Jointly run with the New South Wales and federal governments, the program will also undertake a state-wide assessment of potential CO2 storage opportunities in NSW.

ACA Low Emissions Technology chief executive Nikki Williams described the project as a critical part of Australia’s carbon capture and storage technology program.

“Every country has unique geology, much like an individual fingerprint,” she said.

“Australia needs to identify, assess and develop its own natural resources for geological storage. This project aims to inform the location and logistics for future development of carbon capture and storage technologies in Australia.

“There is a clear strategic interest for Australian governments and the industry to work together to develop technology solutions for the reduction of greenhouse gas emissions to ensure a sustainable future for fossil fuels.”

The funding partners are the NSW government, the federal government (through Geoscience Australia) and the Australian coal industry through its Low Emissions Technology Fund. All three partners are contributing in equal shares of $18.1 million each.

The NSW and federal government contribution demonstrated their recognition of the vital role coal played in our energy mix today and would continue to play well into the future, Williams said.

“CCS is an essential technology if we are to make the most of our rich endowment of mineral resources, including coal,” she said.

The project involves completing seismic surveys, drilling four stratigraphic wells in the Darling Basin and testing the properties of the rocks from the wells.

The project is expected to run until the end of 2015. It is expected that a good indication of storage potential for the Delta project should be known in 2013.