AUSTRALIA’S FIRST GEOSEQUESTRATION DEMONSTRATION PROJECT—THE CO2CRC OTWAY BASIN PILOT PROJECT

Abstract

Geological sequestration is a promising technology for reducing atmospheric emissions of carbon dioxide (CO2) with the potential to geologically store a significant proportion Australia of Australia’s stationary CO2 emissions. Stationary emissions comprise almost 50% (or about 280 million tonnes of CO2 per annum) of Australia’s total greenhouse gas emissions. Australia has abundant coal and gas resources and extensive geological storage opportunities; it is therefore well positioned to include geosequestration as an important part of its portfolio of greenhouse gas emission mitigation technologies.

The Cooperative Research Centre for Greenhouse Gas Technologies is undertaking a geosequestration demonstration project in the Otway Basin of southwest Victoria, with injection of CO2 planned to commence around mid 2007. The project will extract natural gas containing a high percentage of CO2 from an existing gas well and inject it into a nearby depleted natural gas field for long-term storage. The suitability of the storage site has been assessed through a comprehensive risk assessment process. About 100,000 tonnes of CO2 is expected to be injected through a new injection well during a one- to two-year period. The injection of CO2 will be accompanied by a comprehensive monitoring and verification program to understand the behaviour of the CO2 in the subsurface and determine if the injected carbon dioxide has migrated out of the storage reservoir into overlying formations. This project will be the first storage project in Australia and the first in the world to test monitoring for storage in a depleted gas reservoir. Baseline data pertinent to geosequestration is already being acquired through the project and the research will enable a better understanding of long-term reactive transport and trapping mechanisms.

This project is being authorised under the Petroleum Act 1998 (Victoria) and research, development and demonstration provisions administered by the Environment Protection Authority (EPA) Victoria in the absence of geosequestration- specific legislation. This highlights the need for such legislation to enable commercial-scale projects to proceed. Community acceptance is a key objective for the project and a consultation plan based on social research has been put in place to gauge public understanding and build support for the technology as a viable mitigation mechanism.