Australian regulators greenlight offshore carbon capture and storage

Key legislative changes passed to facilitate the injection and transportation of CO2 in Australian waters
Provides Pilot with a clear regulatory pathway for the Mid West Clean Energy Project
De-risks the development of underground offshore storage projects

Special Report: In a landmark move, Australia has key introduced legislative changes to enable offshore carbon capture and storage (CCS), signalling a milestone leap forward for projects in the pipeline. 

The legislation passed crucial amendments to the Environment Protection (Sea Dumping) Act 1981 designed to facilitate the injection and transportation of CO2 in Australian waters, a move that is set to de-risk the development of underground offshore storage initiatives.

The capture and permanent storage of CO2 can play a critical role by providing a means to deliver direct, measurable emissions reduction as emission intensive industries transition to the use of carbon-free fuels and energy sources.

Importantly, the amendments confirm the regulatory pathway for Pilot Energy’s (ASX:PGY)

Mid West Clean Energy Project (MWCEP), offering industrial emitters, particularly those in hard to abate sectors, a near-term CO2 management service to permanently eliminate emissions during the continuing energy transition.

The MWCEP requires regulatory approval across environmental, development, and operational aspects of the project.

The first stage of the project involves converting the depleted Cliff Head offshore oil field into a permanent CO2 storage operation capable of storing over 1 million tonnes per annum (Mtpa) of CO2 starting in 2026.

Situated in Australian Commonwealth waters, the Cliff Head CCS project requires Sea Dumping permits to facilitate the transfer and permanent storage of CO2 approximately 1500 metres below the sea floor.

Pilot lodged its application to the National Offshore Petroleum Titles Administrator (NOPTA) to have Cliff Head declared as an identified greenhouse gas storage formation in November 2022.

Cliff Head represents one of the first offshore CCS projects in Australia.

“The passing of this legislation continues to de-risk the development and delivery of the MWCEP which, through its proposed CO2 storage and clean ammonia production, can provide a meaningful reduction of global emissions,” chairman Brad Lingo said following the news.

“We congratulate the Parliament for passing this important legislation and look forward to continuing to play an active role in the development of Australia’s burgeoning CO2 storage industry.”

Australia’s commitment to the London Protocol, established in 2000 to protect and preserve the marine environment, aligns with the recent legislative changes.

Amendments to the London Protocol in 2009 and 2013 permit the capture and permanent storage of CO2 in deep subsurface formations below the sea.

Pilot said the amendments to the Environment Protection (Sea Dumping) Act 1981 ensured Australia’s compliance with its London Protocol obligations, allowing the issuance of Sea Dumping permits for the offshore capture, transportation, and storage of CO2 in Australian waters.

 

This article was developed in collaboration with Pilot Energy, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

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