CO2CRC is Australia’s leading carbon capture, utilisation and storage (CCUS) research organisation
CO2CRC INSIGHTS | February 2021
  • Investment: Western Australian firm announces plans for undersea CO2 storage
 
  • Investment: Regional Hydrogen Technology Clusters launched across Australia

  • Investment: Heidelberg Cement details world's first industrial scale CCS project at Norwegian cement works
 
  • Research: UK scientists underline necessity of carbon capture to net zero ambitions
 
  • Policy: US COVID stimulus bill provides support for carbon capture projects
 
  • Investment: Elon Musk pledges USD100 million prize for advances in carbon capture
 
  • Policy: United Arab Emirates announces major carbon capture hydrogen initiative

  • News: China completes its largest carbon capture facility to date

  • Investment: Chevron invests in CCUS start up

  • Investment: Exxon launches Low Carbon Solutions
 
  • Investment: Shell accelerates drive for net-zero emissions, with CCS playing a key role
 
  • Investment: BP set to become a net zero company by 2050 or sooner

  • Policy: Europe’s Innovation Fund to provide EUR 10 billion of support 
 
  • Feature: Global momentum growing for CCUS and hydrogen
Investment: Western Australian firm announces plans for undersea CO2 storage
 
Perth-based company Transborders has announced plans to build a floating offshore CCS facility that could inject 1.5 million tonnes of CO2 per year under the sea bed. The firm has already built smaller-scale floating injection platforms.

The DeepC Store project is targeting CO2 captured from LNG facilities, and the company has stated that major Japanese energy firms have shown an interest. 
Investment: Regional Hydrogen Technology Clusters launched across Australia

NERA (National Energy Resources Australia) has announced funding for the formation of a network of 13 regional hydrogen technology clusters across Australia.

The $1.85M investment is part of a drive to establish a nationwide hydrogen cluster, which aims to foster a multi-million-dollar globally competitive hydrogen industry.

"These regional clusters, all of which have the support of their state and territory governments, have been established around key, existing hydrogen projects and technology supply chains in strategic locations that have a demonstrated capacity to support them. This will ensure long-term local cohesion and sustainable capability across the emerging hydrogen value chain." said Miranda Taylor, NERA CEO
Investment: Heidelberg Cement details world's first industrial scale CCS project at Norwegian cement works
 
German firm Heidelberg Cement has detailed its plans to establish the world's first cement facility to be equipped with industrial scale CCS. The facility will be established at the Brevik plant in Norway.

The project has secured the support of the Norwegian government, and forms part of Heidelberg Cement's commitment to achieve carbon neutrality by 2050.

Project proponents predict that CO2 separation will begin as soon as 2024, and the facility will be capable of capturing and storing 400,000 tonnes of CO2 per year.
Research: UK scientists underline necessity of carbon capture to net zero ambitions
 
Leading UK scientists have spoken up in response to criticism of carbon capture and storage from UK-based green groups. Scientists and engineers have pointed out that a failure to capture and store carbon would make it all but impossible to achieve net zero emissions by 2050.

“Carbon capture and storage is going to be the only effective way we have in the short term to prevent our steel industry, cement manufacture and many other processes from continuing to pour emissions into the atmosphere,” said Professor Stuart Hazeldene, of Edinburgh University.

The comments came in response to anti-CCS claims from campaign groups Global Witness and Friends of the Earth.
Policy: US COVID stimulus bill provides support for carbon capture projects
 
In November 2020, the US passed an omnibus bill that included expanded government support for carbon capture projects.  

The 45Q tax provision provides tax credits for investors in carbon capture projects. Investors can claim USD50 for every tonne of CO2 captured and stored underground. 

The new spending bill extends the life of the 45Q program, which was originally designed only to cover projects that had been started by 2023. This date has been extended to 2025, and an additional USD2 billion has been allocated to fund CCS projects that will demonstrate the viability of the technology. 
Investment: Elon Musk pledges USD100 million prize for advances in carbon capture
 
In early February, billionaire Tesla chief executive Elon Musk tweeted a pledge to donate USD100 million to incentivise development of carbon capture technologies. Details are not yet clear; however, it is understood that the donation will be a prize for the best new carbon capture process.

In a follow-up tweet, Mr Musk underlined the importance of carbon capture, describing the technology as "...by far the top priority is accelerating the transition to a sustainable energy economy."

The carbon removal competition will be managed by XPRIZE, a non-profit organization that designs and hosts public competitions intended to encourage technological development to benefit humanity. Further details on the competition guidelines will be released on 22 April 2021.
Policy: United Arab Emirates announces major carbon capture hydrogen initiative

The United Arab Emirates (UAE) has announced plans to become a world-leader in hydrogen production from natural gas (‘blue hydrogen’), using carbon capture and storage to prevent carbon dioxide emissions.

Abu Dhabi National Oil Company has partnered with two sovereign wealth funds on the blue hydrogen initiative. CEO Sultan Al Jaber touted UAE's advantages as a potential low-cost blue hydrogen manufacturer. In doing so, he highlighted that there is “no credible way” of meeting global climate goals without carbon capture and storage.

