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Energy & Utilities | Technology

Do we have enough carbon capture capability?

14 Nov 2024, by Amy Sarcevic

According to the International Energy Agency, carbon capture, utilisation and storage (CCUS) is the only large-scale mitigation option capable of driving emissions low enough to reach 2050 targets.

But is our existing infrastructure enough to compensate for ‘hard to abate’ industries, as well as the carbon output from overseas peers, who don’t have CCUS capabilities?

Dr Matthias Raab, Chief Executive of CO2CRC – Australia’s leading carbon capture and storage research body – says not. And while he is positive about current progress, he won’t sleep on his expansion strategy, which involves heavy investment in new technology and national infrastructure.

“The modelling on this varies, but one thing it can agree on is that the shortfall of national infrastructure for the hard-to-abate sector is enormous,” he said.

“In the IEA’s net zero scenario, we will need 6.2 gigatonnes of CO2 storage annually by 2050. And, even by Net Zero Australia’s more modest estimate of 85 to 150 million tonnes, we need several orders of magnitude more than what we currently have. To break that down, Australia will need to develop up to 38 new projects with a capacity of 4 million tonnes each,” he said.

Currently, this latter figure represents the combined capacity of the world’s two largest carbon capture projects: Chevron’ Gorgon, project off the Western Australian coast, and Santos’s Moomba project in South Australia’s Cooper Basin.

“These two projects are injecting a combined 3.3 million tonnes of CO2 per year – a sizeable amount, but a far cry from what we need, globally. It’s clear that we need to expand our infrastructure, fast – and we will need a host of enablers to help us get there,” Dr Raab said.

New technology

Heavy investment in new technology is one of Dr Raab’s key strategic priorities, with 100 percent of his budget currently allocated to developing it.

His technology portfolio is diverse but has one common theme.
“We generally use technology to drive drastic cost reductions in carbon capture and storage processes. Any tools that can help us do it cheaply will be greatly welcomed by the sector, and will incentivise more companies to explore this as a mitigation option.”

Other promising innovations include a technology that improves the flow and modelling of carbon dioxide in the subsurface and another that monitors its movement more than one kilometre under our feet.

“This helps us meet Federal and State legal requirements and be accountable for the CO2 we put in the ground – ensuring it stays within predetermined boundaries and safeguards the environment.

“It also allows us to do carbon crediting and accounting with a high degree of integrity.”

Long-term policy certainty

Appetite for project capital is strong in the carbon capture space, but with a lack of political certainty the sector can be off-putting to some financiers.

Thankfully, policies like The Safeguard Mechanism – the push for new gas fields to have zero reservoir CO2 emissions – are paving the way for carbon capture; as is The Future Gas Strategy, which aims to reduce emissions intensity for LNG and gas production.

However, opinions towards CCUS are split across states, and there is less political support than in Europe and North America, where CCUS activities are incentivised.

“Without carbon capture and storage, there is no future gas strategy in Australia,” Dr Raab said. “But we still need more political support and certainty for CCUS.

“While some states are on board with it, the resistance we are seeing from Queensland may already be spreading, and we are concerned that NSW may be resisting onshore activity in the Darling Basin.

“Also, without those incentives, project proponents must take on 100 per cent of the commercial risk, which I fear may be a deterrent for many without bipartisan support.”

To materially reduce the cost of industrial-scale, multi-decade-long CCS projects, CO2CRC has undertaken commercially relevant demonstrations for more than two decades, with an at-scale investment of $200 million over that period.

“We are accelerating the development of small, medium and larger scale projects. Few projects are too big or small for us – they all have a role to play in meeting our emissions targets.”

Enabling overseas peers

With some countries, like Japan and Korea, unable to inject large quantities of CO2 into the ground, Dr Raab says Australia must play a dual role to compensate.

“Firstly, we need to be good role models and demonstrate the importance of carbon capture and storage for our trade partners – who buy our fossil fuel products but have no ability to store the CO2 emissions themselves.

“Secondly, we should treat the return of CO2 to Australia as equally important for us as it is for our trade partners and their climate targets. We need to do all we can to improve the trans-border shipment because, without it, we cannot meet global emission reduction targets.”

While international treaties such as the London Protocol play an enabling role in the international shipment of CO2, Dr Raab said much more support is needed to build the scale that is needed at the pace that is required.

“Australia made some progress already, but it’s a drop in the ocean, when you consider how much demand there is from other countries, in the future, to offload their emissions to Australia.”

Continuing the debate

Sharing more thoughts around how the expansion of CCUS capabilities can help us meet 2050 climate targets, Dr Matthias Raab will present at the upcoming Carbon Capture Utilisation and Storage Conference, hosted by Informa Connect.

This year’s event will be held on 3-4 December at the Novotel Perth Langley.

Learn more and register your tickets here.

About Matthias Raab

Matthias Raab is Chief Executive of CO2CRC, Australia’s leading carbon capture and storage research body.

With a doctorate degree in science, Matthias is a dedicated leader in the geoscience, energy, and resource sectors.

He is deeply committed to advancing Australia’s scientific capabilities and contributing to a sustainable future.

He has over 30 years of international experience spanning academia, government, and industry, leading transformative projects that address complex challenges in energy transition, climate resilience, and resource management.

Driven by a deep passion for science and a commitment to Australia’s future, he is focused on addressing national resources, climate, and innovation priorities through scientific excellence and collaboration.

As a company director, he serves on three different boards in Australia.

 

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