Carbon capture and storage

Carbon capture and storage (CCS) is the process to remove carbon dioxide, from waste gases produced in large-scale industrial processes and permanently store it underground.

Carbon capture and reducing emissions

Carbon capture, utilisation, and storage (CCUS) is the process of capturing carbon dioxide (CO2) and either using it, or storing it to prevent it from entering the atmosphere. 

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.

CCS in New Zealand

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

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. 

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

View the full list of submissions

The Minister for Energy recently announced the next steps on an enabling framework for CCUS in New Zealand. Read Minister’s announcement:

Carbon capture one step closer(external link) — Beehive.govt.nz

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

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

New Zealand CCS Partnership

The former New Zealand CCS Partnership (whose members included the former Ministry of Economic Development, the former Ministry of Science and Innovation, Solid Energy, and the Coal Association of New Zealand) released 2 reports on the implications of CCS development in New Zealand:

CCS in New Zealand – Case studies for commercial scale plant: Final report 2010 [PDF, 6.4 MB]

CCS in New Zealand – Can carbon capture and storage deliver value to New Zealand? Summary report 2011 [PDF, 510 KB]

Participation in international forums

A number of international partnerships and organisations are working to develop CCS technology and address legal and regulatory issues. New Zealand is a member of 2 such organisations:

Last updated: 21 February 2025