Further information: Health and environmental impact of the coal industry
In conjunction with enhanced oil recovery and other applications, commercial-scale CCS is currently being tested in the U.S. and other countries. Proposed CCS sites are subjected to extensive investigation and monitoring to avoid potential hazards, which could include leakage of sequestered CO2 to the atmosphere, induced geological instability, or contamination of water sources such as oceans and aquifers used for drinking water supplies. As of 2021, the only demonstrator for CCS on a coal plant that stores the gas underground is part of the Boundary Dam Power Station.
The Great Plains Synfuels plant supports the technical feasibility of carbon dioxide sequestration. Carbon dioxide from the coal gasification is shipped to Canada, where it is injected into the ground to aid in oil recovery. A drawback of the carbon sequestration process is that it is expensive compared to traditional processes.