Australia’s Pre-eminent National Science Organization

Australia’s Energy Transition toNet Zero Emissions
Role of CSS and Hydrogen Production
Overview: Storage, Projects and Australian Government Initiatives.

Dr Damian Barrett, Research Director Energy Resources, CSIROCSIROCSIRO: Australia’s National Science Agency• CSIRO• Science & Industry Research Act (1949)• Role is ‘innovation catalyst’• Research for Australian industry• Independent & international best practice• State/Commonwealth Govts., industry andsociety• Strong Japanese collaborations• HESC: Liquid H2 ortho-para conversion• CSIRO – JOGMEC Extended 5 year MoU• INPEX – Osaka Gas: e-methane• Mitsui OSK Lines: Decarbonize operations

CSIRO CCS Expertise

Dance et al 2023

CSIRO & Mitsui E&P Australia

Screening CO2 reservoir processes on thermal effects ofhigh-pressure CO2 injection

CSIRO & RITE Japan
DTS, DAS and DSS monitoring of fluid injection experiments
within a fault zone.
Ricard et al 2023

Global GHG Emissions and Roleof Carbon Capture and Storage

RegionalSoutheastpoint
Asian point source emissions
source emissions

Rystad Energy CCUSCube

Ross, Gee, Ironside, Rogers (2023)

IEA Anticipated global demand for CCS

International Energy Agency (2021), Net Zero by 2050, IEA, Paris

Predicted global requirement for removal of 6.970 GT CO2
per annum by 2050 through CCUS (IEA 2021)

G7 Ministers’ Meeting: Climate, Energy & Environment
GHG Emissions  Energy Security  Energy Affordability• “To achieve net zero, the deployment of carbon dioxide removal (CDR) processes withrobust social and environmental safeguards… have an essential role to play incounterbalancing residual emissions from sectors that are unlikely to achieve fulldecarbonization...

• …We recognize the need for monitoring and analyzing the potential for and expanding
geologic storage infrastructure and planning for CO2 transport, including the potential forregional Carbon dioxide Capture and Storage (CCS) hubs in line with social acceptance.”Why Carbon Capture and Storage?
• Proven, Permanent, Safe, Reliable, Immediate, Scale• Long term carbon emissions reduction• Associated climate benefits• Energy Price benefits• Energy security benefits.

• 25 years of CSIRO research on CO2 capture, liquefaction, pumping and storage• Safe, Reliable, Permanent, Scale• Transparent, authenticated and certain carbon credits• Deep cuts in emissions because targeted at the biggest emitters.
• MMV methods are mature and established.

Carbon Capture and Storage inAustralia

CSIRO In Situ
Lab ------ (WA)
Demonstration
facility MMV,Fault analysis

ReferenceCO2 Storage Potential Australian C0 Storage Potential is Significant
2• Carbon Storage Taskforce (2009)• Eastern Australia•

Injection rate 200 Mt CO2-e/year: 70 – 450 years• Western Australia•

Injection rate of 100 Mt CO2-e/year: 260 1120 years• GCCSI/CSIRO Australian Storage•

5 – 15 Gt CO2 storage in depleted reservoirs•>200 Gt CO2 storage in saline aquifers• GCCSI/CSIRO Western Australia Storage•

Carbon Storage Task Force (2009)

Bonaparte, Browse, Canning, N&S Carnarvon, Perth: >200 Gt CO2 storage

Australian Government Policy
Position on Carbon Captureand Storage

Australian Govt Policy Position: CCS• Nationally Determined Contribution: -43% (2005) by 2030. Net Zero by 2050.
• Safeguard Mechanism (2023)• Applies to facilities emitting more than 100,000 tonnes of CO2 per year.
• Sets trajectory of emissions baseline to achieve the Australian NDC.
• Facilities may purchase accredited ACCUs to reduce net emissions• Safeguard Transformation Scheme• AUD$600m to assist trade-exposed sectors decarbonise• Critical Inputs to Clean Energy Industries Program: Cement, lime, alumina and aluminium.

• Commonwealth Government Sectoral Plans• Electricity and Energy, Industry, Built Environment, Agriculture and Land, Transport and Resources.

• Powering the Regions Fund
• AUD$1.9bn for near term GHG emissions abatement.

• Carbon Capture Technologies Program: AUD$65m• Carbon Capture Use and Storage Development Fund: AUD$50m

Australian Govt Initiatives: CCS• Publicly stated position on Carbon Capture and Storage:“Part of a portfolio of technologies to reduce emissions and to achieve net zero”• Focus of Government funds: ‘Hard to abate’ sectors• No Australian Government funds will be allocated to oil and gas companies to support CCS activities.

