The $850 million geosequestration project is expected to be the largest of its kind in the world.

It plans to bury 125 million tonnes of excess carbon dioxide produced during the life of the project on Barrow Island, off the Pilbara coast.

Gorgon gas tends to have high CO2 levels, which is the reason the joint venture is examining this expensive option.

Environment Minister Ian Campbell yesterday said the Government would spend $60 million supporting the project.

The Australian Petroleum Production and Exploration Association “warmly” welcomed the announcement, saying it recognises the critical importance of gas to Australia’s prosperity.

“This extremely exciting and innovative project will place the Gorgon project and Australia firmly at the forefront in developing the technologies that have the very real potential for making the substantial cuts in greenhouse gas emissions that we are looking for,” APPEA chief executive Belinda Robinson said.

“It is a massive and ambitious project that will result in removing up to 3 million tonnes of greenhouse gas emissions from the earth’s atmosphere – equivalent to taking around 650,000 cars off the road for a year.”

The government funding will be conditional on the Gorgon Gas project meeting environmental approvals.