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Gccsi japan members'_meeting_200613_tom-connor_aust_gov


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Global CCS Institute Meeting 20 June 2013. Opening address by Mr Tom Connor, Deputy Head of Mission at the Australian Embassy in Tokyo.

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Gccsi japan members'_meeting_200613_tom-connor_aust_gov

  1. 1. “Australian CCS Policy in the context of its relationship with Asia” Global CCS Institute Japan Regional Members Meeting Tom Connor Deputy Head of Mission Australian Embassy Tokyo
  2. 2. Energy White Paper Priorities Strengthening the resilience of Australia’s energy policy framework Developing better energy market outcomes for consumers Developing Australia’s critical energy resources – particularly Australia’s gas resources Accelerating our clean energy transformation
  3. 3. Australian Electricity Mix Projections Australia's electricity generation mix to 2050—AEMO medium demand scenario
  4. 4. Support for CCS in an Asian Context Australia’s Major Markets for Resources and Energy Trade 2010 2020 1 China 1 China 2 Japan 2 India 3 India 3 Japan 4 Republic of Korea 4 Republic of Korea 5 UK 5 Taiwan
  5. 5. White Paper - Clean Energy Recommendations • Continued implementation of carbon pricing and the Renewable Energy Target • Ongoing support for development and deployment of renewable and clean energy technologies through the Clean Energy Finance Corporation, ARENA, CCS Flagships and other clean energy programs • Improve network planning and connection outcomes through timely response to the AEMC Transmission Frameworks Review • Develop collaborations to build understanding of alignment of clean energy R&D to large-scale demonstration and commercialisation
  6. 6. Australian CCS Roadmap
  7. 7. Support for Low Emissions Coal and CCS • Major government funding support flows from: – CCS Flagships program – National Low Emissions Coal Initiative, established in 2008 (including support for the Advanced Lignite Demonstration Program) – National CO2 Infrastructure Plan – Global CCS Institute
  8. 8. CCS Projects in Australia Gorgon LNG Project South West Hub Project Callide Oxyfuel Project Surat Basin CCS Project CarbonNet Project CO2CRC Otway Project CCS Flagship CCS Flagship
  9. 9. Gorgon Carbon Dioxide Injection Project • The Gorgon Project will reduce its CO2 emissions via subsurface disposal of reservoir CO2 beneath Barrow Island. • Extensive facilities design work and subsurface assessment on a scale similar to major petroleum developments. • Under construction: • Facility modules being fabricated (33 per cent complete) • Drilling of CO2 injection wells will commence in mid 2013 • Australian Government support through policy and $60 million grant
  10. 10. South West Hub Project Concept • Integrated industrial CO2 sequestration system • Storage within an identified reservoir • Residue (red mud) sequestration 300,000 tpa CO2 (Alcoa) • 2.4 Mtpa Perdaman CO2 capture source • Potential to accept up to 7 Mtpa CO2 for future power generation
  11. 11. South West Hub – Status and Next Steps • Stratigraphic well completed 2012 • Industry JV formalised in Jan 2013 • Advanced planning for 3D seismic now scheduled for summer 13/14 • Planning and procurement for 2014 appraisal drilling campaign underway. • Legislation for onshore storage planned for later this year • Supporting research infrastructure being developed through $48 million National Geo-Sequestration Laboratory
  12. 12. CarbonNet Project • The CarbonNet Project is investigating the potential for a large-scale, multi-user carbon capture and storage (CCS) network in the Gippsland region • Involves capturing CO2 emissions from industrial and/or power generation and injection into rock formations deep below the Gippsland Basin sea- bed for secure, long term storage • An Australian Government CCS Flagship project, managed by the Victorian Government (State) • A$100 million combined funding for feasibility and commercial definition stage • International endorsement from Carbon Sequestration Leadership Forum
  13. 13. 13 The Callide Oxyfuel Project 13
  14. 14. Australia-China JCG • Australia and China are cooperating under the $20 million Australia - China Joint Coordination Group on Clean Coal Technology (JCG) • Australia-China Post Combustion Capture (PCC) project: - Selecting a Project Manager to undertake feasibility study for a 600MW post combustion capture (PCC) project in China - The feasibility study will draw on up to $12 million committed under the JCG • ‘Medium scale’ projects: – PCC pilot project (CSIRO/CERI) – CAGS project (Geoscience Australia /MoST-ACCA21) – Enhanced Coal Bed Methane project (CSIRO/CUCBM) • $1.1m Australia-China JCG Partnership Fund for a range of activities that support ongoing collaboration on clean coal technologies
  15. 15. Summary • Australia’s climate policy, energy mix, and our position as a major energy exporter necessitate support for CCS as part of our energy policy. • The carbon price and Renewable Energy Target are unlikely to be sufficient to incentivise commercial scale investment in clean energy technologies until 2030 at the earliest. • Accordingly, Government support for CCS R&D and demonstration projects is important over the medium term. • International collaboration, particularly with Asia is an essential component of our CCS strategy with the Callide project a tangible example of the benefits of such collaboration. • Australia is progressing the South West Hub and CarbonNet Projects through a staged and gated approach. • A high degree of confidence in the technical, economic and social feasibility of storage sites should precede significant investment in “above ground” development activities for these projects.