Media Releases

A new report from the European Court of Auditors, the EU’s independent external auditor, was launched today examining past EU funding programmes established to support carbon capture and storage (CCS) and innovative renewables.

Building on the lessons learned from the New Entrants’ Reserve 300 (NER300) and the European Energy Programmes for Recovery (EEPR), the auditors put forward a series of recommendations looking ahead to the launch of the Innovation Fund in 2021.

John Scowcroft, Executive Adviser for Europe at the Global CCS Institute, said it is important for the EU and other key stakeholders to build on the conclusions and observations made in this report and incorporate them as we move forward to accelerate the deployment of CCS in Europe to reach global climate targets.

“Despite previous efforts to accelerate the deployment of CCS in Europe, we are still lagging behind compared to other regions of the world. We hope that this report will help guide policy makers working on the Innovation fund to ensure it will help get CCS projects off the ground. The lessons learnt and the informed recommendations put forward by the European Court of Auditors should contribute to further improvements on how the European Union supports CCS in the near-future. Support funding mechanisms need to be designed to enable investment and development of full-scale CCS projects and transport and storage infrastructure.”

The European Court of Auditors report concluded that adverse investment conditions, including uncertainty in regulatory frameworks and policies,  design of the NER300 not being sufficiently flexible and effective in reducing the risk of demonstration projects and finally issues with accountability and coordination were to blame for the limited success of the NER300 and EEPR in supporting CCS.

The Global CCS Institute was interviewed as part of the report given its role as manager of the European CCS Demonstration Network. The report has highlighted the important role of the Network in sharing knowledge gained on different CCS projects.

You can read the European Court of Auditors report here.

The Institute was made aware of the proposed amendment to the Resolution 2018 UN Climate Change Conference in Katowice, Poland (COP24). The Institute considers that the amendment on carbon capture and storage (CCS) does not accurately represent the critical role and value of the technology to achieving a net-zero emissions future by the middle of the century. The following text offers misleading and scientifically unsupported information about CCS:

“R.  whereas the technologies necessary for safe and efficient carbon capture and storage (CCS) remain unproven and, in particular, the geo-engineering involved in the creation of artificial carbon sinks is associated with risks of an unknown scale; whereas CCS cannot therefore be counted upon as part of any mitigation solution and should be prevented from clouding the urgency of radically stepping up climate action through the use of existing technologies and feasible changes in systems and lifestyles;”

The Institute has put forward supporting evidence to address these inaccuracies. You can find our position paper here.

GCCSI Response to ENVI Committee amendment on COP24 Resolution

Melbourne: Monday 8 October, 2018: Latest Intergovernmental Panel on Climate Change (IPCC) findings released today are further confirmation that carbon capture and storage (CCS) is essential to mitigating climate change.

Welcoming the release of the IPCC’s Special Report of 1.5 Degrees, the world authority on CCS, the Global CCS Institute, said 2 degrees, let alone 1.5 degrees, cannot be met without CCS and the best climate science available was continuing to support that fact.

Global CCS Institute CEO, Brad Page, said as the world veered off-track in meeting international climate change commitments, it was pressingly apparent that CCS was an essential part of the arsenal of clean technologies needed to combat climate change.

“The IPCC’s report reconfirms the role which carbon capture and technology must play in beating climate change, and the fact that all technologies are necessary.

“As the IPCC has acknowledged, the extreme weather events witnessed around the world over the past few months are evidence enough of the catastrophe that climate change poses.

We need to take heed and take action to what is happening. The IPCC’s report is yet another call to arms.”

Mr Page said the IPCC, as well as the International Energy Agency (IEA), confirmed that CCS was the only technology capable of decarbonizing major industry, particularly the high emitting cement, steel and petrochemical sectors.

“These are sectors that cannot be turned off at the flick of a switch. They need a technology that can mitigate their emissions at the same time as safeguarding the jobs and economies they support.

