Wood Mackenzie: Australia Could Become $600B Carbon Storage Hub

Wood Mackenzie: Australia Could Become $600B Carbon Storage Hub - Carbon Herald
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Australia has a $600 billion opportunity to become a carbon storage leader in the Asia-Pacific region, according to energy research firm Wood Mackenzie. 

The key lies in its vast underground storage capacity for captured CO2 emissions. 

This capacity far exceeds Australia’s own needs, creating a chance to help neighboring countries like Japan and South Korea achieve their net zero goals by storing their excess emissions.

The potential financial rewards are staggering. Wood Mackenzie estimates Australia could generate up to $600 billion by establishing itself as a regional storage hub, charging fees for transporting and storing captured CO2. However, there are some roadblocks to overcome.

Relevant: Glencore Embroiled In Legal Battle With Farmers Over CCS Project In Australia

Australia needs to develop clear and comprehensive regulations for companies involved in capturing and storing CO2, both domestically and internationally. 

While some initial steps have been taken, a more robust framework is necessary to give everyone involved confidence in the process. 

Additionally, stronger government support for CCS projects and a clear roadmap for the industry’s development are crucial. This would attract investors and solidify Australia ‘s position as a premier destination for carbon storage.

Becoming a decarbonization powerhouse

The potential benefits are undeniable. CCS offers a double win: slashing emissions while creating new jobs and industries in Australia. It’s a chance to leverage the country’s existing expertise in resources and energy to become a leader in decarbonization.

This opportunity is attracting significant attention. The Australian Energy Producers Conference is currently underway, and a report by Energy News Bulletin also emphasizes CCS as a potential game-changer for Australia’s net zero ambitions. 

Relevant: Australia Approves New Offshore Acreage For Greenhouse Gas Storage

While some may view the oil and gas industry with suspicion, CCS could be a powerful tool in the arsenal of fossil fuel companies. 

By capturing emissions, they can contribute to decarbonizing their operations and creating a cleaner future. 

Australian Energy Producers Chief Executive Samantha McCulloch said: “Net zero is not just a challenge, it’s an opportunity – and it’s a huge economic opportunity for Australia. CCS can attract new investment, new revenues and new jobs in a new net zero industry.”

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