A new $250 million program is set to accelerate the development of commercial-scale carbon capture, use and storage (CCUS) projects and hubs across Australia.
The CCUS Hubs and Technologies Program, facilitated by the federal government, will create up to 1,500 jobs and operate across two streams:
- $100 million will support the design and construction of carbon capture hubs and shared infrastructure
- $150 million will support research and commercialisation of carbon capture technologies and identify viable carbon storage sites.
Driving down the cost of storing carbon underground is an important element of the government’s technology not taxes approach to reducing emissions.
“The projects supported by the CCUS Hubs and Technologies Program will boost delivery of long-term emissions reductions while generating new jobs across the country, particularly for regional Australia,” minister for Energy and Emissions Reduction Angus Taylor said.
“Analysis by the International Energy Agency shows that half the global reductions required to achieve net zero will come from technologies that are not yet ready for commercial deployment.
“That’s why we’re partnering with industry to accelerate new projects and unlock the emissions and economic benefits of carbon capture technology. The IEA and IPCC both regard carbon capture technologies as essential to achieve the goals of the Paris Agreement,” he said.
“Australia already has one of the world’s largest carbon capture facilities and these technologies could substantially reduce emissions from industry in the future. By supporting the development of Clean Hydrogen Industrial Hubs and Clean LNG production, we are giving Australian energy exports a competitive edge in our region.”
The technology will support the ongoing use of Australia’s abundant natural 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’s, and the world’s, energy needs,” minister for Resources and Water Keith 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.”
Projects supported by the program will be expected to be fully operational by 2029, with co-investment from international partners and state and territory governments strongly encouraged.
The program builds on the success of the $50 million CCUS Development Fund and is expected to strengthen collaboration with a range of countries including the US, UK, Japan and Singapore, who are also investing in carbon capture technologies.
Further information and grant guidelines are available here.