Carbon capture and storage FAQs


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Carbon capture and storage involves capturing carbon dioxide (CO2), a greenhouse gas, from industrial processes and then transporting it to a suitable storage site for safe, long-term storage deep underground.

Carbon capture and storage is being investigated in Victoria, and implemented around the world, because it has the potential to play an important role in reducing greenhouse gas emissions from industry and addressing climate change.

Victoria offers a world-class opportunity for CCS – Bass Strait’s offshore geology provides excellent potential to safely store large quantities of CO2 while also being located close to the Latrobe Valley.

CCS presents an important opportunity for new industries in Victoria consistent with the Victorian Government’s Net Zero Emissions by 2050 target and climate change framework.

A CCS chain consists of four parts:

  • The CO2 is separated and captured at an industrial (natural gas, oil, coal or biomass) facility
  • The CO2 gas is then compressed
  • The CO2 is transported along a pipeline to a suitable geological site
  • The CO2 is injected deep below the ground for long-term storage

The whole process is similar to the oil and gas industry in reverse, instead of extracting hydrocarbons which have been stored inside rocks for millions of years, CO2 can be injected into the same porous sandstone underneath thick capping layers.

All the technologies required for CCS are well developed, commercially available, and have been used by industries for decades (in particular the oil and gas industry).

The Global CCS Institute lists 18 commercial scale CCS facilities in operation globally (Norway, Canada, USA, Saudi Arabia, Brazil, China), with a further 5 under construction. Another 20 are at various stages of development worldwide.

Over a hundred pilot and demonstration projects have also been completed, providing an extensive scientific and engineering knowledge across a wide range of industries and geologies.

Leading international authorities such as the Intergovernmental Panel on Climate Change (IPCC), the International Energy Agency (IEA), the UK Committee on Climate Change (CCC), and USA EPA have confirmed CCS is a proven climate change mitigation measure and has an important role to play to reduce greenhouse gas emissions, permanently and cost effectively.

Around the world industry has been safely re injecting gas underground for storage for decades, particularly in Europe. In Victoria we have the Iona natural gas storage facility near Port Campbell providing an important reserve during peak demand periods in winter.

Successful CO2 injection and storage projects are also operating in Norway, Canada and the United States. For example - Norway’s offshore Sleipner facility has been storing a million tonnes of CO2 per year since 1996.

In Victoria, the Cooperative Research Centre for Greenhouse Gas Technologies (CO2CRC) Otway Storage Project has been operating since 2008, and safely stored 80,000 tonnes of CO2 demonstrating world leading science and best-practice environmental monitoring.

As published in Nature - based on the large body of peer reviewed science globally, 98% of the CO2 injected into a well selected and regulated CCS site will remain underground for at least 10,000 years.

Yes, right here in Victoria – the CO2CRC Otway Project has injected and stored more than 80,000 tonnes of CO2 – and it has also been used in many other places around the world by the oil and gas industry.

The Global CCS Institute lists around 43 CCS projects at various stages worldwide. The Gorgon Project in WA will sequester and store CO2 in a sandstone reservoir 2.5 kilometres below Barrow Island. In the US there are thousands of miles of CO2 pipelines. The oil and gas industry uses CO2 in the process of enhance oil recovery.

Visit the Global CSS Institute website for annual global status reports of CSS.

There are several existing commercially available technologies for CO2 capture that have been developed to produce high purity CO2 for commercial markets such as enhanced oil recovery, chemical manufacturing and food processing.

Some known CO2 uses are:

  • growth medium for algae production which can then be used for oil production or as a source of stock feed
  • raw material for the production of formic acid, an organic substitute for inorganic acids such as hydrochloric and sulphuric acids
  • base for producing large volumes of calcium carbonates (limestone) and sodium bicarbonates (baking soda)
  • supplement to greenhouses as a plant growth accelerant
  • carbonation of soft drinks.

It is not anticipated that these alternate uses for CO2 will ever be able to cater for the large volumes that need to be captured to make a significant impact on climate change. Therefore other methods of reducing CO2 emissions are required.

Capturing and safely storing CO2 will significantly contribute to our move to a low emissions future. Leading scientists and international authorities such as the Intergovernmental Panel on Climate Change (IPCC) have identified CCS as having the potential to safely and effectively help reduce our greenhouse gas emissions.

