A word from the CEO
CCS in Australia: Safe, Reliable, Necessary and Urgent
Carbon capture and storage is a safe, proven and increasingly cost-effective technology that can deliver large-scale reductions in emissions for a wide range of industries. This makes it essential for Australia and many other nations to advance CCS to have any realistic chance of meeting mid-century emissions reduction targets.
Of course, discussion will continue over how best to reach net zero over the next 25 years. One forum for that discussion – which will hopefully shed light as a well as inevitable heat on the CCS debate – is the current Senate Inquiry into Glencore’s proposed pilot project in Queensland.
The CTSCo project is linked to the Millmerran coal-fired power station, a facility that emits ~5 million tonnes per annum. A successful pilot could bring forward other CCS projects that could support a reduction in emissions across Australia’s fleet of coal-fired power stations which emit a total of 124 Mtpa of CO2e (as of February 2024) and lead the way in supporting other hard-to-abate sectors to reduce their emissions.
Public discussion on this project has quickly become extreme and often emotional – perhaps understandable given claims made about impacts on the Great Artesian Basin – Australia’s most significant groundwater resource.
It is important that this discussion be grounded in fact and reflect proven science, something too often lost in political and media discussion.
Hopefully, the Senate Inquiry will enable such a discussion – though that might be optimistic given the quality of discussion at recent Senate hearings in Darwin into the Middle Arm Industrial Precinct, where CCS is an important component.
CO2CRC will continue to try and inform and moderate discussion in public fora. It is our role to bring the results of our research plus the experience and expertise of our members to the important policy discussions which must take place on CCS.
As the Intergovernmental Panel on Climate Change (IPCC) has recently stated that there is no pathway to net zero, which involves increased energy usage globally and does not rely critically upon the greatly accelerated rollout of CCS.
The CCS industry is responding robustly to the challenge of net zero globally and within Australia to the mandated 43% reduction target by 2030. But time is running down on both targets.
As I wrote in our last newsletter, international industry is responding to the challenge from governments that we must move from conversation to action on CCS. There are now 312 projects in construction and development in 2023 – a 57% increase on 2022’s 199 projects. CCS’s importance is globally recognised and is being facilitated by rapidly streamlining regulations and government support.
In Australia, there are approximately 17 CCS projects. However, approvals for these projects are time-sensitive and dependent upon an appropriate and supportive domestic environment.
CO2CRC continues to play our role in doing the science, sharing the science and putting it in a real world context to enable these projects to advance.
A current example is Shallow Fault experiment which is winding up this week at CO2CRC’s Otway International Test Centre. With 16.5 tonnes of gaseous carbon dioxide injected close to a 100m deep shallow fault, our research outcomes will result in published material that will be used globally to enhance modelling of and monitoring for carbon dioxide storage areas with various levels of faulting. (See separate story.)
Alongside CTSCo and other projects in development, this important work is vital in defining the role of CCS in Australia in meeting its energy and climate objectives.
Dr Matthias Raab, CEO.
OITC Shallow Fault Operations Completed
Operations for CO2CRC’s Shallow Fault experiment have successfully concluded, with 16.5 tonnes of gaseous carbon dioxide injected close to a shallow fault at CO2CRC’s Otway International Test Centre.
This project has immediate applicability to commercial CCS sites as storage formation heterogeneity is a common occurrence. Operators of future CCS projects understand the potential challenges associated with faults and discontinuities in deep storage reservoirs, however, have never been able to accurately assess this risk, due to the absence of high quality, controlled data of CO2 movement in such systems. CO2CRC’s collaborative research project provides the raw data and commercially relevant information to address this gap and provide operators with the necessary information to accurately assess storage fault risks and how these can be monitored during storage operations.
Present on site during the operation in Nirranda South, Victoria, have been representatives of Geoscience Australia, monitoring soil flux and soil gas, RITE Japan monitoring the injection with innovative fibre optics to measure changes in geological stress and Curtin University measuring seismic changes created by the injection in the shallow subsurface to identify the movement of the gas after injection. The experiment has also been monitored using fibre for temperature as well as pressure gauges and atmospheric sampling. Project Manager Mitch Alison has overseen operations by Site Operator GR Production Services.
“16.5 tonnes is a very small amount of gas to track in the subsurface, so our requirement that we see a visual representation of just a small proportion of 16.5 tonnes of injected carbon dioxide trapped under the clay layer or moving up the fault or dissolving into the ground water is a particularly onerous challenge, but one Curtin University’s Geophysics department has enthusiastically embraced,” Chief Operating Officer, Paul Barraclough said.
“Curtin University has installed the most intensive 4D (time lapse) reverse vertical seismic profiling that has ever been used, anywhere in the world,” CO2CRC Science Lead and Senior Geophysicist, Hadi Nourollah explained. “In layman’s terms, this means there is a very extensive array of thousands of geophones over a footprint of only 2 hectares receiving a signal from a source in our shallow well, with a survey being undertaken for several hours each day during the two week injection period.”
