The Global CCS Institute has welcomed the Australian Federal government’s announcement of AUS$539.2 million in funding for new carbon capture and storage (CCS) and hydrogen projects while stressing the need for long-term emissions reduction policy.
“The announcement from the Morrison government further reinforces that CCS is vital to reaching net-zero emissions by the middle of the century,” said Global CCS Institute CEO, Brad Page.
The announcement, which comes ahead of the climate summit hosted by US President Joe Biden, has pledged AUS$275.5 million to accelerate four regional, clean hydrogen hubs and AUS$263.7 million to support the development of CCS projects and hubs.
Page stressed the fact that CCS is a technology already in operation and that it was essential to deep decarbonisation.
“CCS is a proven and successful technology suite, with 26 commercial facilities already in operation – capturing and storing close to 40 million tonnes of CO2 last year alone – with many more projects at various stages of development,” added Page.
“CCS is also the only technology able to decarbonise hard-to-abate industrial sectors including steel, fertilisers and chemicals. Delaying the decarbonisation of these sectors by waiting on some future technology – if, indeed, it emerges – only makes achieving net zero emissions more difficult.
“The announcement of funding for projects is significant and welcomed. For CCS as well as other climate mitigation and clean energy technologies there is also a need for on-going policy confidence. Achieving net-zero emissions by 2050, consistent with the commitments under the Paris Agreement, requires a set of enduring policies to realise the necessary investment and all of the economic and job creation benefits, especially in rural and regional areas, that go with it.”
Page also highlighted the importance of funding for hydrogen hubs, saying coal or natural gas with CCS is currently the lowest cost, technically mature way to produce high volume, near zero carbon hydrogen.