Australia's first carbon dioxide capture facilty at an opererational coal-fired power plant has opened at CS Energy's Callide A power station at Biloela in central Queensland.

The project, which is backed by the Japanese government, uses an oxyfuel combustion process, which burns coal with pure oxygen for less waste; then traps and stores the greenhouse gases rather than releasing them into the atmosphere.

The project is expected to capture more than 85% of the CO2 from the flue gases being treated. At this stage, the CO2 will not be buried because the operators are still trying to find somewhere to store the trapped greenhouse gases.

The Callide A power plant only generates 30 megawatts but it will test of the viability of retrofitting existing power stations with the technology.

Greenpeace spokeswoman Julie Macken, commented that the carbon capture project is too little, too late.