The release of the Australian Government’s Future Gas Strategy this month marked an important moment in long-term energy policy development in the country. It outlines a medium and long-term strategy within which gas will play a critical role in the transition to net zero by 2050.

The strategy, released by Minister for Resources Madeleine King, highlighted the importance of affordable gas for Australia as the country moves to a more renewable-based grid.

Recognition of the critical future role of gas in achieving the nation’s decarbonisation goals also involved the promotion of geological capture and storage of CO₂ to support our region’s transition to net zero. The revised Safeguard Mechanism, a key plank in the Government’s net zero strategy, in effect mandates the use of CCS within future gas developments, with the identified long-term role for gas meaning that there is also a long-term role for CCS.

Australia has the combination of some of the best natural storage geology in the world and an advanced resources industry with very high operational standards. Consequently, the nation is well-placed to reap significant economic benefits from offering carbon storage capacity to our neighbours – most likely as part of an integrated cycle which involves the provision of LNG for export and then storing the emitted CO₂ produced by the LNG’s recipients. Critically, the Government also legislated to allow regional cooperation on transboundary CCS, which will provide opportunities for our regional partners within energy security and carbon management.

The release of the Future Gas Strategy was accompanied by an announcement that the Government will invest $566 million in new offshore mapping programs, funding that includes work to identify CCS locations for geological carbon storage. The package also included a new precompetitive geoscience initiative – Resourcing Australia’s Prosperity – to strengthen Australia’s position as a global leader in renewable energy and CCS as the country pursues its pathway towards net zero.

The commitment to maintaining offshore greenhouse gas acreage releases is essential and the release of 10 new areas last year, coupled with the previous release of 5 areas in 2021, is both welcome and necessary.  The identification of the best geological carbon storage acreage requires, as a first step, the release of potentially viable storage acreage which industry can acquire and rapidly and efficiently evaluate.

Australia is uniquely placed to play a leading role in Asia-Pacific decarbonisation. It has the geology, the competency and the capital to deliver CCS at scale and on time to get to net zero within 25 years – provided that the overarching policy and legislative settings are efficient and appropriate. That’s why it is so encouraging to see the Albanese government embrace the role of CCS and to begin to reform of the GHG permitting and approvals process.

Despite casual references to a ‘CCS industry’, the fact is that no such industry exists. CCS is delivered across a range of industries and when stakeholders come together. CCS is a multifaceted and interdisciplinary field. It requires appropriate, targeted collaboration among sectors such as major emitters, governments, academic institutions, geoscience bodies, and technology companies, each contributing specialised expertise to ensure the effective and economic capture, transport, and storage of CO₂.

Success in CCS depends on technological innovation, robust and appropriate regulatory frameworks and the financial investments to achieve scalable and sustainable solutions. We must also recognise the role that the government plays in incubating the right environment for many emitting industries to participate in CCS projects and share critical infrastructure.

The future of Australian CCS will depend partly on continued advancements in capture technology and the development of comprehensive policies that incentivise rapid CCS deployment, including the international transfer of CO₂ to Australian basin resources.

Additionally, public acceptance and trust in the safety and efficacy of geological storage will be crucial for the widespread adoption of CCS.

Scientific integrity is critical when assessing projects and engagement with all stakeholders is essential to securing community support.

To this end, we have to stop playing politics with CCS.  The public hearings in Darwin of the Senate inquiry into Middle Arm Industrial Precinct were a recent example, as was the Queensland Government’s decision to block the CTSCo project. Granularity in the science by assessing site approvals is critical and must not be compromised by sweeping statements and short-term political tactics. Unchecked this will stop any and all projects from proceeding.

Instead, we must focus the argument on the technical benefits that CCS can, and must deliver, within the wider decarbonisation architecture. A proper risk-based approach, which balances the very low technical risks and uncertainties associated with CCS against the known and increasing dangers posed by climate change, is needed and needed urgently.

Leadership, collaboration and communication are essential in CCS, traits to which CO2CRC is fully committed.

Consequently, we were delighted to receive the Alan Prince Award for the ‘Best Peer-Reviewed Paper’ at the Australian Energy Producers Conference in Perth last week. Our paper, authored by Dr Geoffrey O’Brien, Dr Simone de Morton, and David Bason, outlines a potential future state of GHG storage legislation. The paper, ‘Securing the Australian CCS Project Rollout by Improving Aspects of the GHG Storage Legislation: A Discussion Paper,’ argues that future legislation amendments could result in substantial improvements in the efficiency and effectiveness of emission reduction achieved by CCS.

That is a core message of CO2CRC, so it is doubly pleasing to receive recognition from our peers.

We will continue to argue that CCS is a vital component of Australia meeting its emission reduction goals. Regulatory reforms related to CCS have the potential to lower project costs, create jobs, attract investment, and enhance energy security in the Asia Pacific.

Dr Matthias Raab, CEO.