About the program
The Carbon Capture and Storage Flagships (CCS Flagships) program supports the construction and demonstration of large-scale integrated carbon capture and storage (CCS) projects in Australia.
The program promotes the wider dissemination of CCS technologies by supporting a small number of demonstration projects that capture CO2 emissions from industrial processes and safely storing CO2 underground in stable geological formations.
This objective supports the G8’s call for the launch of 20 demonstration CCS projects worldwide by 2010, to be operational from 2015 and for commercial deployment by 2020.
Indicative priorities of the CCS Flagship projects include:
- multi-user infrastructure—development of storage sites in a high-emission regions, with pipeline infrastructure to support the transport of CO2 from regional emission sources
- integrated capture and storage—projects that demonstrate technologies and geologies for capture and storage of CO2. Capture technologies may include coal gasification, post-combustion capture and oxy-firing.
The government is confident that CCS technology will be demonstrated at a commercial scale by 2020.
The first stage of the CCS Flagships program examined a number of projects nominated by state governments to arrive at a shortlist.
In December 2009, the Minister for Resources, Energy Martin Ferguson announced four projects which were short-listed for consideration under the program:
The Wandoan power project—located north-west of Brisbane, Queensland, an Integrated Gasification Combined Cycle (IGCC) coal fired power project (not proceeding in original form).
The ZeroGen project—located west of Gladstone in Queensland, also an IGCC project (withdrawn).
The Collie South West Hub—located south of Perth in Western Australia in close proximity to the industrial centres of Kwinana and Collie and based around an integrated multi-user capture, transport and storage infrastructure project.
The CarbonNet proposal—in Victoria’s LaTrobe valley, another integrated multi-user capture, transport and storage infrastructure project, with sources of CO2 from electricity generating plans in that area.
On 11 June 2011 the Minister Ferguson announced the government’s decision to select the Western Australian Collie South West Hub project. The project would progress under a staged and gated approach, with an initial focus on proving up sufficient geological storage.
On 10 February 2012, Minister Ferguson announced the CarbonNet project as the second project selected for funding through the feasibility stage. Up to $100 million ($70 million from the Australian Government and $30 million from the Victorian Government) will be available for the feasibility stage work which will be predominantly focussed on modelling and testing of potential CO2 storage sites. The CarbonNet project aims to capture carbon emissions from power plants, industrial processes and new coal-based industries in Victoria's Latrobe Valley and store it in nearby geological basins.
The government has agreed to reconsider the Queensland's CCS Flagship project in 12 months time subject to conditions predominantly related to progressing prefeasibility studies and the availability of program funding.
Grants and funding
The Australian Government has allocated funding of $1.68 billion dollars to the CCS Flagships program.
As part of the 2011/12 Budget, the Education Investment Fund (EIF) will provide $100 million funding of the research infrastructure component for short-listed projects. This requires partnering with an eligible research institution, such as universities, for collaborative research into CCS.
For more information about the program, email CCSFlagships@ret.gov.au.
Further information about the Education Investment Fund can be found on the Education Investment Fund (EIF) website or in the Education Investment Fund Frequently Asked Questions (see Related documents).