Carbon storage needed to meet reduction targets: report

Australia’s most in-depth study into the costs and performance of a range of electricity technologies confirms that carbon capture and storage (CSS) must be considered as a technology enabler and part of our emissions reduction strategy while Australia continues to utilise fossil fuels to 2030.

The Australian Power Generation Technology Report is an unbiased, technology-neutral review of the cost of a broad range of renewable and non-renewable power generation technologies, both in 2015 and out to 2030. The landmark study is the result of a collaboration of 45 industry, government and environment organisations, and compares different technologies.

CSIRO modelling was used to project potential energy costs to 2030 and the report also provides a comprehensive discussion on key technologies, including carbon capture and storage.

Report Chair and CEO of CO2CRC,Tania Constable said the report’s findings demonstrated that the future power generation mix would need to be diverse.“

This report shows we’ll be reliant on a combination of renewable and non-renewable technologies through to 2030, and that supporting technologies will help us to deliver efficiencies and lower emissions,” Ms Constable said.“

Carbon capture and storage can be used to significantly reduce carbon emissions and is crucial to meeting global CO2 targets.”

The release of the report comes ahead of this month’s Paris climate change conference and the United Nations commitment to limit the global temperature rise to 2oC above pre-industrial levels.

While CSS technologies are still developing, the report demonstrates that CCS plant capital costs are projected to reduce by 30-50% by 2030, which translates to a reduction in levelised cost of 10-25% when operating costs are taken into account.

Cost reductions will depend on greater global CCS deployment, and at least two CCS plants would need to be operating in Australia to start reducing costs, the report found.

To help determine current capital and operating costs for the study, developers and operators shared confidential data about their costs of project development in Australia. Building on this data, this report provides robust costs of constructing and operating new power plants in Australia.

To download the executive summary and the full Report visit
www.co2crc.com.au/publication-category/reports/

Media enquiries:
Robert Hilkes, Marketing & Communications, CO2CRC, 0413 338 144,
robert.hilkes@co2crc.com.au / Alexandra Haddon, Fenton Communications, 0437 482 881
alexandra@fenton.com.au

The organisations participating in this study were: Grattan Institute, Gamma Energy Technology, Energy Networks Australia, Energy Storage Council, NSW Department of Industry, CO2CRC, CarbonNet, CSIRO, Global CCS Institute, ANLEC R&D, EPRI, Strategic Energy Consulting, AEMO, Australian Government, ACALET, Minerals Council of Australia, BCIA, Ernst & Young, Business Council of Australia, ARENA, Climate Change Authority, Hydro Tasmania, Synergy, UNSW Australia, ESAA, Origin Energy, APPEA, AGL, Australian PV Institute, Australian Solar Council, Victorian Department of Economic Development Jobs Transport and Resources, Department of Industry, Innovation and Science, Jeanes Holland & Associates, The Climate Institute, Worley Parsons