Australia has taken an important regulatory step toward a major offshore carbon capture and storage project that could store millions of tonnes of carbon dioxide deep beneath the seabed each year. The Australian government has designated the West Peron geological formation off the country's northern coast as an identified greenhouse gas storage formation for the proposed Bonaparte Carbon Capture and Storage project.
The project is led by Japan-based energy company INPEX, alongside partners TotalEnergies and Woodside Energy. According to Reuters reporting published on October 16, 2026, the proposed facility is designed to store up to 8 million metric tonnes of carbon dioxide annually.
Where Will Australia's Carbon Be Stored?
The proposed storage formation, known as West Peron, is located offshore from Australia's Northern Territory, approximately 260 kilometres from Darwin. It consists of porous rock deep beneath the seabed that could potentially hold injected carbon dioxide.
INPEX's project information describes a geological storage formation approximately 2,000 metres below the seabed. The planned development would involve transporting captured carbon dioxide to the offshore site and injecting it into the underground formation for long-term storage.
The suitability of a geological formation depends on factors such as its capacity, the properties of the surrounding rock and whether the stored carbon dioxide can be contained safely over time. These issues require detailed technical assessment and ongoing monitoring.
How Much Carbon Dioxide Could the Project Store?
Reuters reported that the Bonaparte project is proposed to store up to 8 million metric tonnes of carbon dioxide per year. INPEX has also described the project's potential to store substantial volumes of carbon dioxide over its operating life.
According to Reuters, the company proposes storing as much as 443 million tonnes of carbon dioxide over a period of up to 35 years. These figures represent the proposed capacity and long-term ambition, rather than carbon that has already been captured and stored.
The project is initially expected to receive carbon dioxide associated with INPEX's Ichthys liquefied natural gas operation. The plan could eventually expand to accept carbon dioxide from additional industrial facilities.
Why Is Australia Investing in Carbon Capture and Storage?
Carbon capture and storage, commonly known as CCS, is a technology designed to capture carbon dioxide from industrial processes and place it in suitable geological formations for long-term storage.
Some industrial activities release emissions that can be difficult to eliminate using electrification or renewable electricity alone. CCS is being considered as one potential tool for reducing emissions from certain facilities, although its effectiveness depends on the design and performance of each project.
Australia has a legislated target of reaching net-zero emissions by 2050. The government has presented carbon capture and storage as one technology that could help reduce emissions from industries where alternatives may be difficult to implement.
CCS is not the same as preventing carbon dioxide from being produced in the first place. It also does not replace the need to improve energy efficiency, expand low-emissions energy sources and reduce avoidable fossil-fuel emissions.
What Does the Approval Actually Mean?
The government designation formally identifies the West Peron formation for the proposed storage project. It represents progress in the regulatory pathway and recognises the site's potential for greenhouse gas storage.
It does not mean that all approvals for the complete project have been granted. The project still needs to progress through the relevant technical, environmental, regulatory and commercial processes.
INPEX has stated that the project is targeting its first carbon dioxide injection in the early 2030s, subject to regulatory approvals and commercial agreements. The timeline could change as development proceeds.
Could the Project Reduce Emissions From LNG Production?
INPEX has identified its Ichthys LNG operation as the proposed project's initial customer. The company says the Bonaparte project has the potential to reduce carbon dioxide emissions associated with Ichthys LNG by around 40%.
This is a company-stated potential outcome, not a verified reduction already achieved. The actual result would depend on the amount of carbon dioxide captured, the infrastructure available, operating performance and the project's eventual implementation.
Carbon capture projects also require energy and infrastructure to operate. A full assessment of their climate benefits needs to consider the entire process, including capture, transportation, injection and long-term storage.
Environmental Safety and Monitoring Will Be Important
Long-term underground carbon storage requires careful site selection, engineering controls and monitoring. Project developers and regulators need to assess the possibility of leakage, the stability of the geological formation and potential effects on the surrounding marine environment.
Monitoring can help detect unexpected changes in pressure or movement of stored carbon dioxide. The project will also need to comply with the environmental and regulatory requirements applicable to its offshore location.
For this reason, the government designation should be viewed as one stage in a longer process rather than proof that all environmental risks have been eliminated.
What Happens Next?
The Bonaparte project partners are expected to continue technical studies, environmental assessments, regulatory work and commercial planning. The project could become a large-scale carbon storage hub if it receives the necessary approvals and proceeds to construction and operation.
Its progress will be relevant to Australia's emissions-reduction plans and to regional industrial companies considering carbon storage options. However, the project's ultimate contribution will depend on whether the proposed infrastructure is built, how much carbon dioxide it captures and stores, and how effectively the site is monitored over time.
Conclusion
Australia's designation of the West Peron formation marks a significant step for the proposed Bonaparte offshore carbon capture and storage project. The facility is designed to store up to 8 million metric tonnes of carbon dioxide annually, with the first injection targeted for the early 2030s if the necessary approvals and commercial agreements are secured.
The project highlights the growing role of carbon storage in industrial emissions strategies. Its real-world climate value, however, will depend on successful implementation, transparent monitoring and verified emissions reductions rather than proposed capacity alone.
Journalist: Vijay Singh