Glencore's CTSCo project EIS prompts criticsim from producers

Spearheaded by Carbon Transport and Storage Co (CTSCo), which is a subsidiary of Glencore, the project proposes to dispose of 110 million litres of liquified CO2 per year for three years into the Surat Basin.

In December 2019, the company was given approval to test for green house gas storage in the area of the basin, known as EPQ10, and has now lodged an environmental impact statement with the Queensland government to take the next step.

If approved, the project will capture CO2 from the Millmerran Power Station via CO2 capture technology and transport it via road to an injection site in the Surat Basin west of Moonie where it will be permanently stored at depths of more than two kilometres underground.

It is understood that if successful, the project would play a key part in helping the state reach its net zero goals.

However, several producers are concerned about the project's potential impact on the basin's water, which is used for livestock by many operations.

Among those concerned is Ken Cameron, whose family has been producing pork in the region for more than 40 years and operating in the area for almost a century.

"Over the years we have faced drought, floods and everything inbetween, but there's no question this is the biggest threat our operation has ever faced," Mr Cameron said.

"I just think some of the terminology in the EIS is misleading, for example they call the water saline, which may be technically correct but it is misleading because it is more than good enough quality to use in intensive agriculture for livestock.

"We are successfully using water now from other aquifers that is more saline and has more fluoride in it than the precipice they are proposing to inject CO2 into.

"To me, it is just insanity to pump waste into the Great Artesian Basin because of its importance to large parts of the country."

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Earth Search principal hydrogeologist Ned Hamer echoed Mr Cameron's sentiments saying he believed the proposed project was not in a suitable location.

"It is understandable that Glencore would be looking at a project like this but in my professional opinion they have picked the wrong geological formation and area. The Precipice Sandstone is a valuable aquifer at the injection site and throughout much of the Surat Basin," Mr Hamer said.

"In my professional opinion, I don't think it should have gone this far and it should have been knocked on the head because the water quality of the site is useable for other purposes, such as livestock and the aquifer, existing water users and dependant ecosystems are protected by existing legislation.

"Within the EIS, the company uses a lot of misleading terminology to suggest that quality of the water means it is not fit for any other purpose, but that is wrong and our submission will present the facts to prove that."

Mr Hamer said that as far as he knew, that while "there is plenty of carbon capture and storage projects going on globally with mixed success" this was the only project he was aware of that was targeting direct injection into an aquifer that's used for water supply.

"I think that is where this project is a bit different to others globally and a bit off the mark in terms of disposing of CO2 while minimising the affects on other users of the aquifer as a valuable water resource," he said.

"There seems to be an overlapping and conflicting interest in that formation and they should have picked another one that was far more saline, deeper and further west where there is a lot more thickness of sedimentary basin to explore."

In response to producers' concerns, a CTSCo spokesperson said the project was "not anticipated to impact on existing water bores or the operations of local livestock producers".

"There are currently no water bores accessing the sandstone targeted by CTSCo within the EPQ10 permit area due to the 2.3km depth and low quality of the water," the spokesperson said.

"The closest bores that extract water from the same sandstone are more than 30km away within the Moonie oil field. CTSCo's injection well contains multiple physical barriers to ensure the shallower aquifers used by local producers are protected.

"The proposed injection testing project also includes extensive monitoring to ensure the stored carbon dioxide remains in place and does not impact local livestock operations or the shallower aquifers containing high quality water.

"CTSCo has met with a number of local livestock producers who have bores extracting water from shallower aquifers to detail how the project will protect their water resources."

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In a statement released by the CTSCo when the EIS was made public, the project's director Darren Greer said consultation with landholders and stakeholders would continue during the approvals process.

"Over the last few years, CTSCo has been engaging with the local community and key stakeholders and we are grateful for their input. Their feedback has led to several important changes and improvements including to the location of our storage site, transportation of CO2 and location of onsite infrastructure," Mr Greer said.

"CTSCo has the potential to be a material step toward an integrated CCUS hub in the Surat Basin, with emissions from multiple power generators and other industrial sources - including gas, hydrogen, cement, and chemicals - capable of being captured and safely stored."

The EIS is currently on public display via the CTSCo website and the public can make submissions to the Department of Environment and Science regarding the project until February 23.

Queensland Environment Minister Meaghan Scanlon said a comprehensive EIS was required for the project, which would then undergo an independent assessment.