Commonwealth Minister for Resources and Energy, Martin Ferguson, and the Victorian Minister for Energy and Resources, Michael O’Brien, announced the Australian and Victorian Governments will collectively provide $100 million towards the development of Victoria’s first carbon capture and storage (CCS) project – CarbonNet.
A combined funding of $100 million ($70 million from the Commonwealth and $30 million from the Victorian Government) will support feasibility work as part of the $1 billion plus CarbonNet.
CarbonNet is the second project selected for funding under the Australian Government’s Carbon Capture and Storage Flagships program. The project aims to capture carbon emissions from power plants, industrial processes and new coal-based industries in the Latrobe Valley, storing it in geological basins.
Minister Ferguson said clean energy innovation like this could help power stations cut their emissions while continuing to secure the economic prosperity of the region.
“Investment in CCS is part of the Commonwealth’s suite of support for a range of clean energy technologies designed to reduce greenhouse gas emissions over time,” Minister Ferguson said.
“The economic base of the Latrobe valley depends on brown coal and while the Government is committed to cutting CO2 emissions, the last thing we want to do is cut jobs in the process.
“Projects like CarbonNet will help shape a new economic future for this critical region.”
Minister O’Brien said the Gippsland Region was one of Australia’s most promising carbon storage sites.