The Challenges of Carbon Capture and Storage in Australia

The Gorgon carbon capture and storage (CCS) project, operated by Chevron on Barrow Island off Western Australia’s Pilbara coast, is touted as the world’s largest industrial CO2 injection initiative. Initially expected to commence operations in 2016 with $60 million in federal funding, the project aimed to capture up to 4 million tonnes of CO2 annually from an underwater gas field, thereby reducing greenhouse gas emissions from the Gorgon liquefied natural gas (LNG) development by 40%. However, nearly a decade later, the project has faced significant operational challenges, with injection rates declining year-on-year.

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Data from Chevron indicates that CO2 injection has decreased from 1.72 million tonnes in 2021-22 to just 1.33 million tonnes in the last financial year. Chevron attributes these issues to the need for careful pressure management in the geological reservoir, stating that work has halted at two injection sites to ensure safety. Kevin Morrison, an analyst with the Institute for Energy Economics and Financial Analysis, notes that the Gorgon project is now only half as effective as it was five years ago, raising questions about the viability of CCS at scale.

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Gorgon is one of two major CCS developments in Australia, alongside Santos’ Moomba project in South Australia. The Moomba project has recently received over 614,000 carbon credits for its initial operations. Additionally, Inpex is proposing the Bonaparte CCS development, which could store up to 10 million tonnes of CO2 annually. Despite government support, including the granting of major project status to Bonaparte, the overall effectiveness of CCS technologies remains contentious.

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Critics argue that CCS has largely been a form of greenwashing, allowing for the expansion of fossil fuel projects while capturing only a small fraction of emissions. According to a report by the Global CCS Institute, while there are 77 CCS projects globally, about half are focused on enhanced oil recovery, which exacerbates climate issues. Dr. Martin Jagger, a CCS consultant, emphasizes that the technology remains marginal, capturing only 0.1% of global emissions annually. He warns that without confronting the limitations of CCS, public funding for these initiatives may dwindle.

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Despite the criticisms, Australian government officials maintain that CCS is a crucial component of the strategy to achieve net-zero emissions. Resources Minister Madeleine King stated that CCS is "part of the solution" and emphasized the importance of optimizing the technology. However, the Climate Change Authority's chair, Matt Kean, acknowledged that the evidence does not support the ambitious claims surrounding CCS's potential impact on emissions reduction.

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As renewable energy becomes increasingly cost-effective compared to fossil fuels, the role of CCS in Australia’s climate strategy is under scrutiny. The ongoing challenges faced by projects like Gorgon highlight the need for a critical reassessment of CCS's effectiveness and its place in the broader context of climate solutions.

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