“We have a technology that can bridge the gap between our current fossil fuel dependence and a future which is emission free.”

Mr Page said the Report has reinforced the fact that a 1.5 degree world cannot be reached without deployment of all clean technologies and carbon capture and storage is most definitively one.

“CCS must remain at the forefront of national, regional and international policy discussions and, as the IPCC said today, governments must act on this evidence.”

There are now 18 large-scale CCS facilities in commercial operation around the world, with five in construction and more 20 in various stages of development.

Ends

Antonios Papaspiropoulos (Melbourne): +61 401 944 478  antonios.papaspiropoulos@globalccsinstitute.com

Lucy Temple-Smith (Melbourne): +61 466 982 068  lucy.temple-smith@globalccsinstitute.com

Annya Schneider (Brussels): +32 (0) 25503972  annya.schneider@globalccsinstitute.com

Lee Beck (Washington DC): +1 202-677-9053 lee.beck@globalccsinstitute.com

About the Global CCS Institute: Our mission is to accelerate the deployment of carbon capture and storage (CCS), a vital technology to tackle climate change and provide energy security. Working with and on behalf of our Members, we drive the adoption of CCS as quickly and cost effectively as possible by sharing expertise, building capacity and providing advice and support so that this vital technology can play its part in reducing greenhouse gas emissions. Our diverse international membership consists of governments, global corporations, small companies, research bodies and nongovernment organisations, committed to CCS as an integral part of a low-carbon future. We are headquartered in Melbourne, Australia with regional offices in Washington DC, Brussels, Beijing and Tokyo. For more information, visit www.globalccsinstitute.com

ipcc-1.5-media-statement.pdf

In July 2018, the European Commission launched a public consultation on a strategy for long-term EU greenhouse gas emissions reduction. The strategy will shape the vision for the EU's climate action ambition. The public consultation will also help define several pathways for decarbonisation and their implications on technology choices and socioeconomic factors. The EU's long-term climate strategy is expected to be published in November 2018.

The Global CCS Institute supports the European Commission’s commitment to deliver a new strategy for long-term greenhouse gas (GHG) emissions reductions in line with the Paris Agreement. The Institute also welcomes the opportunity to present its views and provide feedback through this public consultation. The Institute has submitted a response to the public consultation. In this position paper, the Institute highlights the urgent need to scale up the deployment of CCS to meet global climate targets and net-zero by the second half of the century. The Institute also highlight the value of CCS for Europe, its industries and citizens.

Position Paper - GCCSI Long-term Strategy for long-term GHG emissions reductions

A critically important global solution that addresses climate change, energy demand and workforce/economic opportunity is the focus of “CCS: Bridge to a Cleaner Energy Future,” a newly released mini documentary commissioned by the International Brotherhood of Boilermakers and produced by Wide Awake Films. The video, viewable at www.CleanerFutureCCS.org, is a collaboration of 11 energy, environmental and industry experts exploring how carbon capture and storage (CCS) technologies can solve the three oft-at-odds issues of energy, environment and economy.

“CCS is the solution no one is talking about; but everyone should be talking about,” says Julio Friedmann, Columbia University Senior Research Scholar and CEO of Carbon Wrangler. “That is the goal of this video: to make it easier to understand how CCS works and why it is the vital component to mitigating climate change and reaching the Paris climate targets. Moreover, the video explains how CCS allows reliable energy production through a realistic mix of renewables and clean fossil fuels; and that it’s the solution that keeps the energy and industrial workforce at work and local and global economies healthy.”

Friedmann is among a cadre of CCS, energy and industry thought leaders interviewed in the video.

Brad Page, CEO of the Global CCS Institute, headquartered in Melbourne, Australia, explains in the video why carbon capture and storage must be part of the overall climate change solution: “At the end of the day, if what you care about is our planet and our home, then really you want to embrace everything that can get this problem solved.”

