The project involves storing 2000 tonnes of carbon dioxide underground in the Shanxi Province.

Director of CSIRO’s Advanced Coal Technology research, John Carras, said the project will trial new approaches to maximise CO2 injection and methane recovery.

“ECBM [ enhanced coal bed methane] wells are typically drilled vertically to inject C02 into coal seams but this demonstration project will drill horizontally meaning the entry point of the well is more directly embedded in the coal seam, which we predict will increase the flow rate of CO2 for underground storage.”

The Mallesons team is being led by partners Scott Bouvier in Sydney and Nicolas Groffman in Beijing.

The lawyers are working closely with Robyn Tait from CSIRO's legal team.

Emma Croft and Nancy Zhao are the key Mallesons associates involved in the deal.

Mallesons partner Bouvier said the deal is significant for the cooperation between Australia and China in the development of low emissions coal technology.

“It showcases the great teamwork that has developed between CSIRO and Mallesons, Mallesons' China capability and our experience in advising on the new technologies which are needed to address climate change,” he said.

CSIRO’s work with CUCBM addresses the issues of low emission energy supply, climate change and emissions reduction on a global scale, CSIRO said.

“Working with our partners in China will allow CSIRO to increase its capabilities in pilot-scale demonstrations for carbon capture and storage technologies,” the CSIRO’s Carras said.

“This experience will inform the development of a low emissions coal technology that can also be deployed in Australia.”

The ECBM demonstration project builds upon CSIRO’s existing collaborations with China, which include supporting the launch of a post combustion capture (PCC) pilot plant in Beijing and the first capture of CO2 in China using PCC technology.