Mark Weaver - CCS Projects – Presentation at the Global CCS Institute Members’ Meeting: 2011
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Transcript of Mark Weaver - CCS Projects – Presentation at the Global CCS Institute Members’ Meeting: 2011
Global CCS Institute
Melbourne Members’ Meeting 2011
Session C – CCS ProjectsSession C – CCS Projects
Presented by Mark Weaver
Clean Energy Division
Australian Government Department of Resources,
Energy and Tourism
ENHANCING AUSTRALIA’S ECONOMIC PROSPERITY
• 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
Greenhouse commitments
heavy reliance on fossil fuels
– Coal 77% of electricity and 32% of emissions
– Growing profile of gas/LNG developments
– Improvements in efficiency are important
– However, carbon capture and storage (CCS)
essential to achieve major cuts in emissions
– Responsibilities as a major international energy
supplierENHANCING AUSTRALIA’S ECONOMIC PROSPERITY
CCS puzzle from Australian
Government perspective
Legislative
Certainty
StorageKnowledge &
Collaboration
R&D
Demonstration
Engagement
CCS
ENHANCING AUSTRALIA’S ECONOMIC PROSPERITY
Competitive,
low-emission
energy supply
and use
Greenhouse
gas reductions
New industries
Research Development
Commercial
Scale
Incubating Promoting SustainingImagining Demonstrating
Pilot
Scale
Demonstration Deployment
Supported
Commercial
Competitive
Commercial
IMPACT
TECHNOLOGY PUSH MARKET PULL
Government support across the innovation chain
ANLEC R&D
CSIRO
CO CRCNew industries
CCS FLAGSHIPS
NLECI
CO2 CRC
CARBON PRICE
Gorgon LNG
ProjectTo sequester 3.5
MT per year.
CCS Flagships & commercial scale projects
Wandoan /
QLD integrated
CCS projectTo sequester 1 MT MT per year.
Collie South
West HubTo sequester 2.4 MT per
year.
To sequester 1 MT
per year. Capture
project under
review.
CarbonNetTo sequester
1 – 3 MT per year.
ENHANCING AUSTRALIA’S ECONOMIC PROSPERITY
How does CCS Flagships differ from
other programs?
• Staged selection process
• Preparedness to fund early project development stages
• Close involvement in project development
Photo source: Carbon Sequestration Leadership Forum
Lessons learnt from
Government perspective
• Prior estimates of project costs and deployment timeframes –
wildly optimistic
•Development pathway does not sit neatly within a Government
grant program box.
•Do not put the capture plant cart ahead of the storage horse•Do not put the capture plant cart ahead of the storage horse
•All Australian projects involve “greenfield” storage sites
•Accordingly, uncertainty on storage presents the highest risk
Future approaches to
Government support for CCS
• Prioritise expenditure on storage – progress capture options
in parallel
•Keep an open mind on funding/ financing mechanisms
•Keep an open mind on risk allocation and sharing
Challenges ahead
• Storage – community – resource
conflicts
•Building regulatory consistency and
regulator capacity
•Maintaining funding in challenging •Maintaining funding in challenging
economic times
• Implementing market pull
mechanisms
•Building a business model for private
sector investment across the supply
chain
Conclusions
•CCS Flagships Program – necessity required
flexibility
•Domestic and global events present
challenges
• Project development much more
challenging and longer than expectedchallenging and longer than expected
• Progress - particularly proving up storage is
slow
• Proving up storage is Australia’s highest
priority
•Building the business model is essential
• This will test the risk appetite of Governments
and industry
Thank youThank you
ENHANCING AUSTRALIA’S ECONOMIC PROSPERITY