• Australia’s first carbon refinery can capture up to 2,500 metric tons of CO2 a year from Orica’s ammonia operations in New South Wales.
• The plant uses mineral carbonation to turn captured carbon into materials for concrete, paper, glass and other industrial products.
• The project arrives as Australia works toward a 62% to 70% emissions reduction target by 2035 from 2005 levels.

Australia Moves Carbon Capture Into Industrial Products

A new carbon refinery on Kooragang Island is testing a different future for heavy industry. Instead of sending captured carbon dioxide underground, the facility will turn it into products used in construction, manufacturing and materials supply chains.

Australia’s first carbon refinery has opened in New South Wales. The plant captures CO2 from ammonia-making operations run by explosives group Orica. The captured carbon can then be converted into products including concrete, paper and glass.

The demonstration plant was developed by MCI Carbon, which has spent 15 years building its Myrtle Carbon Capture Utilisation and Storage technology. The site can potentially capture 2,500 metric tons of CO2 a year.

For Australia, the project links industrial decarbonisation with a commercial question facing emitters worldwide. Can carbon capture move beyond a compliance cost and become a source of saleable materials?

Mineral Carbonation Takes Centre Stage

MCI Carbon’s system uses mineral carbonation. The process mimics a natural geological reaction, where CO2 binds with minerals and becomes locked into solid materials.

“MCI Carbon’s technology is based on what’s called mineral carbonation. This is the Earth’s own natural process for taking CO2 out of the atmosphere and putting it into rock,” CEO and co-founder Marcus Dawe said at Wednesday’s event.

That approach differs from conventional carbon capture and storage. CCS typically captures CO2 and moves it into underground caverns or geological formations. Carbon capture utilisation and storage, known as CCUS, seeks to embed carbon into products with market value.

The distinction matters for executives and investors. CCS projects often depend on policy support, permits, infrastructure and long-term liability frameworks. CCUS adds another layer. It requires customers, product standards, offtake agreements and proof that carbon-embodied materials can compete in existing markets.

If successful, the model could give industrial companies a new route to reduce emissions while selling lower-carbon inputs into construction and manufacturing.

RELATED ARTICLE: CSIRO Roadmap Charts Australia’s Path to Large-Scale Carbon Removal by 2050

Policy Support and Industrial Stakes

The opening drew high-level attention. Chris Bowen, Australia’s energy and climate change minister, attended alongside the ambassadors of Japan and Austria.

Australia emits about 400 million tons of CO2 a year. Its climate policy has also tightened. Bowen updated the country’s emissions reduction target to 62% to 70% below 2005 levels by 2035.

That target raises pressure on hard-to-abate sectors. Ammonia production, mining, cement, steel and chemicals face growing scrutiny from regulators, lenders and customers. These industries need practical tools that can cut emissions without shutting down production.

“This will help (emitters) decarbonise, while also making a profit,” Bowen said.

The commercial promise is central to the project’s appeal. For boards, carbon utilisation offers a narrative that goes beyond risk management. It can support product innovation, supply chain resilience and new revenue streams. Still, the technology must prove scale, durability and economics.

A demonstration plant capturing 2,500 tons of CO2 a year remains small against national emissions. But it gives industry a working test case. That matters in a market where many carbon removal and utilisation pathways still face questions over cost, verification and demand.

From Demonstration Plant to Factory Scale

MCI Carbon is already planning its next step. The company is working on a factory-scale carbon refinery in Austria. That facility would aim to capture up to 50,000 tons of CO2 a year.

The Austria plan also shows how carbon utilisation is becoming a cross-border industrial strategy. Governments want decarbonisation options that preserve jobs and industrial capacity. Companies want technologies that fit into existing operations. Investors want assets that can earn returns in a tightening climate policy environment.

MCI is not alone. Other mineral carbonation technologies are also moving through development. Canada’s Arca, for example, uses mining waste, known as tailings, to trap carbon permanently.

For ESG leaders, the message is clear. Carbon capture is no longer only a storage question. It is becoming a materials, governance and market-design question.

Australia’s first carbon refinery will not change the country’s emissions profile on its own. But it gives heavy industry a visible test of carbon reuse at a time when climate targets are becoming more demanding. If the model scales, carbon-intensive regions could turn industrial waste into a building block for lower-carbon supply chains.