South Australian CO2 Industry DevelopmentSACOME calls on the Government to investigate appropriate financial supports for the development of a local CO2 industry in South Australia.
Disruptions to food and industrial-grade CO2 supplies are impacting food and beverage industries, including major wineries, breweries, and soft drink suppliers. Shortages are currently being experienced due to plant shutdowns and exposure to high import prices. This will be exacerbated over the next three years with the staged shutdown of Torrens Island Power Station through to June 2026, as it provides the main source of food-grade CO2 in South Australia from its waste gas stream.
Natural sources of high-quality CO2 at Nangwarry have been discovered in the southeast of South Australia, which can be processed to food and industrial grade on-site. With the potential to provide over 20 years of continuous supply, the Nangwarry CO2 project would provide a long-term and stable source of CO2 for the South Australian food, beverage, and building industries. In addition to industrial uses, CO2 is used to cultivate algae, itself a feedstock for biofuel production, carbon sequestration, applications in transport, heating, industrial processes, and electricity generation to reduce emissions and diversify the energy mix. It is estimated that an investment of approximately $40 to 50 million is required for the design and construction of a fit-for-purpose 175-tonne-per-day processing plant. This would exceed the 100- 150 tonne per day requirement for CO2 in South Australia, accommodate future needs and provide opportunities for export. |