Carbon Capture and Storage

What is Carbon Capture and Storage (CCS)?

An example of carbon capture and storage which illustrates how carbon dioxide is captured at an industrial plant, transported via a pipeline, and stored deep below the Earth’s surface in a geological formation.Carbon Capture and Storage, or CCS, involves:

  • Capturing carbon dioxide (CO2) released by industrial processes.
  • Compressing it
  • Transporting it to an injection site via pipeline.
  • Sequestering deep underground for safe, long-term storage in suitable geological formations.

CarbonNet will accept compressed CO2 from industrial capture facilities, such as hydrogen, bioenergy, and fertiliser plants. Transport will be via a pipeline from Loy Yang in the Latrobe Valley to the Gippsland Basin, just off Golden Beach.

The storage component of CCS is similar to the way oil and gas has been trapped naturally underground for millions of years.

CCS is not considered as an alternative to renewable energy, investment in all emission reduction pathways is required to meet the Victorian Government’s target of net zero emissions by 2045.

Find out more about CCS from the Global CCS Institute.

Carbon Capture and Storage (CCS)  is gaining momentum worldwide. As of June 2023, there were 253 CCS facilities globally:

  • 41 in operation.
  • 26 under construction.
  • 325 in various stages of development.

Benefits of Carbon Capture and Storage (CCS)

The benefits of Carbon Capture and Storage (CCS) are environmental, economic and social with a positive impact both local and global.

Benefits of CCS for Gippsland

Successful implementation of the CarbonNet CCS project will also lead to new investment in Gippsland that will:

  • Safeguard existing jobs.
  • Utilise existing skill sets.
  • Introduce new decarbonised industries and employment opportunities to the Latrobe Valley.
  • Enable significant reduction in CO2 emissions, supporting Victoria’s target of net zero emissions by 2045.
  • Sustainable industry development and economic growth for the Latrobe and Wellington Local Government Areas (LGAs).

CCS enabled industries

Carbon capture and storage offers opportunities for new industries to develop in the Latrobe Valley, together with ongoing employment.

The most prospective of these opportunities are:

  1. Hydrogen production with CCS.
  2. Natural gas processing with CCS.
  3. Commercial fertiliser production with CCS.
  4. Bioenergy with CCS.
  5. Direct Air Capture (DAC).

CCS Regional Economic Benefit Assessment report

CarbonNet commissioned Ernst & Young Australia (EY Australia) to conduct a CCS Regional Economic Benefit Assessment for Gippsland.

The report was released in the Latrobe Valley by the Minister for Resources on 30 July 2021. It not only provides a detailed economic assessment of how CCS industries can benefit the Gippsland region, but also touches on social and environmental benefits provided by CarbonNet and enabled capture industries.

Read the Carbon Capture and Storage (CCS) Regional Economic Analysis Report:

The assessment has captured both the direct and indirect economic benefits related to the construction of the CarbonNet project and the operation of enabled industries such as hydrogen, fertiliser, bioenergy and gas. Report data is based on a range of key assumptions regarding the level of commercialisation of the project and was developed in close consultation with the CarbonNet team.

The construction of CarbonNet and resulting activity from CCS enabled industries has the potential to provide a significant economic boost for Victoria.

  • Estimated $896m boost annually to Victoria’s Gross State Product (GSP) annually during the construction phase.
  • Potential to increase Victoria’s GSP by $1,056m annually, once the CarbonNet network becomes operational.
  • An average of 2,707 total construction jobs per annum could be created by CarbonNet and enabled industries between 2026 and 2030 with the majority of jobs in Gippsland.
  • An additional 1,176 jobs per annum for CCS enabled industries while operational, from 2027.
  • Enabling the decarbonisation of industry and help to achieve a low emissions future.
  • Attracting new business which will provide agglomeration benefits through knowledge sharing and other spill-over impacts.
  • Creating new jobs and training opportunities which will ensure sustainable growth for the region.

CarbonNet has the potential to provide significant environmental and social benefits

  • Enabling the decarbonisation of industry and help to achieve a low emissions future.
  • Attracting new business which will provide agglomeration benefits through knowledge sharing and other spill-over impacts.
  • Creating new jobs and training opportunities which will ensure sustainable growth for the region.

Page last updated: 12 December 2023