A word from the CEO

CO2CRC’s Dr Max Watson will be representing at the CCUS 2025 conference in Houston, Texas next week. Max will speak on Monday, March 3rd at the Carbon Lounge at 5pm, with networking and discussions to follow.

Max will be showcasing innovations stemming from CO2CRC’s Otway International Test Centre (OITC) and proposing future research opportunities for the geologically diverse, highly instrumented and extensively surveyed and monitored site. CO2CRC, through its work at the OITC, has significant experience in taking measurement, monitoring and verification technology from the laboratory and transitioning it to deployment and testing in the field at the OITC, prior to ultimate implementation at commercial storage sites.

Max will highlight the OITC’s status as a flexible and cost-effective site for testing CO₂ storage monitoring technologies.

With multiple > 1 km deep saline and depleted storage systems featuring varying degrees of lithological and structural heterogeneity, the OITC enables technology validation at commercially relevant scales. Its existing, state-of-the-art plume and reservoir-response monitoring systems serve as a benchmark for assessing the performance of new technologies. CO2CRC’s ongoing research (its Otway Stage 4 Program) focuses on optimising and evaluating storage performance, with future programs planned to investigate end-of-field processes (closure phase), fault geomechanics and commercial-scale CO₂ injection to test monitoring technologies.

The OITC is a storage-ready platform for technology trials, with comprehensive datasets, existing infrastructure and regulatory approvals all in place, allowing the fast-tracking of the validation of commercial-scale solutions.

Dr Max Watson is the Senior Manager for Technology Development at CO2CRC Ltd. He has over 24 years of experience in developing industry-relevant, low-emission technologies, including carbon capture & storage (CCUS) and, more recently, hydrogen storage.

Dr Max Watson, left, will be presenting on the Otway International Test Centre at the Carbon Lounge (Booth 1017) on the Monday 2nd March at 5pm (Houston time).

A challenge facing organisations investing in carbon capture and storage as an emissions reduction technology, is maximising the usage of the available pore space within storage reservoirs. Addressing this challenge will drive down costs, reduce the amount of well infrastructure required, enable more carbon dioxide to be stored over a shorter timeframe and, potentially, enable less-than-optimal storage reservoirs to be used more effectively as part of the storage system.

This month, Chief Researcher at Research Institute of Innovative Technology for the Earth (RITE), Dr Ziqiu Xue, met with CO2CRC researchers to discuss our current collaborative demonstration project – field-scale testing of the microbubble injection tool for CCS applications. This tool will be tested over the coming months at CO2CRC’s Otway International Test Centre (OITC) to determine whether it can increase the dissolution of injected carbon dioxide in porous and permeable (i.e., highly suitable) storage reservoirs and also be utilised to increase storage efficiency in sub-optimal reservoirs. RITE and CO2CRC also discussed potential future CCS collaboration projects to address industry needs, such as those regarding pressure inference between proximal CO₂ injection projects or interference in areas where gas production and CCS operations will be conducted in adjacent reservoirs.

The projects with Ziqiu and RITE showcase the unique ability of our Otway International Test Centre to mimic and address the large-scale CCS challenges that require innovative research and field testing.

We cannot reduce emissions to reach 2050 goals without CCS and research into CCS, lead by CO2CRC, using the OITC, will be critical to ensure the commercial roll out is efficient, reliable and conforms to regulatory requirements.

Photo: RITE’s Chief Researcher, Dr Ziqiu Xue, CO2CRC’s Chief Scientist, Dr Geoffrey O’Brien, Chief Operating Officer, Paul Barraclough, and Senior Geophysicist, Dr Hadi Nourollah.

SAVE THE DATE!

See you at the Australian Energy Producers Conference in May. 

A new paper on modelling Carbon Capture and Storage (CCS) within storage reservoirs has been recently published in the Journal for Marine and Petroleum Geology by Dr Ahmad Mortazavi , Senior Research Fellow in Geo-modeling and Geophysics, at Melbourne University. The paper, entitled “Improved representation of sub-wireline scale lithological heterogeneity in geological models”, is based on data acquired at CO2CRC’s Otway International Test Centre (OITC), southwestern Victoria, Australia.

In this study, Dr Mortazavi presents a new approach to porosity and permeability modelling using composite rock type modelling, an approach that has enhanced the representation of fine-scale heterogeneity within the Late Cretaceous Paaratte Formation (Parasequence-2, PS2) of the Otway Basin. This study is part of a wider investigation of the carbon storage potential of saline aquifer systems.  Other contributors to the research include Professor Ralf Haese, Dr. Achyut Mishra, and Dr. Julie Dickinson.

