Chevron expands carbon capture and storage portfolio with new GHG permit in Australia

Chevron Corporation, through its subsidiary Chevron Australia New Ventures Pty Ltd, has secured a pivotal greenhouse gas (GHG) assessment permit offshore Western Australia, marking a significant expansion in its carbon capture and storage (CCS) initiatives. The permit, designated G-18-AP, spans approximately 8,467 square kilometers off the coast of Onslow, Western Australia. It will play a crucial role in developing a carbon storage hub, designed to accommodate emissions from third parties, including those from Chevron’s operated LNG assets.

This initiative is a joint venture with Woodside Energy Ltd., where Chevron holds a 70% stake and Woodside a 30% stake. Chevron has also agreed to farm down 5% of its equity to GS Caltex of Korea, subject to regulatory approvals, highlighting the collaborative approach required for such large-scale environmental projects.

Chris Powers, Vice President of CCUS & Emerging for Chevron New Energies, emphasized the strategic importance of this permit in expanding Chevron’s CCS portfolio, particularly in conjunction with existing projects like the Gorgon CCS facility, one of the largest globally. The Gorgon project, located on Barrow Island, has already captured over 10 million tonnes of CO2-equivalent since its inception, reinforcing Chevron’s leadership in carbon storage.

Chevron expands carbon capture portfolio with the new GHG assessment permit offshore Western Australia, enhancing its commitment to lower-carbon energy solutions.

The Australian government’s proactive stance on CCS, exemplified by recent legislative changes, aligns with Chevron’s efforts. The Amendment to the Environment Protection (Sea Dumping) Act 1981, which facilitates the transboundary movement of CO2 for geological storage, supports the broader integration of CCS in Australia’s Future Gas Strategy. This strategy recognizes the continued need for natural gas beyond 2050 and the critical role of CCS in decarbonizing the energy sector.

The G-18-AP permit is expected to contribute significantly to Australia’s emissions reduction targets, particularly in hard-to-abate sectors, and support emerging industries like hydrogen production. As Chevron builds on its CCS portfolio, this permit will likely serve as a cornerstone for future carbon storage projects in Australia, contributing to global climate change mitigation efforts.

This consolidated role for CCS in Australia underscores the growing recognition of the technology’s potential to reduce emissions, positioning Chevron to lead in deploying CCS both in Australia and globally.