CCOP Workshop
12 September 2012
The CCS Landscape in Australia
Dr Matthias Raab Program Manager Storage
Cooperative Research Centre
for Greenhouse Gas
Technologies (CO2CRC) © CO2CRC
All rights reserved
What is the CO2CRC?
CO2CRC is one of the world’s leading CCS Research organisations
• Research & Development across the CCS value chain
• Over 150 researchers in CCS
• Broad international perspective and experience in CCS technology
• Successful track record in running major CCS facilities
2
Collaboration:
• Industry sectors (coal, gas, power, syn-fuels)
• State, Federal and local governments
• Major research institutions (Universities, CSIRO,
Geoscience Australia, overseas institutions e.g.
LBNL (USA) , KIGAM (Korea)
• Specialist advisors on many CCS Projects
around the world
• International training and outreach
CO2CRC research providers
The geographic distribution of emissions (mainly stationary sources) is shown for all major emitting
countries. China and the United States are clearly the dominant emitters, re-enforcing the point that if
there is to be any global greenhouse agreement, it will not be effective unless it includes both these
countries. (Data source: Boden et al. 2011)
CO2 emissions for various countries showing total and per capita
emissions for 2006. (data source: Boden et al 2011)
The inconvenient truth
• Australia is one of the top 20 polluting countries in the world.
• Australia produces more carbon pollution per person than any other
developed country in the world.
• Australia's emissions are projected to increase by 24 per cent
between 2000 and 2020.
• Recognising the importance of responding to the climate change
challenge, countries all over the world are acting to reduce their
emissions.
• The message is clear: Australia needs to reduce its carbon pollution
and do its fair share.
Source: Department of Climate Change
Australian Energy Stats
Black Coal 55% Brown Coal
22%
Gas 15%
Oil 1%
Hydro 5%
Non hydro renewable
2%
Electricity generation by fuel type Total Primary Energy
Black Coal 28%
Brown Coal 11%
Renewables 5%
Oil 35%
Gas 21%
Source: DRET
Australian GHG Emissions – CO2eq (includes non-CO2 emissions)
289.2
84.3
42.5
81.9
44.3
32.9
14.1
Stationary energy
Transport
Fugitive Emissions
Agriculture
Land Use
Industrial Processes
Waste
Source: Department of Climate Change
Total: 589.2 Mtpa
The Driver: Risks to economic prosperity
Economic costs of climate change
from:
• floods,
• droughts,
• heat waves and
• other extreme weather events.
ISSUE 101 Mar 2011
Australia’s coastline: adapting to climate change www.ga.gov.au/ausgeonews | 1
Australia’s coastline: adapting to climate change
Assessing infrastructure vulnerability
to rising sea-levels
Bob Cechet, Paul Taylor, Christina Griffin and Mar tyn Hazelwood
Figure 1. Aerial view of Gold Coast skyline (image courtesy of Wikipedia.org).
Figure 2. Coastal erosion at Wamberal beach, New South Wales, in 1978.
Australia’s coastal zone includes major cities and supports major
industries such as agriculture, fisheries, and tourism. The zone also
includes coastal wetlands and estuaries, mangroves and other coastal
vegetation, coral reefs, heritage areas and threatened species
or habitats.
All of Australia’s major cities (except Canberra) will potentially be
affected by rising sea-levels, higher tides and more frequent storms.
Perth, Adelaide, Melbourne, Sydney, Brisbane, Darwin and Cairns all
include low-lying areas and critically important commercial precincts,
infrastructure, and very large numbers of residential properties (figure
1). Much of the residential and commercial infrastructure located near
the coastal areas of these cities was built around the port facility which
was, historically, the focal point of activity within the community.
Most of the road and rail network dates from the early 20th century,
and was built around the need for good harbour access both fr om the
sea and the land.
