PERTH (miningweekly.com) – The Northern Territory government has signed an agreement with the Commonwealth Scientific and Industrial Research Organisation (CSIRO), a number of industry players and engineering companies to fast-track emissions reduction across Northern Australia’s energy sector. 

The agreement will see all parties, including oil and gas producers INPEX, Santos, Eni, Woodside, Xodus Group and Origin Energy, develop a joint business case to assess the viability of a large-scale low emission carbon capture, utilisation and storage (CCUS) hub at Middle Arm. 

The hub would be one of the largest multi-user, multi-access facilities in the world, and will create a long-term and more sustainable solution to storing carbon across Northern Australia.

“We are working with CSIRO, Australia’s best scientists and industry to ensure the Territory is positioned to capture the opportunities as countries and industries advance towards net zero,” said Chief Minister Michael Gunner on Wednesday.

“The CCUS hub will be a game-changer in positioning Middle Arm as a magnet for investment, which will create more jobs and trigger new opportunities within the territory.”

The hub would transform Middle Arm into a globally competitive and sustainable energy and manufacturing precinct, enable the territory to meet the growing demand for low carbon energy, both domestically and internationally, and accelerate the creation of low emission advanced manufacturing.

It is also expected to enable carbon from other industrial sectors to be captured and stored and drive job creation and sustainable economic growth in the territory.

“The signing of this agreement marks an important step forward with government, scientists and industry coming together to develop a world-class facility to achieve our net-zero emission by 2050,” said Environment Minister Eva Lawler.

“We are committed to doing business sustainably here in the territory, and this means constantly hunting new opportunities and always looking ahead. There’s already plenty happening in this space – Sun Cable Australia-Asia PowerLink were on the ground in the Barkly last week as the Territory will host the world’s largest solar farm and renewable energy system in the world. We are also exploring new opportunities around renewable hydrogen, which will create new jobs for territorians and help expand industry.”

The business case will be supported by detailed reports, and techno-economic models, to chart development and highlight investment opportunities.

With increasing demand for low carbon products, the hub also presents a significant investment opportunity, with the Territory committed to future-proofing development in a net zero emissions future.

Santos CEO Kevin Gallagher said on Wednesday that the company was proud to be part of this proposal, partnering with the Northern Territory government, the CSIRO, and other industry participants to assess the viability of a large-scale, low emissions CCUS hub based at Middle Arm.

Gallagher pointed out that in addition to the partnership, the company was also moving forward with a proposal to repurpose the existing Bayu-Undan facilities and pipeline to Darwin as a CCS project starting up in 2025.

“This project will mean more jobs and investment for one of our nearest neighbours, Timor-Leste, as well as for the Northern Territory. It also has the potential to provide a carbon solution by the middle of this decade, unlocking other gas resources in the region.

“These resources could underpin low-carbon liquefied natural gas expansion, the development of a hydrogen industry and the attraction of new manufacturing industries to the territory, where they would be close to low-cost gas supplies, close to Asian markets and where they have a CO₂ solution in a low-carbon energy future,” he said.

“We are looking at a storage capacity of around 10-million tonnes of CO₂ per annum in Bayu-Undan once production from the field ceases. We know we have some of the best offshore reservoirs in the region for gas injection because we have injected gas before to improve liquids production.

“Bayu-Undan CCS would store Barossa reservoir emissions from project start-up and could provide carbon storage for other resource developments and large emitters in the Northern Territory.

“The significant opportunity that exists at Bayu-Undan is attracting strong interest globally and I believe, even dealing with multiple governments and joint ventures, that we will succeed because the merits of the project are so compelling.”