Also featured in the 15-minute video (a 5-minute version is also available) are: Mike Monea, President and CEO of the International CCS Knowledge Centre; Ian MacGregor, Chairman and CEO of North West Refining, Inc.; Sandra Odendahl, CEO, CMC Research Institutes; Beth Hardy, Vice President for Strategy and Stakeholder Relations, International CCS Knowledge Centre; Tim Wiwchar, Athabasca Oil Sands Project (Shell Quest); Cory Channon, International Rep, International Brotherhood of Boilermakers; Erik Nickel, Director of Operations, Petroleum Technology Research Centre;  Richard MacIntosh, International Rep, International Brotherhood of Boilermakers; and Alison Cartier, Marketing and Communications Manager, Inventys Inc.

“The world must move forward with CCS not only in the energy sector but across all heavy industry,” says Friedmann. “CCS is a solution and a bridge to the future of clean energy that renewable energy and conservation cannot by themselves achieve. And its development and application will fuel economic growth and create many thousands of well-paying jobs.

“It’s important that more people understand CCS, spread the word that it is the right solution and implore business and government leaders globally to adopt CCS as the right way forward.”

ENDS

Global CCS Institute Contacts    

Antonios Papaspiropoulos (Asia Pacific): +61 401 944 478
antonios.papaspiropoulos@globalccsinstitute.com

Annya Schneider (Europe): +32 (0) 25503972
annya.schneider@globalccsinstitute.com

Lee Beck (Americas) +1 202-895-2792
lee.beck@globalccsinstitute.com

Additional Contacts

INTERNATIONAL BROTHERHOOD OF BOILERMAKERS

Cory Channon (Edmonton, AB) +1 780-886-4717
cchannon@boilermakers.org

Cecile Conroy (Washington, DC) +1 202-756-2868
cconroy@boilermakers.org

Mike Linderer (Kansas City, KS) +1 913-371-2640
mlinderer@boilermakers.org

INTERNATIONAL CCS KNOWLEDGE CENTRE

Jodi Woollam (Regina, SK) +1-306-565-5956
jwoollam@CCSKnowledge.com

NORTH WEST REFINING

Alyssa Haunholter (Calgary, AB) +1 780-504-2623
ahaunholter@nwrefining.com

CMC RESEARCH INSTITUTES, INC.

Ruth Klinkhammer (Calgary, AB) +1 403.210.7879
ruth.klinkhammer@cmcghg.com

PETROLEUM TECHNOLOGY RESEARCH CENTRE

Norm Sacuta, (Regina, SK) +1.306.787.7497
norm.sacuta@ptrc.ca

INVENTYS

Alison Cartier (Burnaby, BC) +1.778.990.8734
alison.cartier@inventysinc.com

media-releaseclimate-change-solution-no-one-talking-about-explored-new-video.pdf

The Global CCS Institute alongside European industries and energy producers signed a letter addressed to EU Energy Ministers attending the informal meeting in Linz, Austria on September 17-18 2018.

The letter states that CCUS will be essential to enable industrial growth in Europe. The signatories of the letter believe that CCUS should be an integral part of Europe's strategy for a low carbon and globally competititve industrial economy. The letter calls for strong political support to enable commercial deployment of CCUS technologies in Europe.

Download letter

Beijing, 9.00am (CST) Monday August 13: China is continuing to set the pace in deploying carbon capture and storage (CCS) as a vital climate change technology with the announcement that the Jilin CCS facility has reached a storage capacity of 0.6 million tonnes of CO₂ per annum.

This makes Jilin CCS the world’s 18^th large-scale CCS facility in operation, joining the ranks of major commercial CCS facilities in the United States, Canada, Norway, Brazil, Saudi Arabia and United Arab Emirates.

Global CCS Institute CEO, Brad Page, says this shows the speed at which China is accelerating CCS deployment and the commitment that national, regional and municipal governments are according the technology.

“Over the past year, China has shown a massive resolve in deploying CCS technology and there are now more than 20 projects in various stages of development.