Since the release of the Intergovernmental Panel on Climate
Change (IPCC) Fourth Assessment in 2007 a considerable body of
new data and observation has been compiled. I n March 2009 a major
climate conference was convened in Copenhagen by the International
Alliance of Research Universities. The Conference Synthesis Report
made a number of significant points, but had one over-riding
message: ‘key climate indicators are already moving beyond the patterns
of natural variability within which contemporary society and economy
have developed and thrived’.
In 2008, researchers told the Parliamentary Inquiry into climate
change and environmental impacts on coastal communities
(Commonwealth of Australia
2009) that Australia’s coastline
is especially vulnerable which
echoed the sentiments expressed
in the National Climate Change
Adaptation Framework (NCCAF
2007). Adaptation to sea-level
rise is therefore a key challenge,
and includes coastal modification
(erosion control measures),
engineering solutions (barrages
and weirs), or even re-location
of communities.
Geoscience Australia has
recently completed the ‘First-
Pass’ Australian National Coastal
Vulnerability Assessment
(NCVA; Cechet et al 2011),
which was commissioned by
the Australian Government
Department of Climate Change
to assess the vulnerability of
coastal communities to rising
sea-levels. This first-pass national
assessment includes an evaluation
of the exposure of infrastructure
(residential and commercial
buildings, as well as roads and
major infrastructure such as
airports) to sea-level rise and
storm tide.
• Climate change will lead to sea level rises that can damage coastal property and
infrastructure.
• About 85 per cent of Australia’s population lives near the coast, which means
that these regions are of immense economic, social and environmental
importance.
• The Australian Government has estimated that coastal assets valued at more
than $226 billion are at risk of damage from inundation and erosion by 2100
Carbon Tax
• 500 of the biggest polluters in Australia will need to buy and surrender
to the Government a permit for every tonne of carbon pollution they
produce.
• For the first three years, the carbon price will be fixed like a tax, before
moving to an ETS in 2015.
• From July 2012 the carbon price started at $23 a tonne and will rise at
2.5% a year.
• From 1 July 2015, the carbon price will be set by the market.
A carbon price shall ensure that pollution is
reduced at the lowest cost to the economy.
CCS Flagships Program
• Australia acknowledges that CCS will be a critical component in the global response
to reduce greenhouse gas emissions from the energy sector.
• Australia, as a major producer and exporter of fossil fuels, wants to take a leadership
role in to deploying CCS technologies at a commercial scale.
• The $1.68 billion CCS Flagships program administered by the Department of
Resources, Energy and Tourism (RET) is part of the Australian Government’s $5
billion Clean Energy Initiative (CEI).
• The CCS Flagships program builds on the National Low Emissions Coal Initiative
(NLECI), which includes research, demonstration, mapping and infrastructure
elements.
• The program is also complemented by the $60.9 million National CO2 Infrastructure
Plan which was announced as part of the 2011-12 budget.
Low Emissions Coal Policy and Implementation in Australia Overview
Source: DRET
• Australia is committed to emission reduction targets
By 2020: 5% below 2000 levels
Proposed: 80% below 2000 levels by 2050.
• These targets are a major challenge given our heavy reliance
on fossil fuels
Coal 77% of electricity and 32% of emissions
Improvements in generating efficiency important
However carbon capture and storage (CCS) essential to
achieve major cuts in emissions
Responsibilities as a major international energy supplier
and growing profile of gas/LNG developments
Greenhouse reduction commitments
Source: DRET
Australia's Clean Energy Future
Source: DRET
How the Carbon Price works
Source: DRET
• Major government funding support flows from:
– CCS Flagships program ($1.7 billion)
– National Low Emissions Coal Initiative ($370 million), established in 2008
– National CO2 Infrastructure Plan ($61 million)
– Global CCS Institute ($315 million)
• With additional support flowing from other programs.
Australian Government funding
Source: DRET
Gorgon LNG Project To sequester 3.5 MT per year.
CCS Flagships & commercial scale projects
Collie South West Hub To sequester 2.4 MT per year with potential to 7 MT per year.
