Major trading partners watching Australia’s carbon capture debate, says LETA boss Mark McCallum

Major trading partners expect Australia to invest in carbon capture schemes to help them decarbonise their own economies.

Major trading partners expect Australia to invest in carbon capture schemes to help them decarbonise their own economies, according to LETA chief executive Mark McCallum.

Speaking at The Australian’s Energy Nation forum in Sydney on Wednesday, Mr McCallum said the Queensland government’s decision to knock back approval for a Glencore carbon capture scheme sent the wrong message to Australia’s trading partners, and would make it harder for the state to reach its decarbonisation targets.

Glencore wanted to test the possible use of aquifers in the Great Artesian Basin for use in a carbon storage scheme, with a pilot plans to inject up to 110,000 tonnes of carbon ­dioxide a year for three years from a coal-fired power station.

Despite previous support for the plan from state and federal authorities, Queensland environmental agencies knocked back the proposal in May, saying the aquifer the company planned to use was not “confined” and the plan risked contaminating other parts of the basin.

The knock-back triggered fresh controversy around such schemes in Australia, given the regulator’s decision had been foreshadowed by Stephen Miles, with Glencore accusing the Premier of “political opportunism” in the face of a vigorous campaign backed by farmers and pastoralists – and supported by Australia’s richest person, Gina Rinehart. Glencore’s project had been backed by Japanese resources and energy giants J-Power and Marubeni, with each tipping in $10m.

Mr McCallum told the forum that Australia’s debate around carbon capture was being watched closely by trading partners in the hope that local developments would assist their own decarbonisation efforts.

“We … export around 90 per cent our coal at the ­moment to customers not here in Australia,” he said. “And the conversations we’re having with the Japanese and Koreans, with the English, Americans and ­Canadians, is that they are very pro-CCS as a large part of their solution to help decarbonise their own heavy industry.

“Our industry has got to work with customers around the world … and focus on that carbon stewardship and product stewardship.”

While Queensland has not ruled out support for other carbon capture and storage schemes, Mr McCallum said it was obvious from the recent ­decision that the state was “not very keen” on projects in the Great Artesian Basin.

“People regard CCS as just for electricity. But there are so many applications for it. It’s very difficult to make cement without carbon dioxide, and so there are a range of applications where it’s critical.

“I think the evidence of the global experts would indicate that CCS is going to have to play some role in decarbonising Queensland heavy industry.”