China recognises that CCS is the only clean technology that can be applied to decarbonise major industries and has the added potential to create new revenue streams which enable economic growth.”

Mr Page says CCS is now part of long term, five-year strategic plans across China and acceleration has been aided by the roll-out of an emissions trading scheme, with a carbon price about to be introduced.

“This is the type of policy confidence and predictability which we have long been advocating. It shows that with the right support, collaborative participation, and economic instruments, CCS can play its part in helping the world meet climate change targets.”

PetroChina has placed a big attention on CCS development and Jilin is one of two national CCS projects in its charge. Jilin CCUS is located in northeastern China and is capturing CO₂ from a natural gas processing plant at the Changling gas field and transporting it by pipeline to onshore injections sites.

Dr Liu Qiang, Director of Strategy and Planning Department at the National Centre for Climate Change Strategy and International Cooperation (NCSC), says injecting CO₂ into oil reservoirs for Enhanced Oil Recovery (EOR) has been practiced by PetroChina Jilin on a pilot scale since 2006, creating the co-benefit of enhancing oil production while reducing anthropogenic CO₂ emissions to the atmosphere.

China is already developing two other large-scale CCS facilities - the Sinopec Qilu Petrochemical CCS facility in Zibo (Shangdong Province), and the Yanchang CCS facility in Xi-an (Shaanxi Province). These facilities will capture 400,000 tonnes, and 410,000 tonnes of CO₂ respectively.

CCS has been proven as essential to a net zero future by pre-eminent research and analysis including the Intergovernmental Panel on Climate Change (IPCC) and the International Energy Agency (IEA).

ends

Antonios Papaspiropoulos (Melbourne): +61 401 944 478  antonios.papaspiropoulos@globalccsinstitute.com

Lucy Temple-Smith (Melbourne): +61 466 982 068  lucy.temple-smith@globalccsinstitute.com

Annya Schneider (Brussels): +32 (0) 25503972  annya.schneider@globalccsinstitute.com

Lee Beck (Washington DC) +1 202-895-2792 lee.beck@globalccsinstitute.com

About the Global CCS Institute: Our mission is to accelerate the deployment of carbon capture and storage (CCS), a vital technology to tackle climate change and provide energy security. Working with and on behalf of our Members, we drive the adoption of CCS as quickly and cost effectively as possible by sharing expertise, building capacity and providing advice and support so that this vital technology can play its part in reducing greenhouse gas emissions. Our diverse international membership consists of governments, global corporations, small companies, research bodies and nongovernment organisations, committed to CCS as an integral part of a low-carbon future. We are headquartered in Melbourne, Australia with regional offices in Washington DC, Brussels, Beijing and Tokyo. For more information, visit: www.globalccsinstitute.com

Media Release

A new report to the UK Government says carbon capture utilisation and storage (CCUS) has a key role to play in decarbonising the country and unlocking major economic, social and environmental benefits.

The report, Delivering Clean Growth: CCUS Cost Challenge Taskforce Report, makes a series of recommendations towards lowering the cost of CCUS deployment from the mid-2020s onwards.

The report responds to the UK Government’s commitments put forward in the Clean Growth Strategy to reach emission reduction targets through deployment of CCUS technology.

UK Minister of State for Energy and Clean Growth, the Rt Hon Claire Perry, says in the Report: “There is a genuine opportunity for the UK to become a global technology leader for CCUS, working internationally with industry and governments to drive down the cost of deployment.”

The report, resulting from extensive consultation between leading industry and academic experts, finds that widespread CCUS deployment will help to decarbonise the electricity, gas and industrial sectors, in addition to enabling the creation of new economies like hydrogen.

It recognises that CCUS will allow UK industries to remain competitive, retaining and creating high-value jobs at the same time as unleashing new industries and low carbon products.

It also finds that creating strategic industrial “hubs and clusters” for the first wave of CCUS projects will help drive CCUS costs down.

