Example of UK-HyNET Eni Operated project (regulatory and technical considerations)

The successful and progressive implementation of a large number of new CCS projects (perhaps 30 to 40 4Mt projects) in Australia is pivotal to achieving the ambitious emissions reduction targets of 43% by 2030 and Net Zero by 2050. Additionally, it is imperative for Australia to uphold its commitments to Asia-Pacific energy partners, thereby ensuring their energy security and aiding in achieving their own emissions reduction objectives. To effectively execute these required projects and to maintain the required momentum, the industry requires comprehensive policy and regulatory support and a highly efficient regulatory regime.

 

The existing Federal regulatory framework offshore is, however, almost 20 years old and was developed in another era, an era when the concepts for what CCS would look like in Australia in the 2020s and 2030s was very different. This mismatch between the legislation’s legacy foundations, including its petroleum underpinnings and the lack of specific objectives (e.g., to reduce emissions) and the current dynamic project environment for CCS, which includes the recent net zero 2050, 43% reduction by 2030 and the Safeguard Mechanism, means that the existing regulatory framework is not really fit-for-purpose and will not provide the approvals timeframes necessary for Australia to meet its targets. 

 

To address this challenge, CO2CRC and its members have established the CCS Regulatory Taskforce or CCS RTF. The raison d’etre of the CCS RTF is to serve as platform for engagement by and between project proponents, to act as an incubator for innovative ideas, a platform to identify key regulatory issues and a vehicle to conceptualise, develop and mature potential options or solutions. Ultimately, the goal is to present these insights to the government for consideration and action. Significant progress has been made and substantial further advances are expected over the next one to two years. 

 

What is clear from an analysis of the number and location of planned and actual CCS projects in Australia over the last 20 years is that it is policy changes – such as the net zero target – that have been principally responsible for the recent dramatic increase in the number of CCS projects. Given that an increasing and large number of projects is required to meet net zero, it is encouraging that the policy driver is working. In contrast, the introduction of regulations has not moved the dial on project numbers, but it is effective regulation that is essential to the delivery of the projects facilitated by policy change. It is the regulatory pieces that the CCS Regulatory Taskforce is focussed upon.  

LETA is pleased to present our efforts in advancing emission reduction, particularly in the context of Australia and the Asia Pacific Region. LETA, backed by the Australian black coal industry, is committed to developing and implementing technologies that mitigate Scope 3 emissions across the coal value chain, focusing on sectors that are traditionally challenging to decarbonise.
 

Today, Australia’s economy includes significant volumes of energy intensive commodities that will be impacted by a global transition to a low carbon future. However, the natural resources sector is home to the world’s best engineering capability which means Australia is well positioned to simultaneously benefit from a low carbon transition – from rolling out new technologies to supporting the development of carbon stewardship within new, clean industries like hydrogen and ammonia. 

 

Our approach is global. We collaborate with industry, governments, research institutions and international partners in Japan and South Korea, leveraging our combined expertise to enhance the effectiveness and reach of our initiatives. 
 
 A flagship project for LETA is the CTSCo Project. This project involves a Post Combustion Capture (PCC) retrofit at the Millmerran power station with the aim to capture, transport, and securely store approximately 100,000 tonnes of CO2 annually for three years during the CO2 injection testing phase. Following this, we will monitor the underground CO2 plume, providing critical data and assurance to both the Queensland regulator and the public about the safety and effectiveness of CO2 storage in the Surat Basin. This project not only exemplifies LETA's commitment to carbon capture and storage but also serves as a beacon for future large-scale emission reduction projects.

INPEX is operator of Ichthys LNG, one of the world's largest and complex energy developments. Along with our Ichthys Joint Venture participants, we are committed to decarbonising Ichthys LNG and achieving net zero by 2050.

Deployment of CCS is the single largest step in our decarbonisation roadmap for Ichthys, representing a reduction of around 40% of total GHG emissions. Reforms to the Federal Government’s Safeguard Mechanism during 2023 have further reinforced the need for Australia’s large industrial emitters to urgently pursue direct abatement of GHG emissions. 

Creation of a CCS hub in Darwin would provide major decarbonisation opportunities not only for existing large emitters including LNG facilities, but also for potential new industries within the Middle Arm Sustainable Development Precinct (MASDP). Furthermore, the relative proximity of Darwin to Asian markets provides scope for potential development of CO2 import and storage services, thereby facilitating regional decarbonisation.

INPEX is also leading Bonaparte CCS, a joint venture with TotalEnergies and Woodside, for appraisal of a large-scale storage site utilising deep saline aquifers of the Petrel sub-basin.  Our goal is to prove up a storage site far larger than is required just for Ichthys LNG and support the establishment of a multi-user, multi-industry CCS hub.