The limited role for Carbon Capture and Storage (CCS) technologies in a sustainable Australian energy future

Abstract

There is considerable debate regarding the potential role of Carbon Capture and Storage (CCS) technologies in reducing Australia's greenhouse emissions. The latest climate change science suggests that major (60% or more by 2050), rapid (peaking within 20 years) cuts in global emissions may be required to avoid dangerous climate change. There are a number of existing abatement options including energy efficiency, various renewable energy technologies, nuclear power and fuel switching to natural gas; as well as emerging options including CCS. We outline a simple technology assessment framework for policymakers to evaluate these different options given the climate change imperative. This framework includes technology status, delivered energy services, present and possible future costs, potential scale of abatement, potential speed of deployment and other possible social outcomes. Application of this framework to CCS suggests that it should be considered as a promising, but still somewhat unproven, option that potentially offers very significant abatement potential and good integration into the existing energy industry. There are, however, some outstanding questions regarding its effectiveness and safety, its abatement is likely to come at significant cost, and it is unlikely to be able to make a significant contribution for well over a decade. The Australian policy implications are that while government support for R&D and Demonstration of CCS is appropriate and should in our view be expanded, the major priority should be to support greater deployment of existing abatement options including energy efficiency, efficient gas-fired generation and cogeneration and renewable energy. Such policy support is noticeably lacking at present.