The Carbon Corner - Issue #54
As the world navigates the complex path towards a more sustainable energy future, CCS stands out as a valuable tool for mitigating carbon emissions without sacrificing critical industries. In this week's edition of The Carbon Corner, we'll explore projects like the one undertaken by ADNOC Gas and the growing global recognition of CCS. Enjoy the read!
New Carbon Capture and Storage Site in Permian Basin Promises Cleaner Energy and Competitive AdvantageMilestone Carbon, an environmental company, is set to establish a 10,000-acre carbon capture and storage site in the Permian Basin by 2025, located in Midland and Upton counties. The goal is to mitigate carbon emissions by capturing and storing carbon that would otherwise be released into the atmosphere. Instead of using trucks for transportation, the captured carbon will be transported through a pipeline system, making the process more efficient and environmentally friendly. This initiative aims to improve the competitiveness of oil and gas produced in the Permian Basin on the international stage by reducing its carbon footprint. Unlike some carbon capture sites that reuse captured carbon, this one will focus on permanent disposal. The captured carbon will be compressed into a liquid form and injected into the ground, leveraging favorable geological conditions for safe and long-term storage. The Permian Basin's advantageous geology, existing infrastructure, and supportive landowners make it an ideal location for such endeavors. The presence of pipelines and close proximity to facilities further streamlines the infrastructure requirements. US Department of Energy Allocates $27 Million to Support Carbon Transport for Emission Reduction GoalsThe US Department of Energy’s Office of Fossil Energy and Carbon Management has revealed a significant funding initiative, making up to $27 million available to support the transportation of carbon dioxide (CO2) captured from industrial and power generation facilities, including legacy CO2 emissions directly extracted from the atmosphere. This financial backing is intended to facilitate the transport of CO2 using various modes, such as pipelines, rail, trucks, barges, or ships, with the aim of promoting the development of a large-scale carbon storage industry. Brad Crabtree, assistant secretary of fossil energy and carbon management, stressed the importance of capturing and permanently storing substantial quantities of CO2 to achieve the Biden administration's decarbonization goals. He highlighted that this endeavor would necessitate a significant expansion of the transport infrastructure, benefiting both the carbon management industry and the creation of high-wage jobs nationwide. A vital component of this effort involves establishing a CO2 transport network that connects emission sources like industrial facilities and power plants to suitable geological formations for secure underground storage or to locations where it can be used in the production of fuels, chemicals, building materials, and other products. The funding opportunity announcement specifically supports front-end engineering and design (FEED) studies for regional CO2 transport networks. These studies will focus on aspects like transport costs, network configurations, and technical and commercial considerations, all crucial for advancing carbon capture, conversion, and storage at a commercial scale. Each FEED study is eligible for funding of up to $3 million. Controversy Surrounds Carbon Capture and Storage (CCS) Adoption by Fossil Fuel Companies in LouisianaLouisiana's efforts to reduce climate-warming pollution, primarily from industrial sources, have led to the adoption of carbon capture and storage (CCS) by fossil fuel companies, despite criticisms of its effectiveness. These companies have lobbied for lawmakers to fund CCS technology, raising concerns of "greenwashing" where it may not substantially reduce overall emissions. Venture Global, a major liquefied natural gas (LNG) exporter, initially deemed CCS technically challenging and economically unfeasible for their facilities. However, their stance changed once Congress introduced carbon capture subsidies through the Inflation Reduction Act, making CCS more economically viable. Critics argue that CCS remains speculative and may not offset the energy-intensive process of carbon capture effectively, leading to concerns about its practicality. Moreover, CCS has not been demonstrated on natural-gas turbines like those used in LNG terminals. Despite technological challenges, LNG companies like Venture Global have promoted CCS for environmental benefits, raising questions about its suitability for facilities with low carbon dioxide exhaust percentages. Petrofac Secures $600 Million Contract for ADNOC's Habshan Carbon Capture and Storage ProjectPetrofac, a UK oil services company, has secured a contract worth over $600 million from ADNOC Gas for the Habshan carbon capture and storage (CCS) project. This move aligns with ADNOC's commitment to decarbonization. Energy producers worldwide view CCS technology as crucial in reducing emissions while maintaining oil and gas production. Countries are increasingly emphasizing cleaner fuels, prompting investment in such technologies. The engineering, procurement, and construction contract awarded by ADNOC Gas represents a significant opportunity for Petrofac, particularly after the company reported a half-yearly loss in August, partly due to subdued activity in its largest engineering and construction unit. The contract with ADNOC includes the delivery of carbon capture units, pipeline infrastructure, and a network of wells for carbon dioxide recovery and injection, as outlined in Petrofac's statement. Schaper Energy Consulting is a professional engineering firm offering carbon strategy services to CCS site developers. Check out some examples of our projects here: https://schaperintl.com/carbon-strategies/ If you have questions or comments, please contact us at info@schaperintl.com. We hope you enjoyed reading this week and hope to see you back next week for more! |
Schaper Energy Consulting
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