“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

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

Australian Electricity Mix Projections

Australia's electricity generation mix to 2050—AEMO medium demand scenario

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

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

Australian CCS Roadmap

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

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

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

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

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

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

The Callide Oxyfuel Project

13

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

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.