A test site in Japan for burying carbon dioxide (CO2) below the seabed off Hokkaido is showing more promise than other carbon, capture and storage (CCS) projects by cutting costs and increasing efficiency, its developer says.

While the $300 million (about ¥32 billion) site at Tomakomai port represents a small portion of the $20 billion invested in CCS, it has potential for easing carbon dioxide emissions from industries such as gas processing and cement and chemical production.

Most investments in CCS have focused on capturing carbon from power plants fired by coal and other fossil fuels — the largest source of CO2 emissions — but there have been big setbacks and some projects have been canceled.