According to Wood Mackenzie, Australia has an AU$600 billion (around US$400B) opportunity to become a leader in carbon capture and storage (CCS) in the Asia-Pacific region.
The country’s geological CO2 storage capacity far exceeds its domestic needs, creating an opportunity to store emissions from key trading partners like Japan and South Korea, which lack sufficient storage options. This could generate significant revenue by charging fees for transporting and storing CO2.
CCS is Pivotal For Australia’s Net Zero Goal
Earlier this year, Wood Mackenzie reported that 2024 will be a strong year for CCS or CCUS. The research company estimated that global CCUS capacity will grow from 80 metric ton per annum (Mtpa) to more than 500 Mtpa.
CCS can support countries in their energy transition by tackling emissions in hard-to-abate sectors. In Australia, industries like steel, cement, aviation, and agriculture contribute up to one fifth of greenhouse gas emissions.
To meet our net zero targets, advanced modelling suggests that Australia needs to be capturing and storing at least 80 million tonnes of CO2 each year by 2035. There are between 18 and 27 CCS projects currently in development or operation in Australia.
Earlier this year, work began on a major CCS hub off the coast off Darwin, while another set to be capturing and storing carbon from industry in the Gippsland Basin soon. Most notable is the Gorgon Project in Western Australia. With a projected lifetime storage capacity of 120 million tonnes, it is the largest operational CCS project on the planet.
In their recent report, Stephanie Chiang, a research analyst at Wood Mackenzie, estimates that opening Australia’s excess storage capacity to regional emitters could generate US$325–385 billion in revenue, assuming a transport and storage fee of US$33–39 per ton of CO2.
CCS offers the dual benefit of reducing emissions and creating new jobs and industries. The Australian Energy Producers Conference highlights CCS as pivotal for Australia’s net zero ambitions.
Samantha McCulloch, Chief Executive of Australian Energy Producers, highlights the significant economic and emissions reduction opportunities presented by CCS, calling for a national CCS roadmap. She noted that:
“Australia knows how to be a resources and energy powerhouse and has built a gas industry that is the envy of the world. Now it can become a decarbonization powerhouse.”
The 2024 Australian Energy Producers Conference & Exhibition in Perth will feature the release of the Australian Energy Producers Journal. This includes insights from Wood Mackenzie about Australia’s potential AU$600 billion CCS industry.
According to Wood Mackenzie, Australia’s vast CO2 storage capacity can serve regional emitters like Japan and South Korea, which lack sufficient storage. This could generate substantial revenue by charging for CO2 transport and storage.
Policy and Industry Support for CCS in Australia
The Energy News Bulletin (ENB) CCS Report 2024 highlights CCS as a critical solution for Australia’s decarbonization efforts, noting that policymakers in advanced economies, including Australia, are committed to achieving net zero emissions.
However, ENB criticizes the Australian government for not prioritizing CCS implementation as urgently as Northern America and Western Europe. The report examines CCS’s status and potential in Australia, comparing it with other regions.
Energy companies like Woodside Energy and Santos face criticism from climate activists. However, ENB emphasizes that significant progress is being made to reduce emissions intensity. And CCS could be pivotal in achieving net zero goals while continuing hydrocarbon production.
However, Australia needs to develop comprehensive regulations for CCS and provide stronger government support and a clear industry roadmap. This would attract investors and solidify Australia’s position as a carbon storage hub.
Recent Australian laws permit international CO2 transport and offshore storage, and the 2024-25 Federal Budget allocated AU$32.6 million to support regional cooperation and establish necessary regulations.
Pilot Energy and International Collaboration in CCS
In related news, Pilot Energy, an Australian company, will host a Korean delegation on May 23 at its Mid West Clean Energy Project (MWCEP) near Geraldton, Western Australia, with support from Austrade.
The visit coincides with the Australia-Korea CCUS Industry Seminar in Perth and reflects strong Korean interest in CCS. This carbon removal technology will help achieve South Korea’s net zero goals.
This visit follows significant policy advancements in Australia’s CCS industry. Recently, Northern Australia’s Resources Minister Madeleine King announced that more greenhouse gas acreage would be available for CCS as part of the Albanese government’s Future Gas Strategy. Additionally, the government committed AU$566 million to new offshore mapping programs to identify CCS and clean hydrogen project sites.
Pilot Energy’s MWCEP plans to repurpose the depleted Cliff Head offshore oil field into a permanent CO2 storage facility. The initiative will start in 2026, with a capacity to store over 1 million tonnes of CO2 annually.
As Australia advances its CCS capabilities, it can leverage its resource expertise to become a decarbonization powerhouse, becoming a leader within the Asia-Pacific region.
The post Australia Has A US$400B Carbon Capture Opportunity, Wood Mackenzie Says appeared first on Carbon Credits.
The uranium price has continued its upward trajectory this week, climbing to 85.67 USD. This represents a solid 2.19% gain over the last seven days and extends the year-to-date performance to a 5.09% increase. After a period of consolidation, the market is witnessing renewed momentum driven by the converging forces of a widening supply deficit and escalating energy demands from the technology sector.
