The Federal Government will help fund a carbon capture and storage plant on Kooragang Island that will produce manufacturing and construction materials.
Clean technology company Mineral Carbonation International (MCi) - a joint venture between Orica and the Greenmag Group with support from the University of Newcastle - has been awarded $14.6million to build the mobile demonstration plant.
It is one of six new carbon capture projects that have been funded nationally to accelerate the development of the technology in Australia.
Materials that will be produced at the Kooragang plant include concrete, plasterboard and fire-retardant materials.
The six projects, which have received $50million from the Carbon Capture, Use and Storage (CCUS) Development Fund, are located in regional areas including the Cooper Basin, South Australia, Moomba, South Australia and Berrima, NSW.
The fund was launched at MCi's Shortland research centre in March.
"MCi uses carbon engineering processes to transform captured CO2 emissions from most industrial sources into solid materials that can be used to manufacture a range of low-carbon building and construction products," MCi board member Jez Smith told the Newcastle Herald at the time.
"We use CO2 as a resource and create profitable pathways for many industries to reduce their emissions. This is carbon utilisation (CCU)."
The government estimates the six projects will create close to 470 direct jobs and deliver $412 million of investment.
Minister for Energy and Emissions Reduction Angus Taylor said CCUS Development Fund received funding applications to support $1.2 billion of investment in carbon capture projects and technologies.
"Analysis by the International Energy Agency shows that half the global reductions required to achieve net zero will come from technologies that are not yet ready for commercial deployment.
"That's why we're partnering with industry to accelerate new projects and unlock the emissions and economic benefits of carbon capture technology.
The CCUS Development Fund is part of the Government's $1.9 billion new energy technologies package announced in the 2020-21 Budget. The $1.9 billion package included resourcing to support the development of a CCS method for the Emissions Reduction Fund (ERF), which is expected to be completed later this year.
