Advancements inAustralian CCS and theStrategic Partnership withJapan
Celeste Koravos
Principal, Decarbonisation & Energy Transition,

WE ARE XODUS

CEO Australia Japan Business Council Victoria
WWW.XODUSGROUP.COM

Xodus CCS experience• 17 years’ CCUS experience• 30 major projects• Projects in Australia, Timor-Leste, Malaysia, Indonesia,
Abu Dhabi, Netherlands, Egypt• Industry experts in all steps of CCUS value chain andproject lifecycle• Integrated surface, subsurface & commercial
WE ARE XODUS

disciplines

2• Trusted advisors to Governments and developers

Contents• IntroductionWE ARE XODUS• Updates:
1. Acreage Releases & Current Projects
2. Ratification of the London Protocol
3. Safeguard Mechanism & CCS Projects
4. Japan-Australia Intergovernmental Collaboration
5. Japan-Australia Transboundary Projects

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WE ARE XODUS=INTRODUCTIONINSPIRING . UNIQUE . IMAGINATIVE

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What makes Australia a suitable CCSlocation?

5• Need to deploy CCS capacity of ~ 175 Mt per annum by 2035 to achieve NZ by 2050
• CCS is 1/7 Priority Areas in Federal Government Emissions Reduction Plan
• World class geological storage basins, close to industry producing GHG• CCS can offset emissions from Safeguard Mechanism Facilities• Existing GHG inventory reporting scheme includes information on fugitiveemission with CCS• Government typically ultimately takes liability 15 years after “Site Closing Certificate’
declaredAnchor &Opportunity Nations• Australia is “Anchor Nation”:• Renewed domestic commitments to technology’s
deployment• Excellent storage resources• Strong historical support for technology’s inclusion inLondon Protocol• Identified by neighbours as CO2 export destination
WE ARE XODUS• Japan, South Korea & Philippines “Opportunity Nations”:

6• Limited storage potential• Limited accessible storage resources of total emissions• Limited knowledge of offshore geology

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What are the challenges with CCS inAustralia?

7• Cost• No long-term subsidy support• ARENA funds for small-scale, pre-operational projects• “Powering the Regions” fund “Safeguard Transformation Stream” and “CriticalInputs to Clean Energy Industries” may apply• Projects awarded under “CCUS Hubs and Technologies Program”• Community• Hesitation regarding technology being proven• Perception that CCS is for O&G sector only
• Lack of consultation with stakeholders can lead to legal challenges• Despite this, Australia is “open for business”

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UPDATE
1:ACREAGE
RELEASES= INSPIRING . UNIQUE . IMAGINATIVE& CURRENT PROJECTS

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9Source: 2023 Greenhouse Gas Storage Release Areas, Geoscience Australia

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Source: Australia’s basins ranked for CO2 storage potential, National Carbon Mapping and Infrastructure Plan

SANTOS BAYU-UNDANINPEX CCS DARWINWOODSIDE BURRUP HUB

SANTOS REINDEERCALLIDE OXYFUELCHEVRON GORGONCTSCo SURAT BASIN CCSWALLUMBILLA RENEWABLE METHANESANTOS COOPER BASIN (MOOMBA)PILOT ENERGY CLIFFHEAD (MID-WEST
CLEAN ENERGY)BRIDGEPORT ENERGYMOONIEMITSUI MID-WEST MODERN ENERGY HUB

NATIONAL GEOSEQUESTRATION LABWE ARE XODUS

SOUTHWEST HUB

HAZELWOOD CC & MINERAL SEQUESTRATION

Source: Facilities, Global CCS Institute and Xodus

EXXON MOBIL SOUTH EAST AUSTRALIA CC HUB
SUMITOMO HYDROGEN ENERGY SUPPLY CHAIN
CO2CRC OTWAY11BEACH ENERGY OTWAY NATURAL GAS PLANT

PCC@CSIRO

VICTORIAN GOVERNMENTCARBON NET

Xodus Case Study 1:
Northern Territory Low Emissions CCUS Hub• Xodus partnered with NT
Government, CSIRO, Inpex, Santos,Woodside, Eni & Origin Energy

WE ARE XODUS• Completed assessment of viabilityof large-scale, low-emissions CCSHub12• Aim to reduce existing emissions byacting as catalyst to new NZ
industries; and enable developmentof interconnected H2 industry andused of carbon capture in otherindustrial processes• We explored methanol, jet fuel,methane, urea, mineral carbonates
Source: A business case for a low-emissions CCUS hub in the Northern Territory, CSIRO

