The state government has unveiled its first action plan for carbon capture and storage in Western Australia, including investing $26 million towards two projects.
The state government has unveiled its first action plan for carbon capture and storage in Western Australia, including investing $26 million towards two projects.
WA’s first carbon capture, utilisation and storage (CCUS) action plan aims to improve policy certainty, attract more investment in the sector, and accelerate projects, the state government announced today.
Through the Investment Attraction Fund, the state government has funded $15 million towards Australian Gas Infrastructure Group’s Pilbara carbon capture project and $11 million for Mitsui & Co's and Wesfarmers’ Cygnus hub in the state’s Mid West.
The $15 million boost will help AGIG develop an onshore transmission pipeline, which will link to its proposed offshore carbon capture and storage hub using depleted gas fields off the Pilbara coast.
AGIG chief executive Craig de Laine said the carbon capture and storage industry could play a significant part in achieving the state’s net zero goals.
“We believe that having all decarbonisation options on the table will help us reach net zero targets quicker and can better support industry to continue to thrive through the energy transition,” he said.
"Our project in the Pilbara has the potential to be a catalyst for carbon capture and storage implementation in the state and a key step in reducing industrial emissions.
“We are excited to work with our large industrial customers to deliver transformational carbon reduction initiatives, and we commend the government for its vision to be a world leader in this technology through the release of its inaugural Carbon Capture and Storage plan today.”
Mitsui & Co E&P Australia and Wesfarmers Chemicals, Energy & Fertilisers have partnered to develop the Cygnus carbon capture and storage hub, proposed to store about 530 kilotonnes of carbon dioxide a year from the Waitsia gas plant and WesCEF’s CSBP ammonia plant in Kwinana.
The state government said WA was home to numerous CCUS project proposals, which would be developed over the next decade, with a combined capacity to store more than 20 million tonnes of carbon dioxide a year.
One of the biggest CCUS projects in the world, the Chevron Gorgon project, is located in WA.
This project has never operated at its targeted efficiency, adding to criticism of CCUS by environmental groups, which claim it is not a realistic solution.
Australian Energy Producers WA director Caroline Cherry said the inaugural CCUS action plan was an important step in attracting investment in the sector and create jobs in the state.
“Without CCUS, industries like fertiliser and chemical production, iron and steel, and cement, will find it harder and more expensive to reach net zero,” she said.
“CCUS represents a comparative advantage for Western Australia, with world class geology, industry experience, and strong links with regional trading partners looking to collaborate on CCUS.
“It is a first for an Australian state, and an example of the action needed at a national level to support this critical technology.”
The Chamber of Minerals and Energy WA has also welcomed the CCUS action plan, with chief executive Rebecca Tomkinson saying it identified the crucial role for ammonia, cement, iron and steel, and LNG processing.
“The net zero challenge we face is huge. We need to decarbonise our economy in less than a generation while still maintaining energy security, jobs and our enviable standard of living,” she said.
“There is an urgent need for effective and rapid work between government, industry and communities to identify opportunities and drive collaboration to deliver new projects.
“The scale and extent of policy support for CCUS in other jurisdictions – including the US, Europe and Middle East – means failure to act quickly risks WA playing catch up as investment goes elsewhere.”
Ms Tomkinson has called on the federal government to follow WA’s footsteps and implement policy settings for the CCUS industry at a national level.
Mines and Petroleum minister David Michael said WA was ready to launch a new industry, to help others decarbonise.
"Industry stakeholders are now working closely with Government to develop and finalise the regulations governing how CCUS will operate in WA,” he said.
"CCUS is recognised as being part of the decarbonisation mix to reach net zero."
Premier Roger Cook said the state government was positioning WA as a world leader in CCUS technology.
"WA has the skills, the infrastructure and the natural features to attract major global investment into CCUS, helping to diversify our economy, create local jobs and supporting our low-carbon future,” he said.
The Chamber of Commerce and Industry of WA predicted carbon capture and storage could generate more than $80 billion for the state's economy over 20 years, in its analysis released in August.