There is overwhelming scientific agreement that man-made global warming will have a significant impact on our planet. CO2 is recognised as the chief greenhouse gas, increasing the amount of the sun’s radiation, which is trapped within the earth’s troposphere (lower atmosphere) and causing temperatures to rise.

If not addressed, the increase in temperatures is predicted to exceed 2°C this century, with widespread impacts on climate and human habitats.

CCS can play a valuable role during the transition to a low carbon economy as investment continues in developing renewable energy technologies. CCS does not replace the need to increase energy efficiency or develop renewable energy technologies. Rather, CCS is part of a portfolio approach to addressing the issue of greenhouse gas emissions and climate change.

Fossil fuels still account for approximately 80 percent of global energy production, and energy demand is forecast to increase significantly.

Analysis from the International Energy Agency suggests CCS will contribute around one fifth of required global emissions cuts by 2050.

The EU Commissioner for Energy and Climate Action (2015) Miguel Arias Cañete has commented that: "Carbon capture and storage will together with other innovative low-carbon technologies play an essential role in reaching greenhouse gas emission reduction targets around the globe".

The relative costs of CO2 capture, transport and storage will depend on the location and industry.

  • Storage costs are related to the geological characteristics of sites
  • Transport costs are related to distance and pipeline capacity
  • Capture cost can vary significantly between industries, as some industrial processes separate the CO2 as part of their normal operations

The most cost effective opportunities for CCS today are in the natural gas processing, fertiliser manufacturing, hydrogen production and biofuel sectors.

It is in these sectors that we see most of the existing CCS facilities globally, where total CCS costs are less that US$30/t CO2 (GCCSI 2017).

Capture and storage

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There are a variety of technologies that have potential to capture CO2. These technologies are not new. They have been used in the oil and gas sector and commercially applied for decades. The challenge is to apply these technologies to the power station industry and integrate them with existing and new infrastructure.

Capture technologies include:

  • Pre-combustion capture refers to taking the primary fuel (e.g. coal) and converting it into gas. The gas produced is then processed and separated to CO2 and hydrogen. The hydrogen is used as the fuel to generate electricity.
  • Post-combustion capture occurs after the primary fuel is burned and the CO2 is contained in the exhaust gas. The exhaust gas is captured, the CO2 is then separated from the other gases.
  • Oxyfiring, or oxyfuels, involves burning fuels in pure oxygen rather than in air. This creates a flue gas with a high CO2concentration, simplifying the capture process.

After the capture process, the CO2 gas is compressed for transport and injection into suitable underground storage sites.

After capture, CO2 is compressed to a dense, liquid form, then transported and injected with sufficient pressure to displace any water currently stored within the porous rock.

At depths of greater than 800 metres, where the CO2 is injected, it will remain in a compressed, dense form, allowing each reservoir to store vast quantities of CO2.

Industries such as those in the energy sector have extensive experience related to the injection and storage of CO2. The injection of CO2 has been used by oil companies for decades to increase oil recovery from deep geological formations.

Generally the sites in which CO2 will be stored are between one and three kilometres beneath the surface. CO2 needs to be injected at depths greater than 800 metres so that the pressure ensures that the CO2 remains in a dense liquid-like phase.

CO2 is contained within suitable, porous rock overlaid by thick layers of non-porous ‘mudstone cap rock’.

These naturally occurring, underground ‘storage reservoirs’ are at depths of greater than 800 metres. Depleted oil and gas fields generally offer excellent potential CO2 storage sites, with a geological trap, a porous reservoir and a sealing cap rock. These sites have always held oil and gas, as well as other gases including CO2, securely for millions of years.

Prospective storage sites are subject to extensive studies to confirm their suitability. Studies can involve 3D model simulations over long time frames (thousands of years), seismic testing with sound waves and appraisal drilling to retrieve rock samples and verify data.

Key geological characteristics sought when selecting potential storage sites include a storage reservoir, which is porous and permeable to hold the CO2, a trapping mechanism for the stored CO2, and a cap rock to contain the CO2.

This graph shows how mechanisms may take effect and contribute to the long-term trapping of the CO2

Trapping mechanisms include:

  • Structural/stratigraphic trapping – the most common trapping mechanism where the CO2 (which is lighter than water) rises within the reservoir and is trapped by the overlying cap rock. In many instances, this is similar to how oil and natural gas has been trapped for millions of years.

