Chevron’s Bold Move in Carbon Storage

Chevron, one of the world’s largest energy companies, has long been a key player in the global energy industry, and now they’re making waves in Australia’s oil and gas sector. On August 22, 2024, Chevron secured a greenhouse gas (GHG) assessment permit for a vast 8,467 km² area off the coast of Western Australia. This isn’t just any permit—it’s a crucial step in exploring offshore carbon storage, and Chevron isn’t going it alone. Their partners include Woodside Energy, a top Australian oil and gas company, and GS Caltex, a South Korean energy giant. Together, they’re at the forefront of what could be a significant breakthrough in emissions management.

What’s This Permit All About?

Let’s break it down: this GHG assessment permit gives Chevron and its partners the authority to explore specific offshore zones as potential carbon storage sites. This is particularly exciting because Australia is one of the world’s largest exporters of liquefied natural gas (LNG), a process that produces a significant amount of CO2 emissions. With this permit, Chevron is eyeing the opportunity to safely store those emissions underground, preventing it from entering the atmosphere. 

The project will focus on water depths ranging from 50 to 1,100 meters, and it’s no small feat—Chevron initially holds a 70% stake, Woodside holds 30%, and Chevron has agreed to farm down 5% of its stake to GS Caltex, pending regulatory approval. This adjustment would leave Chevron with 65%, Woodside with 30%, and GS Caltex with 5% stake.

The Bigger Picture

This isn’t Chevron’s first venture into carbon capture and storage (CCS). Their Gorgon CCS project, already operational in Australia, has successfully captured over 10 million tonnes of CO2-equivalent. That’s a massive number! To put it in perspective, that’s the equivalent of taking over 2 million cars off the road for an entire year. The hope is that this new project could expand those efforts even further. According to the International Energy Agency (IEA), reaching global net zero goals will be nearly impossible without carbon capture solutions like these.

Could This Transform the Industry? 

With projects like this, Chevron is directly addressing a critical challenge: Can carbon capture and storage (CCS) truly offset the emissions from Australia’s massive LNG industry? 

Could storing CO2 deep beneath the ocean floor help Chevron and its partners significantly reduce the environmental impact of LNG operations? The success of this project could set a new precedent—if they can safely and effectively store emissions offshore, it could drastically lower the carbon footprint of one of the world’s most emission-heavy industries. But will it be enough to make a measurable dent in global emissions, or is more aggressive action still needed across the industry?