The 2009 budget included $4.5 billion for the Clean Energy Initiative, of which $2 billion will go to building at least two, and up to four, industrial-scale CCS projects.
The funding is part of a global push by the G8 to develop at least 20 large-scale integrated CCS projects by 2020.
Resources and Energy Minister Martin Ferguson said the funding would help Australian meet its target to reduce the country’s greenhouse gas emissions by 60% on 2000 levels by 2050.
"I have today invited state and territory governments and the Australian Coal Association Low Emissions Technology to nominate robust CCS proposals that have their support so they can be considered for funding under the CCS Flagships Program,” he said.
"The nominated projects will be reviewed by an independent expert panel which I will establish in consultation with the National Low Emissions Coal Council and the Global Carbon Capture and Storage Institute.”
The projects will be shortlisted this year and a final selection will be made in 2010.