• Offshore Petroleum and Greenhouse Gas Storage Act (2006)• Awarded 5 offshore permits (2022)• Awarded 10 offshore permits (2023)• Projects must ensure fit-for-purpose environmental management for offshore storage activities• Offshore Petroleum and Greenhouse Gas Storage Activities Review• AUD$12m/3 years (DISR, DCCEEW, NOPTA, NOPSEMA) review Offshore Greenhouse Gas Storage Activities

Australian Govt: Cross-Border Intl. Transfers of CO2• ‘Sea Dumping Bill’ (2023)• specifies a framework how Commonwealth will regulate international transfers of CO2.
• Government is committed to obligations under the ‘London Protocol’.
• These obligations will be reflected in bilateral agreements on CO2 transfers.

• International transfers of CO2 for storage in Australian waters• To assist trading partners decarbonise• Develop solutions for permanent removal of atmospheric GHGs
• “Supported by robust regulations”• Rigorous environmental impact assessments (MMV)• The process from here…

Hydrogen and Carbon Captureand Storage Hubs

H2 Fuels and CCS

Hydrogen: Current Status• ~ 0.1% global energy mix ( ~ 95Mt H2)•

96% H2 production: Steam Methane Reforming (2021)•

4% H2 production: Electrolysis• Costs•

SMR: USD$1.25 - $3.50 / kg H2 (USD$0.30 / kg H2)•Ammonia: ~USD$1.45 / kg + re-cracking back to H2 USD$1.45 / kg

• Global Aspiration•

H2 = 15% of global energy demand (2030)•~ 700 Mt H2 (7 x production today)•

At current electrolyser costs = USD$8.75tr•

At current SMR costs = USD$1.25tr• Key risks to H2 Market•

Cost barrier/Technological barrier•

Infrastructure/Workforce/Skills•

Social AcceptanceH2 and CCS Hubs

Colocation: Natural Gas, CCS and H2 Production• Low Emissions Hub Concept• ExxonMobil Baytown, Texas•

Renewable Hydrogen: 3x cost of SMR H2•

Integrated refining and petrochemical plant with H2 production from SMR andCO2 capture.

•50% of H2 produced: Used in refinery•

50% of H2 produced: for sale as liquid H2 (transform to NH4?)•Reduced Scope 1 and 2 emissions by 30%•

Facility is financially viable due to access to low cost feedstock•

Existing infrastructure: Constraints on capital costs•

Proximity of H2 supply and H2 use•

Business model: Delivers sufficient internal rate of return: FID• Role of CCS in H2-production

ExxonMobil (2022)•Critical to overcoming cost and technological barriers•

Pathway to large scale production: Infrastructure, skilled workforce, markets•

A bridge to renewable hydrogen supply at scaleNT Low Emissions Hub Concept and Business Case:
••••
•
•
•

Large gas reserves: Abundant feedstock
Existing captured CO2 & Significant storage (+15 Gt)
Abundant renewable energy resources
Proximity to international markets
Reuse of existing infrastructure
Economies of scale
Cross sector coupling• Renewable electrification• Reuse of heat• H2 industry development and transition of technologies• Business Case:

Ross, Gee, Ironside, Rogers (2023)•Macro-economics, emissions and best practice•

Local and international context and markets•

CCUS hub technical definition and risk reduction•

Power systems, CO2 shipping, CO2 utilisation•

Economic model, business case and execution

NT Low Emissions Hub: H2 Fuels and CCS• Colocation of suppliers and users of H2:• Cost reductions/risks sharing. Close proximity of generation and use.

• Access to critical transport infrastructure• Cost-effective export of H2 derivatives and low emissions products.

• Economically viable renewable H2 production• Ultra-low power generation costs, high capacity factors, short distribution networks.

• High quality water supply.

• Economically viable SMR H2 production• Lowest cost natural gas feedstock, reduced carbon capture costs, Labour/skills/technology development.

• Labour, skills and technology costs: Renewable H2 costs >> SMR H2 costs.
• Other factors:• Supply chain, geopolitics, skilled-workforce, Intellectual Property, service providers, sovereign barriers• Costs are reduced under the Low Emissions Hub Concept: Planning & Coordination

H2 Fuels and CCS

Australian Government Initiatives:• National Hydrogen Strategy (2019)•Pathways to generation of clean H2 and H2 markets.

•Strongly supported renewable Hydrogen Hub Concept–

10 Hydrogen Hubs in Australia–

Large-scale demand for H2 fuel–

Cost effective infrastructure–

Promote economies of scale and efficiencies–

Foster innovation• State of Hydrogen Report (2022)•Australia: AUD$127 bn hydrogen and ammonia projects•

Government support for all projects (2022): AUD$5 bn in value•Government support for Hydrogen Hubs AUD$1.02bn• Review of National Hydrogen Strategy (2023)

https://research.csiro.au/hyresource/•Hydrogen Head-Start Program: AUD$2 bn•

Guarantee of Origin•>50MW of electrolyser•Located in Australia•

Identify the Commercial Case for produced hydrogen or ammonia.

Thank you

CO2 injection at CSIRO’s In Situ Laboratory, Harvey Western Australia

RITE CCS Technical Workshop
Dr Damian Barrett | January 2024

Australia’s National Science Agency