Global CCS Institute Meeting 20 June 2013. Opening address by Mr Tom Connor, Deputy Head of Mission at the Australian Embassy in Tokyo.

1. “Australian CCS Policy in the context of its
relationship with Asia”
Global CCS Institute Japan Regional Members Meeting
Tom Connor Deputy Head of Mission
Australian Embassy Tokyo

2. Energy White Paper Priorities
Strengthening the resilience of Australia’s energy policy
framework
Developing better energy market outcomes
for consumers
Developing Australia’s critical energy resources – particularly
Australia’s gas resources
Accelerating our clean energy transformation

3. Australian Electricity Mix Projections
Australia's electricity generation mix to 2050—AEMO medium demand scenario

4. Support for CCS in an Asian Context
Australia’s Major Markets for Resources and Energy Trade
2010 2020
1 China 1 China
2 Japan 2 India
3 India 3 Japan
4 Republic of Korea 4 Republic of Korea
5 UK 5 Taiwan

5. White Paper - Clean Energy Recommendations
• Continued implementation of carbon pricing and the
Renewable Energy Target
• Ongoing support for development and deployment of
renewable and clean energy technologies through the Clean
Energy Finance Corporation, ARENA, CCS Flagships and
other clean energy programs
• Improve network planning and connection outcomes through
timely response to the AEMC Transmission Frameworks
Review
• Develop collaborations to build understanding of alignment of
clean energy R&D to large-scale demonstration and
commercialisation

6. Australian CCS Roadmap

7. Support for Low Emissions Coal and CCS
• Major government funding support flows from:
– CCS Flagships program
– National Low Emissions Coal Initiative, established in
2008 (including support for the Advanced Lignite
Demonstration Program)
– National CO2 Infrastructure Plan
– Global CCS Institute

8. CCS Projects in Australia
Gorgon LNG
Project
South West
Hub Project
Callide Oxyfuel
Project
Surat Basin
CCS Project
CarbonNet
Project
CO2CRC Otway
Project
CCS Flagship CCS Flagship

9. Gorgon Carbon Dioxide Injection Project
• The Gorgon Project will reduce its CO2
emissions via subsurface disposal of
reservoir CO2 beneath Barrow Island.
• Extensive facilities design work and
subsurface assessment on a scale
similar to major petroleum
developments.
• Under construction:
• Facility modules being fabricated
(33 per cent complete)
• Drilling of CO2 injection wells will
commence in mid 2013
• Australian Government support
through policy and $60 million grant

10. South West Hub Project
Concept
• Integrated industrial CO2
sequestration system
• Storage within an identified
reservoir
• Residue (red mud) sequestration
300,000 tpa CO2 (Alcoa)
• 2.4 Mtpa Perdaman CO2 capture
source
• Potential to accept up to 7 Mtpa
CO2 for future power generation

11. South West Hub – Status and Next Steps
• Stratigraphic well completed 2012
• Industry JV formalised in Jan 2013
• Advanced planning for 3D seismic
now scheduled for summer 13/14
• Planning and procurement for 2014
appraisal drilling campaign
underway.
• Legislation for onshore storage
planned for later this year
• Supporting research infrastructure
being developed through $48 million
National Geo-Sequestration
Laboratory

12. CarbonNet Project
• The CarbonNet Project is investigating the potential for a large-scale,
multi-user carbon capture and storage (CCS) network in the Gippsland
region
• Involves capturing CO2 emissions from industrial and/or power generation
and injection into rock formations deep below the Gippsland Basin sea-
bed for secure, long term storage
• An Australian Government CCS
Flagship project, managed by the
Victorian Government (State)
• A$100 million combined funding
for feasibility and commercial
definition stage
• International endorsement from
Carbon Sequestration
Leadership Forum

13. 13
The Callide Oxyfuel Project
13

14. Australia-China JCG
• Australia and China are cooperating under the $20 million Australia -
China Joint Coordination Group on Clean Coal Technology (JCG)
• Australia-China Post Combustion Capture (PCC) project:
- Selecting a Project Manager to undertake feasibility study for a
600MW post combustion capture (PCC) project in China
- The feasibility study will draw on up to $12 million committed
under the JCG
• ‘Medium scale’ projects:
– PCC pilot project (CSIRO/CERI)
– CAGS project (Geoscience Australia /MoST-ACCA21)
– Enhanced Coal Bed Methane project (CSIRO/CUCBM)
• $1.1m Australia-China JCG Partnership Fund for a range of activities
that support ongoing collaboration on clean coal technologies

15. Summary
• Australia’s climate policy, energy mix, and our position as a major energy
exporter necessitate support for CCS as part of our energy policy.
• The carbon price and Renewable Energy Target are unlikely to be
sufficient to incentivise commercial scale investment in clean energy
technologies until 2030 at the earliest.
• Accordingly, Government support for CCS R&D and demonstration
projects is important over the medium term.
• International collaboration, particularly with Asia is an essential
component of our CCS strategy with the Callide project a tangible
example of the benefits of such collaboration.
• Australia is progressing the South West Hub and CarbonNet Projects
through a staged and gated approach.
• A high degree of confidence in the technical, economic and social
feasibility of storage sites should precede significant investment in
“above ground” development activities for these projects.