Collected data will be processed, analyzed and compared and will result in published material that will be used globally to enhance modelling of and monitoring for carbon dioxide storage areas with various levels of faulting.
Surface monitoring of the injection of 16.5tonnes of pure CO2 adjacent to a low lying fault at CO2CRC’s OITC, included an array of soil gas and soil flux monitoring devices, and over 3000 geophones.
The growing importance of carbon markets
David Byers is the Principal Consultant for Inlet Advisory Pty Ltd providing advisory services to industry and government on energy and technology issues and a Board Member of CO2Tech.
The interplay between carbon markets and the development of low-emission technologies is often misunderstood. Carbon markets can provide a long-term commercial incentive to invest in emission-reduction technologies while also allowing emissions reduction now in industry sectors lacking short-term technology options. A good example of this relationship is currently playing out in Australia.
Carbon markets are financial markets in which carbon credits are bought and sold. Greenhouse gas-producing entities can purchase carbon credits from entities that remove or reduce greenhouse gas emissions. In Australia, to encourage carbon abatement activities, the Australian Government provides incentives called Australian Carbon Credit Units (ACCUs). Eligible projects under the scheme can earn ACCUs for each tonne of carbon dioxide equivalent stored or avoided. The ACCUs can be sold to generate income, either to the Australian Government or to private buyers on the secondary market. Eligible projects need to be covered by an approved methodology (method) which sets out the detailed rules for running a project and calculating emissions reduction. There are around 35 methods available across all sectors of the economy from agriculture and vegetation to industrial (including Carbon Capture and Storage).
Revisions to the ‘safeguard mechanism’ rules effective 1 July 2023, are having a noticeable impact on the ACCU market. As part of its overall climate policy approach, the Australian Government revised the safeguard mechanism rules that apply to around 215 large industrial facilities, covering around 28% of Australia’s national emissions. The changes mean that emissions limits (‘baselines’) applicable to these facilities need to decline by around 5% each year to 2030. The most important ways for safeguard facilities/entities to meet their declining baseline requirements are by investing in low-emissions technologies or buying ACCUs.
Many safeguard facilities have yet to determine their final compliance strategies – reduce emissions at source through low-emissions technologies or buy ACCUs. However, the availability of cost-effective low emissions technologies may be difficult for many facilities, at least in the short-medium term. The clear implication is a big rise in demand for ACCUs as safeguard entities prepare for their first compliance date of 31 March 2025. Safeguard entities now account for 20% of all ACCU holdings and have more than doubled their ACCU holdings since July 2023.
This rising demand from Safeguard entities, coupled with a more prominent role for intermediaries (who facilitate trading between the supply and demand sides), improved market liquidity, and progress towards an effective model for a carbon exchange market are indications of an evolving Australian carbon market. Developments in 2024 are only likely to reinforce this trend as the local carbon trading market moves from one dominated by government purchasing activity to embrace more private buyer activity, and the interplay between carbon markets and low-emission technologies is more widely understood.
Image courtesy of the Clean Energy Regulator
CO2CRC Strong Presence at AEP Conference
There will be numerous opportunities to learn more about CO2CRC, Australia’s premier CCUS research organization, at AEP’s 2024 Conference and Exhibition in Perth from May 20 – 23. Drop into our exhibit and have a chat with one of our knowledgeable staff about our current research, what we are planning next and the benefits of membership. CO2CRC is also well represented in the speakers’ program with our expert staff providing numerous opportunities for learning about CO2CRC’s involvement in CCUS innovation.
David Bason, Geoffery O’Brien, David Byers and Simone de Morton will participate in a session addressing the new normal, economic and political issues impacting decarbonization specifically in relation to Australia’s Greenhouse Gas Storage Legislation – the existing challenges and opportunities for future improvement.
Kwong Soon Chan and Jai Kant Pandit, will comment on Australia’s complex and evolving CCS value chains requiring a wide range of expertise and technology. This session will look at elements across the CCS value chain with a focus on Australian examples. They will specifically address cost-effective and modular carbon dioxide capture to support decarbonisation for oil and gas, industrial and hard-to-abate sectors.
Our expert reservoir engineers will also feature in the program with David Tang, speaking on Probabilistic CO2 plume modelling, specifically in relation to subsurface and surface engineering innovations on the road to a carbon neutral future. Meeting emission reduction targets will require all the levers to be pulled and this session will look at some novel solutions coming to the fore.
CO2CRC representatives Mitch Allison, David Bason, Scott Higgs, Hadi Nourollah and Max Watson, joined by Yong-Chan Park, Korea Institute of Geoscience and Mineral Resources; Ziqiu Xue, RITE; Sally Benson, Stanford University; Peter Cook, University of Melbourne to speak to some novel solutions that can be used to meet emissions reduction targets with their focus on Optimising CO2 Storage Resource Utilisation: Insights from the Otway Stage 4 Field Program.
Follow CO2CRC today on LINKEDIN to keep up to date with the latest news on our ground-breaking demonstration and research projects.
