New research about the potential for Australia’s domestic carbon capture and storage (CCS) industry highlights an even bigger opportunity to contribute to regional emissions reduction, the Asia Natural Gas and Energy Association (ANGEA) says.
ANGEA CEO Paul Everingham said the EY report, Beneath the surface: The economic potential for carbon capture and storage in Australia’s eastern states, underlined the ability of CCS to decarbonise hard-to-abate industries and drive economic and job-creation benefits.
But the full impact of CCS in Australia will come with the creation of cross-border CO2 value chains that involve storing of emissions from other countries in Asia Pacific.
“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,” Mr Everingham said.
“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.
“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 $US220 billion in GDP annually by 2035.”
Mr Everingham said the “missing piece” for cross-border CCS remained regulatory and policy settings that would help unlock significant investments required to underpin regional value chains.
“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.
“It was pleasing to see Australia’s Resources Minister Madeleine King attend the launch of the EY research and show support for CCS.
“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.”
Media contact
Simon White
simon.white@angeassociation.com
