Australian government report urges more CCS investment

Australia's Climate Change Authority (CCA) has released a report recommending that the nation raise investment in carbon capture and storage (CCS) as part of efforts to reduce global warming.

Limiting warming to 1.5°C by 2100 in line with Paris Agreement objectives is only possible via rapid reductions in global greenhouse gas (GHG) emissions and the removal of emissions from the atmosphere via storage, showed the CCA report released on 17 April.

CCA said Australia has scope for greater carbon sequestration, with the country's large geological storage capacity and high GHG-producing projects, but potential supply and demand for CCS in Australia and how it will be delivered is poorly understood. A sophisticated modelling capability on CCS, and pathways for different sectors to increase the proportion of emissions captured would help gauge future demand.

The report also recommended Australia play a leading role in developing a sequestration standards framework to differentiate between biological sinks, achieved commonly through planting trees and geological sinks using underground and undersea basins, where CO2 can be stored for several thousands of years.

Many CO2 sequestration projects are already underway, with the Western Australian (WA) state government's environmental regulator recommending Chevron to inject at least 80pc of CO2 emissions from its Gorgon LNG project, representing at least 3.4mn t/yr of CO2 or 4.2pc of WA's net GHG emissions.

Some industry leaders have been critical of local policymakers' approach after the newly-elected Labor Party government last year cut A$263.7 ($176.7mn) in funding for CCS that was allocated by the previous government. Santos chief executive officer Kevin Gallagher this month criticised the Australian government's lack of support for carbon capture and storage (CCS), saying the nation lagged behind the US and other countries in recognising the importance of CCS.

The Australian Petroleum Production and Exploration Association (Appea) backed the paper, saying it highlighted significant economic and environmental benefits of CCS. The lobby said the recent safeguard mechanism changes requiring all new gas developments to have net zero scope 1 emissions have strengthened the case for a greater focus on carbon capture to reduce emissions.

Appea's recent 2023-24 federal budget submission called for a national CCS roadmap to provide clear policy direction, progress carbon management hubs and promote Australia as a regional CO2 storage leader.

By Tom Major