Media Statement - 11th November 2008
The passage of the Offshore Petroleum Amendment Bill through the Senate last night establishes the world’s first regulatory framework for CO2 capture and geological storage (CCS).
The legislation establishes access and property rights in Australia’s offshore waters for geological storage of CO2 and forms a key component of the Government's response to climate change.
Minister Ferguson said: “The passing of this Bill creates an environment in which industry can invest in CCS with confidence and will encourage the commercialisation of technologies capable of reducing future global greenhouse gas emissions.
“I call on the States and Northern Territory to act with urgency to introduce nationally consistent legislation both onshore and offshore.
"It is vital that we create a regulatory framework for geological storage over all prospective areas that could be attractive to Australian industries looking to adopt CCS technologies."
The Australian Government's commitment to reduce Australia's greenhouse gas emissions by 60 per cent on 2000 levels by 2050 will require substantial CO2 reductions from Australia's coal-fired power stations.
Minister Ferguson said: "Coal provides around 80 per cent of Australia’s total electricity and accounts for 32 per cent of Australia's total greenhouse gas emissions. Clearly, no serious response to climate change can ignore the need to reduce emissions from coal.
"Along with the development of renewable energy sources and the improvement of energy efficiency, the capture and storage of CO2 from fossil energy is essential.”
The Bill provides for appropriate consultation and multiple use rights with other marine users, including the fishing and petroleum industries, and ensures pre-existing property and use rights are properly preserved.
Minister Ferguson said: “The Government is very appreciative of the cooperation of Australia’s petroleum industry in establishing this multiple use regime to enable CCS technology adoption by Australian coal-fired power stations and other industries reliant on fossil energy processes.
“The passage of the bill is also a tribute to the work of the House of Representatives Standing Committee on Primary Industries and Resources and a welcome example of bipartisanship from the Opposition on this important policy issue.
"Australia has the capacity to inject and store a significant amount of its carbon emissions in offshore reservoirs and Geoscience Australia is assessing the viability of numerous sites which will allow the continued utilisation of our extensive coal reserves, as well as the development of new industries such as coal-to-liquids which could improve Australia’s liquid transport fuel security.
“The CCS Task Force is also undertaking a national mapping project to match key industrial hubs with prospective geological storage sites and infrastructure requirements for CO2.
“This work will be greatly assisted by the introduction of CCS legislation by the States and Territories.”