Geosequestration of CO2 in the offshore Gippsland Basin is being investigated by the CO2CRC as a possible method for storing the very large volumes of CO2 emissions from the Latrobe Valley area. A storage capacity of about 50 million tonnes of CO2 per year for a 40-year injection period is required, which will necessitate several individual storage sites to be used both sequentially and simultaneously, but timed such that existing hydrocarbon assets are not compromised. Detailed characterisation focussed on the Kingfish Field area as the first site to be potentially used, in the anticipation that this oil field will be depleted within the period 2015–25. The potential injection targets are the interbedded sandstones, shales and coals of the Paleocene-Eocene upper Latrobe Group, regionally sealed by the Lakes Entrance Formation. The research identified several features to the offshore Gippsland Basin that make it particularly favourable for CO2 storage. These include: a complex stratigraphic architecture that provides baffles which slow vertical migration and increase residual gas trapping; non-reactive reservoir units that have high injectivity; a thin, suitably reactive, low permeability marginal reservoir just below the regional seal providing additional mineral trapping; several depleted oil fields that provide storage capacity coupled with a transient flow regime arising from production that enhances containment; and, long migration pathways beneath a competent regional seal. This study has shown that the Gippsland Basin has sufficient capacity to store very large volumes of CO2. It may provide a solution to the problem of substantially reducing greenhouse gas emissions from the use of new coal developments in the Latrobe Valley.