Uranium Price
Market Drivers for the Uranium Price
The primary catalyst behind the recent movement is the intensifying focus on nuclear energy as a critical solution for powering artificial intelligence (AI) infrastructure. As data centers expand globally, tech giants are increasingly seeking reliable, carbon-free baseload power, prompting a reassessment of long-term demand. Recent reports indicate that major utilities are accelerating their contracting cycles to secure fuel inventory, anticipating a squeeze as new reactors come online in Asia and dormant facilities restart in Japan.
On the supply side, geopolitical friction continues to tighten the market. Persistent restrictions on Russian nuclear fuel imports have forced Western utilities to pivot toward alternative suppliers, creating bottlenecks in conversion and enrichment services. Additionally, recent activity from physical funds—most notably a reported purchase of 100,000 pounds of yellowcake by Sprott—has removed spot inventory, adding immediate upward pressure to the uranium price.
Technical Outlook
Technically, uranium has firmly established support above the psychological $80 level. The breakout above $85 signals bullish sentiment, with analysts eyeing the $90 mark as the next key resistance zone. The 30-day movement of 8.27% suggests that buyers are stepping in aggressively on dips, reinforcing a strong uptrend. If the price can sustain a close above $86, it may open the door for a retest of the cyclical highs seen in previous years. However, investors should remain attentive to upcoming production reports from major miners like Kazatomprom and Cameco, which could introduce short-term volatility.
The post Uranium Price Today: AI Power Demand and Supply Deficits Fuel Rally appeared first on Carbon Credits.
The Lithium Price surged to a fresh two-year high today, closing at 170,999.81 CNY per tonne. This marks a significant 7.55% gain over the last seven days and extends a powerful year-to-date rally of 44.38%. After a prolonged period of consolidation, the battery metal has broken critical resistance levels, driven by a convergence of aggressive policy shifts in China and renewed supply constraints.
Lithium Price
Market Drivers for the Lithium Price Rally
The primary catalyst for this week’s 7.55% move is the sudden tightening of supply in China’s Jiangxi province. Authorities have canceled 27 mining permits in the hub as part of an environmental "anti-involution" campaign, effectively removing significant feedstock from the market. This supply shock coincided with Beijing’s announcement that export tax rebates for battery products will be cut from 9% to 6% starting in April. This policy shift has triggered a massive "front-running" effect, with manufacturers rushing to secure raw materials and export finished goods before the deadline.
Adding fuel to the fire, industry giant CATL reportedly placed a massive $17.2 billion order for cathode materials earlier this week. This demand signal has forced downstream players to cover spot positions aggressively, exacerbating the squeeze created by the Jiangxi permit cancellations.
Technical Outlook
Technically, the Lithium Price has staged a decisive breakout above the psychological 170,000 CNY level. The 30-day movement of 71.86% suggests the market is in a steep markup phase, fueled by short covering and panic buying. Momentum indicators are currently in overbought territory, but the fundamental supply deficits suggest support remains strong at the 155,000 CNY breakout zone. If the rally sustains, the next key resistance target lies near 200,000 CNY, a level not seen since the market began its correction two years ago.
The post Lithium Price Today: China’s Supply Crackdown and Tax Overhaul Fuel 7% Rally appeared first on Carbon Credits.
The Lithium price continued its explosive start to 2026, surging to 170,999.81 CNY per tonne on Friday. The battery metal has posted a remarkable 7.55% gain over the last seven days alone, extending a massive 71.86% rally over the past month. Year-to-date, lithium prices are up 44.38%, marking a definitive reversal from the surpluses that plagued the market in previous years.
Lithium Price
Market Drivers
Two primary factors are fueling the current rally: a surge in utility-scale energy storage demand and sudden supply constraints in China’s mining hubs.
- Energy Storage Demand Spike: While EV sales remain steady, the demand for lithium iron phosphate (LFP) batteries in energy storage systems (ESS) has outperformed expectations. Analysts forecast a 55% growth in ESS installations for 2026, driven by Beijing’s mandate to double EV charging capacity and grid storage infrastructure by 2027.
- Jiangxi Supply Crunch: On the supply side, Chinese authorities recently canceled 27 mining permits in the lithium hub of Jiangxi as part of an environmental crackdown. This follows the suspension of operations at CATL’s Jianxiawo mine, effectively removing significant monthly tonnage from the market just as downstream battery makers rush to restock ahead of reduced export rebates.
Technical Outlook
Technically, the Lithium price has decisively broken through the psychological resistance level of 150,000 CNY. The steep vertical ascent suggests intense buying pressure, likely exacerbated by short covering from traders who were positioned for a surplus. With the price now firmly establishing support above 160,000 CNY, market participants are eyeing the 200,000 CNY level as the next major target. However, the Relative Strength Index (RSI) indicates the metal is in overbought territory, suggesting potential volatility in the short term as the market digests these rapid gains.
The post Lithium Price Today: Energy Storage Boom and Supply Cuts Ignite 71% Rally appeared first on Carbon Credits.
Uranium Price Today: AI Power Demand and Supply Deficits Fuel Rally
Lithium Price Today: China’s Supply Crackdown and Tax Overhaul Fuel 7% Rally
Lithium Price Today: Energy Storage Boom and Supply Cuts Ignite 71% Rally
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