Media Release
26 May 2026
Low Emission Technology Australia has today announced that it is collaborating with Kawasaki Heavy Industries, Ltd (KHI) to help fund the development of a next-generation carbon capture technology. The partnership will see LETA contribute funding towards the development of an enhanced technology that has the potential to reduce the operating costs of post combustion carbon capture by up to 50 per cent. This collaboration reflects a strong commitment from industry in both countries to commercialising low-emissions technologies.
LETA Chief Executive Officer Mark McCallum said the partnership demonstrates the importance of international collaboration to achieve ambitious climate targets.
“This project with KHI shows how Australian industry can work with key trading partners like Japan to tackle the decarbonisation challenge. By developing an enhanced sorbent that both increases capture efficiency whilst potentially reducing the cost of carbon capture by up to half, we can make CCS a commercially viable solution for many critical industries such as steel, cement and power generation.”
Through rigorous testing, KHI’s technology has been found to capture more than 90 per cent of CO2 emissions from industrial flue streams that will be critical to developing construction materials including steel, cement, wind turbines and solar PV arrays.
“Australia’s high-quality energy resources, combined with world-class research and development, mean we are uniquely placed to partner in technological solutions that will help Japan and our other regional partners meet their emission reduction goals while protecting Australian jobs and creating new opportunities at home.”
“This project reinforces the need for Australia to develop a national CCUS strategy that can sit alongside existing renewable and hydrogen programs like the Future Made in Australia.”
“By partnering with Japan on breakthrough technologies like KHI’s solid sorbent, Australia can ensure its traditional industries remain competitive, while delivering the emissions reductions needed to meet the newly announced 62-70% 2035 emissions target.
“With the right policy settings, projects like this can unlock new investment, secure industrial jobs, and position Australia as a global hub for low-emissions energy and industry solutions,” Mr McCallum said. “This is about more than technology – it’s about Australia showing leadership in the region by helping our trading partners reach carbon neutrality.”
ENDS