Liquefied natural gas projects with a total value of around $20 billion are planned for Australia. Over the next decade or so, they have the potential to generate an increase of approximately 3% in Australia's GDP, and an excess of 50,000 jobs. One of the major risks to this vast investment is uncertainty over how to deal with the major increase in direct carbon dioxide (C02) emissions that will result from these developments. The 1997 Kyoto Protocol has served to focus even more attention on this issue. Potentially, a solution to sustaining Australia's economic development, whilst at the same time meeting emission targets, may lie, in part, in developing suitable methodologies for C02 sequestration. One of the key sequestration options is geological disposal. The method, which involves injection of supercritical C02 into the deep subsurface, is being tested on a commercial scale in only one place in the world at the present time, although several other countries are now developing research programs into the technique. The APCRC research program GEODISC is investigating the applicability of this method in Australia. Whilst the focus of GEODISC is on the application of C02 disposal to the Australian natural gas industry, its outcomes will have implications for other industries such as power generation and minerals processing. It will also be looking at some of the other potential benefits of geological sequestration, such as enhanced oil recovery and enhanced coalbed methane recovery. The program will establish the most viable locations for C02 injection, determine the key areas of technical, social and economic risk, and help define a pilot injection program to address the most critical areas of uncertainty. GEODISC brings together six major petroleum companies, the Australian Greenhouse Office and key Australian research groups. The total cost of GEODISC will be approximately $10 million over four years. The major expected outcome of GEODISC will be to help the Australian gas industry plan the way ahead in terms of C02 emissions in an environmentally acceptable manner, whilst concurrently ensuring that the industry does not incur major cost disadvantages, which may adversely impact upon Australia's international competitiveness.