About carbon sequestration

The term carbon sequestration is used to differentiate from greenhouse gas storage under the Greenhouse Gas Storage Act 2009 (GHG Act).

Carbon sequestration describes the process of artificially removing or capturing carbon dioxide (CO₂) from the atmosphere and preventing from returning to the atmosphere through biological, geological or technological storage means.

Projects utilising emerging technologies resulting in carbon sequestration that require chemical reactions as part of the production process will be considered on a case-by-case basis.

The GHG Act does not provide for emerging technologies regarding carbon capture and utilisation. A summary of how the regulatory framework is applied is provided below.

Gas injected for oil extraction

This method involves CO₂ being injected into a reservoir as part of the recovery of secondary gas or petroleum, and the CO₂ may remain in a petroleum reservoir once production ceases.

Injecting a greenhouse gas stream for the purpose of enhanced petroleum recovery is authorised under the Petroleum Act 1923 Act or the Petroleum and Gas (Production and Safety) Act 2004. It is not greenhouse gas storage under the GHG Act.

In-situ carbon sequestration

Mineral carbonation is a process whereby substances (including CO₂) are injected into certain rocks that result in the CO₂ being converted into mineral that can then be mined. Authority to undertake activities to identify rock formations can be conducted under either the Mineral Resources Act 1989 (MR Act) or GHG Act.

To progress to a higher tenure will depend on the outcome of the exploration phase. Projects will be considered on a case-by-case basis to address the specific circumstances of the proposed project.

Non-in-situ carbon sequestration

A mining lease granted under the MR Act is required when a project involves mining minerals that are subjected to carbon sequestration processes after extraction. For clarity, in this scenario the carbon sequestration occurs as part of an industrial process post-mining.

Salt caverns

Salt caverns formed out of existing salt bed deposits have been identified as having potential for CO₂ storage. An exploration permit under the MR Act may be granted for the purposes of exploring for potential salt mineralisation if the intent is to extract salt in the future.

However, any cavity subsequently formed from salt mining would require a greenhouse gas storage authority under the GHG Act to explore the suitability of the geological storage formations or to conduct activities necessary to confirm the integrity of the formation.

Overlapping resource authorities

Where it is not possible to transition between different types of resource authorities, the overlapping provisions of the resource Acts allow for multiple resource authority types over the same area at the same time.

If a resource proponent is considering the viability of CO₂ storage, an expression of interest may be made to the Minister to consider the release of land. Proponents should be aware that expressing an interest in land does not guarantee that the proponent will be granted a tenure following the completion of the tender process.

Also consider...

• Read our guide to the application process for resource authorities for general information about lodging an application.
• Find out how to comply with your resource authority and the land access code.
• Find out more about greenhouse gases.
• Learn about current global carbon capture and storage projects.