(AU) Energy Minister Angus Taylor Launches $50 Million Fund For Carbon Capture Projects

ABC Newcastle - Ben Millington

Angus Taylor (right), Mark Rayson (left) and Marcus Dawe at the launch of the carbon capture and storage fund. (ABC Newcastle: Ben Millington)

Key points $50 million fund for carbon capture announced The fund is open to all projects that capture carbon Project that reuse CO2 will compete with those that store it

The federal government has launched a $50 million fund to support the growth of carbon capture projects, which will include projects that reuse carbon dioxide emissions to make new products.

The Carbon Capture, Use and Storage fund was announced by Energy Minister Angus Taylor this morning in Newcastle at the pilot site for Mineral Carbonisation International (MCI).

The company is using carbon dioxide (CO2) captured from a nearby ammonia plant to make building products like plasterboard and cement.

"Carbon Capture and Utilisation (CCU) has really, in the past seven years, struggled to get as much air time as other technology solutions," MCI chief operating officer, Sophia Hamblin Wang, said.

"This is the biggest show of faith and funding that the government has ever provided for the CCU technology group.

"This is incredibly exciting and will encourage other technologies in our ecosystem to develop."

A carbon reactor system being developed by Mineral Carbonation International in Newcastle. (Supplied: Mineral Carbonation International)

MCI needs funding to build a scaled-up version of the Newcastle plant to further prove the commercial viability of the concept at scale.

Ms Hamblin Wang said it could ultimately be used to capture and use the emissions from the steel and cement factories that would be needed in a low-emissions future, but had so far struggled to find a CO2 solution.

The fund will be open to a broad spectrum of players including other CCU projects looking to produce fuels and chemical from CO2, as well as those in Carbon Capture and Storage (CCS) — which have been criticised for significant investment for little return over several decades.

'Australia has much to add to this area' Mr Taylor said he would like to see the fund invest in both CCU and CCS.

He dismissed concerns about the viability of capturing and storing carbon underground. "Sequestering is part of the answer — sequestering in soil, in geological formations, and sequestering in products is a fantastic solution as well and offers us great opportunities," Mr Taylor said.

"The great benefit of utilisation is that you can reduce the costs even further, that's why there's a lot to like about it, and that's the beauty of what they're doing right here.

"Australia has so much to add in this area, and this region with its background.

"We have smart people who can solve hard problems and that's ultimately what is going to get emissions down and strengthen the world economy at the same time."

Mr Taylor said the government's investment would reduce technical and commercial barriers to deploying these technologies and identify potential project sites.

Links

• What is carbon capture and storage (and does it work)?
• Angus Taylor says Australia has the world's largest carbon capture and storage project. Here's what he's not saying
• Australia Needs a Plan, Not a Dirty Wishlist
• Carbon capture and storage: one tool, many opportunities
• Atmospheric Carbon Drawdown – A Global Imperative
• Elon Musk launches $100 million carbon capture competition
• Microsoft and Musk are working hard on carbon storage – here’s the prognosis
• Government opens door to paying for cleaner coal and gas with climate funds
• New focus on climate change adaptation but no sign of 2050 emissions commitment