ACA chief executive Dr Nikki Williams said: “[The] announcement demonstrates the government’s commitment to carbon capture and storage and recognises the important role Australia is playing in developing world class solutions to tackling greenhouse gas emissions.
“Carbon capture and storage is crucial to reducing emissions from the use of fossil fuels including coal and gas fired power generation. CCS is essential for Australia to continue to grow the economy across a range of sectors while contributing to a reduction in global emissions.”
The CarbonNet project aims to capture carbon emissions from power plants, industrial processes and new coal-based industries in Victoria’s Latrobe Valley and store it in geological basins.
Combined funding of $100 million ($70 million from the Commonwealth and $30 million from the Victorian government) will support feasibility work as part of the $1 billion plus CarbonNet project to demonstrate low emission brown coal electricity generation in the region.
Commonwealth Minister for Resources and Energy Martin Ferguson said clean energy innovation like this could help power stations cut their emissions while continuing to secure the economic prosperity of the region.
“Investment in CCS is part of the Commonwealth’s suite of support for a range of clean energy technologies designed to reduce greenhouse gas emissions over time,” he said.
“The economic base of the Latrobe valley depends on brown coal and while the government is committed to cutting CO2 emissions, the last thing we want to do is cut jobs in the process.
“Projects like CarbonNet will help shape a new economic future for this critical region.”
Victorian Minister for Energy and Resources Michael O’Brien said the Gippsland Region was one of Australia’s most promising carbon storage sites.
“The Victorian Coalition Government is committed to energy security, and jobs in the Latrobe Valley. CarbonNet supports both by promoting low emission use of Victoria’s world class brown coal resource,” he said.
The Victorian Department of Primary Industries manages the CarbonNet Project. The feasibility work will include modelling and testing of potential CO2 storage sites.
In addition to announcing funding for CarbonNet, Ferguson also announced the Victorian Government has been awarded an offshore tenement for CO2 storage site exploration in the Gippsland Basin.
Both governments awarded the HRL Dual Gas project a final six-month extension on the previous date of December 31 last year to meet the conditions of the respective funding deeds.