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Reducing emissions through carbon capture, use and storage

Carbon capture, use and storage (CCUS) is an emerging technology with the potential to reduce emissions from hard-to-abate sectors.

Carbon capture is the process of capturing carbon dioxide (CO2) emissions from industrial processes including:

  • resource power plants
  • heavy industry (such as cement and steel)
  • hydrogen production.

The CO2 is separated from other gases and compressed. It can then be permanently stored in underground geological formations or used to create commercial products.

Prioritising carbon capture and storage technology

Carbon capture and storage (CCS) is identified as a priority low emissions technology under the Technology Investment Roadmap.

The Australian Government is investing in enabling infrastructure for large-scale deployment of the technologies. CO₂ compression, transport and storage under $20 per tonne is a stretch goal of the roadmap.

CCS can also be used to produce clean hydrogen, another priority technology. CCS reduces emissions from off-grid hydrogen production that uses gas or coal gasification.

Investing in carbon capture, use and storage

The government is investing more than $300 million in CCUS over 10 years:

  • The $250 million CCUS Hubs and Technologies program will support CCUS deployment at scale:
    • The Technologies Stream will help fund the research, development and commercialisation of CCUS technologies and identification of viable CO2 storage sites.
    • The Hubs Stream will help fund the design and construction of shared CCUS infrastructure between co-located CO2 emitters.
  • The $50 million CCUS Development Fund supported 6 new CCUS technology projects.

The Clean Energy Regulator has introduced a CCS method under the Emissions Reduction Fund. This will incentivise emissions avoidance CCS projects in Australia.

Offshore greenhouse gas storage acreage release

The government releases offshore areas for CO2 storage through an acreage release.

The offshore greenhouse gas storage acreage release is part of the government’s strategy to use CCS to:

  • reduce emissions
  • support Australia’s resources sector.

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Last updated: 9 December 2021

Content ID: 70053