A CONSORTIUM that includes BHP and Chevron Australia has identified Australia as one of five first-of-their-kind carbon capture, utilisation and storage (CCUS) hubs in the Asian region.
The group launched a pre-feasibility study in August 2025 and has assessed over 3,000 site locations for the capture, transport, and long-term storage of carbon dioxide emissions (CO₂) from hard-to-abate sectors, including steel, cement and chemicals.
The consortium, which also comprises leading steelmakers ArcelorMittal Nippon Steel India, JSW Steel, Hyundai Steel Company, plus Mitsui & Co., Ltd and three new partners. “K” Line, Kobe Steel and LETA, says it is deepening the study’s input across the value chain and expand the scale of the opportunity geographically.
Specifically, “K” Line joins as the strategic expert in shipping technology for carbon dioxide, Kobe Steel brings deep technical steelmaking experience and abatement commitments, and LETA provides industry-leading expertise on global lower-emissions technologies.
Phase 1 of the project narrowed the field to five hubs located in India (two hubs), Indonesia, Malaysia, and Australia – each selected for their potential performance across the full CCUS value chain, including capture, aggregation, transport, export to storage, utilisation approaches including technology and commercial readiness and market evaluation, and the policy and commercial conditions needed for deployment.
The five hubs were chosen on the basis of them providing a diverse set of characteristics, helping the study examine important trade-offs, shape the CCUS development pathway, and pinpoint the practical steps required for feasibility. The selected hubs represent regional and international locations and include both onshore and offshore storage, the consortium says.
The findings to date demonstrate that regardless which hub is selected, strong policy support, targeted incentives, and clear regulatory frameworks are critical to making CCUS commercially viable.
Phase 2 of the study will undertake detailed engineering and commercial analysis of the five shortlisted hubs.
This includes maturing engineering definition and developing potential implementation roadmaps to address key opportunities and challenges. The work will culminate in conceptual development plans outlining the business case, value chain design, CO₂ forecasts, and potential pathways to abatement realisation for each hub.
By leveraging shared infrastructure and economies of scale, the study seeks potential applications for captured CO₂ in industrial processes, or transport captured CO₂ via pipeline or shipping to storage sites. The CCUS Hub Study is being delivered by Hatch as Project Management Officer in collaboration with Pace CCS, McDaniel, and Global CCS Institute.
Ben Ellis, vice president marketing sustainability, BHP, said it was important to move towards a lower emissions future.
“With more than one billion tonnes of production a year in Asia coming from blast furnace capacity that is relatively early in its production life, it’s important for industry to progress technologies to lower the emissions intensity of existing steelmaking assets while new commercial pathways to decarbonise steelmaking are developed over time," Dr Ellis said.
At Chevron Australia New Energies, David Fallon, Australia’s lower carbon execution general manager said "Chevron Australia looks forward to the outcomes of the CCUS Hub study".
"We believe in the critical role carbon capture and storage can play in a lower carbon world," Mr Fallon said.
"We continue to leverage our expertise and global reach to advance CCS technologies and scale lower carbon solutions across the value chain including in the hard-to-abate sector."
The consortium says it continues to welcome new partners and emphasises that CCUS remains a critical pathway for industries wanting to achieve net zero emissions.