Carbon Capture & Storage Industry Development​

SACOME calls on the South Australian Government to provide support for the construction of a pipeline from Port Bonython to Moomba to facilitate development of an international carbon storage industry based in South Australia.

Furthermore, SACOME calls for the South Australian Government to progress dialogue with the Federal Government to establish bi-lateral agreements that facilitate the international trade of carbon.

Santos, with its Joint Venture partner Beach Energy, announced completion of the $200 million Moomba CCS facility in October 2024. This facility is one of Australia’s largest investments in emissions reduction and, at full operation, the Moomba CCS facility will store up to 1.7 million tonnes of CO2 per year.

Linking this nation-leading facility to international markets is a crucial next step in the development of a South Australian carbon capture and storage industry and will require the construction of a 22inch, 700 kilometre pipeline connecting Port Bonython to Moomba. This pipeline would enable the import, transport and storage of carbon at the Moomba CCS facility while potentially supporting a new, commercial CCS industry and an e-methane industry.

The use of CCS will be a critical tool for hard-to-abate sectors in offsetting their emissions, including cement and steel manufacturing, which the country has a long-term strategic interest in maintaining.

Given the significant growth prospects from the economic and environmental imperative to decarbonise as well as interest in CCS/decarbonisation opportunities from trading partners including Japan and South Korea, SACOME submits that appropriate funding measures to support the construction of a dedicated CO2 pipeline from Port Bonython to Moomba to facilitate import and storage of carbon should be prioritised.

South Australia has an opportunity to be a first-mover in developing a local CCS industry, and timely investment in industry development measures can position the State as a leader in international carbon trade. Creation of a new industry based on trade in carbon also offers the South Australian Government potential new revenue streams, both through increased industrial activity, and royalty arrangements relating to the import of carbon for storage.
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The development of bilateral agreements with international parties is an important next step in establishing the necessary regulatory arrangements to enable cross-border carbon trade. SACOME calls for the South Australian Government to progress dialogue with its Commonwealth Government counterparts to advance this outcome.

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