Australia could unlock up to $600 billion in revenue by creating a carbon capture and storage (CCS) industry and becoming a storage hub for the Asia-Pacific region, according to a leading global energy research firm, Wood Mackenzie.
In an article published in the 2024 Australian Energy Producers Journal, Wood Mackenzie emphasized that Australia’s CCS opportunity is rooted in facilitating other countries’ net zero ambitions.
According to the article, Australia has far higher geological CO storage potential than it needs to store emissions from its power generation and industrial sectors from 2030 to 2050.
Meanwhile, Australia’s key trading partners such as Japan and South Korea have limited opportunities to store all their emissions domestically and are looking for regional storage sites to support their net zero goals.
USD325-385 billion (AUD491 – 582 billion) in revenue can be gained from opening all of Australia’s excess storage capacity to regional emitters, assuming a transport and storage fee of USD33-39/tCO, said Stephanie Chiang, Research Analyst for Carbon Capture, Utilisation and Storage at Wood Mackenzie.
Moreover, Australia passed laws last year permitting the international transport and offshore storage of CO2 and the 2024-25 Federal Budget committed $32.6 million to support regional cooperation and establish the regulatory frameworks needed to enable CO imports and exports.
However, Chiang emphasized that Australia needed to provide clearer direction and greater regulatory certainty for project developers and potential customers seeking long-term certainty.
The article highlighted the importance of government support for anchor projects and private sector commitment to project execution.
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.
The journal was released as part of the 2024 Australian Energy Producers Conference & Exhibition in Perth.
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