Vopak to Explore Carbon Terminal for Darwin Harbor in Australia

Royal Vopak, the Dutch operator of chemical terminals, has entered into an agreement with the Northern Territory Government in Australia to explore the development of a CO2 import terminal supported by a common-user infrastructure. To be located in Darwin Harbor, the facility would serve both as a temporary holding and storage facility for captured CO2 and provide the basis for an emerging new import industry from neighboring countries.

Vopak points to its long experience in handling the storage and shipment of a broad range of chemicals. The company points out that for nearly 20 years it has already been operating in the East Arm near Darwin. Vopak Darwin is an independent petroleum import and distribution terminal handling clean petroleum products, biodiesel, and sulfuric acid by ship or truck.

The Northern Territory Government has launched a development plan for a nearly six square mile area it calls the Middle Arm Sustainable Development Precinct. Located in Darwin harbor it is close to industrial sites and provides good access. The Middle Arm Peninsula is already home to the Santos Darwin LNG and the INPEX Ichthys LNG processing facilities.

“Together with the Northern Territory Government, we look forward to playing a key role in Australia's transition to net zero,” said Paul Kanters, Managing Director, Vopak Terminals Australia. “This development of CO2 infrastructure is fully in line with Vopak's global strategy to develop infrastructure solutions to accelerate the energy transition.”

The CO2 import, storage, and handling infrastructure would be designed to manage the import, storage, and distribution of carbon dioxide both from industrial users and CO2 from neighboring countries. The facility would have a shared infrastructure that can be used by various companies to help manage CO2 emissions. Once the CO2 is imported, it would need to be stored safely in large tanks before it will be transferred to a permanent destination, for example in underground facilities CCS, or followed by recycling the CO2 for utilization (CCUS).

“This project contributes to the Northern Territory’s goal of a A$40 billion economy by 2030 and our transition to net zero by 2050,” said Eva Lawler, Chief Minister of The Northern Territory. “This agreement leverages Vopak’s global expertise in developing infrastructure solutions to accelerate the energy transition worldwide.”

The concept for a CO2 terminal is at the leading edge of an anticipated industry that will emerge to handle carbon. Efforts have already begun in Europe for the first terminals with the Northern Lights project projected to start operations this year. Vopak looks at it as an emerging opportunity and looks to be at the forefront of the new terminals.