Benefits of CCS
Carbon capture and storage (CCS) is a proven emissions reduction solution, permanently removing CO2 from the atmosphere. The benefits of CCS are environmental, economic and social with the positive impact both local and global.
Value of CCS
The Global CCS Institute has prepared the Value of Carbon Capture and Storage (CCS) thought leadership report, which identifies and evaluates the benefits of large-scale investment and deployment of carbon capture and storage (CCS) projects, both from a economic and climate change control perspective.
Benefits of CCS for Gippsland
Successful implementation of the CarbonNet CCS project will lead to a commercial scale carbon transportation and storage network in Gippsland that will:
- safeguard existing jobs
- utilise existing skill sets
- introduce new industries and employment opportunities to the Latrobe Valley
- enable significant reduction in CO2 emissions in Victoria.
CCS Regional Economic Benefit Assessment report
CarbonNet commissioned EY Australia to conduct a CCS Regional Economic Benefit Assessment for Gippsland.
The report was released in the Latrobe Valley by Minister for Resources Jaclyn Symes on 30 July 2021. It not only provides a detailed economic assessment of how CCS industries can benefit the Gippsland region, but also touches on social and environmental benefits provided by CarbonNet and CCS.
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The assessment has captured both the direct and indirect economic benefits related to the construction of the CarbonNet project and the operation of enabled industries such as hydrogen, fertiliser, waste to energy and gas. Report data is based on a range of key assumptions regarding the level of commercialisation of the project and was developed in close consultation with the CarbonNet team.
The construction of CarbonNet and resulting activity from CCS enabled industries has the potential to provide a significant economic boost to Victoria.
- estimated $896m boost annually to Victoria’s Gross State Product (GSP) annually during the construction phase
- potential to increase Victoria’s GSP by $1,056m annually, once the CarbonNet network becomes operational
- an average of 2,707 total construction jobs per annum could be created by CarbonNet and enabled industries between 2026 and 2030 with the majority of jobs in Gippsland
- an additional 1,176 jobs per annum for CCS enabled industries while operational, from 2030.
CarbonNet and CCS can help to achieve sustainable industry development and economic growth for the Latrobe and Wellington LGAs.
CCS is expected to facilitate long-term economic benefits for the region in terms of its impact on Gross Regional Product (GRP) and employment.
The impact of the project is expected to be most significant in the final stages of construction (2030/31) and followed by a sustained boost to GRP and employment through to 2061.
Flow on impacts of CarbonNet’s CCS industries will be highly beneficial for Victoria
Direct project spending will flow throughout the Victorian economy, Gippsland will see most benefit with 16% of total benefits provided outside of Latrobe and Wellington LGAs.
CarbonNet has the potential to provide significant environmental and social benefits
- enabling the decarbonisation of industry and help to achieve a low emissions future
- attracting new business which will provide agglomeration benefits through knowledge sharing and other spill-over impacts
- creating new jobs and training opportunities which will ensure sustainable growth for the region.
CCS enabled industries
Carbon capture and storage offers opportunities for new industries to develop in the Latrobe Valley, together with ongoing employment.
The most prospective of these opportunities are:
- Hydrogen production with CCS
- Natural gas processing with CCS
- Commercial fertiliser production with CCS
- Bioenergy with CCS
- Direct Air Capture (DAC).
CCS is well suited to natural gas processing as typically CO2 is removed from gas before it can be transported or used.
Energy Networks Australia's Gas Vision 2050 demonstrates a net-zero emissions gas network could be achieved without the hefty power bill impacts of electrification through modelling three scenarios for a net-zero emissions future:
- green hydrogen (produced from renewable energy)
- blue hydrogen (from natural gas with carbon capture and storage)
- electrification (where all gas and gas networks are decommissioned).
According to the Hydrogen Council, achieving the hydrogen vision would create significant benefits for the energy system, the environment, and businesses around the world. By 2050 it would avoid 6 Gt of CO2 emissions, create a $2.5 trillion market for hydrogen and fuel cell equipment, and provide sustainable employment for more than 30 million people globally.
Hydrogen fuel has many benefits including:
- Zero emissions at point of use
- It can be stored and transported at high energy density in liquid or gaseous form
- It can be combusted or used in fuel cells to generate heat and electricity
- Has potential for use in transport, industry and heating.
The Hydrogen Energy Supply Chain
Once established, CarbonNet provides a viable CCS solution for the commercial phase of the world-leading Hydrogen Energy Supply Chain (HESC) project, located in the Latrobe Valley. The HESC project will be the first initiative to transport mass quantities of hydrogen across open waters (from Australia to Japan) and will demonstrate innovative world first technologies in the process. HESC is currently in pilot. The decision to proceed to a commercial phase will be made in the 2020s with operations targeted in the 2030s depending on the successfulcompletion of the pilot phase, regulatory approvals, social licence to operate and hydrogen demand.
- More about the HESC project
- Australia’s Chief Scientist Dr Alan Finkel commends world-first hydrogen plant in Victoria
Gippsland’s significant lignite reserves provide opportunities to develop a commercial fertiliser industry, servicing the food and fibre industry, bringing employment as well as domestic and international export potential, with large-scale production emissions management via CCS.
Page last updated: 13 Jul 2022