Australia approves Japanese carbon storage site

Australia has designated a seabed location in the Timor Sea for a carbon capture and storage project led by Japanese energy company Inpex. The site lies 260 kilometers offshore from Darwin, the capital of the Northern Territory. Inpex plans to inject carbon dioxide into a deep saline aquifer known as West Peron. The approved capacity for the site is 443 million metric tons of CO2 over a 35-year period. This volume equates to 488 million US tons. The primary customer for the storage facility will be the Ichthys liquefied natural gas facility. Inpex holds a majority ownership stake in that facility, which exports most of its gas to Japan. Other companies may use the site for storage in the future.

The approval moves the project into the next phase of development. Inpex is currently conducting environmental impact assessments. The company must secure additional government licenses before a final decision is made. CO2 injection will not begin until those permits are granted. The project is part of a global expansion of carbon capture and storage infrastructure. The United States has several CCS projects in operation. The European Union opened its first offshore facility in September. Proponents of the technology argue it reduces emissions from industries that are difficult to electrify. These sectors include steel production and shipping. Critics contend the technology allows fossil fuel use to continue by capturing exhaust after it is produced.

Resources Minister Madeleine King stated the designation demonstrates government support for emission-reducing technologies. She said carbon capture and storage will support Australia’s transition to net zero. The Department of Industry, Science and Resources did not respond to an email seeking further comment. Inpex also did not respond to a request for comment from The Associated Press. The project has drawn opposition from environmental groups concerned about ecological damage. The proposed area overlaps with habitats for threatened and migratory species. These include dugongs, sea turtles, and seabirds.

Chelsea Deng, a campaigner for the Australian Marine Conservation Society, said construction will disturb marine, coastal, and terrestrial ecosystems. She noted that the work involves dredging, drilling, and piling into the ocean. These activities cause sediment disturbance and water quality pollution through chemical discharge. Underwater noise from the construction will also be significant. Deng said routine underwater surveys to check for leaks will cause ongoing harm. She specifically cited the impact of seismic impulses on marine life. Plankton have been shown to die up to 1.2 kilometers away from these impulses. Whales face particular risks from the noise and disruption. The project requires continuous monitoring of CO2 plumes for decades. This ongoing activity will keep the ecosystem under stress.

Japan views carbon capture and storage as essential to meeting its climate targets. The country aims to cut carbon emissions by 60% by 2035 and by 73% by 2040, using 2013 levels as a baseline. Japan’s economy relies heavily on polluting industries such as steel and cement production. Oil refining and shipping are also vital sectors. Fossil fuels generate the majority of the country’s energy. The government has stated that CCS is indispensable for decarbonizing areas where electrification or hydrogen use is challenging. A 2025 briefing from the Ministry of Economy, Trade and Industry said CCS enables stable energy supply, economic growth, and decarbonization simultaneously. The ministry did not respond to a request for comment.

Inpex is involved in other carbon capture projects in Japan. Exploratory drilling is taking place off the coast of Chiba for the Tokyo Metropolitan Area CCS project. This is a joint venture between Inpex, Nippon Steel, and other partners. The project will capture CO2 from steel plants and store it offshore. Another Japanese company is planning to ship emissions to Malaysia for storage. Environmentalists argue that the rapid expansion of CCS prolongs the use of heavily polluting fossil fuels. Deng described the strategy as a greenwashing tactic. She said it allows fossil fuel companies to continue pollution instead of phasing out production. The approved site in Australia will be the first major offshore storage project in the country.