Opportunities identified for Japan
1. CO2 derived methane & CO2 recycling
2. CO2 derived jet fuel

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3. CO2 import

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Source: A business case for a low-emissions CCUS hub in the Northern Territory, CSIROWE ARE XODUS

UPDATE
2:
RATIFICATION
OF= INSPIRING . UNIQUE . IMAGINATIVELONDON PROTOCOL

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Australia & London Protocol

15• London Protocol implies that all dumping is prohibited unless expressly permitted• 2006 Amendment allows CO2 storage in subseabed geological formations, subjectto certain criteria• 2009 Amendment allows CO2 export for storage, subject to “agreement orarrangement” between Contracting Parties / Contacting Party + Non-ContractingParty• Environment Protection (Sea Dumping) Amendment (Using New Technologies toFight Climate Change) Bill 2023 was passed in the Senate on 13 November 2023 togive effectWE ARE XODUS
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Source: The Senate and Legislation, Parliament of Australia

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Xodus Case Study 2:
Bayu-Undan CCS

Source: ABC NewsWE ARE XODUS

UPDATE
3:
SAFEGUARD= INSPIRING . UNIQUE . IMAGINATIVEMECHANISM & CCS PROJECTS

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What is the Safeguard Mechanism
and its impact on Japan?
• Applies to industrial facilities that emit > 100,000 t/year of CO2-e• Facilities need to cut net emissions annually from 1 July 2030
• New facilities including gas fields expected to be NZ from start of operations• CCS and purchase of ACCUs is expected for LNG

WE ARE XODUS• Australia supplies 42.7% (2022) of Japan’s LNG

19• Minister Nishimura requested “flexible” measures including Barossa LNG (Bayu-Undan CCSProject)WE ARE XODUS

Scope 1 Emissions

Safeguard Mechanism & ACCUs

20Purchase/surrender ACCUs or Safeguard Mechanism Credit Units (SMCs)
Borrow baseline from Y + 1 (with interest)
Apply to become trade-exposed baseline-adjusted facility & get discount decline rate
Apply for multi-year monitoring period to allow more time to reduce emissions
Baseline

Receive Safeguard Mechanism Credit Units (SMCs)

Special rules for CCS ACCUs• CCS is eligible• CCUS is not eligible as “enhanced oil recovery, enhanced gas recovery and enhancedhydrocarbon recovery”• DAC is not eligible• Project must be carried out entirely “within” Australia• Project must comply with tenure laws including Native Title
WE ARE XODUS• Need to consider long-term reversal risk

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• Project is “new”

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UPDATE 4: JAPAN-AUSTRALIA=INTERGOVERNMENTALINSPIRING . UNIQUE . IMAGINATIVECOLLABORATION22WE ARE XODUS

Japan Energy Supply
Outlook23• According to the “Outlook for Energy Demandand Supply 2030”, oil, coal and gas will continue
to have a role, coupled with maximum use ofCCSSource: METI, Strategic Energy PlanJapan CCS Targets

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Source: METI, CCS Long-term Roadmap Study Group Final Summary24• Japan aims to ramp up annual CCS capacity to as much as 12 Mtpa by 2030 and 240 Mtpa by2050

Japan-International CCS Targets

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Source: METI, CCS Long-term Roadmap Study Group Final Summary

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Source: METI, CCS Long-term Roadmap Study Group Final SummaryJapan-Australia CCS Engagement• Australia-Japan Partnership on Decarbonisation through Technology• Australia-Japan Ministerial Economic Dialogue• MoC on Carbon Recycling• London Protocol Correspondence Group• Engagement through Asia CCUS Network (hosted by Japan)• MoU between Japan CCS and Victorian Government

WE ARE XODUS• Asia Zero Emission Community (AZEC) Ministerial Meeting and AZEC Public-Private

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Investment Forum• Discussion on cross-border CO2 policy• Technical exchange of low-emissions technologies

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UPDATE
5:
JAPAN-AUSTRALIA= INSPIRING . UNIQUE . IMAGINATIVE
TRANSBOUNDARY PROJECTS29

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JOGMEC Candidate CCS Projects

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Source: JOGMEC, 国内初のCCS
事業化の取り組み, ～2030年度までのCO2貯留開始に向け、調査7案件を候補として選定～

THANK YOU
Celeste Koravos
Principal, Decarbonisation & Energy Transition,
CEO Australia Japan Business Council Victoria

WE ARE XODUS

celeste.koravos@xodusgroup.com

WWW.XODUSGROUP.COM