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Morrison promises green future in Qld

26th April 2022

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – Diversified miner Glencore on Tuesday welcomed the promise of federal funding of up to A$35-million to its CTSCo carbon capture use and storage (CCUS) project.

Prime Minister Scott Morrison, on the campaign trail in Queensland, has promised funding of over A$275-million to the Queensland energy and resources sector, with the funding to go to two new hydrogen hubs and three early-stage development projects.

In addition, six CCUS projects will be supported by the government across Gladstone and the Surat basin to help reduce emissions from power generation and heavy industry.

Morrison said that the government is committing over A$275-million to these clean hydrogen and carbon capture projects bringing the total private and public co-investment for Queensland to more than A$535-million. 

The Prime Minister said more than 5 700 jobs are set to be created in Queensland when the projects are operational from 2025, with even more possible when the industry scales up. 

“We are backing Queensland to play a leading role in Australia’s emerging hydrogen industry, to build a strong economy for a stronger future. Queensland has got the goods - it has the natural resources that the world wants and the skills and know-how that are needed to seize new opportunities. 

“Ensuring affordable and reliable energy, while meeting our emissions reduction targets, is key to our national economic plan. Queensland is playing an important role in delivering on our economic plan by supercharging the state’s position as a global energy powerhouse, growing export opportunities and creating thousands more jobs, particularly in regional Queensland."

Minister for Industry, Energy and Emissions Reduction Angus Taylor said the range of these projects demonstrated Queensland’s ability to use existing skills from its world-class liquified natural gas (LNG) industry. 

“Queensland has great potential to become a clean hydrogen producing powerhouse, with its access to local low-cost gas, carbon capture opportunities and renewables potential,” Taylor said. 

“There is a lot of interest in both Gladstone and Townsville from key hydrogen consumer countries including Japan and Korea. Today’s announcement will help to secure this important international investment and partnership into regional Queensland communities.

“We can also help to make our LNG sector even more attractive to our international customers through proving up affordable and world-leading carbon capture technologies. This will not only reduce emissions from LNG production, but can also capture emissions from other processes such as electricity generation or cement production.

“Our support will ensure Queenslanders and all Australians can benefit from a new clean hydrogen industry.” 

A re-elected Coalition government was committed to delivering up to A$70-million to establish a clean hydrogen hub in Townsville, Morrison said, and would deliver up to A$2.4-million for Ark Energy H2’s Han-Ho H2 hub feasibility study, with a total project value of more than A$4.8-million. 

The government will also invest in hydrogen projects in Gladstone, with up to A$69.2-million going to establish Stanwell Corporation’s The Central Queensland Hydrogen Hub (CQ-H2 Hub), with a total project value of more than A$148-million, and up to A$1.25-million for Origin Energy Future Fuels’ Origin & ENEOS MCH Gladstone project, with a total project value of A$2.5-million.

Up to A$3-million will go to Vena Energy Services’ Euroa Energy project, with a total project value of just over A$6 million, and up to A$44.9-million for Fortescue Future Industries’ Green Hydrogen Gigafactory – Electrolsyer Manufacturing Facility at Aldoga in Gladstone, with a total project value of A$136.2-million. 

Morrison said that as part of the investment in CCUS technology the government is committing A$25-million in funding, matched by industry, for Australian National Low Emissions Coal Research and Development, or ANLEC R&D), to assess the feasibility of a zero-emissions Allam-Fetvedt Cycle dispatchable generator in the National Electricity Market.

CTSCo’s Surat Basin Hub scale storage appraisal and development project, with a total project value of A$50-million, will receive up to A$20-million in funding, while up to A$15-million will be spent on CTSCo’s Surat Basin test injection project, with a total project value of A$50.3-million.

A further A$15-million has been promised for Bridgeport’s Moonie CCUS project, with a total project value of A$42.5-million, and up to A$5-million for KC8 Capture Technologies’ potassium carbonate absorption for clinker emissions reduction, or PACER, project, with a total project value of A$12-million.

Up to A$5-million will also go towards a feasibility study for the Zero Degrees Rosella 1’s zero-emission Allam-Fetvedt Cycle generator and hydrogen production project, with a total project value of A$32.7-million.

Morrison said that clean hydrogen exports could directly support 16 000 jobs by 2050, plus an additional 13 000 jobs in renewable energy infrastructure construction. Clean hydrogen production for both export and domestic use could generate more than A$50-billion in additional gross domestic product by 2050.

Glencore’s CTSCo project is one of Australia’s most advanced onshore CCUS projects.

The A$210-million test injection project will capture carbon dioxide (CO2) from the Millmerran power station and store it deep underground in the Surat basin in Queensland.

In addition to funding from Glencore, the project has industry funding support from Low Emissions Technology Australia.

Glencore said on Tuesday that the project would provide the reference case for safe and efficient capture and storge of CO2 in Queensland. 

In parallel, CTSCo will do further appraisal of the exploration tenement to assess its full potential for CO2 storage.

“The government’s support for a broad suite of technologies from renewables to hydrogen and CCUS, is a positive and pragmatic approach. It balances investment in energy systems of the future and a pathway for materially reducing emissions from fossil fuels, while recognising the important contribution these industries make to jobs and the national economy,” said Glencore CTSCo GM Darren Greer.

Glencore is aiming to achieve net-zero total emissions by 2050.

Edited by Creamer Media Reporter

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