The report echoes recommendations given by the UK Committee on Climate Change on the pressing need to deploy CCUS at scale to achieve the 2050 targets with at least two CCUS clusters operational from the mid-2020s. It also follows a report by University College London (UCL) commissioned by the Global CCS Institute which made the case for CCS as a key part of an overall decarbonisation strategy.

In its recommendations, the Taskforce emphasises the urgency of investing in CCUS immediately given deployment timescales. This investment will give the UK the opportunity to become a global leader in this field.

The world authority on CCS, the Global CCS Institute, says the Report recognises the importance of CCUS as a unique technology in decarbonising industry and creating new energy economies.

Institute CEO and UK CCUS Council member, Brad Page, says the report represents an important step in providing clear guidance to the UK government with a defined strategic approach to CCUS development.

“The Report lays the foundation for the UK to move to a new energy economy with decarbonised heavy industry and fuels that complement renewable deployment. Early movement may also provide the UK with an opportunity to develop and market new technologies.”

The report and its recommendations will play an important role in the consolidation of the UK Government’s CCUS Deployment Pathway to be published by the end of 2018.

Later this year, the Global CCS Institute is partnering with the UK Government to host an international CCUS conference in Edinburgh (November 29).

CCUS and CCS are proven, safe technologies which have been operating successfully for more than 45 years. CCUS revenues have been instrumental to investment decisions made in China, the United States and the Middle East.

The International Energy Agency (IEA) has called CCS "the only technology solution capable of delivering significant emissions reductions from the use of fossil fuels in power generation and industrial processes.”

The UK CCUS Taskforce report can be downloaded here.

Ends

Antonios Papaspiropoulos: +61 401 944 478  antonios.papaspiropoulos@globalccsinstitute.com

Lucy Temple-Smith: +61 466 982 068  lucy.temple-smith@globalccsinstitute.com

Annya Schneider (Brussels): +32 25503972  annya.schneider@globalccsinstitute.com

About the Global CCS Institute: Our mission is to accelerate the deployment of carbon capture and storage (CCS), a vital technology to tackle climate change and provide energy security. Working with and on behalf of our Members, we drive the adoption of CCS as quickly and cost effectively as possible by sharing expertise, building capacity and providing advice and support so that this vital technology can play its part in reducing greenhouse gas emissions. Our diverse international membership consists governments, global corporations, small companies, research bodies and nongovernment organisations, committed to CCS as an integral part of a low-carbon future. We are headquartered in Melbourne, Australia with regional offices in Washington DC, Brussels, Beijing and Tokyo. For more information, visit www.globalccsinstitute.com

Tokyo, embargoed to 9.00am (JST), Monday June 18, 2018: A senior executive of the world authority on carbon capture and storage (CCS) says it is increasingly obvious that Paris climate change targets are “melting away” and cannot be met within the timeframe agreed by 196 signatory countries.

Speaking at the Japan Carbon Capture and Storage (CCS) Forum in Tokyo, the Global CCS Institute’s Jeff Erikson, said that the impending stock-take of global CO₂emissions and reduction policies taking place at COP24 in Poland this December will show that the world is way off track in meeting below 2°C temperatures by 2030.

Last year’s UN Environment Program Report* stated that national pledges may bring just one third of the reduction in emissions required by 2030.

Meanwhile, the World Meteorological Organization (WMO) says CO₂ concentrations have reached the highest level in 800,000 years.

“The fact is, huge investment in fossil-fuel production continues at a frenetic pace and the world continues to heat up. As the world heats up, Paris targets melt away.

“Until the world realises that we need to apply every conceivable clean technology to this problem, it will not be solved.

“Independent, reputable analysis has repeatedly shown that CCS must be included in a broader mix of clean technologies.”

Mr Erikson told a packed audience of representatives from government, academia, science and industry, that CCS could make up lost ground if it is more widely embraced and its deployment rapidly accelerated.

“CCS is the only clean technology able to decarbonise many industrial processes and it is now being recognised as the conduit to a new energy economy that includes hydrogen.

