WHAT IS CARBON CAPTURE AND STORAGE?
* Greenhouse gas emissions can be trapped and injected underground for permanent storage, including into depleted oil and gas wells
* Carbon capture and storage, or CCS, is intended to reduce emissions that would otherwise be released to the atmosphere
* Proponents say new projects would not stack up financially without carbon credits generated by the proven technology
* Opponents say the contentious technology is costly, doesn’t work at the rate promised and should not be an excuse for new developments
HOW DOES CCS EARN CARBON CREDITS?
* Under federal regulations, the CCS project must involve a new source of greenhouse gases captured for permanent storage
* The project must be carried out entirely in Australia, including the carbon capture facilities, pipelines and the storage site or sites
* Within Australia means a project that takes place onshore or offshore within state, territory or commonwealth waters
* Carbon credits can be earned under the federal Emissions Reduction Fund for registered and approved projects
* Native title, environmental, major project, emissions reporting and petroleum pipeline laws also apply
* Emissions can be captured from oil and gas operations or an industrial process such as hydrogen production or electricity generation
* A capture point includes any plant, building, structure or fixed equipment where emissions are generated from an industrial process
* For the oil and gas industry, a new source can also be a hydrocarbon field using an existing processing plant that captures and separates carbon from the gas stream
FOR HOW LONG?
* Many regulated methods under Australia’s carbon credit scheme allow for a crediting period of seven years
* The regulator says a 25-year period applies for CCS projects to recognise the hefty costs
* There is a risk the abatement could be reversed and the injected emissions released to the atmosphere
* But the regulator says the risk of reversal is particularly low in Australia, helped by strong legal frameworks.
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