The Collie South West Hub capture and storage (CCS) trial project in Western Australia is to receive up to $104 million in matching Federal and State funding for the completion of a detailed storage viability study.

 

The total capital cost of the Collie South West Hub CCS project is forecast at around $1 billion.

 

If the viability study is successful,  the Federal Government will provide up to one third, potentially $333 million, of the funding required to develop the project with the aim of leveraging over $660 million in industry and state government funding in total.

 

The Australian Government funding is provided under the $1.68 billion Carbon Capture and Storage Flagships Program.

 

The storage study involves the Western Australian Department of Minerals and Petroleum carrying out further seismic analysis of the Lower Lesueur storage site to be followed up by appropriate onsite drilling to determine the validity and viability of the CO2 seal.

 

The project south west of Perth was recommended after evaluation by the CCS Flagships Independent Assessment Panel and aims to initially capture up to 2.4 mega tonnes of CO2 a year from surrounding industry including coal-fired power plants. The Hub is near potentially suitable storage sites and the industrial centres of Kwinana and Collie.

 

 The WA government has established the Lesueur Community Consultative Group (LCCG), reporting to the Mines and Petroleum Minister Norman Moore, to enable community input in the project assessment and planning phase.  The LCCG will be chaired by Simon Holthouse, previous chair of the State Planning Commission.

 

The Federal Government is progressing other CCS projects including Victoria's CarbonNet project and Queensland's Wandoan project with the aim of  completing a fully-integrated project by 2020. This includes continuing negotiations with the Victorian and Queensland Governments to progress a range of technologies on different coal types as well as the development of CO2 storage reservoirs near emissions-intensive power stations and industry in Victoria's Latrobe Valley and South East Queensland.

 

Fudning of $60.9 million has been allocated for the development of a National CO2 Infrastructure Plan to find suitable sites to store captured carbon dioxide near the sources of major energy and production emissions.

 

The plan, which builds on advice from the Carbon Storage Taskforce and the National CCS Council and on work funded under the National Low Emissions Coal Initiative, includes a national CO2 drilling rig deployment strategy to make the most efficient use of rigs. It will also assess infrastructure needs and lay the groundwork for the safe handling of CO2.

 

Further information is available at www.ret.gov.au