The decision halts the global commodities miner’s plan to inject CO2 into underground aquifers to reduce emissions from a coal-fired power plant. The CO2 would have been stored 2.3 kilometers underground in the Surat Basin.
The Queensland Department of Environment and Science announced on May 24 that the project would not proceed due to concerns about its impact on groundwater. The proposed site is not a contained aquifer, and the CO2 “could migrate, likely causing irreversible or long-term change to groundwater quality and environmental values.”
Potential contaminants identified included chloride, sulfate, lead and arsenic, which could harm the Great Artesian Basin, a key water source for agriculture and communities in Eastern Australia.
“The Queensland government has now effectively banned carbon capture and storage projects in Queensland. It’s now up to the Queensland government to explain how it’s going to meet its emissions reductions targets,” Glencore said.
Farmers and environmental groups praised the news, highlighting the risks to one of Australia’s key water resources.
“We applaud the government’s decision but call for further federal scrutiny to ensure the protection of the Great Artesian Basin,” said a spokesperson for AgForce, a Queensland farm group.
Glencore is currently reviewing its options, including a potential appeal.
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
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