The $4.01m funding from the Australia-based institute will support installation of a CCS system at AEP’s Mountaineer coal-fueled power plant in New Haven.
The CCS system is expected to capture about 1.5 million metric tons of carbon dioxide per year and the captured CO2 will be injected into suitable geologic formations for permanent storage about 1.5 miles below the surface.
The US Department of Energy is funding 50% of the total costs of the project, which is expected to cost up to $334m.
AEP said it is in discussions with other potential international partners for the project.
The CCS system is expected to begin commercial operation in 2015.