UAE is not alone among oil-rich nations that have announced efforts to develop blue hydrogen projects, with Saudi Arabia making a similar commitment in late 2020.
News: China completes its largest carbon capture facility to date

On January 21st, the China Energy Investment Corporation completed the country's largest carbon capture project at its Guohua Jinjie coal power station in Shaanxi province. The facility is designed to capture 150,000 tonnes of CO2 per year.

In late 2020, Chinese President Xi Jinping announced a commitment to low-emissions technologies that includes a focus on carbon capture and storage. The commitment forms a key part of China's ambitions to achieve emissions neutrality by 2060.
Investment: Chevron invests in CCUS start up

Chevron has announced an investment in Blue Planet Systems, a start-up that uses proprietary CCUS technologies to capture emissions from energy generation for use in building supplies.

Blue Planet's process does not require cleaning of flue gases prior to capture, and results in permanent CO2 storage in aggregates and concrete blocks.

As well as taking a stake in the company, Chevron signed a letter of intent that includes a commitment to collaborate on commercial development and piloting of Blue Planet technologies.
Investment: Exxon launches Low Carbon Solutions

ExxonMobil has created a new business to commercialise its low-carbon portfolio, with a focus on CCUS. The planned investment will see $3 billion US dollars going towards lower emissions energy solutions through to 2025 and will advance plans for more than 20 new CCUS opportunities.

ExxonMobil currently has carbon capture capacity in the US, Australia and Qatar and will invest further throughout the US, Asia and Europe. ExxonMobil has an equity share in about one-fifth of global CO2 capture capacity and says it has captured approximately 40 percent of all the captured anthropogenic CO2 in the world.

Low Carbon Solutions will seek to develop partnerships and collaborations on a wide range of technologies and be responsible for marketing of emission-reduction credits created through the business’s sequestration projects.
Investment: Shell accelerates drive for net-zero emissions, with CCS playing a key role

Shell has set out its strategy to accelerate its transformation into a provider of net-zero emissions energy products and services, with CCS playing a key role.
Shell will seek to have access to an additional 25 million tonnes a year of CCS capacity by 2035.

Shell’s net-zero targets cover the emissions from its operations and the use of the energy products it sells.  
Investment: BP set to become a net zero company by 2050 or sooner

BP has announced its net zero ambition through a fundamental transformation of its whole organisation, including a new business group focusing on low carbon solutions and pursuing opportunities in decarbonisation and new value chains such as hydrogen and CCUS.
BP will increase its annual low carbon investment 10-fold to around $5 billion a year.

Hydrogen and CCUS will make up a component of an integrated low carbon portfolio, with a 10% market share of hydrogen in core markets and leading the Net Zero Teesside project and the Northern Endurance Partnership.
Policy: Europe's Innovation Fund to provide EUR10 billion of support

Europe’s Innovation Fund is one of the world’s largest funding programs for the demonstration of innovative low-carbon technologies.

It will provide around EUR 10 billion of support over 2020-2030 for the commercial demonstration of innovative low-carbon technologies, including CCUS.

The Innovation Fund will be funded by the EU Emissions Trading System (EU ETS). 
FEATURE: Global momentum growing for CCUS and hydrogen
Global momentum for CCUS is growing as governments and international energy and resources companies aim to meet global emissions targets.

Hydrogen as a source of clean energy has also gained traction, with many countries looking at hydrogen not just for domestic use but also for export. For production at the scale required for export, hydrogen production from fossil fuels with CCS will be required.

The last 12 months have seen new and renewed commitments to climate change and emission reduction across the globe, with all highlighting the need for CCUS and hydrogen:

  • The U.S recommitting to the Paris Agreement and extending support for the 45Q tax
  • The Australian government releasing its Technology Investment Roadmap identifying both CCUS and hydrogen as priority technologies and its goal to reach net zero emissions as soon as possible.
  • The UK government released its ten point plan for a green industrial revolution and its  Energy White Paper – “Powering our net zero future”. By 2030 the UK aims to be capturing and storing 10Mt of CO2 a year and 5GW of hydrogen.

International energy companies have also stated their ambitions for a net zero future by 2050, with many highlighted in this newsletter.

It is clear that CCUS and hydrogen will play a significant role in achieving net zero ambitions globally. Australia is well placed to be a world leader in both CCUS and hydrogen with access to world class sedimentary basins for carbon storage, internationally recognised experts in CCUS, the world’s largest CCUS project and the natural resources to create clean hydrogen at scale. 

The Hydrogen Energy Supply Chain (HESC) project, led by J-Power, recently achieved its first hydrogen production in the Latrobe Valley. If the HESC project proceeds to commercial phase, combined with carbon capture and storage (CCS) through the CarbonNet project, it promises a ‘clean hydrogen’ use for the Latrobe Valley’s vast coal reserves. CO2CRC is proud to be playing a part in this project.

CO2CRC, with its proven track record of R&D and technology solutions and the world class Otway International Test Centre in combination with its extensive membership base is ready to deliver the technology solutions required to advance CCUS deployment at scale and support the development of clean hydrogen in Australia.

The outlook for CCUS and hydrogen in Australia has started off strongly in 2021. We hope the momentum continues and there are many more advances as the year unfolds.
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