CO2CRC is Australia’s leading carbon capture, utilisation and storage (CCUS) research organisation

CO2CRC INSIGHTS | September 2020

Investment: Santos refines plans for Moomba “carbon sink”  Research: Database recently launched by Global CCS Institute a critical resource to support global CCS deployment Research: UCLA announces $2.9 million research grant for "CO2Concrete" Policy: UK National Grid report finds CCS an essential part of carbon-neutral ambitions Policy: US 45Q tax credits continue to help build case for CCS investment Research: EU Zero Emissions Platform proposes method for calculating the environmental benefits of CCS and CCU Research and investment: Oil majors agree to extend support for key Norwegian CCS testing facility Policy: Clean Air Task Force finds that US Petra Nova CCS project works on a commercial scale FEATURE: CO2CRC hosts virtual Otway facility visit from European SECURe research consortium Investment: Santos refines plans for Moomba “carbon sink”  Santos has indicated that it plans to make CCS facilities at the Moomba field available to third parties, should it proceed with the CCS investment. The company announced it plans to offer energy companies the ability to purchase gas that has had carbon emissions “stripped out” and buried, thus reducing GHG emissions.   Under the plan, Moomba would become a carbon sequestration hub for gas piped from various locations. Carbon would be removed from gas and reinjected into underground storage sites.   According to Santos Chief Executive Kevin Gallagher, “That would have a very substantial impact on Australia’s emissions reduction strategy going forward.”   The Santos’ carbon capture and storage venture with BP would initially reinject 1.7 million tonnes of carbon dioxide annually.

Research: Database recently launched by Global CCS Institute a critical resource to support global CCS deployment The Global CO2 Storage Resource Database launched by the Global CCS Institute, Pale Blue Dot Energy and OGCI last month promises to help support international CCS deployment in the coming decades. A recent article published by the Institute highlights the scale of the task.   "To achieve [net zero emissions by 2050], multi-gigatonne storage of carbon dioxide (CO2) will be required to reduce emissions. In fact, the IPCC climate pathways model up to 1,200 gigatonnes (Gt) of CO2 cumulatively stored by 2100. In the IEA Sustainable Development Scenario (SDS), which is consistent with meeting the goals of the Paris Agreement, global CO2 storage reaches 2.8 Gt per annum by 2050."   To achieve these targets, the rate of CCS deployment will need to be significantly increased. This will rely on identification of appropriate sites and access to investment capital. The Storage Resource Database centralises knowledge on carbon storage sites and provides potential investors with greater confidence to allocate funds to these projects.   "The GSRD represents not only a successful collaboration to achieve a world first independent catalogue of CO2 storage resources, it represents a monumental step forward in the ongoing characterisation and development of storage sites and the global deployment of CCS."

Research: UCLA announces $2.9 million research grant for "CO2Concrete"   The University of California Los Angeles (UCLA) has announced a research project that will explore the potential of CO2 sequestration in concrete manufacturing. The initiative has been funded by the US Department of Energy, and has the potential to decrease cement use, sequester carbon emitted from other sources, and improve the performance of building materials.   The project will build on techniques that are already being used in some commercial operations to inject CO2 into concrete during the manufacturing process. This and other parallel initiatives have the potential to provide a market for CO2 captured from other sources, including electricity generation.   Concrete making is responsible for an estimated 8 percent of global GHG emissions, and its ubiquity underscores the fact that there is no feasible alternative. CCS and CCUS are increasingly being accepted - in Australia and overseas - as a key factor in the ongoing viability of this essential building resource.

Policy: UK National Grid report finds CCS an essential part of carbon-neutral ambitions   A report released in late July by the UK's electricity grid operator - National Grid - found that CCS is one of a range of technologies that will form an essential part of ambitions to achieve carbon neutrality by 2050.    “Hydrogen and carbon capture and storage must be deployed for net zero,” according to the Future Energy Scenarios report. “Industrial-scale demonstration projects need to be operational this decade.”   The report also pointed out that CCS could help emissions from UK power generation turn negative by 2033.

