Darwin Hub to Lower Emissions and Boost Investment

28 September 2021

The Northern Territory is positioning itself to be a global leader in low-emissions energy exports, with the announcement that a new Darwin hub to fast-track emissions reduction across Northern Australia’s energy sector will be outlined in a joint business case.  

The Northern Territory Government has partnered with Australia’s national science agency CSIRO, industry and engineering companies to develop the blueprint, which will assess the viability of a large-scale low emissions Carbon Capture Utilisation and Storage* Hub based at Middle Arm. The hub would be one of the largest multi-user, multi-access hubs globally.

The hub would ensure the Territory continues to maximise its world class energy resources, whilst preparing for economic growth, job creation, and meeting strong international market demand for low emissions energy.  

The hub would enable the development of an interconnected hydrogen industry and the utilisation of the carbon captured in other industrial processes, such as production of other non-fossil fuel alternatives for transportation.

The business case will also outline how to significantly reduce the emissions of the Territory’s gas industry providing a tangible pathway towards the net zero emissions targets set by the Territory Government and industry proponents.

With expertise in hydrogen and Carbon Capture Utilisation and Storage, CSIRO will provide impartial scientific advice, coordinate the development of detailed concept designs, build international linkages, and conduct geological research and economic and customer studies.

Industry and engineering companies who have committed to collaborating on the business case include Santos, INPEX, Woodside, Eni, Origin Energy and Xodus.

The hub would also be key in establishing the Territory’s Middle Arm Sustainable Development Precinct, which will be a globally competitive precinct for low emission petrochemicals, renewable hydrogen and minerals processing.

The Northern Territory Government will host an official signing of the collaboration agreement to develop the proposal at the South East Asia Australia Offshore & Onshore Conference (SEAAOCC) in Darwin next month.

* Carbon capture, use and storage (CCUS) is an emerging technology with the potential to reduce emissions from industrial processes including resource power plants and heavy industry. The CO2 is separated from other gases and compressed. It can then be permanently stored in underground geological formations or used to create commercial products.

Quotes from Chief Minister Michael Gunner:

“The Northern Territory is a natural fit for this investment. We are home to world-class natural gas and solar resources and subsurface carbon dioxide storage capacity, and we are on the doorstep of key international energy export markets.  

“We are always looking ahead – to future investment and job creating opportunities –we will ensure the Comeback Capital is on the front foot when it comes to low emissions economic growth and expanding industry in a net zero emissions world.

“We are committed to working to identify ways to rapidly decarbonise existing energy supplies whilst attracting future zero emission industries to the Territory.”

Quotes from CSIRO Chief Executive Dr Larry Marshall:

“As Australia’s national science agency, CSIRO is always looking for ways to bring business and government together to envision and deliver a more sustainable future for some of our largest industries.

“If the Hub proceeds it could create new jobs and export pathways, and give Australia a global advantage by pushing the boundaries of science and technology to put home-grown innovation into real world demonstration projects, particularly through our Hydrogen Industry and Towards Net Zero missions.”

Quotes from INPEX Vice President of Growth, Phil Granger:

“The INPEX-led Ichthys Joint Venture is proud to explore sustainable energy solutions through the development of the Northern Territory Low Emissions Hub Business Case. 

“Options for reducing greenhouse gas emissions from the Ichthys Field have been identified, and we look forward to progressing these in partnership with the Northern Territory Government, CSIRO and other Hub participants.”

Quotes from Santos Managing Director and CEO Kevin Gallagher:

“The Northern Territory will play a major role in the region’s uptake of carbon capture and storage, recognised by the International Energy Agency and the Intergovernmental Panel on Climate Change as a key part of the global climate change solution.

“Santos’ experience with the globally-competitive Moomba CCS project in outback South Australia and our proposed project at Bayu-Undan in Timor Leste, will bring invaluable experience to the Northern Territory and we are delighted to partner with the CSIRO, governments and industry along this decarbonisation pathway.”

Quotes from ENI:

“Eni, a founding member of the Oil and Gas Climate Initiative (OGCI), has a 2050 Scope 1, 2 and 3 net zero commitment and is a major gas and solar energy supplier to the Northern Territory.

“For Eni, the development of a CCS Hub in Darwin would be the enabler for the development of its Evans Shoal gas field. Eni is fully supportive of an NT CCS Hub that could create long term new low-carbon business opportunities for Australia and with the potential for a cross-border collaboration with neighbouring Timor-Leste.”

Quotes from Woodside Executive Vice President Sustainability Shaun Gregory:

“This collaboration has potential to progress the development of a globally significant CCUS hub in the NT.

“CCUS technology can deliver large-scale, permanent carbon sequestration and we believe there is no sector better placed to invest and deliver CCUS projects than ours.”

Quotes from Xodus Regional Director of APAC Simon Allison:

“Xodus is proud to be a collaborator in this transformational opportunity for the Australian energy industry.

“Initiatives such as the Northern Territory Low Emission CCUS Hub will ensure we are able to meet domestic and export demand for cleaner energy, while positioning the local industry for rapid decarbonisation. It is an exciting chance for Xodus to contribute to a responsible energy future.”