Australia s Coal and Carbon Price Policy

Transcription

1 Australia s Coal and Carbon Price Policy Japan Clean Coal Day 4 September 2012, Tokyo, Japan Presented by Mark Weaver Department of Resources, Energy and Tourism

2 Australian Coal Resources

3 Coal production, consumption and export Australia is the world s fourth largest producer : Mt black coal (saleable)» 65.7 Mt lignite Coal generates 75% of Australia s electricity Australia is the world s largest coal exporter In Mt of thermal coal 17% of world trade 140 Mt of metallurgical coal, 50% of world trade

4 Australian coal exports Australian coal exports by destination 2011 India 11% Taiwan 9% Other 14% China 12% S.Korea 16% Japan 38% Japan S.Korea China Taiwan India Other Mt /09 09/10 Australian coal exports forecast 10/11 11/12* 12/13* 13/14* 14/15* 15/16* 16/17* Metallugical coal Thermal coal 400 Global thermal coal exporters 250 Finanical year Global metallurgical coal exporters Mt Mt * 2015* 2017* Year Australia Indonesia Russia * 2015* 2017* Year Australia United States Canada

5 Export Infrastructure Investment t in proposed Australian export infrastructure will meet longterm demand, removing bottle necks By 2015: Additional up to Mtpa of new port capacity $6 billion committed to the Regional Infrastructure Fund to support the mining industry in addition to the $9.75 billion private investment Infrastructure Australia established to advise governments, investors and infrastructure owners

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8 $8.6 billion Jobs and Competitiveness Program includes assistance for: Emissions Intensive Trade Exposed Industries Strongly affected electricity generators Planned retirement of highly emissions intensive generators The $1.26 billion Coal Sector Jobs Package will assist the most emissions intensive coal mines The $70 million Coal Mining Abatement Technology Support Package will develop and deploy fugitive emissions i reduction technology

9 CCS - Low Emissions Coal Policy Legislative Certainty Knowledge- Sharing Storage Community Acceptance Stakeholder Engagement Project Demonstration and Financing R&D

10 Australian Government funding Major government funding support flows from: CCS Flagships program ($1.7 billion) National Low Emissions i Coal Initiative ($370 million), established in 2008 National CO 2 Infrastructure Plan ($61 million) Global CCS Institute ($315 million) With dditi l t fl i f th With additional support flowing from other programs.

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12 Advanced Lignite Development Program A $90 million joint initiative of the Australian and Victorian Governments Funds demonstration of efficient coal de-watering, upgrading and conversion technologies Targets technologies that are pre-commercial demonstration ready Potential to deliver economic benefits, contribute to energy generation and regional development Potential reduction in carbon emissions from the utilisation of lignite

13 CCS Flagships & commercial scale projects Gorgon LNG Project 3.5 Mtpa Callide Oxyfuel Project 10 Ktpa Wandoan CCS project 1 Mtpa South West Hub Project up to 3.33 Mtpa CarbonNet 1 3 Mtpa

14 The Gorgon Project

15 The South West Hub Major industrial area of WA generating 25 MT of CO2 p.a. Sequestration of 300,000 tonnes of CO2 in bauxite residue Storage of up to 3.3 MT of CO2 per annum for 40 years being investigated

16 CarbonNet Project Geological model of Gippsland Basin

17 Callide Oxyfuel Project Background Project involves retro-fitting oxy-combustion technology to a 30 MW unit of the Callide A power station ti in Queensland and the capture and geological l storage of 10,000 tonnes of CO2 per annum. Collaborative Project involving Australian and Japanese Governments and industry including CS Energy, JCOAL, Xstrata Coal, Schlumberger, IHI, Mitsui, and JPower. Status Generation of electricity by oxy-firing commenced in March Project expected to start capturing CO2 around the end of Challenges Proving Oxyfuel technology at scale and obtaining access to a suitable storage site.

18 Summary As a major producer and exporter of coal Australia is committed to remaining as a stable and secure supplier. Australia also recognises the need to take action on climate change and accordingly introduced a carbon price on 1 July The policy aims to transition the economy to a low carbon future and to incentivise investment in least cost abatement Australia has led the development of low emissions coal and CCS policy and programs to complement long term abatement targets Demonstrating CCS and low emissions coal technologies at commercial scale is critical to future deployment in Australia and globally.

19 Thank you ENHANCING AUSTRALIA S ECONOMIC PROSPERITY