Policy: US 45Q tax credits continue to help build case for CCS investment   The United States’ 45Q tax credit system – which incentivises investment in carbon capture projects – is increasingly drawing the attention of US policymakers. Members of both the House and Senate recently pressed for investment in CCS and other renewable technologies to be a focus of the next stage of economic stimulus.   According to the letter sent by Republican Senators and Members of Congress to majority leader Mitch McConnell, “continuing to scale up the clean energy sector would grow jobs, support US energy independence, economic resilience, and will be essential for global competitiveness.”   Meanwhile, the Boston-based economic and regulatory consulting firm the Brattle Group released a study calling for greater investment into CCS, including via the 45Q scheme. The study makes the point that given the tax credit system and the right market conditions, CCS could achieve meaningful decarbonisation at a competitive cost, especially in situations where renewable energy sources are not abundantly available.

Research: EU Zero Emissions Platform proposes method for calculating the environmental benefits of CCS and CCU   The Zero Emissions Platform – an initiative of the European Union that acts as the Union’s technical advisor on CCS and CCS – has released a report that aims to help measure the benefits that flow from CCS and CCU projects.   The report establishes three characteristics to apply when assessing CCS and CCU projects: mitigation effect; net energy consumption; and implementation period. Researchers hope that application of these characteristics will help provide meaningful comparisons of the benefits that flow from CCS and CCU projects.   Meanwhile, the Global CCS Institute has released a fact sheet and video that also seeks to demonstrate the benefits of CCS from both an environmental and economic perspective.

Research and investment: Oil majors agree to extend support for key Norwegian CCS testing facility Energy majors Total, Shell and Equinor in collaboration with the Norwegian government have announced they will extend funding for a key Norwegian CCS research facility. The announcement ensures that the Technology Centre Mongstad (TCM) will provide CCS testing services until at least the end of 2023. As the Norwegian Minister of Petroleum and Energy, Tina Bru said earlier this year, “The Technology Centre at Mongstad is an important part of the Norwegian carbon capture and storage (CCS) efforts, making significant contributions to the development of a necessary tool to mitigate climate change.”   TCM has provided testing services since 2012 for CCS projects from all over the world. The recently announced extension to its funding makes it possible for the facility to continue to support the industrial-scale rollout of CCS globally.

Policy: Clean Air Task Force finds that US Petra Nova CCS project works on a commercial scale   The US-based Clean Air Task Force reports that the Petra Nova CCS project has served as an important proof of concept for commercial-scale CCS. Although the project has been temporarily suspended due to low oil prices, the Task Force points out that by exceeding all of its operational targets, Petra Nova proves that large-scale carbon capture is viable, and results in significant emissions reductions.   “Petra Nova demonstrates that carbon capture works on a commercial scale in the power sector, supplementing decades of successful commercial experience with large-scale carbon capture in multiple industrial sectors.” according to the report.   The Task Force highlights the importance of policy support to drive the expanded uptake of CCS. US Congress is called on to provide better incentives and financial support for CCS projects.

FEATURE:  CO2CRC hosts virtual Otway facility visit from European SECURe research consortium

With the challenges of lockdown, CO2CRC has switched to virtual meetings to exchange information and insights from our applied research. On the 2nd and 3rd of September, CO2CRC hosted “SECURe” (Subsurface Evaluation of CCS and Unconventional Risks), a European Research Consortium, funded out of the European Union’s Horizon 2020 research and innovation programme. SECURe are developing monitoring and mitigation strategies for CCS projects, and communication & community engagement strategies to provide a greater level of puiblic understanding of CCS. The consortium has previously engaged with leading groups and facilities in both Canada and the USA directly, but unfortunately they missed out on visiting CO2CRC and our world famous Otway facility. Instead Matthias Raab, Max Watson and Paul Barraclough, along with some of our leading researchers including Charles Jenkins, Andrew Ross & Jonathan Ennis-King (CSIRO), Andrew Feitz (GA) and Boris Gurevich (Curtin University) led them virtually through the history of CO2CRC, our Otway Research facility, the CCSNet program and some of the key technical and non-technical outcomes stemming from our applied R&D program. Topics discussed included successes from the recently completed Otway Stage 2C project and plans for the upcoming Otway Stage 3 project, the delivery of the CCSNET infrastructure and important insights from public engagement CO2CRC have experienced over the last 10+ years. Europe is coming into some very interesting times, particularly with the various North Sea CCS projects being developed. CO2CRC and our research partners were very pleased to be able to pass some insights from our experiences to this European consortium to assist the region to enable CCS as a large scale low carbon emission technology.

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