Mineral Carbonation International Pty Ltd is to establish a research pilot plant at the University of Newcastle to trial world-first technology that turns carbon emissions into bricks and pavers for the construction industry.

Chemical giant Orica, the Commonwealth and the State Governments will each provide Mineral Carbonation International with funding of $3.04 million over 4 years.

The University of Newcastle, Orica and the carbon innovation company GreenMag Group have spent six years researching how to dispose of carbon dioxide. The project aims to permanently and safely transform carbon dioxide, not just store it in the ground.

Orica is already capturing some of the CO2 emissions at its Kooragang Island plant.

Orica Chief Executive, Ian Smith, said that "this would enable, not just us as a company, but all the coal fired power stations around the world to be retrofitted so they can capture their CO2 off-take."