Released August 10, 2011 | SUGAR LAND
en
Written by John Egan for Industrial Info Resources (Sugar Land, Texas)--Carbon capture and sequestration (CCS) projects in Texas and Saskatchewan, Canada, moved forward last month. SaskPower awarded a $30 million contract to Stantec (NYSE:STN) (Edmonton, Calgary) for engineering and consulting services at the $500 million Boundary Dam Power Station Life Extension and Carbon Capture Project. The project, which began construction in April, includes rebuilding an existing coal-fired unit and equipping it with a carbon-capture system that will capture an estimated 1 million metric tons of CO2 per year when it is fully operational in 2014. The rebuilt unit will have a generating capacity of 150 megawatts (MW). SaskPower is the electric utility serving the province of Saskatchewan.
CO2 captured at the Boundary Dam CCS project will be sold for enhanced oil recovery (EOR) operations. Sulfur dioxide (SO2) also will be captured and sold to manufacturers of sulfuric acid, SaskPower said. Stantec will complete a significant amount of design work and ensure that work performed by others is completed in accordance with engineering, construction and procurement contracts, the utility added in announcing the contract July 13.
"We are proud to have one of the world's leading engineering firms involved in a project that will help build a greener future for Saskatchewan, Canada and the world," said Rob Norris, the minister responsible for SaskPower. "This is an important example of the public and private sectors working together to move Saskatchewan's innovation agenda forward."
Meanwhile, about 1,300 miles south in Penwell, Texas, an oil company signed a 15-year contract to receive CO2 from an integrated gasification combined-cycle (IGCC) project equipped with CCS. In late July, Whiting Petroleum Corporation (NYSE:WLL) (Denver, Colorado) contracted to take CO2 from the $2.2 billion, 400-MW Texas Clean Energy Project (TCEP) being developed by Summit Power Group LLC (Bainbridge Island, Washington). Blue Strategies LLC (Houston, Texas) is working with Summit Power on the capture, compression and transportation of the CO2. Fluor Corporation (NYSE:FLR) (Irving, Texas) will provide engineering and construction services to TCEP.
The IGCC project will capture 90% of the carbon dioxide, 99% of the sulfur, more than 95% of the mercury, and eliminate more than 90% of the nitrogen oxides produced by TCEP. The project received its final air quality permit last December. The developers claim the TCEP will be the cleanest coal-fueled power plant ever permitted in Texas.
Construction of the Texas IGCC project is scheduled to begin later this year. It is scheduled to begin operating in 2014 or 2015. Under the contract announced July 20, Whiting will purchase 80 million cubic feet of compressed CO2 per day during the generator's first five years of operation. After the fifth year, the contracted amount is scheduled to decline, though Whiting has an option to increase it. The agreement covers about 60% of TCEP's total volume of captured CO2. Whiting will use the gas in an EOR project in the Permian Basin.
"We are extremely pleased to be the first oil producer in West Texas to start using manmade CO2 from coal for enhanced oil recovery," Whiting chief executive James Volker said in a statement. "This shift from (using) geologic to manmade CO2 in the oil fields is a significant step forward for both the power industry and the oil industry. We are proud to be affiliated with this project." The CO2 from TCEP will increase's Whiting Permian Basin oil production by an estimated 13,000 barrels per day.
Donald Hodel, Chairman of Summit Power, added: "This is another important milestone for the Texas Clean Energy Project, coming on the heels of last month's power purchase announcement with CPS Energy in San Antonio. We now have sales commitments in place for all three of TCEP's main commercial products--electric power, urea for fertilizer, and CO2 for enhanced oil recovery--and that is obviously key to getting this project under way."
Blue Strategies' executive vice president Russell Martin said that the agreement with Whiting is the first of several off-take agreements TCEP expects to sign.
TCEP received a $450 million award in 2010 from the U.S. Department of Energy's Clean Coal Power Initiative (CCPI). Construction of a $35 million sulfuric acid recovery unit addition at the IGCC facility is scheduled to kick off later this year.
The Sask Power and TCEP announcements came as one CCS pilot project was launched in Alabama and another one, scheduled to be built in West Virginia, was cancelled. The Southern Company (NYSE:SO) (Atlanta, Georgia) began capturing CO2 at its James M. Barry Power Station. For more information on that issue, see the August 4, 2011, article - Southern Company CCS Pilot Project Begins Operating at Barry Power Station. Meanwhile, American Electric Power Company (NYSE:AEP) (Columbus, Ohio) terminated construction of its commercial-scale CCS project at the Mountaineer Power Station in New Haven, West Virginia. For more on that issue, see the July 18, 2011, article - AEP Terminates Commercial-Scale CCS Project in West Virginia.
