CO2CRC is Australia’s leading carbon capture, utilisation and storage (CCUS) research organisation
CO2CRC INSIGHTS | MAY 2020
  • Policy: Technology Investment Roadmap identifies CCUS as a priority low-emissions technology

  • Policy: King review builds case for CCS

  • Investment: Spending on carbon capture set to pass US$6 billion by 2026

  • Research: Australian university study suggests viability of CCS hub in Queensland

  • News: UK government identifies and commits to CCUS in two major industrial regeneration projects 

  • Investment: Shell announces commitment to net-zero emissions by 2050

  • Investment: Energy majors Equinor, Shell and Total commit to building world's first CCS network

  • Research: University of Chester developing low-cost carbon capture for shipping sector, and major partnership announced between Total SA and Cambridge University 

  • Policy: US DoE provides significant funding boost for CCS research

  • Investment: Starwood leads novel CCS project for gas power plant

  • FEATURE: CO2CRC’s Carbon Capture and Storage Network – Education Investment Funding Completion.
Policy: Technology Investment Roadmap identifies CCUS as a priority low emissions technology

The new Roadmap released by the Department of Industry, Science, Energy and Resources highlights the significant potential that carbon capture and storage and other new and developing technologies have to help Australia achieve a low emissions future.

The Roadmap identified CCUS - alongside hydrogen fuels and biofuels - as technologies that can “reduce emissions while strengthening our economy.” 

According to the government's media release:

"We will focus on technologies where we have a competitive advantage, in partnership with the private sector and like-minded countries."

The announcement comes as welcome news to proponents of CCUS projects around Australia and overseas, and underlines how investment in CCUS will help Australia contribute to global efforts to reduce carbon emissions.
Policy: King review builds case for CCS

A review of opportunities for carbon abatement conducted by ex-BCA head Grant King includes recommendations that would enable CCS projects to generate carbon credits, and to be eligible for funding from key sources.

The review’s main objective was to advise the government on how best to incentivise low-cost carbon abatement across the economy.

 The report's recommendations included:

  • Recommendation 6.11: Amend the ERF legislation to enable a method to be developed for carbon capture and storage and/or carbon capture, utilisation and storage [to be eligible for Australian Carbon Credit Units]; and
  • Recommendation 10.2: Provide ARENA and the CEFC with an expanded, technology-neutral remit so they can support key technologies across all sectors,”

CCS research and implementation is well positioned to be part of what Energy Minister Angus Taylor describes as the government's "technology not taxes" approach to emissions reduction.
Investment: Spending on carbon capture set to pass US$6 billion by 2026

In early April, a  report  released by research firm Global Market Insights found that global investment in CCS and CCUS is on track to pass US$6 billion by 2026. The main drivers identified by the report were rising industrialisation, increasingly strict regulations around carbon emissions, and government funding of major CCS projects.
 
The US$6 billion dollar figure represents a doubling in investment from 2019 totals, according to the report's authors, who conclude that by 2026, global installed CCS capacity will be capable of reducing emissions equivalent to more than 64 million tonnes of  CO2  per annum.
 
An example of the surge in CCS investment can be found in  North Dakota , where  the Minnotka Power Cooperative aims to install the world's largest CCS facility at the Milton R Young Station, a coal-powered electricity plant. The project would cost up to US$1 billion, and remove 90% of the plant's emissions.
Research: Australian university study suggests viability of CCS hub in Queensland

The University of Queensland have recently completed a  study finding that CCS is well-suited to key applications in Queensland. The study investigate the viability of establishing a large-scale CCS hub in southern Queensland, finding that 13 million tonnes of  CO2 per year could be removed by retrofitting Queensland's most modern power plants with CCS systems. As the University pointed out, this research is in line with the Australian government's  recent references to CCS as a key ingredient in achieving deep emissions cuts.
News: UK government identifies and commits to CCUS in two major industrial regeneration projects 

The UK government has committed to funding the decarbonisation of a major Scottish industry cluster, paving the way for accelerated rollout of CCS systems. Two grants to separate Scottish CCUS projects - run by the North East Carbon Capture, Utilisation and Storage Alliance and Pale Blue Dot Energy respectively - have been recently announced, each of which will also be eligible to compete for up to the UK Government’s £131 million Industrial Strategy Challenge Fund

As Minister for Energy, Connectivity, and the Islands Paul Wheelhouse puts it: "...CCUS is a vital component of our energy transition which supports industrial decarbonisation.”

Meanwhile, in Yorkshire's Humber region, the government's Challenge Fund has committed initial funding to spark the design and construction of what promises to be the UK's first zero-emissions industrial cluster. Eleven major companies have signed on to the project, which aims to roll our CCS technology to achieve net negative energy generation, hydrogen production from natural gas, using CCS and other cutting-edge CCS processes.

