National CCS Policy in Australia

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1 National CCS Policy in Australia Bruce Wilson Resources Division Head Department of Industry, Innovation and Science 7 December 2015

2 Importance of fossil fuel to global access to energy Global energy demand grow by 32% Global electricity consumption increase by more than 70% All net growth is projected in non-oecd countries, especially India, China and Southeast Asia

3 Importance of fossil fuel to global access to energy Source: World Energy Outlook 2015, IEA Coal consumption fall by 40% in OECD, but triples in India and Southeast Asia Fossil fuel consumption growth slows, but total consumption in 2040 still higher than today

4 Fossil fuels in Australia Coal is one of Australia s most significant energy resources Coal is second highest export earner in Australia World s largest exporter of metallurgical coal World s second largest exporter of thermal coal

5 Fossil fuels in Australia Projection for LNG capacity and export increase Source: Resource and Energy Quarterly, September 2015, Office of the Chief Economist Become the world s largest LNG exporter by 2020

6 Fossil fuels in Australia Australia s domestic primary energy consumption Source: Australia Energy Statistics, 2015, Department of Industry, Innovation and Science Fossil fuels accounts for 94% of Australia s domestic primary fuel consumption Coal makes up 61% of electricity generation in Australia last year

7 Australia s commitment to greenhouse gas emission reduction Australia will continue to play our part in an effective global response to climate change

8 Our approach to Low Emissions Technologies Capitalise on our strengths Back the leaders in technological developments Encourage industry to do its part

9 Australia s CCS and LET projects The Australia Government has committed over $616 million to CCS and LET projects. Current key projects include: Project Advanced Lignite Demonstration Program Project value $37.5 Million ANLEC R&D CarbonNet Feasibility South West Hub Otway Geosequestration Australia-China PCC Demonstration Feasibility Study CCS RD&D Gorgon CO2 Injection Coal Mining Abatement Technology Support Package $71.6 Million $95.2 Million $47 Million $25 Million $11.5 Million $24.9 Million $60 Million $36.6 Million

10 Gorgon CO 2 Injection Project Gorgon Project will be the largest commercial scale CCS project in the world once fully operational, injecting between 3.4 to 4 million tonnes of CO 2 per year and reduce emissions from Gorgon LNG project by 40%

11 Otway Geosequestration Project Stage 2 of Otway Project is now underway

12 Coal Mining Abatement Technology Support Package CMATSP provides assistance to the coal industry to facilitate the commercialisation of fugitive methane abatement technologies

13 International collaboration on CCS and LET issues Carbon Sequestration Leadership Forum Global CCS Institute Global Methane Initiative IEA Clean Coal Centre Australia-China Joint Coordination Group on Clean Coal Technology

14 Future CCS policy focus for Australia 1 Improving our understanding of Australia s CCS resources 2 Demonstrating our domestic CCS and LET capacities and capabilities 3 Strategic partnering 4 Building Australian skills and capacity

15 Department of Industry, Innovation and Science Industry House 10 Binara Street Canberra City, ACT 2601, Australia Telephone