Yesterday's confirmation of financial support for CCS by the...

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01/10/21

10:33

Post #: 56492517
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Originally posted by alecfra: ↑

more details here
The Minerals Council of Australia – which represents major resources companies including BHP, Rio Tinto and Whitehaven Coal – has endorsed a net-zero by 2050 target as the Morrison government accelerates funding for carbon-capture and storage to reduce emissions on resources projects. MCA chief executive Tania Constable said the sector had brought forward its previous ambition to achieve net-zero in the second half of the century, which was in line with the Paris Agreement. Ms Constable said CCS technology would be essential for the mining sector to achieve carbon neutrality by 2050, saying there would still be a bright future for coal exports in a decarbonising world. “It is a target. We have now set a date,” she said.
CCS technology captures the carbon emissions of projects and stores it in the ground, ensuring the element does not enter the atmosphere and contribute to global warming. On Friday, Energy Minister Angus Taylor will unveil an expansion of the Emissions Reduction Fund and make CCS projects eligible for trading credits.
Each tradeable credit is distributed by the government for a tonne of carbon emissions avoided, with its holders able to sell them on the market for a profit. Large-scale carbon capture and storage projects will be added to the carbon credit system. From next year, tradeable credits will be extended to electric vehicle charging stations, hydrogen, integrated farming and fire management. Mr Taylor said CCS would help create blue hydrogen using coal and gas. He said it would enable Australia to “scale up” gas production. “The new ERF method will incentive emissions reductions from a range of energy-intensive sectors including LNG production, which currently accounts for around 10 per cent of Australia’s emissions,” Mr Taylor said. “Our north Asian trading partners are relying on gas to reduce their emissions and provide affordable and reliable energy to power their economies. “This world-first, government-developed method will position Australia to scale up clean LNG production and make use of our abundant geological storage potential.” On Thursday, Mr Taylor announced a $250m investment in a CCS Hubs and Technologies Program to “turbocharge” development of the technology

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Yesterday's confirmation of financial support for CCS by the Energy Minister is significant for HXG, as long as they are in the frame. We of course don't know what dialogue is going on between HXG and the government other than they have confirmed they are having conversations. It would be interesting to see if anyone out there has a feel for how many other potential Blue Hydrogen projects HXG may be competing against for a grant.

It would be nice to hear some feedback on this announcement from HXG management and how they intend to leverage off it. Or even just a hint of how much they are in the frame.

HXG Price at posting: 7.5¢ Sentiment: Buy Disclosure: Held
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