Swiss Glencore’s carbon plan faces Australian farmer opposition

Swiss commodities giant Glencore is seeking approval for a three-year, A$210 million ($135 million) pilot project to bury 330,000 metric tons of CO2 from a coal-fired power plant in Queensland, Australia’s largest aquifer, as reported by Reuters on Monday.

The project, seen as a crucial test case for onshore carbon capture and storage (CCS) in Australia, has sparked controversy, with farm groups warning it could poison water supplies in the Great Artesian Basin.

The project, managed by Glencore subsidiary Carbon Transport and Storage Corporation, has received A$10 million each from Japan’s Marubeni Corp. and J-POWER in 2022. Glencore spokesperson Francis De Rosa defended the plan, stating it is based on robust data and analysis and that CO2 is unlikely to spread significantly.

However, farm groups, including the AgForce farm association, argue that the acidic CO2 could release and spread toxic substances like lead and arsenic in the groundwater network. Queensland’s Premier, Steven Miles, also expressed scepticism about the project at a recent beef industry conference.

The Queensland government is set to decide by the end of May on Glencore’s environmental impact assessment. If approved, the project would capture 2 per cent of the emissions of the Millmerran power plant, potentially rising to 90 per cent in the future. Australia currently has one active CCS project, two under construction, and 14 in development.