Projects under the carbon capture and storage (CCS) method can earn Australian carbon credit units (ACCUs) by transporting and permanently storing greenhouse gases underground.
When to use this method
The CCS method may be suitable for your business if you can reduce emissions and permanently store them underground from:
- industrial processes
- oil and gas activities.
You can find out more about the CCS method and project requirements by referring to our full CCS method guide.
Legislation
Before you plan or register your project, make sure you read and understand the legislative requirements and the method.
Eligibility
To be eligible, all CCS projects must have a new greenhouse gas source. This includes greenhouse gases that are:
- generated from a new capture point of an industrial process
- extracted from a hydrocarbon field.
You must submit a CCS project plan when registering your project. It should include:
- all the project's capture points, pipelines, processing units, and injection points
- characteristics and operation of the storage site including monitoring and reporting activities
- how the longer-term risk of abatement reversal from the storage site will be managed
- information about any workplace health and safety plan covering the operation that is required.
This method has a substitute newness requirement. Projects under this method can be eligible if they use existing capture points to store greenhouse gases extracted from a new oil or gas field.
You must meet all other general eligibility requirements for the Australian Carbon Credit Unit (ACCU) Scheme.
Relevant legislation
- Part 3 of the Act
- Part 3 of the method
Projects at safeguard facilities
Safeguard facilities must meet specific eligibility criteria to run new ACCU Scheme projects or activities.
Exclusions
The CCS method excludes:
- activities with the effect of enhanced oil or gas recovery
- storage of carbon dioxide captured via direct air capture technologies.
Relevant legislation
- Section 7 of the method
Method requirements
Project activities
CCS project activities must capture greenhouse gases and inject them for permanent underground storage.
Industrial process emissions can be captured from:
- plants
- buildings
- equipment.
For the oil and gas industry, a new source of greenhouse gases can also be a hydrocarbon field if it hasn't previously been a source of greenhouse gases for a CCS method project.
Your project activities require:
- detailed assessments and technical specifications of the proposed reservoir including estimated storage capacity and ability to be used to permanently store injected greenhouse gases
- conditions to be attached to the recognised licence about the greenhouse gases to be injected. This includes technical specifications of the:
- composition
- injection rate
- volume of greenhouse gases
- monitoring and reporting of greenhouse gases stored
- assessments of the likelihood of greenhouse gas loss and potential migration paths of injected greenhouse gases
- risks of greenhouse gas loss from the reservoir to public health and the surrounding environment identified in a detailed assessment
- developed mitigation and management strategies implemented to address identified risks
- regular reviews and reporting.
These activity requirements ensure projects operate under:
- the Commonwealth's Offshore Petroleum and Greenhouse Gas Storage Act 2006
- a law recognised by a state or territory
- a legislative framework recognised by a state or territory.
Relevant legislation
- Part 2 and Part 3 of the method
25 years.
The method also allows up to 5 years between project registration and the crediting period.
Relevant legislation
- Part 5 of the Act
- Section 12, part 3 of the method
- Section 66D of the rule
Abatement is calculated by working out the net abatement amount. This is the amount of relevant greenhouse gases captured and then reduced by:
- project emissions
- methane captured that would be oxidised without your project
- a 3% buffer withheld in case of reversed abatement.
Your project may apply for the return of withheld ACCUs when the:
- project site is closed and injection ceases
- site operating licence surrender to the appropriate regulatory body
- regulatory body is satisfied that greenhouse gases are permanently stored.
Refunded ACCUs are reduced for any storage site fugitive and monitoring emissions that occur since the end of the crediting period.
You have 25 years from the end of the crediting period to apply for withheld ACCUs.
Withheld ACCUs can't be applied for if the site isn’t closed by this time.
Relevant legislation
- Part 4 of the method
- Section 6 of the rule
You must monitor and verify that underground storage of project emissions remains secure. This includes monitoring wells and undertaking seismic surveys.
You must remember to also meet general monitoring requirements of the Act.
Relevant legislation
- Part 17 of the Act
- Division 3 of the method
Reporting requirements apply to:
- the crediting period (25 years)
- the extended accounting period (up to 25 years after the crediting period, unless the site's closed sooner by a regulatory body).
Your report must include:
- a description of how abatement is calculated, including the capture-related emissions
- any material changes to project operations or project locations, including where the project operates differently from what's in the project plan
- a description of any additional regulatory approvals required for changes
- any storage site fugitive emissions that occurred during the reporting period
- any changes to the behaviour of the greenhouse gases in the storage site that could increase the risk of fugitive emissions being released during the extended accounting period.
Relevant legislation
- Part 6 of the Act
- Part 6 of the rule
- Part 5 of the method
We provide you with an audit schedule when your project's declared.
You must provide audit reports according to this schedule.
We schedule at least 3 audits and additional audits can be triggered.
For more information on audit requirements, refer to our audit information.
Relevant legislation
- Part 19 of the Act
- Part 19 of the rule
Documents and resources
- Carbon capture and storage method - simple method guide
- NGER Measurement Determination
- Department of Climate Change, Energy, the Environment and Water's CCS method page