The Neogene Guantao formation in the Beitang sag in the Bohai Bay Basin (BBB) of North China, a Mesozoic–Cenozoic sedimentary basin of continental origin, has been chosen as a candidate for a pilot field test of CO₂ sequestration. Hydrogeological and geochemical investigations have been carried out to assess its suitability, taking advantage of many existing geothermal wells drilled to 2000 m or greater depths. Water samples from 25 wells and drill cores of three sections of the Guantao formation were collected for measurements of mineralogy, water chemistry and isotopes (δ¹⁸O, δD, δ¹³C, ¹⁴C). Formation temperature estimated by chemical geothermometry is in the range of 60–80 °C. Geochemical modeling of water–rock–CO₂ interaction predicts a strong geochemical response to CO₂ injection. Besides the elevated porosity (33.6–38.7%) and high permeability (1150–1980 mD) of the Ng-III formation and a favorable reservoir–caprock combination, it is also found that the formation contains carbonates that will react with CO₂ after injection. The low salinity (TDS < 1.6 g/L) offers high CO₂ solubility. The ¹⁴C age of the formation water indicates a quasi-closed saline aquifer system over large time scales, the lateral sealing mechanism for CO₂ sequestration requires further investigation. The CO₂ storage capacity of the Guantao formation within the Beitang sag is estimated to be 17.03 Mt, assuming pure solubility trapping.