Focus on Australia | CCUS captures funding
The Morrison government says it is “backing six new carbon capture projects to accelerate the development of the technology in Australia.” Six companies have been awarded a share in the government’s $50 million CCUS
development fund: ● Santos Limited – up to $15 million towards the low-cost capture and storage of CO2
emitted
from Santos’s Moomba LNG operations for permanent storage in the Cooper Basin, South Australia. The project is expected to store 1.7 million tonnes per annum on an ongoing basis.
● Mineral Carbonation International – up to $14.6 million towards the construction of a mobile demonstration plant that captures and uses CO2
emitted from the production of biomethane at landfill sites across multiple locations in Australia for use in cement carbonation curing.
● Carbon Transport and Storage Company – up to $5 million to demonstrate the viability of carbon capture from a coal-fired power station in Queensland and to support the development of a geological CO2
the Surat Basin.
● Corporate Carbon Advisory Pty Ltd – up to $4 million towards Australia’s first demonstration of a direct air capture (DAC) and storage project to geologically sequester CO2
in an
existing injection well in Moomba, South Australia.
to produce manufacturing and
construction materials, such as concrete, plasterboard and fire-retardant materials on Kooragang Island, New South Wales.
● Energy Developments Pty Ltd – up to $9 million towards the capture and use of CO2
● Boral Limited – up to $2.4 million towards a pilot scale carbon capture and use project to improve the quality of recycled concrete, masonry and steel slag aggregates at New Berrima, New South Wales.
Australia already “has the world’s largest storage site in
carbon capture facility of its kind” [Gorgon], the government notes, and CCUS is one of five priority areas for future investment under its Technology Investment Roadmap. The CCUS Development Fund is part of the government’s $1.9 billion new energy technologies package announced in the 2020- 21 Budget. The $1.9 billion package included resourcing to support the development of CCS as a method for generating Australian carbon credit units. The proposed method would enable projects that capture and permanently store greenhouse gases in underground geological formations to generate Australian carbon credit units under the Emissions Reduction Fund (ERF) scheme.
Further CCUS funding opportunities are available through the $263.7 million announced in the 2021-22 Budget for CCUS projects, hubs and technologies and the Australian Renewable Energy Agency (ARENA).
Hydrogen power at Tallawarra
Tallawarra A and, outlined in yellow, location of Tallawarra B
GE’s gas turbine technology will power Australia’s first dual-fuel-capable natural gas/hydrogen power plant at the Tallawarra B power station, located in Yallah on the western shore of Lake Illawarra in New South Wales, about eight miles southwest of Wollongong.
EnergyAustralia has ordered a 9F.05 gas turbine for Tallawarra B. It will operate in open cycle to help enhance the reliability of the grid and “help ensure New South Wales energy consumers have continued access to affordable, reliable, and sustainable power” with closure of the 1680 MWe Liddell coal-fired power plant located in the Hunter Valley region scheduled for 2023.
The new gas fuelled power plant will operate with high operational flexibility as a peaker — firing up rapidly when needed to stabilise the grid during demand peaks — and utilise a proportion of hydrogen to decrease its emissions footprint. “Our new open-cycle, hydrogen and gas
capable turbine will provide firm capacity on a continuous basis and paves the way for additional cleaner energy sources to enter the system,” said Catherine Tanna, managing director of EnergyAustralia.
The 316 MW Tallawarra B will be built in consortium with the EPC company Clough and will be adjacent to EnergyAustralia’s existing Tallawarra A 435 MW gas fuelled plant. With the forthcoming closure of the Liddell coal-fired plant the Australian federal government called on the private sector to identify alternative solutions to deliver up to 1000 MW of dispatchable power.
The NSW state government and Australian federal government contributed AU$83 million to support the financial close and support the use of hydrogen. Under the funding agreement signed on May 3, EnergyAustralia will offer to buy green hydrogen for up to 5% of the plant’s fuel use from 2025 and will offset direct carbon
10 | July/August 2021 |
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emissions from the project over its operational life.
EnergyAustralia will also invest in engineering studies examining upgrades for Tallawarra B so that it can use more green hydrogen in its fuel mix in the future.
“New South Wales’ Energy Security Target is the tightest reliability target in the country and this project will help make sure that we achieve that even after Liddell has closed,” said NSW energy minister Matt Kean.
The Tallawarra machine “will be GE’s first 9F unit globally to operate on a blend of hydrogen and natural gas”, said Scott Strazik, CEO of GE Power.
Tallawarra B will also be the first large-scale gas-powered power station to be built in NSW in more than twelve years.
GE’s scope will include an A78 generator and an exhaust stack with an innovative plume dispersion device.
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