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Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--U.S. LNG developer NextDecade Corporation (NASDAQ:NEXT) (Houston, Texas) said it was withdrawing an application for a carbon sequestration facility at a planned Texas plant for liquefied natural gas (LNG) exports due to a lack of development.
NextDecade is building its Rio Grande facility for LNG near the Brownsville shipping channel on the Texas Gulf Coast. Its lease includes 15,000 feet of frontage on the channel, and it is permitted for as much as 1.3 billion cubic feet (Bcf) of LNG exports per year.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Project and Plant databases can learn more from a detailed plant profile and click here for a list of related project reports.
The company said Tuesday it was withdrawing its application at the Federal Energy Regulatory Commission (FERC) for carbon capture and storage (CCS) at Rio Grande.
"The CCS project at (Rio Grande) is not sufficiently developed to allow FERC review to continue at this time," CEO Matt Schatzman said. "We remain committed to advancing and lowering the cost of utilizing carbon capture and storage and helping companies reduce their facility emissions and achieving their clean energy goals."
NextDecade proposed the CCS facility in 2021, aiming to cut its carbon dioxide emissions at Rio Grande by more than 90%. Though cleaner than other fossil fuels, critics argue that LNG is still a polluting fossil fuel, with a carbon footprint along the entire supply chain far greater than cleaner sources of energy such as wind power.
Pulling the application follows a decision at the D.C. Circuit Court of Appeals that overturned FERC's approval of the entire facility due to a lack of a suitable environmental impact statement.
"If the ruling stands, the precedent that would be set by the Court's action has the potential to impact viability of all federally permitted infrastructure projects because it will be difficult for these projects to attract capital investments until they receive final unappealable permits," Schatzman said August 14.
The Paris-based International Energy Agency (IEA) finds there are about 50 or so carbon sequestration facilities in operation around the world. The industry is picking up, the IEA said, but the amount of carbon that's expected to be captured to 2030 is about 40% of what's needed to decarbonize the economy.
As of June, NextDecade said the first two liquefaction facilities -- or trains -- are 24.1% complete, though only 3.5% of the actual construction was finished. The third train was 7.4% complete, in line with expectations, though almost no construction work has started.
The company expects to make a final investment decision (FID) on a fourth train by the end of the year. Engineering, procurement and construction contracts for a fifth train would follow the FID.
TotalEnergies SE (NYSE:TTE) (Courbevoie, France) already has offtake agreements associated with the volumes expected from the fourth train. Bechtel (Reston, Virginia) is supporting the project's development.
Supported by the vast natural gas deposits in the shale basins in the Lower 48 states, the United States is the world leader in LNG exports by far, while the European Union (EU) is the largest importer, beating out both China and Japan. France was the largest importer of LNG in the bloc during the second quarter, with 22% of total imports.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
NextDecade is building its Rio Grande facility for LNG near the Brownsville shipping channel on the Texas Gulf Coast. Its lease includes 15,000 feet of frontage on the channel, and it is permitted for as much as 1.3 billion cubic feet (Bcf) of LNG exports per year.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Project and Plant databases can learn more from a detailed plant profile and click here for a list of related project reports.
The company said Tuesday it was withdrawing its application at the Federal Energy Regulatory Commission (FERC) for carbon capture and storage (CCS) at Rio Grande.
"The CCS project at (Rio Grande) is not sufficiently developed to allow FERC review to continue at this time," CEO Matt Schatzman said. "We remain committed to advancing and lowering the cost of utilizing carbon capture and storage and helping companies reduce their facility emissions and achieving their clean energy goals."
NextDecade proposed the CCS facility in 2021, aiming to cut its carbon dioxide emissions at Rio Grande by more than 90%. Though cleaner than other fossil fuels, critics argue that LNG is still a polluting fossil fuel, with a carbon footprint along the entire supply chain far greater than cleaner sources of energy such as wind power.
Pulling the application follows a decision at the D.C. Circuit Court of Appeals that overturned FERC's approval of the entire facility due to a lack of a suitable environmental impact statement.
"If the ruling stands, the precedent that would be set by the Court's action has the potential to impact viability of all federally permitted infrastructure projects because it will be difficult for these projects to attract capital investments until they receive final unappealable permits," Schatzman said August 14.
The Paris-based International Energy Agency (IEA) finds there are about 50 or so carbon sequestration facilities in operation around the world. The industry is picking up, the IEA said, but the amount of carbon that's expected to be captured to 2030 is about 40% of what's needed to decarbonize the economy.
As of June, NextDecade said the first two liquefaction facilities -- or trains -- are 24.1% complete, though only 3.5% of the actual construction was finished. The third train was 7.4% complete, in line with expectations, though almost no construction work has started.
The company expects to make a final investment decision (FID) on a fourth train by the end of the year. Engineering, procurement and construction contracts for a fifth train would follow the FID.
TotalEnergies SE (NYSE:TTE) (Courbevoie, France) already has offtake agreements associated with the volumes expected from the fourth train. Bechtel (Reston, Virginia) is supporting the project's development.
Supported by the vast natural gas deposits in the shale basins in the Lower 48 states, the United States is the world leader in LNG exports by far, while the European Union (EU) is the largest importer, beating out both China and Japan. France was the largest importer of LNG in the bloc during the second quarter, with 22% of total imports.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
