CCUS in Australia

Abstract

Australia is progressing a range of levers to achieve net zero greenhouse gas emissions by 2050 and a 43% reduction in emissions by 2030. This paper focuses on the important role of carbon capture and storage (CCS) has in achieving these emission reduction targets, CCS readiness, and the pathway for CCS deployment in Australia, particularly with respect to the role of government in establishing this new industry. The paper also briefly touches on aspects relating to Carbon Capture and Use (or Utilisation, CCU), a relatively new industry, but an important element of Australia’s emission abatement strategy going forward. Together CCS and CCU provide a pathway to help Australian industry and business decarbonise their emissions.

Australia is well-suited to large-scale deployment of CCS to facilitate domestic CO2 abatement and to support emissions reductions in our region. Over the past two decades, successive Australian Governments have established an enabling environment for CCS. This includes implementing robust legislative and regulatory frameworks governing geological storage activities offshore and onshore; providing a series of grant schemes to support demonstration and commercial CCS projects; establishing emissions performance standards and methods to generate Australian carbon credits; supporting research and development activities covering all aspects of the CCS value chain; facilitating collaboration between government agencies, academic institutions and industry; and contributing to the international CCS community.

Challenges remain to achieving large-scale commercial deployment, bringing the costs down and addressing public perception issues and, while not insurmountable, a coordinated approach to CCUS is required for Australia to capitalize on the opportunities that await.

Keywords: Australia, CCS, CCU, CCUS, legal and regulatory framework, policy, incentives, challenges, geological sequestration