Australia opens carbon refinery as industries seek new uses for Captured Emissions

Australia's first carbon refinery has opened its doors, signalling a new approach to industrial emissions management that transforms captured CO2 into products that feed manufacturing and construction supply chains.

The Myrtle facility in Newcastle, NSW, captures emissions from Orica's ammonia production operations at Kooragang Island and uses it to create mineral-based products for use in cement, paper and glass production. Owned and operated by MCi Carbon, the facility is its first commercial-scale demonstration refinery.

The site is able to process up to 2,500 tonnes of carbon dioxide per year. Instead of sequestering emissions underground, the refinery uses mineral carbonation technology to 'lock in' the carbon to solid materials for use in industrial products.

Carbon Utilisation Attracts Global Investment

The launch of Australia’s first carbon refinery comes amid efforts by governments and manufacturers to find new ways to tackle emissions from hard-to-abate sectors such as cement, chemicals, steel and fertilisers.

According to the International Energy Agency, current carbon capture, utilisation and storage (CCUS) facilities capture over 50 million tonnes of CO2 globally each year and more than 700 projects are currently under development worldwide as companies and governments seek to find commercial uses for captured CO2.

Australia joins a global trend toward carbon utilisation projects in the US, Canada, China and across Europe.While many carbon capture projects aim to store emissions underground, there is a growing trend in the sector to find ways to convert emissions into usable products for industrial supply chains.

Moving to Austria for Larger Project

MCi Carbon says the Newcastle facility will be used to demonstrate to industrial customers and technology partners. However, the company is also developing a larger facility in Austria that will be able to process up to 50,000 tonnes of CO2 per year.

Last year, MCi Carbon secured a US$5 million investment from Mitsubishi UBE Cement Corporation as part of a funding round totalling more than US$20 million, placing the company’s valuation at over US$200 million, supported by a consortium of Japanese financial and industrial groups.

Australia’s Climate Change and Energy Minister Chris Bowen attended the opening of the facility which was built amid the nation’s plans to reduce carbon emissions to between 62 and 70 per cent of 2005 levels by 2035, with Australian carbon emissions sitting close to 400 million tonnes a year.

For manufacturers, investors and governments the launch signals a growing push to build commercial markets for captured carbon in addition to broader efforts to reduce emissions.

Source: Reuters

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