Australia launches draft CCS method for consultation

The Australian government June 29 released for public consultation a draft methodology that will enable carbon capture and storage (CCS) to generate carbon credits. These credits will bought from projects by the government via its Emissions Reduction Fund (ERF).

“The minister for energy and emissions reduction is required to consider a range of factors when deciding whether to make a new method. This includes whether an activity under a method could have any adverse social, environmental, or economic impacts,” the government said. “As such, feedback may cover adverse impacts that are likely to arise from carrying out a CCS project under the proposed new method.”

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The government is also seeking feedback on the amendments to the Carbon Credits (Carbon Farming Initiative) Rule 2015 to support the new methodology.

Australia’s peak oil and gas bold Appea said the move was a smart move. Appea CEO Andrew McConville said the development of a methodology for CCS under the ERF is an important way to recognise the role it can play as one of a number of low emissions technologies with the potential to deliver step-change emissions reductions.

“All technology, including hydrogen and CCS, should be on the table to help reduce emissions, so this is a good move,” McConville said.

He said that 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.

“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. “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.”

“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 added.