The U.S. Department of Energy is awarding the University of Utah nearly $2.7 million to research capture and sequestration of carbon dioxide.

Energy officials say the money will be used to capture more than 1 million tons of CO2 from industrial sources. It will be then transported in pipelines to Kansas to enhance oil recovery and be sequestered under ground.

The project is one of 12 announced by U.S. Energy Secretary Steven Chu. The funding is coming from $1.4 billion in stimulus funds set aside for three phases of carbon capture and storage projects. Projects for the second and third phases haven't been announced.