Carbon Capture and Storage recommended by gas regulator

Carbon capture, utilisation and storage (CCUS) can substantially decarbonise gas production and provides an option to decarbonise some ‘hard to abate’ industrial sectors, the Gas Industry Company (GIC) says in its recently released briefing for incoming ministers.

It says emissions capture is technically and economically viable and is ready to begin in the mid-2020s.

“Emissions capture is mature, safe, and stores carbon better than alternatives such as forests.”

However, the GIC goes on to say a lack of regulations allowing CCUS is a major barrier to the future of the gas industry.

CCUS “is made economic by allowing operators to avoid the carbon price”, the GIC says.

“Reform is required to allow access to the economic opportunity.”

The GIC quotes the International Energy Agency’s report on CCUS in 2020 which says “Reaching net zero will be virtually impossible without CCUS”.

GIC believes at least two CCS projects are technically viable in New Zealand today – the offshore Maui East gas field and the onshore Kapuni field.

According to analysis from Wood Beca, commissioned by GIC, these fields could start operating capture-and-storage plant as early as 2027.

GIC says a national policy statement for capture and sequestration under the Resource Management Act is needed, which it says could be done in about a year.