CO2CRC Training and Education
At CO2CRC, we believe that effective CCUS education and training is a vital element in shaping a sustainable, low-emission future. As such, we are dedicated to equipping a wide array of stakeholders, including industry experts, policymakers, investors, scientists, and the general public, with the knowledge and tools necessary to achieve their emission reduction targets. CO2CRC provides a range of general CCUS educational courses as well as technology specific and tailored CCUS training. Upcoming courses over the next few months include:
Contact Max Watson for more information on 0420 209 277.
CCUS Principles, Practices and Applications Course May 7-9 2024 Registrations closing May 2
For a deeper dive into the emerging industry of CCUS, join us for our comprehensive training course, “CCUS Principles, Practices, and Applications.” Developed by CO2CRC, Australia’s leading research organisation in CCUS, this course is designed to equip participants with a relevant, practical understanding of the technical principles and engineering solutions applicable to CCUS. Led by Australia’s foremost experts in CCUS, this intermediate course will provide invaluable insights into CCUS, ensuring participants leave with a robust grasp of its application across a range of industries.
Our 3-day CCUS Principles, Practices, and Applications Course will be held in Melbourne from May 7th to 9th 2024.
Energy Transition News
29/04/2024 Post-coal power choice is renationalisation or redesigning the market– AFR An integrated net-zero energy system depends on governments restoring faith in the market delivering enough electricity to the right places at the right time.
28/04/2024 Dutch kick-start European attempts at carbon capture – Financial Times Success of Rotterdam project would help assuage concerns over CCS technology
26/04/2024 New approach could make reusing captured carbon far cheaper, less energy-intensive– TechXplore Engineers at Georgia Tech have designed a process that converts carbon dioxide removed from the air into useful raw material that could be used for new plastics, chemicals, or fuels.
25/04/2024 Biden targets fossil fuel power sector with tough new carbon rules – Phys.org The United States on Thursday announced sweeping new rules requiring coal-fired plants to eliminate nearly all their carbon emissions or commit to shutting down altogether.
24/04/2024 Public perceptions on carbon removal from focus groups in 22 countries – Nature A study looking at types of carbon removal and what public perceptions exist in relation to each.
23/04/2024 Denmark Provides Largest Ever Government Subsidy For Carbon Removal – CarbonHerald The subsidy worth a total of roughly $166 million also marks the second-largest of its kind to date, following only the massive deal for the purchase of 2.76million metric tons of CDR inked between Microsoft and Ørsted.
20/04/2024 Big Oil’s Carbon Capture Conundrum– Oilprice Oil and gas companies are heavily investing in CCS to reduce emissions while continuing fossil fuel production.
19/04/2024 Queensland researchers create device that consumes carbon dioxide and generates electricity– ABC UQ researchers have developed a nano-generator that has the potential to revolutionise CO2 reduction efforts, becoming a new form of industrial carbon capture.
17/04/2024 Carbon capture will not play major role in steel decarbonisation, report says – Reuters. CCUS is unlikely to play a major role in decarbonising the global steel industry due to low capture rates, high costs and a track record of underperformance, a Institute for Energy Economics and Financial Analysis said.
17/04/2024 Chevron arm launches $500 million fund to invest in low carbon technologies- Reuters Chevron’s venture capital arm has launched its third fund to invest in renewable energy technologies with $500 million, as oil majors look to diversify their business in the face of pressure to reduce their emissions.
15/04/2024 Japan’s Mizuho Invests $3.64MM in Bison’s CCS Project in Alberta – Rigzone Japan’s Mizuho Bank, Ltd. has made an investment in Bison Low Carbon Ventures Inc. to facilitate the development of Bison’s carbon capture and storage (CCS) projects in Alberta, Canada.
14/04/2024 Animated Chart: The World’s Top 15 Carbon Emitters (1850-2022) – the Visual Capitalist. Shows the US has been the worlds top emitter for the past 100 years.
13/04/2024 Carbon-capture projects line up behind Glencore’s: AgForce – Grainforce. Queesnland’s peak farm lobby group AgForce says at least a dozen similar projects are coming in behind Glencore’s proposed carbon-capture project on the Great Artesian Basin
11/04/2024 Firm’s £200m bid to be at carbon capture forefront – BBC. A waste plant is investing £200m in what it said was an effort to be at the cutting edge of CCS in Wales.
07/04/2024 New carbon technology projects could be key to ‘Big Oil’ emissions cuts – Fox Business. Around $304 million has been granted to develop new CCS technologies at sites in Kentucky, Texas, Wyoming and Mississippi
05/04/2024 Woodside Energy’s JV firm to study carbon capture at Yara Pilbara operations – Reuters. Woodside Energy-operated joint venture Angel CCS will study the feasibility of using CCS to decarbonise ammonia producer Yara Pilbara Fertilisers’ existing operations in WA, the oil and gas giant said.
04/04/2024 Carbon Hydrogen Production Is Near – Forbes Energy experts will soon recognize Baton Rouge, Louisiana for its low-carbon hydrogen production, using chemical looping which will start in 2026.
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