Australia opens first carbon refinery

June 18, 2026

Australia has taken another step toward industrial decarbonization with the launch of its first commercial-scale carbon refinery in New South Wales. The facility, developed by MCI Carbon, captures carbon dioxide emissions from Orica’s ammonia production plant on Kooragang Island and converts them into valuable industrial materials, including ingredients used in concrete, paper, and glass manufacturing.

Australia launches first carbon refinery

The new demonstration facility is powered by MCI Carbon’s proprietary Myrtle Carbon Capture, Utilisation and Storage (CCUS) technology, which has been under development for more than 15 years. The plant has the capacity to capture approximately 2,500 metric tonnes of CO₂ annually, showcasing how industrial emissions can be transformed into commercially useful products rather than released into the atmosphere.

According to MCI Carbon CEO and co-founder Marcus Dawe, the technology relies on mineral carbonation—a natural geological process that permanently locks carbon dioxide into stable minerals. By accelerating this naturally occurring reaction, the refinery converts captured CO₂ into solid carbon-based materials suitable for a range of construction and manufacturing applications.

Turning carbon emissions into valuable products

Unlike traditional carbon capture and storage (CCS), which stores greenhouse gases deep underground, carbon capture, utilization, and storage (CCUS) focuses on giving captured carbon a second life. MCI Carbon’s process creates durable, carbon-rich materials that can be incorporated into products such as cement, concrete, paper, and glass, helping manufacturers reduce their carbon footprint while creating economic value.

This circular approach enables heavy industries to lower emissions without treating captured carbon solely as waste, opening new opportunities for sustainable manufacturing and green construction.

Government backs carbon innovation

The refinery’s official opening was attended by Australia’s Minister for Climate Change and Energy, Chris Bowen, along with the ambassadors of Japan and Austria, highlighting international interest in innovative carbon management technologies.

Bowen emphasized that converting emissions into marketable products can help industries reduce greenhouse gas emissions while improving their financial performance. Australia continues to strengthen its climate strategy, with updated national goals aiming to reduce greenhouse gas emissions by 62% to 70% below 2005 levels by 2035. The country currently emits roughly 400 million tonnes of CO₂ each year, making industrial decarbonization technologies increasingly important.

Expanding carbon capture technology internationally

Following the successful launch in New South Wales, MCI Carbon is preparing plans for a larger carbon refinery in Austria capable of processing up to 50,000 tonnes of CO₂ annually. The project reflects growing global demand for scalable carbon utilization technologies that can complement renewable energy and emissions reduction strategies.

Mineral carbonation is one of several emerging approaches gaining attention worldwide. Canadian company Arca, for example, is developing systems that permanently trap carbon dioxide using mining waste, offering another pathway for long-term carbon removal.

As industries seek practical solutions to achieve net-zero targets, technologies that transform carbon emissions into valuable materials could play an increasingly significant role in the global transition to a low-carbon economy.