Government Funding A Welcome Contribution To Critical Emissions Reduction ProjectDownload media release
Technology critical to reducing industrial carbon emissions is another step closer to commercialisation with the Australian Government’s announcement of funding for six carbon capture utilisation and storage (CCUS) projects.
Glencore’s CTSCo Project — which is being progressed with Low Emission Technology Australia (LETA) — has been awarded $5 million under the Australian Government’s $50 million CCUS Development Fund established as part of its Technology Investment Roadmap.
“The government’s funding is a welcome contribution and recognition for this important project which will lay the foundation for a Queensland carbon hub,” said LETA Chief Executive Officer Mark McCallum.
“Glencore’s CTSCo Project is the lynchpin to opening up the highly prospective Surat region and the potential to store hundreds of millions, if not billions of tonnes of CO2 safely and permanently.
“With its many coal and gas-fired power stations operating alongside other significant industries, establishing a CCUS hub in this region will play a critical role in decarbonising the things we rely on every day and, with government funding, we’re ready to make this happen.”
Mr McCallum said partnerships between industry and government, supported by sound policy mechanisms, were critical to advancing and accelerating the deployment of emissions reduction technologies.
“Reaching a net-zero carbon emissions future is a global challenge and one which requires all technologies and world-wide collaboration to address,” he said.
“There are no silver bullets and industry alone can’t solve it — government support is necessary.
“Europe, the US and Canada are all moving much faster deploying and commercialising large-scale CCUS projects with significant government backing and we should learn from that.”
Glencore’s CTSCo Project will demonstrate Australia’s first — and the world’s third —full-scale, operational and end-to-end use of CCUS on a coal-fired power station.
The demonstration of this technology — especially the establishment of billions of tonnes of permanent CO2 storage — will enable clean hydrogen and ammonia to be produced from coal which could open up significant export opportunities, new jobs and new markets in Australia.
Mr McCallum said LETA would continue to pursue all available avenues to deliver its projects and accelerate the development and deployment of these critical emissions-reducing technologies in Australia.
“Technology innovation is often challenging, but becomes more efficient, effective and affordable with every project and facility developed,” he said.
“There’s more than one billion dollars in 2021/22 budget funding committed for CCS/CCUS and hydrogen projects and hubs, as well as international low emission technology partnerships, and we will be pursuing those opportunities.
“We’re also looking forward to a CCS method being finalised later this year for the Emissions Reduction Fund which would enable storage projects to sell Australian carbon credit units to the Commonwealth or sell credits to the private market — this is critical for investors. We hope similar provisions will be made available for carbon utilisation projects as well.
“The expansion of ARENA’s remit means early-stage R&D and innovation funding for CCS and CCUS projects will now be supported, so all of these initiatives combined, the landscape for bringing low emission technologies to commercial scale in Australia is improving, along with the transition to a low carbon economy.”