APPEA has said in its submission to the Department of Industry’s draft carbon capture and storage (CCS) method for the Emissions Reduction Fund (ERF) that CCS has the potential to deliver step-change emissions reductions.
Australian Petroleum Production and Exploration Association (APPEA) Chief Executive, Andrew McConville, said the development of a method for CCS under the ERF is an important way to not only reduce emissions but create thousands of jobs in the process.
“This is a chance Australia shouldn’t miss. CCS can help Australia to not only meet, but beat our emissions reduction targets,” Mr McConville said.
“With scale and experience, the cost of CCS will decrease, creating the potential to deliver competitive, large-scale abatement for existing industries and new industries such as hydrogen and ammonia.”
“The world is noticing the opportunity for CCS with 19 projects now operational (10 from oil and gas), including the Chevron-operated Gorgon CO2 Injection Project, which is the largest dedicated CCS project in the world, another four under construction and at least 30 more projects coming on-line in the years ahead.”
“Those in operation and construction have the capacity to capture and permanently store around 40 million tonnes of CO2 every year,” he said.
Mr McConville noted that Australia has a natural competitive advantage to implement CCS with known high quality, stable geological storage basins, existing infrastructure, world-class technical expertise and regulatory regimes (environment protection, carbon accounting and reporting, financial services).
“Australia needs low-cost carbon abatement to maintain its position as a leading energy exporter and ensure international competitiveness in a cleaner energy future.”
He said CCS is a safe and permanent solution to reducing greenhouse gas emissions.
“A CCS method under the Emissions Reduction Fund will encourage more projects, create new jobs and support Australian industries, particularly in regional areas.”
“The International Energy Agency and the Intergovernmental Panel on Climate Change both support CCS as essential to achieve the world’s climate change goals.”
“Just as LNG exports are playing an important role in reducing global emissions, CCS in Australia can play an important role in securing the future of Australia’s oil and gas industry in a cleaner energy future,” Mr McConville concluded.
More information on the Emissions Reduction Fund can be found here.