“This technology creates jobs, preserves communities and builds nations.”

Mr Erikson said Japan realises the opportunities that lie ahead and he pointed to Japan’s Tomakomai CCS facility and the recently launched Hydrogen Energy Supply Chain (HESC), a Japanese/Australian joint venture, as proof of CCS’s potential.

He also referenced the recent announcement by US-based NET Power which has developed a revolutionary technology with Japan’s Toshiba Corporation to produce low-cost electricity from natural gas while generating near-zero atmospheric emissions, including full CO₂ capture.

“This is a breakthrough technology and is one of the most significant developments in CCS technology to date. It makes emission-free power cost competitive with conventional power generation.”

“The tide is turning in CCS’s favour but more needs to be done.”

*UNEP Emissions Gap Report eighth edition (October 2017)

ends

Antonios Papaspiropoulos: +61 401 944 478  antonios.papaspiropoulos@globalccsinstitute.com

Lucy Temple-Smith: +61 466 982 068  lucy.temple-smith@globalccsinstitute.com

Annya Schneider (Brussels): +32 (0) 25503972  annya.schneider@globalccsinstitute.com

About the Global CCS Institute: Our mission is to accelerate the deployment of carbon capture and storage (CCS), a vital technology to tackle climate change and provide energy security. Working with and on behalf of our Members, we drive the adoption of CCS as quickly and cost effectively as possible by sharing expertise, building capacity and providing advice and support so that this vital technology can play its part in reducing greenhouse gas emissions. Our diverse international membership consists of governments, global corporations, small companies, research bodies and nongovernment organisations, committed to CCS as an integral part of a low-carbon future. We are headquartered in Melbourne, Australia with regional offices in Washington DC, Brussels, Beijing and Tokyo. For more information, visit www.globalccsinstitute.com

Today, the Norwegian Government announced its revised budget and committed to continue the development of industrial CCS.  This press release has been published on Gassnova's website. Gassnova is a member of the Global CCS Institute.

Source:  Norwegian Ministry of Petroleum and Energy

The Government proposes to fund FEED studies (Front End Engineering and Design studies) with 80 million NOK in 2018.The total funding for the demonstration project in 2018 amounts to 280 million NOK, including funds transferred from 2017. The proposed funds for 2018 will cover FEED studies of CO₂ transport, storage and up to two capture facilities.       

Both the Intergovernmental Panel on Climate Change (IPCC) and the International Energy Agency (IEA) point to CCS as a necessary option to reduce global greenhouse gas emissions in line with the climate goals at the lowest possible costs.

In the years to come, the climate challenge demands a great effort, which will have to be met within a tighter scope in the budgets. Considerable resources are prioritized for climate options in the Norwegian government budgets. A decision to contribute to financing investment in and operation of a Norwegian full-chain CCS project has to be weighed against other climate measures. The Government has to choose effective measures that maximize the mitigation effect in a cost efficient manner.

The Government has appraised the demonstration project for CO₂ capture and storage since 2015. In the autumn 2017, Norcem, Yara and Fortum Oslo Varme concluded concept studies on CO₂ capture at their industrial sites. These concept studies have now been reviewed through the external quality assurance process for large Governmental projects. The Government is offering Norcem, a subsidiary of Heidelberg Cement, state aid to study CO2-capture at its cement plant in Brevik. Of the three CO₂ capture projects evaluated, Norcem has the best conditions for a successful implementation. Norcem has demonstrated project execution abilities and relatively low cost per tonne CO₂ captured compared to the other two capture projects. The cement industry is also a significant contributor to global greenhouse gas emissions.

The external quality assurance considered Fortum Oslo Varme's original project to have greater implementation risks. These are related to, inter alia, the length of the pipeline, public perception of having emissions of amines close to a city and the project management experience in the organisation. Further, cost estimates are considerably higher, compared to the other two. These are factors weighing against proposing funding for further studies at their plant. However, Fortum Oslo Varme has provided updated information, which is now being assessed by the external quality assurer. Following this assessment, the Government will consider whether to offer FOV support for FEED.

