Chinese conglomerate, Shaanxi Yanchang Petroleum (Yanchang), is developing two carbon capture and storage (CCS) projects which will use the captured carbon dioxide (CO2) for enhanced oil recovery (EOR).

The project was undertaken as part of China’s 2015 deal with the US to tackle climate change and promote the development of CCS in China.

Construction of the Yanchang integrated CCS Project will begin after a final investment decision was taken to go ahead with the demonstration site, according to the Global CCS Institute, a non-profit organisation that has provided technical and advisory support for the initiative.

Once the project is completed, it will be able to capture 410,000 metric tonnes of carbon a year. It’s one of eight large-scale CCS projects that China is considering, according to Tony Zhang, senior adviser at the institute.