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Carbon Capture and Storage (CCS)

What is carbon capture and storage?

Carbon capture and storage (also known as CCS or carbon geosequestration) involves collecting the large amounts of carbon dioxide and other greenhouse gases released by power stations or other emitters and then storing these emissions securely in liquid form deep underground.

These technologies may help our power stations drastically cut emissions into the atmosphere while continuing to produce the affordable electricity we use every day.

Why do we need carbon capture and storage in Victoria?

Victoria has one of the world's largest supplies of brown coal, which we use to generate around 95 per cent of our electricity. This helps keep our power costs low and meet our growing energy demands. But at the moment, using brown coal to generate electricity also releases a large amount of carbon dioxide into the atmosphere. More than half of Victoria's greenhouse emissions currently come from the electricity generation sector.

Carbon capture and storage technologies are being investigated so the energy sector can reduce the pollution released into the atmosphere when using fossil fuels, like coal and gas, to generate electricity.

CCS is not a new or untested technology. Many of the technologies involved in CCS are already well developed and have been demonstrated, although not in an integrated way at commercial scale.

This technology may be one solution to ensure we have reliable, secure and affordable energy with low carbon emissions to meet our needs well into the future.

Is carbon capture and storage a proven technology?

Leading scientists and international authorities such as the International Panel on Climate Change (IPCC) have identified carbon capture and storage as having the potential to safely and effectively help the energy sector reduce its greenhouse gas emissions.

While the risks associated with CCS are small, the Government takes any potential risk very seriously. Possible risks of carbon storage projects include:

  • Leakage of stored carbon dioxide into the atmosphere
  • Equipment malfunction
  • Migration of carbon dioxide to other geological areas.

Major demonstrations of these technologies are currently underway in Victoria’s Latrobe Valley and Otway regions. Pilot programs are also underway in countries such as Norway, Japan and the USA.

The Australian Federal Government allocated $2.0 billion in new funding and $2.425 billion overall in its 2009-10 Budget towards industrial-scale carbon capture and storage projects. The Federal Government also established the Global Carbon Capture and Storage Institute to drive the dissemination of CCS technology and know-how around the world.

A focus of this work is to help ensure carbon capture and storage is well tested so we know it's safe and effective before it becomes commercially available.

How will carbon capture and storage be regulated?

The Government plans to reduce risks by ensuring that carbon dioxide is only stored in geological formations that can effectively trap it in place without leakage. The behaviour of the stored carbon dioxide will continue to be monitored to determine if it is behaving as expected. This process enables CCS activities to be modified or discontinued if necessary.

The legislation requires safeguards such as monitoring programs to detect leaks and inspection and maintenance programs for infrastructure.