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2 April 2008 - The first carbon capture and storage project in the southern hemisphere has been officially launched by Australia's Minister for Resources and Energy Martin Ferguson.
The plant is located in the Otway Basin near Nirranda South in southwestern Victoria. The facility will capture, compress and inject carbon dioxide into a depleted natural gas reservoir two kilometres underground.
The Otway project is touted as the world's largest demonstration of the deep geological storage of carbon dioxide. The project is developed by the Cooperative Research Centre for Greenhouse Gas Technologies and backed by over A$40m (US$36m) in funding from the State and Federal Governments, research organisations and industry.
"The success of this program will confirm the CCS technology as a viable option to reduce the carbon footprint of coal," Ferguson said at the opening.
Ferguson is looking into amending the Offshore Petroleum Act to allow seabed storage of carbon emissions from the country's coal-fired power stations. Australia is the world's largest coal exporter. Coal is used to produce about 85 percent of the country's electricity, according to the Australian Coal Association.
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