The largest permanent carbon dioxide storage will be at a Wyoming site, the U.S. Department of Energy said when awarding $66.9 million for the project.

Montana State University-Bozeman will lead the Regional Carbon Sequestration Partnership Program to conduct a large-volume test in the Nugget Sandstone formation to demonstrate the ability of a geologic formation to safely, permanently and economically store more than 2 million tons of carbon dioxide, the Energy Department said Monday in a news release.

Successful storage of CO2 will help the United States use its domestic fossil fuel resources without contributing to global climate change, the Energy Department said.

"(The Energy Department) is extremely pleased to make the final award under ... this important program," Deputy Secretary of Energy Jeffrey Kupfer said. "Along with our regional partners, we will be able to move carbon sequestration technology from the laboratory to large-scale field demonstrations and ultimately to the marketplace."

Big Sky will drill an injection well and introduce up to 1 million tons per year of CO2 into the formation at a depth of approximately 11,000 feet, the department said. The CO2 for the project will be supplied by Cimarex Energy Co.'s planned helium and natural gas processing plant at Riley Ridge, Wyo.