Newcastle carbon capture plant opens

MCi Carbon’s Myrtle carbon capture demonstration plant in Newcastle has begun operations, turning industrial carbon dioxide emissions into materials used in construction and manufacturing. The plant takes carbon dioxide captured from ammonia production and turns it into materials used in concrete, plasterboard, glass and paper.

MCi Carbon aims to capture 2500 tonnes of carbon dioxide a year and produce 10,000 tonnes of compounds including magnesium carbonate, calcium carbonate and amorphous silica. These compounds are in demand across various industries, including construction, manufacturing and agriculture. That means new opportunities for Australian industry while cutting emissions.

Minister for Climate Change and Energy Chris Bowen said the project showed how regions like the Hunter can be at the centre of Australia’s clean industrial future.

“We’re backing Australian innovation to cut emissions and create the next generation of clean industries,” he said. “This demonstration plant is a glimpse of what could become a major new industry for places like Newcastle and the Hunter.

“Taking carbon dioxide from industrial production and turning it into materials for homes, buildings and manufacturing is exactly the kind of practical, Australian-made technology we should be backing. This is about cutting emissions, creating new products, and building new clean industries, literally brick by brick.”

Federal Member for Newcastle Sharon Claydon said the project showed Newcastle was ready to seize the opportunities of the clean energy economy.

“Newcastle has always been an industrial city that makes things Australia needs, and this project shows we can keep doing that in a cleaner, smarter way,” she said. “This is exactly the kind of innovation we want to see in Newcastle: local know-how, local industry and local ambition working together to build the next generation of clean industries, while cutting emissions. MCi Carbon is showing how the Hunter’s industrial strengths can be part of the solution, cutting emissions while creating new products and new opportunities.”

In 2024, MCi Carbon received $14.5 million through the Australian Government’s Carbon Capture Technologies Program to help produce building materials from captured carbon dioxide. Through Round 1 of the program, the government is investing $65 million across seven projects that will decarbonise hard-to-abate industrial processes and support emerging technologies including mineral carbonisation and direct air capture.

Round 2 of the Carbon Capture Technologies Program closed to applications on 6 May 2026. $32.6 million is available for the grant opportunity.

Image credit: MCi Carbon