Carbon capture and storage research in New Zealand

14 November 2008

At the beginning of the financial year, CRL Energy formed a new research partnership with GNS Science and the University of Auckland to assess the carbon capture and storage (CCS) potential of the Taranaki and Waikato regions. GNS Science, who is leading the project, is providing expertise in petroleum geology, reservoir architecture, geological risk and social science, CRL Energy is providing expertise in coal science and advanced technologies, and the University of Auckland is contributing expertise in numerical reservoir modelling.

The work includes preliminary basin assessments for Waikato and Taranaki; preliminary assessments of economic and risk assessment; current technology assessment for capture, transport and injection; and monitoring and verification. By the end of 2008 a series of detailed reports will have been produced around these topics. The primary purpose is of course to assess whether CCS in these areas can reduce the impact of fossil fuel use and industrial processes on greenhouse gas (GHG) emissions in New Zealand. The application of high efficiency, CCS-ready advanced fuel-conversion technologies in New Zealand will require access to such storage sites to minimise their CO2 footprint.

Financial support for the programme is being contributed by both industry and Government with current contributions of $1.4 million over 17 months from the Foundation for Research and Technology (FRST); Crown Minerals; The Coal Association; Solid Energy; L&M Mining; and Genesis Energy, although it is highly likely the project will be extended and attract further investment. The research partnership has also joined the CO2CRC consortium in Australia – where the injection phase of the demonstration project in the Otway Basin began in April 2008.

These funders make up the New Zealand Carbon Capture and Storage (CCS) Research Steering Group - a joint Government/industry initiative led by the Foundation for Research, Science and Technology.

In addition, the Ministry of Economic Development is working on a whole-of-government approach to CCS through the New Zealand CCS Policy Group and is coordinating a review of existing legislation of relevance to CCS, as well as monitoring international CCS developments. New Zealand (as a consortium led by the Coal Association) is a member of a key international CCS agency, the IEA Greenhouse Gas R&D Programme, which is a valuable source of access to these developments.

Dr Trevor Matheson, General Manager of Operations at CRL Energy, has long been a supporter of CCS research in New Zealand and is pleased that such a substantial project is underway. “The research is vital and is paving the way for CCS pilot projects in the near future. A number of countries are already running successful demonstration projects and are sequestering millions of tonnes of CO2 every year – playing an essential role in the response to climate change. In addition, the research strengthens our ties across the Tasman where investment in CCS by industry and Government is in the order of $3 billion.”