Why Did the South Australian Government Approve a Carbon Capture Exploration License in the Arckaringa Basin Despite Federal Warnings?
Posted on: 2025-01-23 10:36:36
In a move that raises serious environmental and governance concerns, the South Australian Department of Energy and Mining, under Mr. Benjamin Zammit, recently issued exploration licenses to CCS Arckaringa Pty Ltd for petroleum exploration licenses (PELs) 121, 122, and 123. This decision is deeply troubling, given that the Arckaringa Basin is closely linked to the Great Artesian Basin (GAB), Australia’s largest and most critical groundwater resource. This comes despite a federal government recommendation for a blanket ban on carbon capture and storage (CCS) projects within the GAB due to significant environmental risks.
A Federal Recommendation Ignored
In 2024, the Senate Environment and Communications References Committee delivered a damning inquiry report into Glencore’s proposed CCS project in Queensland’s Surat Basin, a sub-basin of the GAB. The inquiry highlighted numerous risks associated with CCS activities, including groundwater acidification, heavy metal mobilisation, and irreversible damage to aquifers. It also noted that CCS technology has historically struggled to operate at scale and is fraught with technical failures and inefficiencies.
As a result, the Queensland Government legislated a statewide ban on CCS projects in the GAB, citing the basin's strategic importance for water security across drought-prone regions. If the risks of CCS are too great for Queensland, why is South Australia taking such a gamble with the Arckaringa Basin, which is also hydrologically linked to the GAB?
What Are CCS Arckaringa’s Intentions?
The very name of the company—CCS Arckaringa Pty Ltd—leaves little to the imagination. It is clear that their primary focus is carbon capture and storage. So why did the South Australian government grant exploration licenses to a company whose activities could jeopardize the water quality and sustainability of a basin that supports agriculture, regional communities, and biodiversity? This decision appears to disregard the warnings outlined in the federal inquiry.
Lack of Transparency and Accountability
The decision-making process behind these licenses also raises questions about transparency and stakeholder engagement. Were Indigenous landholders, farmers, and environmental groups consulted? Did the Department of Energy and Mining thoroughly assess the potential risks to groundwater, as required under environmental law? Given the dire consequences of CCS failures, South Australians deserve to know whether these considerations were properly weighed.
Environmental and Socioeconomic Impacts
The Arckaringa Basin, much like the GAB, is a lifeline for agriculture and regional communities in South Australia. Any contamination or degradation of this resource would have catastrophic consequences for farmers, businesses, and ecosystems dependent on clean, sustainable groundwater. Moreover, approving CCS projects in such sensitive areas sets a dangerous precedent for future proposals, undermining efforts to protect Australia’s precious water resources.
South Australia’s Role in Climate Mitigation: At What Cost?
Proponents of CCS often frame the technology as a key tool in Australia’s climate change mitigation strategy. However, the federal inquiry revealed that CCS projects have consistently underperformed and are plagued by high costs and technical failures. Worse still, many CCS projects are tied to fossil fuel companies seeking to extend the life of their coal and gas operations. Is South Australia genuinely pursuing climate solutions, or is this just another case of greenwashing?
Demanding Answers
Mr. Zammit and the South Australian government owe the public an explanation. Why were these licenses issued despite the clear risks? How does this align with federal recommendations and environmental protection laws? Most importantly, what safeguards are in place to ensure that CCS activities do not harm the Arckaringa Basin and the communities that depend on it?
South Australians cannot afford to remain silent. The government must prioritise the protection of critical water resources over the interests of corporations with dubious environmental track records. It is time to hold decision-makers accountable before irreversible damage is done to one of Australia’s most vital natural assets.
Author: Jason Wright