Santos’ Narrabri Project appearts to be similar to its own facilities’ feedstock.
“Processing this material into a valuable end-product will be good for industry and good for the environment. It will also bring an Australian-based source of supply to our customers in the region,” said Mr Daehling.
For more information visit the Santos website.
If you have news you would like featured in The Australian Pipeliner contact Managing Editor David Convery at dconvery@gs-press.com.au