  • Residual trapping – CO2 becomes trapped as residual droplets within the pore spaces in the reservoir rock.

  • Solubility trapping – where CO2 dissolves into water present in the porous rock.

  • Mineral trapping – where the dissolved CO2 reacts with and is bound to the surrounding rock to form solid carbonate minerals.

Over time, a combination of these mechanisms may take affect and contribute to the long-term trapping of the CO2.

Studies have identified Victoria’s offshore Gippsland Basin, located in the eastern part of the State, as having the highest potential for storing CO2.

The Gippsland Basin is attractive to industry as it is located close to the Latrobe Valley coal fields. In the future, depleted natural gas and oil fields in the offshore Gippsland Basin appear to provide an opportunity for CO2 storage over the longer term.

The CarbonNet Project is currently investigating the potential for large scale CCS in the Gippsland region. The project is at feasibility stage, evaluating potential storage sites while investigating possible capture plants and transport pipeline routes.

Detailed modelling will help geologists predict any potential movements of CO2 and the direction and distance it could travel if it was to migrate.

Storage sites will be monitored with the aim of informing regulators of any CO2 movement. If migration beyond the storage reservoir is detected, injection of further CO2 could be stopped. Detailed modelling conducted prior to injection will provide information such as how long after injection ceases the CO2 would continue to move.

The CO2 may also react with other minerals underground and form new rocks, such as calcium carbonate (commonly known as limestone). When this occurs the CO2 will be permanently trapped.

The CarbonNet Project

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The CarbonNet Project (CarbonNet) is investigating the potential for establishing a commercial-scale carbon capture and storage (CCS) network in Gippsland. The network would bring together multiple carbon dioxide (CO2) capture facilities in Victoria's Latrobe Valley, transporting CO2 via a shared pipeline and injecting it into deep underground, offshore storage sites in Bass Strait.

The project was established by the Victorian government in 2009 and has been jointly funded by the State and Commonwealth since 2010.

The geology in Bass Strait, located adjacent to Latrobe Valley industries, contains the highest quality and largest capacity geological reservoirs out of 25 major basins across Australia (National Carbon Taskforce 2009).

Investigations and analysis show that the geological formations deep below the sea bed are well suited to long term CO2 storage. These formations are well characterised, having been explored by the oil and gas industry for 50 years.

CarbonNet has completed an extensive geoscience program that has been subject to independent scientific peer review, which identified three potential storage sites in Bass Strait for further investigation. The preferred site identified is known as Pelican.

The Pelican site is located offshore from Ninety Mile Beach and adjacent to the township of Golden Beach. Pelican is a large geological structure, shaped like an elongated dome, with many rock layers.

Find out about the CarbonNet Pelican 3D marine seismic survey.

In 2017 the Victorian and Commonwealth governments agreed to progress CarbonNet to its next stage: Project Development and Commercial Establishment.

This stage involves two key field activities – a marine seismic survey and the drilling of an offshore appraisal well in Commonwealth waters - to confirm the suitability of the Pelican site for CCS.

In February 2018 CarbonNet undertook a marine seismic survey over the Pelican site to allow CarbonNet’s sophisticated geoscience computer models to be validated. Survey data is currently being analysed and interpreted to map the extent of each layer of rock forming the seals and storage reservoirs. Extensive environmental monitoring confirmed no impacts to the fisheries in the area.

CarbonNet is planning for its next field activity, the drilling of an appraisal well 8km offshore in Commonwealth waters in late 2019, having obtained regulatory approvals and secured the services of a drilling rig.

Retrieved rock samples will allow scientists to validate the properties of the rock which will form the 'cap rock' and hold the stored CO2 in place.

Over the next two years, CarbonNet will to work towards obtaining a CO2 Injection Licence for the Pelican site. It will also continue to assess pipeline corridors to the selected injection site.

Defining the commercial structure and underlying principles to attract private sector investment is a primary focus during this stage of the project. Various business models are being examined to enable the provision of a CCS service to industry in Gippsland, such as the HESC project.

Community and stakeholder engagement will also increase. The project has a broad range of stakeholders that includes landholders, the local communities, industry and regulators.

Should CarbonNet progress to a commercial stage, construction and operations could be expected to begin in the mid to late 2020s subject to relevant approvals and private sector investment.


