If all goes well, the company is aiming to have a commercial facility online five years later.
The so-called ZeroGen Mark II project is a collaboration between ZeroGen, Shell, the Queensland Government and the Australian Coal Association's COAL21 Fund.
The project will integrate technologies developed for coal gasification with carbon capture and storage to produce low emission baseload power.
Located near Rockhampton, the demonstration power plant is expected to capture up to 75% of the greenhouse emissions.
The location of the large-scale 300MW power plant is to be determined following the completion of a feasibility study and is expected to capture up to 90% of emissions.
