Australia’s first carbon capture plant will continue to be constructed, despite significant funding cuts in the federal budget.
The Federal Government is cutting $460 million from the Carbon Capture and Storage Flagships scheme, which co-funded the Callide Oxyfuel demonstration carbon capture plant near Biloela, in Central Queensland.
The project by Callide Oxyfuel are choosing to continue with the $245 million plant, as most of the government funding designated for the project had already been received.
Callide Oxyfuel representatives said the company has already received most of its funding from the program and will not be affected by the budget.
The carbon capture scheme, which the Callide Oxyfuel project seeks to demonstrate, uses oxyfuel technology, combusting coal in a boiler using oxygen and exhaust gases rather than regular air. This results in a concentrated, purified and compressed stream of liquid CO2.
This form can be transported or piped safely underground for storage, known as a geosequestration or a “carbon sink”.
Without the technologies of carbon capture and storage flagships, the coal industry could face a potential stalemate.
