CEFC to invest in CCS technology
Clean Energy Finance Corporation (CEFC) will have the opportunity to invest in carbon capture and storage (CCS) technologies with the introduction of new federal legislation on 31 May.
The removal of the prohibition allows the CEFC to invest in CCS technologies in an aim to reduce emissions by 90%. Energy minister Josh Frydenberg says that without this barrier, it reduces the risk for future investors.
“Access to finance is one of the barriers to investment in CS and a change to CEFC legislation will provide a significant signal of support and reduce risk for potential investors,” Josh says.
“This is the latest demonstration of the Government’s commitment to a technology neutral, non-ideological approach to national energy policy. Removing the prohibition will allow the CEFC to support a wider range of low emissions technologies and thereby reduce emissions at the lowest cost.”
Despite its positives, it’s not welcomed by everyone and has been labelled as a ‘slap in the face’ for the renewable sector and the renewable energy industry. It was also argued that none of the three CCS projects that are currently in operation is commercially viable.
The energy minister says that despite the rebukes, the CCS technology has been proven to work and is acclaimed by the Intergovernmental Panel on Climate Change and the International Energy Agency.
“CCS is a proven technology being deployed globally with 17 large-scale commercial CCS facilities already in operation storying around 30 million tonnes per annum of carbon dioxide,” says Josh.
“In Australia, the Gorgon LNG project in Western Australia will soon become one of the world’s largest CCS projects when it begins sequestering up to four million tonnes per annum in carbon dioxide in the coming year.
“There are also significant opportunities for the application of CCS technologies outside of the energy sector. The International Energy Agency has states that CS is the option available to significantly reduce emissions from some major industrial processes, such as iron and steel production, cement production and natural gas processing.”
The CEFC’s investment in CCS technologies will go along with other low emission investments which include more than $3 billion worth of wind, solar and storage projects.