The Australian Petroleum Production & Exploration Association (APPEA) has outlined 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.
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,” he 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.”
McConville further highlighted that the world is noticing the opportunity for CCS with 19 projects now operational (10 from oil and gas), including Chevron-operated Gorgon CO2 Injection Project, plus another four under construction and at least 30 more projects coming on-line in the years ahead.
“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),” he said.
“Australia needs low-cost carbon abatement to maintain its position as a leading energy exporter and ensure international competitiveness in a cleaner energy future.”
McConville said CCS is a safe and permanent solution to reducing greenhouse gas emissions.
He says a CCS method under the ERF will encourage more projects, create new jobs and support Australian industries.
“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,” he said.