Glencore announced on April 26th, that the Australian Government decided to award it a total of up to $25 million ($35 million AUD) for its CTSCo carbon capture and storage (CCS) project in Queensland.
The carbon capture project has also received industry funding support from Low Emissions Technology Australia (LETA). CTSCo is a wholly-owned subsidiary of Glencore – one of Australia’s largest diversified natural resource companies.
“The Government’s support for a broad suite of technologies from renewables to hydrogen and CCUS, is a positive and pragmatic approach. It balances investment in energy systems of the future and a pathway for materially reducing emissions from fossil fuels, while recognizing the important contribution these industries make to jobs and the national economy”, said Darren Greer, General Manager of Glencore’s CTSCo Project.
The initiative is considered one of Australia’s most advanced onshore carbon capture projects. It’s worth $150 million ($210 million AUD) and involves capturing CO2 from the Millmerran power station – a coal-powered station in the Surat Basin.
The installation would capture 110,000 tons of CO2 per year from the coal plant and transport it 100 kilometers to the underground storage site.
According to the company, the CTSCo project could also develop into a large CO2 storage hub in Queensland suitable for multiple industrial users, including storing the emissions from hydrogen production.
Glencore claims it will provide the reference case for safe and efficient carbon capture and storage of CO2 in the area. The company plans to do a further appraisal of the exploration tenement to assess its full potential for CO2 storage.
The investment from the Australian government in a carbon capture project on a coal plant confirms its intentions to support further fossil fuel exploration while reducing some of its heavy carbon burdens. The project’s cost is high compared to its emissions savings potential, however, future development into a hub could provide some benefits to the local heavy emissions industries.