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Carbon dioxide is an inert gas that exists naturally in the atmosphere (humans and other animals breathe it out), absorbed within water (vast amounts of CO2 are absorbed in the oceans), or absorbed by plants and trees, which create oxygen via photosynthesis. CO2 forms the bubbles in our carbonated drinks and creates the bubbles at natural spa baths in Victoria and worldwide.

Carbon capture and storage (CCS) involves storing CO2 at depths of greater than 800 meters, securely trapped in geological storage formations.

Naturally occurring underground rock formations have stored large quantities of oil and gas (hydrocarbons), as well as other gases including CO2, for millions of years.

The CO2 is initially trapped by structural mechanisms involving a ‘cap rock’ – thick layers of impermeable rock overlying the storage area. However over time, the CO2 is further secured as it mineralises or is dissolved into saline water contained within the storage reservoir.

Analysing and managing risk is a crucial element of a CCS project. In Australia, CCS projects must comply with relevant laws and strict regulatory requirements that include the long-term monitoring of the sequestered CO2.

When applying for an injection licence, an applicant must undergo a rigorous assessment to ensure the nominated storage site has an appropriate seal and is suitable for CO2 containment. The regulators will only grant licences that have met these strict criteria.

An applicant is required to prepare a monitoring and verification plan prior to conducting any injection operations. This plan includes an operator’s response to non-routine situations, including losses and migration of CO2, pressure reduction and other markers about the storage formation that may indicate a leak.

If the CO2 is not behaving as predicted, the operator is able to act quickly to mitigate the leak as per response procedures. For example, if movement beyond the storage reservoir is detected, injection of further CO2 would be stopped, removing the pressure and reducing further leaks.

Earthquakes within Victoria to date have had very little impact. The CarbonNet Project acknowledges there are some concerns about the potential impacts of earthquakes.

Research on this issue is being undertaken and earthquake data from countries, such as Japan, is also being reviewed.

CO2 cannot burn or explode. In fact CO2 is used in fire extinguishers to put out fires.

While any risk of leakage is taken very seriously and is investigated thoroughly during the storage site assessment and selection, it is considered extremely unlikely that CO2 will leak to the surface.

Geological structures, such as those in the Gippsland Basin, have sealing layers or cap rock that have contained large volumes of oil and gas for millions of years.

Vigorous assessments and mapping out of storage sites, as well as extensive modelling to predict the behaviour of injected CO2, are undertaken in an effort to ensure sites meet strict selection criteria for the long-term, safe storage of CO2.

In the unlikely event of leakage beyond the sealing cap rock, secondary layers of rock create additional boundaries between the storage reservoir and the surface.

If CO2 was to permeate to the surface, a very gradual escape of CO2 would be expected, with migration potentially taking thousands of years. At spa baths, such as Hepburn Springs, Victoria, CO2 is naturally released into our atmosphere every day and these small levels do not pose a danger.


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The CarbonNet Project acknowledges the concern over the water table and research and modelling work is being done in this area.

While groundwater aquifers are typically less than 200 metres below ground, CarbonNet is investigating injecting CO2 at least 800 metres under the bed of the sea, at sites that are situated offshore in the Gippsland Basin.

While the CO2 injected may be at a range of temperatures, it is unlikely these would be noticeable or even measurable at ground level.

Research will be undertaken to investigate this further.

Regulation and responsibility

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    The Victorian Government introduced the Greenhouse Gas Geological Sequestration Act 2008 to regulate large-scale storage of captured greenhouse gas emissions securely underground.

    The legislation covers carbon storage under land in Victoria. This legislation does not regulate the capture or transportation of CO2 to the storage site, which is subject to other legislation and regulation.

    Several key pieces of legislation underpin the sequestration of CO2 depending on whether it is onshore or offshore in the Victorian or Commonwealth jurisdiction, including:

    • Victoria's Greenhouse Gas Geological Sequestration Act 2008 (GGGS)
    • Victoria's Offshore Petroleum and Greenhouse Gas Storage Act 2010
    • The Commonwealth's Offshore Petroleum and Greenhouse Gas Storage Act 2006.

    Companies conducting exploration or operating under the CCS legislation may also be required to comply with other legislation and regulations relating to the particular circumstances of their activities (including water, environmental, occupational health and safety, and planning laws).

    Ownership and responsibility for the stored CO2 depends on a number of factors relating to the individual project and the relevant legislation.

    Contact us

    If you have any questions please contact CarbonNet:

    Page last updated: 16 Sep 2020