The Government does not recommend continued studies on CO2-capture at Yara's ammonia plant at Herøya in Porsgrunn. Yara's project has a smaller learning potential compared to the two others, and some uncertainties concerning the plant. Yara considers that it does not make sense industrially to continue the planning of their project.

Throughout FEED the demonstration project will mature further. Uncertainties and risks will be reduced and cost estimates will reach a higher level of certainty. Statoil, Total and Shell are cooperating on the studies of CO2-transport and storage, which will be continued as planned into FEED.  

When FEED is completed, the Government will make a new assessment of the demonstration project and propose to Stortinget to decide upon a potential investment decision. The Government's ambition is to realize a cost effective solution for CCS in Norway, provided this results in technology development internationally.

- We have reached a milestone in the Norwegian CCS demonstration project. I am very pleased to announce our continued commitment to CCS, although many issues remain to be resolved through FEED. To bring forward reasonable cost estimates and contribute to global knowledge dissemination and technology development, says Minister of Petroleum and Energy Terje Søviknes.

A potential investment decision will impound a large share of the budget for several years to come. Without considerable support from other sources it will be challenging to finance a demonstration project for CO₂ capture and storage in Norway. It is a prerequisite that the companies involved take a share of the costs and risks in the project. Further, it will be necessary to establish a cooperation to support the project, for example with the EU.  

Both the Government and the industrial participants in the project are concerned with giving the project sufficient time in the planning phase. After the concept studies, the timeline for the project suggests that a potential investment decision may be taken in 2020/2021.

The external quality assurer considers the project to be economically unviable. The demonstration project must reach acceptable cost estimates and demonstrate a probability that other projects will follow, and benefit from the learnings of this project. Therefore, it will be of great importance that the companies involved in the project succeed with presenting a basis for the investment decision that facilitates a successful implementation of the project.

​

Melbourne, Thursday 12 April: The world authority on carbon capture and storage (CCS), the Global CCS Institute, says today’s launch of a Hydrogen Energy Supply Chain (HESC) Project heralds the development of a hydrogen industry in Australia that will place CCS at the centre of a new energy economy.

This world first initiative, a joint venture between Global CCS Institute members, Kawasaki Heavy Industries (KHI), J-Power, the Australian, Japanese and Victorian governments, and HESC industry partners, will build a pilot plant to produce hydrogen from Latrobe Valley brown coal for export to Japan.

Success with the pilot plant is expected to lead to a commercial size plant, incorporating carbon capture and storage, to produce emission free hydrogen.

Speaking from the launch in the Latrobe Valley, Global CCS Institute Chief Executive Officer, Brad Page, said: “Carbon capture and storage enables hydrogen to be produced from coal or gas with zero emissions and at low commercial cost. Manufacturing hydrogen from coal requires CO₂ to be separated during the production process and as such, there’s very little additional cost associated with capturing CO₂ during the production process. Indeed, multiple studies have found that converting coal and gas to hydrogen and using CCS is the cheapest way to produce low emission hydrogen.

“Because the Latrobe Valley has one of the world’s largest deposits of brown coal and with excellent carbon dioxide storage options nearby in the well characterised Gippsland Basin, it makes perfect sense to locate this world leading project here. The Valley is also home to a workforce with specialized skills and energy sector knowledge to support this initiative.”

Mr Page says this initiative represents a major turning point for CCS in Australia by securing jobs, sustaining communities, and paving the way for a global hydrogen economy that combats climate change.

CCS technology is already the foundation for low emission hydrogen production facilities in Japan, China, the United States and Europe.

The Asia Pacific region is the world’s leading consumer of hydrogen representing one-third of the global demand. Large amounts of hydrogen are already used in refining, ammonia, and methanol production. The range of applications will become broader and accelerate quickly as new uses for hydrogen as a zero-emission fuel are developed. Key among these is transportation, a sector which is difficult to decarbonise.

