UK supermajor BP could be set to invest A$20 million (US$13.2 million) in a carbon capture and storage (CCS) project in South Australia.

Australian independent Santos confirmed Wednesday it had entered a non-binding agreement with BP which could see the latter invest in the Moomba CCS project.

The project will capture the roughly 1.7 million tonnes of carbon dioxide currently separated from gas at Santos’ Moomba plant and safely and permanently re-inject it into geological formations in the Cooper basin.