View Plant Report - 2003136 1079967 1006575 1013868
View Project Report - 55000460 1012503 300023848 24001398
Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. IIR'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.
CO2 captured at the Boundary Dam CCS project will be sold for enhanced oil recovery (EOR) operations. Sulfur dioxide (SO2) also will be captured and sold to manufacturers of sulfuric acid, SaskPower said. Stantec will complete a significant amount of design work and ensure that work performed by others is completed in accordance with engineering, construction and procurement contracts, the utility added in announcing the contract July 13.
"We are proud to have one of the world's leading engineering firms involved in a project that will help build a greener future for Saskatchewan, Canada and the world," said Rob Norris, the minister responsible for SaskPower. "This is an important example of the public and private sectors working together to move Saskatchewan's innovation agenda forward."
Meanwhile, about 1,300 miles south in Penwell, Texas, an oil company signed a 15-year contract to receive CO2 from an integrated gasification combined-cycle (IGCC) project equipped with CCS. In late July, Whiting Petroleum Corporation (NYSE:WLL) (Denver, Colorado) contracted to take CO2 from the $2.2 billion, 400-MW Texas Clean Energy Project (TCEP) being developed by Summit Power Group LLC (Bainbridge Island, Washington). Blue Strategies LLC (Houston, Texas) is working with Summit Power on the capture, compression and transportation of the CO2. Fluor Corporation (NYSE:FLR) (Irving, Texas) will provide engineering and construction services to TCEP.
The IGCC project will capture 90% of the carbon dioxide, 99% of the sulfur, more than 95% of the mercury, and eliminate more than 90% of the nitrogen oxides produced by TCEP. The project received its final air quality permit last December. The developers claim the TCEP will be the cleanest coal-fueled power plant ever permitted in Texas.
Construction of the Texas IGCC project is scheduled to begin later this year. It is scheduled to begin operating in 2014 or 2015. Under the contract announced July 20, Whiting will purchase 80 million cubic feet of compressed CO2 per day during the generator's first five years of operation. After the fifth year, the contracted amount is scheduled to decline, though Whiting has an option to increase it. The agreement covers about 60% of TCEP's total volume of captured CO2. Whiting will use the gas in an EOR project in the Permian Basin.
"We are extremely pleased to be the first oil producer in West Texas to start using manmade CO2 from coal for enhanced oil recovery," Whiting chief executive James Volker said in a statement. "This shift from (using) geologic to manmade CO2 in the oil fields is a significant step forward for both the power industry and the oil industry. We are proud to be affiliated with this project." The CO2 from TCEP will increase's Whiting Permian Basin oil production by an estimated 13,000 barrels per day.
Donald Hodel, Chairman of Summit Power, added: "This is another important milestone for the Texas Clean Energy Project, coming on the heels of last month's power purchase announcement with CPS Energy in San Antonio. We now have sales commitments in place for all three of TCEP's main commercial products--electric power, urea for fertilizer, and CO2 for enhanced oil recovery--and that is obviously key to getting this project under way."
Blue Strategies' executive vice president Russell Martin said that the agreement with Whiting is the first of several off-take agreements TCEP expects to sign.
TCEP received a $450 million award in 2010 from the U.S. Department of Energy's Clean Coal Power Initiative (CCPI). Construction of a $35 million sulfuric acid recovery unit addition at the IGCC facility is scheduled to kick off later this year.
The Sask Power and TCEP announcements came as one CCS pilot project was launched in Alabama and another one, scheduled to be built in West Virginia, was cancelled. The Southern Company (NYSE:SO) (Atlanta, Georgia) began capturing CO2 at its James M. Barry Power Station. For more information on that issue, see the August 4, 2011, article - Southern Company CCS Pilot Project Begins Operating at Barry Power Station. Meanwhile, American Electric Power Company (NYSE:AEP) (Columbus, Ohio) terminated construction of its commercial-scale CCS project at the Mountaineer Power Station in New Haven, West Virginia. For more on that issue, see the July 18, 2011, article - AEP Terminates Commercial-Scale CCS Project in West Virginia.
View Plant Report - 2003136 1079967 1006575 1013868
View Project Report - 55000460 1012503 300023848 24001398
Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. IIR'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.