Mr Page says a hydrogen production plant can anchor a CCS hub in the Latrobe Valley providing a sustainable low-emissions pathway for ongoing commercialisation of the valley’s vast brown coal resources. This will benefit the local community and all Australians.

“The CCS hub and cluster concept is already gaining momentum in the United Kingdom,Norway and the Netherlands where diverse industries are seeing the huge value in sharing CCS infrastructure for commercial and climate change advantage.”

“Today’s announcement is further proof that CCS has come of age and is indispensable to a low emission future.”

Ends

Antonios Papaspiropoulos: +61 401 944 478  antonios.papaspiropoulos@globalccsinstitute.com

Lucy Temple-Smith: +61 466 982 068  lucy.temple-smith@globalccsinstitute.com

View the Media Release

Early Friday morning, the US Congress approved the most significant pro-carbon capture and storage (CCS) national policy in a decade, a tax credit for CO₂ storage, known as 45Q for its section number in the US tax code. The new law is widely expected to stimulate the development of new CCS projects.

The policy change culminates a six-year effort broadly supported by stakeholders in the US and members of both political parties. Institute members Great Plains Institute and the Clean Air Task Force led an advocacy coalition with strong support from Occidental Petroleum, ClearPath and Cloud Peak Energy.

Global CCS Institute CEO, Brad Page, said project developers strongly believe the 45Q program dramatically improves the future CCS financing picture.

“We believe the intersection of better economics with the exciting technology advancements that the US Department of Energy has supported and developed will accelerate the critical deployment of CCS in North America.”

”Financial instruments have always been an essential part of getting any new clean technology deployed and this is the kind of incentive that is needed.”

While government incentives and subsidies dating back to 1992 have pushed a rapid rise in US wind and solar energy, US national support for CCS came later and with more limited application.

A CO₂ storage tax credit beginning at $US10 per metric tonne was enacted only in 2009 and capped at 75 million metric tons. With that limit effectively now reached, project development in North America has stalled as developers and stakeholders awaited action by the US to reconsider policy.

The new law both extends and expands upon the original.

Firstly, it includes no cap on storage available for the credit, providing more certainty for projects that may take years to plan and develop.

Secondly, over time the law increases values for geological storage to US$50 per ton and for utilization such as enhanced oil recovery to US$35 per ton.

Thirdly, it lowers the eligibility threshold from 500,000 to 100,000 tonnes of CO₂ stored on an annual basis. The higher level in the existing law has prevented smaller industrial projects from using the credit.

Mr Page said the Institute believes the new 45Q law can be a win on all counts.

“This is potentially a boon for business, for global CCS deployment, for energy security, and certainly for the climate.  Its sponsors in the US Congress are to be commended for their tireless work as are stakeholders and our Institute members.”

For more information, please contact:

Antonios Papaspiropoulos (Melbourne): +61 401 944 478  antonios.papaspiropoulos@globalccsinstitute.com

Lucy Temple-Smith (Melbourne): +61 466 982 068  lucy.temple-smith@globalccsinstitute.com

Annya Schneider (Brussels): +32 25503972  annya.schneider@globalccsinstitute.com

About the Global CCS Institute: Our mission is to accelerate the deployment of carbon capture and storage (CCS), a vital technology to tackle climate change and provide energy security. Working with and on behalf of our Members, we drive the adoption of CCS as quickly and cost effectively as possible by sharing expertise, building capacity and providing advice and support so that this vital technology can play its part in reducing greenhouse gas emissions. Our diverse international membership consists of governments, global corporations, small companies, research bodies and nongovernment organisations, committed to CCS as an integral part of a low-carbon future. We are headquartered in Melbourne, Australia with regional offices in Washington DC, Brussels, Beijing and Tokyo. For more information, visit www.globalccsinstitute.com