Carbon capture, utilisation and storage

CCUS in New Zealand 

CCUS is in its very early stages of development in New Zealand. 

Current uses of CCUS in New Zealand include production of industrial CO₂ for use in industrial processes and products, and reinjection of CO₂ in geothermal electricity generation. 

Carbon capture and storage (CCS), where CO₂ is injected into suitable geologic formations deep underground, is internationally recognised as an important part of the portfolio of options to reduce net greenhouse gas emissions. It has the potential to reduce the cost of meeting New Zealand’s emissions budgets, support emissions reduction in hard-to-abate industries and contribute to energy security by reducing the cost of gas production. 

The steps involved in CCS

There are 4 main steps involved in the CCS process: capture, transportation, injection and storage.

Capture

CO₂ is captured from large, single point sources, such as electricity generation plants and industrial processing plants, such as cement or steel production. There are different ways to capture the CO₂:

• Post-combustion capture where CO₂ is captured after the fuel has been burned, as in a typical thermal electricity plant.
• Pre-combustion capture where the fuel source is oxidised to produce syngas which can then be used in a variety of processes.
• Oxyfuel combustion where thermal fuel is burned in pure oxygen, rather than air, to produce an emission stream of virtually pure CO₂ and water vapour.

Transportation

CO₂ is moved by pipelines or ship from its source to a storage site.

Injection

CO₂ is injected through drilled wells into suitable geological formations. Stringent assessment criteria would be applied to find suitable sites, covering aspects such as:

• onshore or offshore locations
• capping layers above the geological formation
• porosity and depth of the geological formation
• seismicity of the area
• any previous intensive exploration and drilling activity.

Storage

CO₂ is stored long term in suitable geological formations such as:

• depleted oil and gas reservoirs
• coal seams that cannot be mined
• deep saline aquifers.

Developing a CCS regulatory regime

The Government is looking to enable a level playing field for emissions reductions and removals technology in New Zealand, by putting in place settings for businesses to choose to deploy CCS, if it is commercially viable to do so. 

If deployed, CCS could reduce the cost of meeting New Zealand’s climate commitments, support emissions reduction in hard-to-abate industries and contribute towards energy security by reducing the cost of gas production. 

Enabling CCUS is included as a key action in the Government’s second Emissions Reduction Plan (ERP2).

Second emissions reduction plan released(external link) — Ministry for the Environment

A public consultation on the Proposed regulatory regime for Carbon Capture, Utilisation and Storage took place between July and August 2024.  

Documents relating to CCUS consultation and subsequent Cabinet papers