Mid-Term Outlook: Carbon Capture Hubs, Pipelines Gain Traction

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Researched by Industrial Info Resources (Sugar Land, Texas)--Carbon capture and storage (CCS) hub and pipeline projects are popping up in various parts of the U.S. and Canada as industries seek to achieve net zero carbon emissions, according to Shane Mullins, Industrial Info's vice president of product development for the energy markets.

Speaking to attendees at last week's Industrial Info's Mid-Year U.S. & Canada Industrial Market Outlook event, Mullins said the bulk of development in the near term will be for ethanol plants that are mostly located in the Midwest. But numerous carbon-capture hub projects are in development in the Permian Basin, the Gulf Coast and in Canada. More than 120 active projects, worth $62 billion, are in development, he said.

Click on the image at right for a list of some of the CCS infrastructure projects tracked by Industrial Info.

Already, 4,900 miles of planned carbon-capture pipelines could add to the 6,000 miles in operation, Mullins said. An expansion of federal CCS tax credits could lead to 30,000 to 65,000 miles of pipeline development by 2030.

Valero Energy Corporation (NYSE:VLO) (San Antonio, Texas) and BlackRock Global Energy & Power Infrastructure Fund III--part of BlackRock, Incorporated (NYSE:BLK) (New York, New York)--have partnered with Navigator Energy Services (Dallas, Texas) to develop an industrial-scale carbon-capture pipeline system, with the initial phase expected to span more than 1,200 miles of new carbon dioxide gathering and transportation pipelines across five Midwest states.

The system will be able to store up to 5 million metric tons of carbon dioxide per year. Pending third-party customer feedback, the system could be expanded to transport and sequester up to 8 million metric tons of carbon dioxide per year. Valero is expected to become an anchor shipper by securing a majority of the initial available system capacity. Navigator is expected to lead the construction and operations of the system. Subscribers to Industrial Info's Global Market Intelligence (GMI) Terminals Project Database can click here for a list of detailed project reports. For related information, see April 28, 2022, article - Valero, Occidental Face New Pressure on Carbon Emissions, CCS.

Venture Global LNG (Arlington, Virginia) announced plans last year to capture and sequester carbon at its Calcasieu Pass and Plaquemines liquefied natural gas (LNG) facilities in Louisiana. The project involves compressing carbon dioxide at its sites, then transporting the gas and injecting it into subsurface saline aquifers, where it will be permanently stored. Venture Global anticipates capturing and sequestering an estimated 500,000 tons of carbon per year from its Calcasieu Pass and Plaquemines liquefaction sites. Subscribers can click here for related project reports.

Industrial Info Resources (IIR) is the world's leading provider of market intelligence across the upstream, midstream and downstream energy markets and all other major industrial markets. IIR's Global Market Intelligence Platform (GMI) supports our end-users across their core businesses, and helps them connect trends across multiple markets with access to real, qualified and validated project opportunities. Follow IIR on: LinkedIn.