The Australian government has provided a financial boost for the development of carbon capture, utilisation and storage (CCUS) hubs in the country.
The government revealed Thursday it would provide A$250 million (US$180 million) to fund a new programme to “turbocharge” the development of commercial-scale CCUS hubs across the country.
The programme will see A$100 million directed towards supporting the design and construction of carbon capture hubs and shared infrastructure, while the remaining A$150 million will be spent on supporting research and commercialisation of carbon capture technologies and identifying viable carbon storage sites.
Australia’s Minister for Energy and Emissions Reduction Angus Taylor said the programme would help dive down the cost of CCUS, reducing emissions and helping create up to 1500 jobs.
“Analysis by the International Energy Agency (IEA) shows that half the global reductions required to achieve net zero will come from technologies that are not yet ready for commercial deployment,” he added.
“That’s why we’re partnering with industry to accelerate new projects and unlock the emissions and economic benefits of carbon capture technology.”
Taylor added that both the IEA and the Intergovernmental Panel on Climate Change (IPCC) have stated the importance of carbon capture technologies to achieve the goals of the Paris Agreement and limit global temperature rises.
Minister for Resources Keith Pitt stated carbon capture technology had the potential to support the ongoing use of Australia’s resources, including coal.
“Technology like this will be the key to further reducing emissions and ensure our resources will play an important role in providing Australia, and the world’s, energy needs,” Pitt said.
“Australia has shown that a reduction in emissions can be achieved alongside a strong resources sector and this technology will ensure it continues to make a significant contribution to our economy and jobs for decades to come.”
The Australian government expects projects supported by the new A$250 million programme will be fully operational by 2029, while adding it would also encourage additional investment from “international partners” and state and territory governments.