This study was supported by CO2CRC Limited and its members who provided  data from the OITC and supported this study.

For more details see full report https://findanexpert.unimelb.edu.au/scholarlywork/1973671-improved-representation-of-sub-wireline-scale-lithological-heterogeneity-in-geological-models

CO2CRC has recently released an innovative software product which calculates the costs of CCUS projects. The product, known as COSMIC, (Costing Model for Integrated Carbon Capture and Storage) was developed as a direct response to the demands of the growing CCS industry.

COSMIC accurately assesses costs and optimises infrastructure, a critical requirement for large-scale projects. CO2CRC’s COSMIC model provides a flexible and adaptable approach to CCS costing and economic analysis. Further, it offers an optimised and reliable costing assessment by dividing CCS hubs into individual and shared facilities, leveraging mass and energy balance calculations and utilising an extensive industry database.  Ultimately, COSMIC serves as an important and useful tool for industries, investors, and policymakers, thereby helping to accelerate the deployment of cost-effective CCS hubs.

In recent years, the cost of carbon dioxide (CO₂) capture has decreased gradually due to various advancements in technology. This decrease, coupled with the urgent need to reduce industrial CO₂ emissions, has led to the emergence, planned and actual, of carbon capture and storage (CCS) hubs. These hubs can potentially play a critical role in reducing emissions from industrial zones by providing shared infrastructure for multiple emitters, making CCS more cost-effective and accessible. By optimising capture, transportation and storage operations, CCS hubs lower the economic and technical barriers associated with individual CCS projects.

Unlike conventional CCS systems, where a single entity is responsible for capturing, transporting, and storing CO₂, CCS hubs introduce a more complex business model. The operation and maintenance of shared infrastructure may be managed by an independent third party rather than the individual emitters. This structural difference creates unique economic and financial considerations that require specialised cost and business models. Existing CCS cost models often overlook the complexities of shared infrastructure. These limitations make it challenging for stakeholders—such as investors, policymakers, and industrial emitters—to accurately assess the financial viability and scalability of CCS projects’.

CO2CRC developed COSMIC (Costing Model for Integrated Carbon Capture and Storage), an economic modelling package designed to provide cost estimates for standalone CCS projects and CCS hubs. COSMIC addresses the limitations of traditional costing approaches to support financial predictability and strategic planning to fast-track CCS development.

• COSMIC Methodology
• The COSMIC model divides a CCS hub into two primary sections to streamline cost estimation and economic analysis.

By distinctly categorising individual and shared infrastructure, COSMIC ensures that costs are accurately allocated between emitters and third-party operators. This differentiation is crucial for assessing financial responsibility and optimising investment strategies.

Cost Breakdown in CCS Projects

CO₂ capture represents the largest expense amongst the various cost components in the CCS chain. The economic feasibility of CCS projects depends heavily on reducing capture costs, as these significantly impact the total cost structure. While transportation and storage (T&S) costs have traditionally been estimated at around $10 per tonne of CO₂, as suggested in the IPCC Fifth Assessment Report, more recent studies indicate that transport costs can range between €12–30 per tonne, according to the Zero Emission Platform.

Thanks to continuous improvements in CO₂ capture technologies, including process intensification and integration, capture costs are expected to fall below $40 per tonne. Since CCS hubs aim to reduce transport and storage costs through economies of scale and shared infrastructure, estimating these costs based on site-specific factors becomes increasingly important (rather than relying on broad industry averages).

How COSMIC Improves CCS Cost Estimation

Unlike some traditional costing models that use fixed assumptions, COSMIC offers a more dynamic and flexible approach to estimating CCS costs. The model calculates costs for each component of the CCS chain separately, providing insights into capture, transport, and storage expenses. By leveraging site-specific data, COSMIC optimises CCS hub design, helping stakeholders determine the best location for CO₂ collection based on the proximity of various emitters and storage sites.

The model employs mass and energy balances to determine the type and size of equipment required for each stage of the CCS process. It utilises a combination of:

• Published literature and industry data
• CO2CRC’s proprietary costing database
• Engineering scaling laws and Lang factors

This comprehensive methodology ensures that cost estimates remain realistic, data-driven, and adaptable to different project scenarios. In addition to estimating costs, COSMIC can calculate other relevant outputs, such as the mass of CO₂ captured versus CO₂ avoided, which helps assess the overall environmental impact of a CCS project.

