ExxonMobil Corp said on Thursday it has begun design studies for its carbon capture storage (CCS) hub in southeast Australia, similar to its project in Houston, Texas, to reduce emissions from industries in the Gippsland Basin, reported Reuters.

The CCS hub would use existing infrastructure to store carbon dioxide in the depleted Bream field off the coast of Gippsland in the state of Victoria, the US energy major said.

CCS traps emissions and buries them underground but is not at the commercialisation stage yet.

Exxon said it is in discussions with local emissions-intensive industries which may be interested in availing the hub to reduce greenhouse gas emissions from their operations.

The largest US oil producer is also planning on a hydrogen production plant and a CCS project at its Baytown refinery near Houston, Texas, in an effort to reduce its carbon footprint while earning a profit.

The carbon capture infrastructure for the Australian project would have the capacity to store up to two million metric tons of carbon dioxide per year and could be operational by 2025 if technical and business feasibility is confirmed, Exxon said.