Solid Energy Invests in Major Pilot Project to Store CO2 Underground

New Zealand coal producer Solid Energy is investing in a $A30m Australasian project to store and monitor carbon dioxide gas in deep geological formations, as a trial greenhouse gas sequestration project.

The Cooperative Research Centre for Greenhouse Gas Technologies (CO2CRC) said the pilot research project, to be operated by the new Australian-based company, will start later this year and involve approximately 40 Australian and overseas researchers.

Solid Energy chief executive officer Don Elder, said the company's participation in this international landmark project, including about NZ$2 million to the overall CO2CRC programme, was part of its commitment to research and practical projects to reduce the environmental impacts of coal use in New Zealand.

The pilot project will simulate the capture of CO2 from a power station, transport the CO2 several kilometres by pipeline and store it 2 km underground geological storage of CO2 in western Victoria.

Over the one-to-two year period during which the CO2 is injected, scientists will monitor the behaviour of the gas in an effort to demonstrate the safety and effectiveness of the technology. The project is designed to demonstrate that CO2 capture and storage is a viable, safe and secure option for greenhouse gas abatement.

Solid Energy is a founding shareholder along with several Australian coal, oil, and gas majors, in a new company that will operate the project.

CO2 is one of the major greenhouse gases produced from fossil fuel combustion, including combustion from thermal power generation, transport, and industrial activities.

A few similar projects exist in the northern hemisphere. However, this pilot project will be the first to geologically store and monitor the CO2 before, during, and after its injection in deep geological formations.