J-Power has announced that its $200m Callide OxyFuel carbon capture project in Australia is on target and scheduled for completion in 2011.

J-Power is part of a Japanese consortium collaborating with Australia to market the first carbon capture and storage (CCS) project to fight CO2 emissions.

The company will build the project at the existing 30MW unit of the Callide ‘A’ power station in Queensland.

The project, a joint initiative of the Governments of Australia and Japan, adopts Japanese OxyFuel technology at Australia’s CCS fields.

J-Power managing director Masaharu Fujitomi said that the main advantage of the project was that existing coal stations can be retrofitted to adopt the OxyFuel technology, reducing CO2, writes Reuters.

The OxyFuel system burns coal with pure oxygen instead of air, generating pure CO2 gas and water vapor, enabling CO2 capture.

The CO2 is then separated, condensed to a liquid, transported by trailers and pumped deep underground.

During the three-year experiment, a maximum of 100,000 tons of CO2 will be stored, which represents 10% to 15% of the plant’s overall emissions.

J-Power, Japan’s largest coal consumer, is promoting CCS technology to try and decarbonise coal stations that account for 40% of the world’s energy.

The company said it does not currently have plans for a CCS-integrated commercial scale power station, but might implement the technology in India and China in the future.