Wandoan / QLD integrated CCS project To sequester 1 MT per year. Capture project under review.
CarbonNet To sequester 1 – 3 MT per year.
Source: DRET
Commonwealth GHG Storage Legislation
Offshore Petroleum and Greenhouse Gas Storage Act 2006 • title system similar to that
used for petroleum
• safe and secure storage
• managing interactions with the petroleum industry
• site closure and treatment of long term liability
• CCS-specific regulations
• Release of 10 offshore areas
• first exploration title awarded
February 2012 (Gippsland Basin offshore)
Source: DRET
Australian CCS Legislation
State legislations largely mirror the OPGGS Act with some differences:
Victoria: longer-term liability and permitting system for onshore storage
Queensland: requires operators to submit detailed plans, programs and reports
New South Wales: legislation has not yet passed the legislative assembly
Western Australia: has the Barrow Island Act permitting the Gorgon Project
CCS Projects in Australia
This is Australia’s only operational storage
demonstration project. Injection of CO2 from a
nearby gas well initially into a depleted gas
field at a depth of 2km began in April 2008
with injection of 65,000 tonnes of CO2-rich
gas to date.
A major program of monitoring and
verification has been implemented. A new
well was drilled early 2010 and a new phase
of injection will be initiated.
CO2CRC Otway Project, Victoria
The A$60 million Project, which is supported by 15 companies and 7 government
agencies, involves researchers from Australia, New Zealand, Canada, Korea and the
USA. Partners include major gas, coal and power companies, research organisation
and governments. Additional financial support is provided by the Australian
Government (RET), the Victorian Government and the US DOE through LBNL.
Chevron (operator), Shell and Exxon are
at advanced planning for a major
sequestration project linked to the Gorgon
LNG Project.
The separated CO2 will be injected under
Barrow Island to a depth of about 2.3km,
with injection of 3.3 million tonnes of CO2
per year. A total of 125 million tonnes will
be injected over the life of the project.
©Chevron
Gorgon Project, Western Australia
All government approvals have been granted and the final investment decision for
the project to proceed has been made. A contract has been awarded to GE for the
injection units. The storage component of the project will cost approximately A$2
billion.
Technical aspects
• CO2 captured from industrial sources including coal-
based Urea plant, alumina production and power
generation.
• A pipeline network is proposed to connect the large
stationary sources of CO2.
• Storage aim is to store around 2.5 Mtpa of CO2 but
has the potential to go as high as 7.5 Mtpa.
South West Hub Project, Western Australia
(CCS Flagship)
Key Deliverables
• Public and private partnership linking the State government and the major industrial emitters of CO2 in
south west Western Australia.
• The project received AU$52 million from the federal government to move the project to the next phase of
decision making.
• Next phase is detailed storage viability study of the Lesueur formation in the Southern Perth Basin.
• The base case capture project – the Perdaman Collie Urea project – is targeted for start-up in 2015.
Source: GCCSI
• $100m initial Flagship funding.
• Storage aim is 1-3 Mtpa of CO2 from
Latrobe Valley industry, including coal-fired
power plants and may involve both pre and
post combustion capture.
• Potential to rapidly scale up to support over
20 million tonnes per annum.
• Challenge is to develop the commercial
structure and underlying principles to
attract private sector investment.
• Various business models are being
investigated on how a CCS network would
support the development of new industries
in Victoria
CarbonNet Project, Victoria (CCS Flagship)
Source: VicDPI
Carbon Storage in Victoria – a sound concept
Source: VicDPI
Future Research
Concepts
associated with
CarbonNet
A Game Changer in
low-cost submarine
MMV?
Further projects for your reference
GE Energy and partners Stanwell
and Xstrata Coal are proposing to
build a 400MW IGCC power plant
with capture and storage of 90% of
CO2.
