Given the rising trend toward pursuing transition to a low-carbon and emission-free future against the backdrop of growing climate change concerns, the Asia Natural Gas and Energy Association (ANGEA) has highlighted the key role Australia’s domestic carbon capture and storage (CCS) industry can play in helping Asia Pacific to reach its decarbonization goals, if the country sorts out its regulatory and policy settings.
While using the EY report , ‘ Beneath the surface: The economic potential for carbon capture and storage in Australia’s eastern states ,’ to spotlight the potential of the domestic carbon capture and storage industry in Australia, ANGEA highlighted an even bigger opportunity to contribute to regional emissions reduction, portraying the opportunity domestic CCS offers for the start of “something much bigger” for the country.
Paul Everingham , ANGEA’s CEO, underlined: “This report from EY is welcome. CCS can make a vital contribution to reducing emissions in Australia and the projection of up to $66 billion in economic activity in the eastern states alone is very encouraging. Over the past year we’ve seen the Moomba project come online and store more than a million tonnes of CO2, demonstrating that CCS is a proven technology for decarbonising at scale.
“Australia’s biggest opportunity in CCS will come through cross-border networks. Australia has billions of tonnes of storage space for CO2, which key trading partners such as Japan, South Korea and Singapore all lack. By becoming a storage destination for emissions from Asia, Australia can make an enormous contribution to the regional decarbonisation that will be necessary to progress climate objectives.”
According to the Asia Natural Gas and Energy Association, the research in the EY report showcases the ability of CCS to decarbonize hard-to-abate industries, driving economic and job-creation benefits. However, ANGEA also underlines that the full impact of CCS in Australia will come with the creation of cross-border CO2 value chains that involve storing emissions from other countries in the Asia Pacific region.
Everingham added: “The importance of CCS for reducing emissions has been brought into stark focus by the challenges faced by emerging technologies like green hydrogen. There are also massive economic opportunities that would result from Australia’s involvement in cross-border CCS. Research by Boston Consulting Group, has suggested CCS in Asia Pacific could support up to 300,000 jobs regionally and add $220 billion in GDP annually by 2035.”
ANGEA’s CEO has pinpointed regulatory and policy settings as the ‘missing piece’ for cross-border CCS, since putting the right set in place would help unlock significant investments required to underpin regional value chains.
Recently, the Australian government designated Inpex’s Bonaparte CCS project as a major project, located in the G-7-AP greenhouse gas (GHG) assessment block off the northwestern coast of the Northern Territory of Australia.
Everingham underscored: “Australia has an opportunity to be a leader in this space, working with its trade partners around the region to ensure development of cross-border CCS is not held back by uncertainty around policy, regulation or legal aspects,” Mr Everingham said.
“ANGEA has published an Accelerating Cross-Border CCS In Asia Pacific Study that governments can use as a guide as they negotiate agreements around cross-border CCS. We look forward to working with key stakeholders around the region to help convert the potential of cross-border CCS into reality.”