The project aims to capture and store up to 10% of the UK's annual carbon emissions by 2040.
Investment: Shell announces commitment to net-zero emissions by 2050

Royal Dutch Shell has announced detailed goals to tackle emissions, committing to net-zero by 2050.

Detailed targets include a 65% reduction in emissions from Shell's energy products (scope 3 emissions), and absolute net-zero from direct, Scope 1 and 2, emissions. Carbon capture and storage, and other sequestration efforts such as tree-planting, feature in Shell's strategy.

Analysts pointed out that the new announcement effectively accelerates Shell's emissions reductions ambitions; previous targets included a 50% reduction in scope 3 emissions by 2050, and 20% by 2030. The 2030 target is now 30%.
Investment: Energy majors Equinor, Shell and Total commit to building world's first CCS network

Equinor, Shell and Total have submitted plans to the Norwegian government to build a network of CO2 capacity able to capture 5 million tonnes of CO2 per year. The project has an estimated cost of USD685 million.

The Northern Lights project will be the world's biggest investment in CCS to date.

The project is intended to expand possibilities for abatement up and down the CCS value chain, enabling carbon abatement for Norwegian and European industriues that have until now not had access to the technology.

According to Shell Vice President for CCS Syrue Crouch:

"CCS is a crucial technology to help society and economies thrive through the energy transition. We appreciate the leadership shown by the Norwegian government to accelerate the development of CCS value chains"
Research: University of Chester developing low-cost carbon capture for shipping sector, and major partnership announced between Total SA and Cambridge University 

Two British universities have recently made announcements that promise to help advance the application of CCS technologies.
 
The University of Chester is  developing  a carbon capture system for the global shipping industry, that seeks to significantly reduce emissions from ocean transport. Shipping is a significant driver of global emissions. The T-TRIG system developed by researchers removes 95% of emissions from engine exhausts, which are stored as liquified carbon dioxide and then delivered to ports for underground storage. 
 
The project has attracted funding from the UK Department for Transport.
 
Meanwhile, the University of Cambridge has  announced  a partnership with French energy major Total to develop carbon capture, usage and storage technologies. The university will contribute the expertise of Cambridge Quantum Computing, to provide computing systems to optimise CCUS systems.
Policy: US DoE provides significant funding boost for CCS research

The US Department of Energy (DOE) has  increased funding  available for CCS research projects. An additional US$22 million will be provided to fund projects that seek to capture carbon dioxide from ambient air. Funding can be used for materials research as well as field testing.
 
Dr Chris Fall, Director of the DoE Office for Science explained that  "While we’ve seen real progress in this field, both basic and applied research are needed to develop highly effective direct air capture technologies on a large scale.”
 
The US DOE allocated around US$500 million for CCS activities in 2019. Its total spending between 2012 and 2018 was just over US$4 billion.
Investment: Starwood leads novel CCS project for gas power plant

US-based Starwood Energy leads one of world's first projects to capture CO2 from a natural gas power plant. The project is seeking government funding, and will capture up to 90% of emissions from an existing power plant. The project participants hope that the initiative will showcase the potential of CCUS for natural gas applications.

The project has received co-investment from OGCI and will be jointly developed by Starwood and Elysian Ventures. Pratima Rangarajan, CEO of OGCI Climate Investments, said, "We are pleased to partner with Starwood Energy and Elysian Ventures in a tangible demonstration that carbon capture is available and ready to use today. This project, along with our other three CCUS project investments, aims to keep over nine million tons a year of carbon dioxide from the atmosphere. That's the equivalent of taking almost two million cars off the road."
FEATURE: CO2CRC’s Carbon Capture and Storage Network – Education Investment Funding Completion
CO2CRC recently held a completion webinar for the Carbon Capture and Storage Network (CCSNET). The goal of CCSNET was to deliver the infrastructure network that produces the technologies which will drive down costs and make CCS a price-competitive carbon reduction technology. It is a collaborative network of research infrastructure comprising laboratory upgrades and new plant and equipment located at universities and national research centres in Victoria, the ACT and South Australia. Marine monitoring infrastructure is also located offshore Gippsland, Victoria.

In 2013, The Department of Education, Skills and Employment through the Education Investment Fund (EIF) provided CO2CRC with $51.6m to fund the infrastructure works for CCSNET. CO2CRC through its governance processes formed several advisory committees to ensure that the funding was distributed to research organisations that could provide a 5-year research plan.

June 2020 will see the completion of the EIF funding agreement, but the assets and the research conducted on them will last for many years. Over the course of the funding agreement $61m of cash and in-kind support has been leveraged to fund the R&D on CCSNET assets.

Over 45 research projects have or are still being conducted on the assets and have produced just over 120 journal articles, reports and PhD theses. The total value of infrastructure and R&D of CCSNET is just under $113m. The funding for the research was provided by many sources but notably, the Victorian Government, Coal21, through ANLEC R&D, and BHP.
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