Image from www.earthbyte.org
Wandoan Project, Queensland
(CCS Flagship Proposal)
Identification of suitable storage
sites in the Surat Basin of
Queensland is being
undertaken by the consortium.
CO2 emissions are being captured from
HRL’s research gasifier at Mulgrave in a
pilot-scale capture project by CO2CRC.
The capture technologies will be evaluated
to identify which are the most cost effective
for use in a coal gasification power plant.
Partners include CO2CRC and HRL with
funding from the Victorian Government.
CO2CRC/HRL Mulgrave
Capture Project, Victoria
A CSIRO mobile pilot post-
combustion capture facility has
begun operation at Loy Yang
Power Station and is capturing
around 1000 tpa of CO2.
The facility is investigating a
range of solvent technology for
CO2 capture.
Photo from: www.theAustralian.com
Loy Yang Project, Victoria
UNO MK3 is now in demonstration
phase, with current projects at lab and
pilot scale and a work program planned
out to full scale demonstration.
With its ability to be applied to pre- and
post-combustion sources, particularly
Natural Gas Combined Cycle plants,
there is real promise in this technology
for reducing greenhouse gas emissions.
CO2CRC UNO Mk 3
This project is developing technologies for post-
combustion capture from coal-fired power stations in
the Latrobe Valley. The LVPCC involves
International Power, Loy Yang Power, CO2CRC and
CSIRO and is partly funded by the Victorian
Government. It comprises work at the Hazelwood
Power Station by CO2CRC and CSIRO at Loy
Yang.
Latrobe Valley Post
Combustion Capture
Project (LVPCC), Victoria
A post-combustion capture plant is operating at International Power’s Hazelwood
Power Station. The solvent capture plant began operation in 2009 and is capturing and
chemically sequestering CO2 at a nominal rate of 10,000 tpa of CO2. This project is
partly funded by the Australian and the Victorian Governments.
International Power Capture Plant, Victoria
This project, led by CO2CRC, is
based at International Power’s
Hazelwood plant and exploits
synergies with the Hazelwood
Capture Project.
CO2CRC is testing a range of
solvents and different process
configurations using the solvent
post-combustion capture plant. In
addition, post-combustion
techniques using adsorbent and
membrane technologies are being
developed using two purpose-built
rigs.
H3 Capture Project,
Hazelwood, Victoria
This research scale pilot project will
investigate the post combustion capture
(PCC) ammonia absorption process, and
the ability to adapt it to suit Australian
conditions.
Test to capture of up to 3000 tonnes of
CO2 have been successfully completed.
Partners involved in this project are Delta
Electricity, CSIRO and the ACA. A larger
scale demonstration project, incorporating
geological storage, is under consideration.
Photo courtesy of CSIRO
Munmorah PCC Project, New South Wales
CSIRO and Tarong Energy will install a
post-combustion capture pilot plant
using an amine-based solvent at
Tarong Power Station near Kingaroy,
Queensland.
The pilot plant will capture 1500 tpa of
CO2 over a two-year research
program. Construction has
commenced and the plant will be
operational in early 2010. The cost of
the project is $5 million.
Tarong PCC Project, Queensland
This demonstration project involves conversion of an
existing 30MW unit at Callide A (currently underway)
with power generation and capture of CO2
commencing in 2012.
A second stage of the project may involve the
injection and storage of captured CO2 in saline
aquifers or depleted oil/gas fields over about three
years, planned to commence in
2012-2013.
Cost estimate is A$206 million. The project involves
CS Energy, IHI, Schlumberger, Mitsui &Co, J-Power,
and Xstrata, with extra funding from the Australian
Coal Association (ACA) and the Australian and
Queensland Governments.
Image from www.abc.net.au
Callide Oxyfuel Project, Queensland
CO2CRC Participants
Supporting Partners: The Global CCS Institute | The University of Queensland | Process Group | Lawrence Berkeley National Laboratory
CANSYD Australia | Government of South Australia | Charles Darwin University | Simon Fraser University
