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Researched by Industrial Info Resources (Sugar Land, Texas)--Last week, liquefied natural gas (LNG) producer Venture Global LNG (Arlington, Virginia) became the latest oil and gas company to tout its plans for carbon capture and sequestration (CCS). The company says it plans to capture the carbon from its Calcasieu Pass and Plaquemines LNG facilities in Louisiana and inject it in saline aquifers, where it will be permanently stored. The move represents a growing trend by oil and gas and power companies to appease stakeholders and, perhaps, make their product more marketable.
Venture Global says it plans to capture and sequester 500,000 tons of carbon per year from the two liquefaction sites and that the technology deployed at Calcasieu Pass "would be the first of its kind for an existing LNG facility in the United States." If you subscribe to Industrial Info's Global Market Intelligence (GMI) Production database, click here to see the project reports for the Plaquemines and Calcasieu Pass facilities.
Canada's Pieridae Energy Limited (TSX:PEA) (Calgary, Alberta) also recently announced that it will deploy CCS technology at its natural gas processing facility in Caroline, Alberta. Click here for the plant profile.
Shane Mullins, Industrial Info's vice president of product development, recently said that deploying lower-carbon technologies at U.S. LNG sites may make its products more attractive on the global market, especially in Europe. "One of the key shifts will be that U.S. developers will have to be able to offer more carbon-neutral LNG cargos to rely on the European market, which accounts for about 50% of U.S. LNG demand," he said. For more information, see May 25, 2021, article - After Woodside's Pullout from Canadian LNG Project, What North American Projects are Left?
Big Oil recently saw the consequences of what can happen when it is seen as not addressing climate issues adequately,, when shareholders of Exxon Mobil Corporation (NYSE:XOM) (Irving, Texas) ousted two members of the company's board and put in more environmentally minded members.
This comes despite ExxonMobil Chief Executive Officer Darren Woods' advocating for a giant carbon capture project in the Houston Ship Channel area in Texas. For more information, see May 3, 2021, article - ExxonMobil Pinpoints Houston Ship Channel for Massive Carbon Capture and Storage Hub. "As currently envisioned, the project could capture 50 million metric tons of CO2 per year by 2030 and twice that by 2040," said Woods. However, the project's scale may seem a little too grandiose, with an estimated cost of at least $100 billion and requiring at least some government funding to see the light of day.
Taking a more down-to-earth approach to CCS is Valero Energy Incorporated (NYSE:VLO) (San Antonio, Texas). In March, Valero's board added a stipulation to Chief Executive Officer Joe Gorder's compensation package connecting a portion of his pay to the company's meeting targets related to cutting emissions and investing in low-carbon ventures. In addition to its renewable diesel initiatives (Valero is one of the biggest renewable diesel producers in North America), the company has partnered with Navigator Energy Services (Dallas, Texas) and investment firm BlackRock Incorporated (NYSE:BLK) in a carbon capture system that will span five states in the Midwest. The system will move carbon from some of Valero's ethanol plants and other facilities along a 1,200-mile pipeline system to a storage site that is likely to be in southern Illinois. If you subscribe to Industrial Info's Global Market Intelligence Pipelines and Terminals database, click here to see the project reports.
Part of the slow development of CCS projects is their prohibitive cost, but this may be changing. Big Oil continues to pour funds into CCS research to make it more feasible and bring down costs. According to E&E News, the National Energy Technology Laboratory (NETL) (Albany, Oregon), a part of the U.S. Department of Energy, is partnering with various entities including Technology Center Mongstad (Mongstad, Norway). Mongstad is an industrial site with an oil refinery and power plant that have been modified to capture carbon-dioxide emissions. NETL is testing four carbon capture processes there.
SRI International (Menlo Park, California) is about to begin testing a process in Mongstad that can operate at room temperature while not contributing chemical emissions to the smokestacks. If the device is satisfactory, a full-scale version will be installed at a coal-fired plant in Urbana, Illinois.
The Department of Energy last year announced it would provide $72 million in funding for research and development on ways to reduce emissions, including $51 million for research and development and engineering-scale testing of carbon-capture at nine U.S. industrial sites, including oil and gas production sites, power plants, steel mills and cement plants, and $21 million for novel research and development of the capture of carbon dioxide directly from the atmosphere, known as "direct air capture." For more information, see September 14, 2020, article - U.S. Department of Energy Invests in Carbon-Capture Technologies.
