The significance of carbon capture utilisation and storage (CCUS) in achieving net zero has been emphasised in a recent Australian Government report urging for increased support for the technology, according to the Australian Petroleum Production & Exploration Association (APPEA).
APPEA said the new Climate Change Authority (CCA) paper underlined the substantial economic and environmental benefits of CCUS for Australia.
The Reduce, remove and store: The role of carbon sequestration in accelerating Australia’s decarbonisation paper examines several carbon sequestration options, including natural solutions, but highlights that the “Government should prioritise the development of long-lived geological and mineral storage technologies,” especially CCUS.
“Carbon capture is widely recognised as critical to protecting the environment and getting to net zero while creating new economic opportunities. The oil and gas industry supports the CCA’s calls for greater direction and support for this technology,” APPEA Chief Executive Samantha McCulloch said.
McCulloch stated that CCUS is regarded as essential to reaching net zero by organisations like the Commonwealth Scientific and Industrial Research Organisation (CSIRO), the International Energy Agency (IEA), and the Intergovernmental Panel on Climate Change (IPCC).
“The recent Safeguard Mechanism policy has only strengthened the case for a greater focus on carbon capture to reduce emissions,” she added.
In its recent 2023-24 Federal Budget Submission, the oil and gas industry advocated for a national CCUS plan to give clear policy direction, advance carbon management hubs, and promote Australia as a regional CO2 storage leader.
McCulloch said with over 300 commercial projects in development, Australia has the ability to not only accelerate to net zero but also to establish a new industry and ride the wave of global momentum for CCUS.
“But government leadership is critical. Governments around the world are rapidly increasing their support for CCUS, with the Inflation Reduction Act in the United States a game changer providing significant financial incentives for large-scale deployment of the technology,” McCulloch added.
The CCA recommends that “Governments should explore risk-sharing approaches (e.g., CCS hubs) including opportunities to co-invest in subsurface basin analyses for geological sequestration both on and offshore, and keystone infrastructure for storage and transport.”