The Role of COSMIC in CCS Hub Optimisation

One of COSMIC’s key advantages is its ability to optimise CCS hub design based on real-world constraints. The model determines the most cost-effective configuration for CO₂ capture, transportation and storage by analysing geographic, economic and technological factors. This helps CCS developers and policymakers make informed decisions about:

• The ideal location for CO₂ gathering stations
• The most efficient pipeline routes
• The best storage sites based on proximity and capacity
• The financial feasibility of different business models (e.g., public-private partnerships vs. third-party operation models)

Through these optimisations, COSMIC can enhance the assessment of the economic viability of CCS hubs, ensuring that projects are both financially and environmentally sustainable.

Conclusion

As the demand for CCS solutions grows, accurately assessing costs and optimising infrastructure will be critical for large-scale deployment. CO2CRC’s COSMIC model provides a flexible and adaptable approach to CCS costing and economic analysis. COSMIC can offer an optimised and reliable costing assessment by dividing CCS hubs into individual and shared facilities, leveraging mass and energy balance calculations and utilising an extensive industry database.   Ultimately, COSMIC serves as an important and useful tool for industries, investors, and policymakers, helping to accelerate the deployment of cost-effective CCS hubs.

Please refer to CO2CRC website for more information: https://co2tech.com.au/ccus-costing-software/

Save the date for Australia’s premier biennial Carbon Capture Utilisation and Storage Symposium.

More information coming soon. For sponsorship enquiries, email justin.thompson@co2crc.com.au

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 CCS Fundamentals. Contact  Max Watson for more information.

Advanced CO₂ Storage Course
Melbourne & OITC
11-13 March 2025

Expand your understanding of the intricacies and challenges in CO₂ storage and how to effectively develop and manage CO₂ storage sites with the most comprehensive CO₂ storage course we offer, including field experience at a working CO₂ storage facility.

CO2CRC’s Advanced CO₂ Storage Course will give you powerful insights and skills that can be applied instantly to CO₂ storage site selection, development and operations.

Presented by CCS technical experts Dr Max Watson and Jai Kant Pandit.

What out attendees say:

“On behalf of Cooper Energy, I commend CO2CRC for their excellent CCUS course. It provided a comprehensive overview of the opportunities, complexities and challenges across all aspects the carbon capture, utilisation and storage sectors.” – James Clarke, Cooper Energy

Limited places available. Secure your spot today:

Contact  Max Watson or read more information.

11/02/2025 UK firm on the lookout for new partner in North Sea CCS project– Offshore Energy. As Harbour Energy plans to head for the exit, the AIM-listed Synergia Energy is going on the hunt for another partner to join its CCS project in the North Sea.

10/02/2025 Australia is throwing away a $600b carbon capture opportunity – AFR. Australia is rapidly losing ground in CCS, putting at risk the net zero emissions by 2050 and forfeiting a $600 billion opportunity.

10/02/2025 Labor assures industry carbon active scheme is safe but changes are coming – The Australian. The Albanese government has assured Australia’s carbon industry that its flagship voluntary emission reduction scheme will be maintained.

07/02/2025 UK carbon capture risks and affordability called into question– gasworld. The UK government’s backing of CCS to reach Net Zero is high risk and more work on the programme’s affordability for taxpayers and consumers is needed, according to a Public Accounts Committee report

07/02/2025 CCS Projects: The Threat To Property Rights – Heartland.org. The process creates an array of problems, with one of the largest being the abrogation of private property rights.

06/02/2025 D-Day looms for Woodside’s massive North West Shelf gas project – AFR It’s either crucial to energy security, or a climate disaster in the making.

03/02/2025 German carbon capture startup produces first batch of DAC concrete – The Chemical Engineer. NeoCarbon has produced its first batch of industry-grade concrete using CO₂ sequestered from its novel DAC technology.

31/01/2025 Santos celebrates capture and storage of 340,000 tonnes of CO2, but expert says it’s ‘hardly a drop’ – ABC. Premier Peter Malinauskas says the Moomba project is “globally leading” and an important innovation.

31/02/2025 Lift curbs on carbon dioxide imports or risk our advantage, says Santos– The Australian. Australia must lift restrictions on allowing the importation of carbon dioxide or risk being beaten by global competitors.

30/01/2025 Waste to energy: Full-scale CCU/CCS projects advance in Norway and the Netherlands– EUWID Recycling and Waste Management. Hafslund Celsio, operator of the Klemetsrud waste to energy plant in Oslo, announced this week that it will proceed with a CCS project to be installed at its facility.