The $850 million geosequestration project is expected to be the largest of its kind in the world.

It plans to bury 125 million tonnes of excess carbon dioxide produced during the life of the project on Barrow Island, off the Pilbara coast.

Gorgon gas tends to have high carbon dioxide levels, which is the reason the JV is examining this expensive option.

Environment Minister Ian Campbell today said the Government would spend $60 million supporting the project.

“This project, which will capture carbon dioxide from the Gorgon gas field and inject it deep underground, has the potential to reduce Australia’s greenhouse gas emissions by up to 3 million tonnes each year,” Campbell said.

“The Australian Government’s funding provides for a commercial-scale demonstration project involving liquefying the carbon dioxide so it can be piped to the injection site, injecting it 2.5km underground into a geological structure.

“There will be long-term monitoring of the stored carbon dioxide to ensure its safety.”

Campbell said large-scale commercial use of carbon capture and storage technologies offer Australia’s energy sector its single largest opportunity to reduce greenhouse gases.

“Scientific estimates suggest that up to 25% of Australia’s carbon dioxide emissions could be stored in underground reservoirs each year,” he said.

“Climate change is a global challenge, and the work we are funding and supporting in Australia will have a substantial impact on emission reduction options the world can choose from in the future.”

The funding will be conditional on the Gorgon Gas project meeting environmental approvals.