Varanus Island Control System and Process Improvement (Revoked)

ERF130290

Project Information:

Varanus Island Control System and Process Improvement (Revoked) was an industrial energy efficiency project located on Varanus Island, approximately 75km offshore from the northwest coast of Western Australia. The project was registered in March 2019 by Santos WA Energy Limited and was subsequently revoked in February 2022. The island itself is part of the Lowendal Islands archipelago and serves a dual purpose: it is a Class C Nature Reserve significant for seabird breeding, yet it also hosts the Varanus Island Hub, a major collection and processing facility for offshore oil and gas fields like John Brookes and Harriet. The nearest major mainland population centre is Karratha, located roughly 120km to the east-northeast.

The project operated under the Carbon Credits (Carbon Farming Initiative-Industrial Electricity and Fuel Efficiency) Methodology Determination 2015. This methodology credits abatement generated by improving the energy efficiency of existing industrial equipment. Unlike land-based carbon projects that rely on vegetation, this project focused on optimizing "control systems and processes," likely adjusting the logic or operational parameters of gas turbines or compressors to reduce fuel consumption per unit of output.

The environmental conditions on Varanus Island are typical of the arid Pilbara coast, characterized by a hot, semi-arid climate with an average annual rainfall of approximately 250mm, much of which falls during summer cyclones. The terrain consists of limestone rock and lime-cemented dune sand rather than agricultural soil, supporting low-lying vegetation like spinifex.

The project was revoked under section 30 of the CFI Rule, which typically indicates a voluntary revocation by the proponent. This occurred shortly before the Industrial Electricity and Fuel Efficiency method itself was revoked and replaced in early 2023. It is worth noting that Varanus Island is historically significant in the energy sector due to the 2008 pipeline explosion under previous operator Apache Energy, which caused a major energy crisis in Western Australia; however, this carbon project was a much later initiative by Santos to improve operational efficiency.