In addition, Congress is taking action, where two bills involving carbon capture were introduced last week. One bill would make the Q45 tax credits for CCS facilities available to new types of projects and boost the credit levels available. The other bill, the Carbon Capture Improvement Act, would permit businesses to use private activity bonds, to which local and state governments have access, in order to finance a carbon capture project. Another bill introduced earlier, the Storing CO2 And Lowering Emissions (SCALE) Act, would help support the buildout of more CCS infrastructure of the type being proposed by ExxonMobil.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
Venture Global says it plans to capture and sequester 500,000 tons of carbon per year from the two liquefaction sites and that the technology deployed at Calcasieu Pass "would be the first of its kind for an existing LNG facility in the United States." If you subscribe to Industrial Info's Global Market Intelligence (GMI) Production database, click here to see the project reports for the Plaquemines and Calcasieu Pass facilities.
Canada's Pieridae Energy Limited (TSX:PEA) (Calgary, Alberta) also recently announced that it will deploy CCS technology at its natural gas processing facility in Caroline, Alberta. Click here for the plant profile.
Shane Mullins, Industrial Info's vice president of product development, recently said that deploying lower-carbon technologies at U.S. LNG sites may make its products more attractive on the global market, especially in Europe. "One of the key shifts will be that U.S. developers will have to be able to offer more carbon-neutral LNG cargos to rely on the European market, which accounts for about 50% of U.S. LNG demand," he said. For more information, see May 25, 2021, article - After Woodside's Pullout from Canadian LNG Project, What North American Projects are Left?
Big Oil recently saw the consequences of what can happen when it is seen as not addressing climate issues adequately,, when shareholders of Exxon Mobil Corporation (NYSE:XOM) (Irving, Texas) ousted two members of the company's board and put in more environmentally minded members.
This comes despite ExxonMobil Chief Executive Officer Darren Woods' advocating for a giant carbon capture project in the Houston Ship Channel area in Texas. For more information, see May 3, 2021, article - ExxonMobil Pinpoints Houston Ship Channel for Massive Carbon Capture and Storage Hub. "As currently envisioned, the project could capture 50 million metric tons of CO2 per year by 2030 and twice that by 2040," said Woods. However, the project's scale may seem a little too grandiose, with an estimated cost of at least $100 billion and requiring at least some government funding to see the light of day.
Taking a more down-to-earth approach to CCS is Valero Energy Incorporated (NYSE:VLO) (San Antonio, Texas). In March, Valero's board added a stipulation to Chief Executive Officer Joe Gorder's compensation package connecting a portion of his pay to the company's meeting targets related to cutting emissions and investing in low-carbon ventures. In addition to its renewable diesel initiatives (Valero is one of the biggest renewable diesel producers in North America), the company has partnered with Navigator Energy Services (Dallas, Texas) and investment firm BlackRock Incorporated (NYSE:BLK) in a carbon capture system that will span five states in the Midwest. The system will move carbon from some of Valero's ethanol plants and other facilities along a 1,200-mile pipeline system to a storage site that is likely to be in southern Illinois. If you subscribe to Industrial Info's Global Market Intelligence Pipelines and Terminals database, click here to see the project reports.
Part of the slow development of CCS projects is their prohibitive cost, but this may be changing. Big Oil continues to pour funds into CCS research to make it more feasible and bring down costs. According to E&E News, the National Energy Technology Laboratory (NETL) (Albany, Oregon), a part of the U.S. Department of Energy, is partnering with various entities including Technology Center Mongstad (Mongstad, Norway). Mongstad is an industrial site with an oil refinery and power plant that have been modified to capture carbon-dioxide emissions. NETL is testing four carbon capture processes there.
SRI International (Menlo Park, California) is about to begin testing a process in Mongstad that can operate at room temperature while not contributing chemical emissions to the smokestacks. If the device is satisfactory, a full-scale version will be installed at a coal-fired plant in Urbana, Illinois.
The Department of Energy last year announced it would provide $72 million in funding for research and development on ways to reduce emissions, including $51 million for research and development and engineering-scale testing of carbon-capture at nine U.S. industrial sites, including oil and gas production sites, power plants, steel mills and cement plants, and $21 million for novel research and development of the capture of carbon dioxide directly from the atmosphere, known as "direct air capture." For more information, see September 14, 2020, article - U.S. Department of Energy Invests in Carbon-Capture Technologies.
In addition, Congress is taking action, where two bills involving carbon capture were introduced last week. One bill would make the Q45 tax credits for CCS facilities available to new types of projects and boost the credit levels available. The other bill, the Carbon Capture Improvement Act, would permit businesses to use private activity bonds, to which local and state governments have access, in order to finance a carbon capture project. Another bill introduced earlier, the Storing CO2 And Lowering Emissions (SCALE) Act, would help support the buildout of more CCS infrastructure of the type being proposed by ExxonMobil.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
